Minnesota Legislature
SF 1908
2nd Unofficial Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to the operation of state services; 1.3 appropriating money for the operation of the 1.4 departments of human services and health, the veterans 1.5 home board, the health related boards, the disability 1.6 council, the ombudsman for families, and the ombudsman 1.7 for mental health and mental retardation; changing 1.8 health department provisions; changing long-term care 1.9 facilities provisions; changing health care program 1.10 provisions; changing children's programs; changing 1.11 child support enforcement provisions; continuing care 1.12 for disabled persons; creating a demonstration project 1.13 for persons with disabilities; changing miscellaneous 1.14 provisions; changing marriage provisions; including 1.15 provisions for agency management; children's programs; 1.16 basic health care programs; medical assistance and 1.17 general assistance medical care; long-term care; 1.18 state-operated services; mental health and 1.19 developmentally disabled; child support enforcement; 1.20 assistance to families; health department; imposing 1.21 civil penalties; amending Minnesota Statutes 1996, 1.22 sections 13.46, subdivision 2; 13.99, by adding a 1.23 subdivision; 16A.124, subdivision 4b; 62D.04, 1.24 subdivision 5; 62E.14, by adding a subdivision; 1.25 62J.69, subdivision 2; 62N.10, subdivision 4; 1.26 103I.101, subdivision 6; 103I.208; 103I.401, 1.27 subdivision 1; 144.0721, subdivision 3; 144.121, 1.28 subdivision 1, and by adding subdivisions; 144.125; 1.29 144.226, subdivision 1, and by adding a subdivision; 1.30 144.394; 144.767, subdivision 1; 144A.071, 1.31 subdivisions 1, 2, and 4a; 144A.073, subdivision 2, 1.32 and by adding a subdivision; 145.925, subdivision 9; 1.33 151.40; 153A.17; 157.16, subdivision 3; 245.03, 1.34 subdivision 2; 245.4882, subdivision 5; 245.493, 1.35 subdivision 1, and by adding a subdivision; 245.652, 1.36 subdivisions 1, 2, and 4; 246.0135; 246.02, 1.37 subdivision 2; 252.025, subdivisions 1, 4, and by 1.38 adding a subdivision; 252.32, subdivisions 1a, 3, 3a, 1.39 3c, and 5; 254.04; 254B.02, subdivisions 1 and 3; 1.40 254B.03, subdivision 1; 254B.09, subdivisions 4, 5, 1.41 and 7; 256.01, subdivision 2, and by adding a 1.42 subdivision; 256.025, subdivisions 1 and 2; 256.045, 1.43 subdivisions 3, 3b, 4, 5, 7, and 8; 256.476, 1.44 subdivisions 2, 3, 4, and 5; 256.82, by adding a 1.45 subdivision; 256.87, subdivisions 1, 1a, 3, 5, and by 1.46 adding a subdivision; 256.9363, subdivision 7; 2.1 256.969, subdivision 1; 256.9695, subdivision 1; 2.2 256.9742; 256.9744, subdivision 2; 256.978, 2.3 subdivisions 1 and 2; 256.9792, subdivisions 1 and 2; 2.4 256.998, subdivisions 1, 6, 7, and by adding 2.5 subdivisions; 256B.037, subdivision 1a; 256B.04, by 2.6 adding a subdivision; 256B.055, subdivision 12; 2.7 256B.056, subdivisions 4 and 5; 256B.057, subdivisions 2.8 1, 1b, and 2; 256B.0625, subdivisions 14, 15, and by 2.9 adding a subdivision; 256B.0626; 256B.0627, 2.10 subdivision 5; 256B.064, subdivisions 1a, 1c, and 2; 2.11 256B.0911, subdivision 7; 256B.0913, subdivisions 7, 2.12 10, and 15; 256B.0915, subdivision 1b and by adding a 2.13 subdivision; 256B.0917, subdivisions 7 and 8; 2.14 256B.421, subdivision 1; 256B.431, subdivisions 3f, 2.15 25, and by adding subdivisions; 256B.434, subdivision 2.16 3; 256B.49, subdivision 1; 256B.69, subdivisions 2, 2.17 3a, 4, 5, 5b, 6, and by adding subdivisions; 256D.03, 2.18 subdivisions 3 and 3b; 256E.06, by adding a 2.19 subdivision; 256F.04, subdivisions 1 and 2; 256F.05, 2.20 subdivisions 2, 3, 4, and 8; 256F.06, subdivisions 1 2.21 and 2; 256F.11, subdivision 2; 256G.02, subdivision 6; 2.22 256I.05, subdivision 1a, and by adding a subdivision; 2.23 256J.69, by adding a subdivision; 257.62, subdivisions 2.24 1 and 2; 257.66, subdivision 3, and by adding a 2.25 subdivision; 257.70; 257.75, subdivisions 2, 3, 4, 5, 2.26 and 7; 299C.46, subdivision 3; 326.37, subdivision 1; 2.27 393.07, subdivision 2; 466.01, subdivision 1; 469.155, 2.28 subdivision 4; 471.59, subdivision 11; 508.63; 2.29 508A.63; 517.01; 517.03; 517.08, subdivision 1a; 2.30 517.20; 518.005, by adding a subdivision; 518.10; 2.31 518.148, subdivision 2; 518.17, subdivision 1; 2.32 518.171, subdivisions 1 and 4; 518.54, subdivision 6, 2.33 and by adding a subdivision; 518.551, subdivisions 12 2.34 and 13; 518.5512, by adding subdivisions; 518.616, by 2.35 adding a subdivision; 518.68, subdivision 2; 518C.101; 2.36 518C.204; 518C.205; 518C.207; 518C.301; 518C.304; 2.37 518C.305; 518C.310; 518C.401; 518C.501; 518C.603; 2.38 518C.605; 518C.608; 518C.611; 518C.612; 518C.701; 2.39 548.091, subdivisions 1a, 2a, 3a, and by adding 2.40 subdivisions; 550.37, subdivision 24; 626.556, 2.41 subdivisions 10b, 10d, 10e, 10f, 11c, and by adding a 2.42 subdivision; 626.558, subdivisions 1 and 2; and 2.43 626.559, subdivision 5; Laws 1995, chapter 207, 2.44 article 8, section 41, subdivision 2; and Laws 1997, 2.45 chapter 7, article 1, section 75; proposing coding for 2.46 new law in Minnesota Statutes, chapters 13B; 62J; 144; 2.47 145; 145A; 157; 181; 256; 256B; 257; 325F; 518; and 2.48 518C; proposing coding for new law as Minnesota 2.49 Statutes, chapters 256J and 552; amending 256J.02 as 2.50 proposed in SF1, by adding a subdivision; repealing 2.51 Minnesota Statutes 1996, sections 252.32, subdivision 2.52 4; 256.026; 256.74; 256.979, subdivision 9; 256B.057, 2.53 subdivisions 2a and 2b; 256B.0625, subdivision 13b; 2.54 256B.501, subdivision 5c; 256F.05, subdivisions 5 and 2.55 7; 469.154, subdivision 6; 518.5511, subdivisions 5, 2.56 6, 7, 8, and 9; 518.611; 518.613; 518.645; 518C.502; 2.57 518C.9011; and 609.375, subdivisions 3, 4, and 6. 2.58 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.59 ARTICLE 1 2.60 APPROPRIATIONS 2.61 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 2.62 The sums shown in the columns marked "APPROPRIATIONS" are 2.63 appropriated from the general fund, or any other fund named, to 2.64 the agencies and for the purposes specified in the following 3.1 sections of this article, to be available for the fiscal years 3.2 indicated for each purpose. The figures "1998" and "1999" where 3.3 used in this article, mean that the appropriation or 3.4 appropriations listed under them are available for the fiscal 3.5 year ending June 30, 1998, or June 30, 1999, respectively. 3.6 Where a dollar amount appears in parentheses, it means a 3.7 reduction of an appropriation. 3.8 SUMMARY BY FUND 3.9 APPROPRIATIONS BIENNIAL 3.10 1998 1999 TOTAL 3.11 General $2,550,299,000 $2,738,314,000 $5,288,613,000 3.12 Health Care 3.13 Access -0- -0- -0- 3.14 State Government 3.15 Special Revenue 32,412,000 34,251,000 66,663,000 3.16 Metropolitan 3.17 Landfill Contingency 3.18 Action Fund 193,000 193,000 386,000 3.19 Minnesota Resources 150,000 -0- 150,000 3.20 Trunk Highway 1,652,000 1,678,000 3,300,000 3.21 TOTAL 2,584,706,000 2,774,436,000 5,359,142,000 3.22 APPROPRIATIONS 3.23 Available for the Year 3.24 Ending June 30 3.25 1998 1999 3.26 Sec. 2. COMMISSIONER OF 3.27 HUMAN SERVICES 3.28 Subdivision 1. Total 3.29 Appropriation 2,466,382,000 2,654,862,000 3.30 Summary by Fund 3.31 General 2,465,929,000 2,654,400,000 3.32 Health Care 3.33 Access -0- -0- 3.34 State Government 3.35 Special Revenue 453,000 462,000 3.36 Subd. 2. Agency Management 3.37 General 25,711,000 25,131,000 3.38 Health Care 3.39 Access -0- -0- 3.40 State Government 3.41 Special Revenue 342,000 350,000 3.42 The amounts that may be spent from the 3.43 appropriation for each purpose are as 3.44 follows: 4.1 (a) Financial Operations 4.2 General 8,073,000 7,255,000 4.3 Health Care 4.4 Access -0- -0- 4.5 [RECEIPTS FOR SYSTEMS PROJECTS.] 4.6 Appropriations and federal receipts for 4.7 information system projects for MAXIS, 4.8 electronic benefit system, social 4.9 services information system, child 4.10 support enforcement, and Minnesota 4.11 medicaid information system (MMIS II) 4.12 must be deposited in the state system 4.13 account authorized in Minnesota 4.14 Statutes, section 256.014. Money 4.15 appropriated for computer projects 4.16 approved by the information policy 4.17 office, funded by the legislature, and 4.18 approved by the commissioner of finance 4.19 may be transferred from one project to 4.20 another and from development to 4.21 operations as the commissioner of human 4.22 services considers necessary. Any 4.23 unexpended balance in the appropriation 4.24 for these projects does not cancel but 4.25 is available for ongoing development 4.26 and operations. 4.27 (b) Legal & Regulation Operations 4.28 General 6,158,000 6,146,000 4.29 Health Care 4.30 Access -0- -0- 4.31 State Government 4.32 Special Revenue 342,000 350,000 4.33 [CHILD CARE LICENSING; FIRE MARSHALL 4.34 ASSISTANCE.] Of this amount, $200,000 4.35 for the biennium is for the 4.36 commissioner to add two deputy state 4.37 fire marshall positions in the 4.38 licensing division. These positions 4.39 are to improve the speed of licensing 4.40 child care programs, to provide 4.41 technical assistance to applicants and 4.42 providers regarding fire safety, and to 4.43 improve communication between licensing 4.44 staff and fire officials. The state 4.45 fire marshall shall train and supervise 4.46 the positions. The state fire marshall 4.47 and the department shall develop an 4.48 interagency agreement outlining the 4.49 responsibilities and authorities for 4.50 these positions, and continuation of 4.51 cooperation to inspect programs that 4.52 exceed the resources of these two 4.53 positions. Unexpended funds for fiscal 4.54 year 1998 do not cancel but are 4.55 available to the commissioner for these 4.56 purposes for fiscal year 1999. 4.57 (c) Management Operations 4.58 General 11,480,000 11,730,000 4.59 Health Care 4.60 Access -0- -0- 5.1 [COMMUNICATION COSTS.] The commissioner 5.2 shall continue to operate the 5.3 department of human services 5.4 communication systems account 5.5 established in Laws 1993, First Special 5.6 Session chapter 1, article 1, section 5.7 2, subdivision 2, to manage shared 5.8 communication costs necessary for the 5.9 operation of the programs the 5.10 commissioner supervises. A 5.11 communications account may also be 5.12 established for each regional treatment 5.13 center which operates communication 5.14 systems. Each account shall be used to 5.15 manage shared communication costs 5.16 necessary for the operation of programs 5.17 the commissioner supervises. The 5.18 commissioner may distribute the costs 5.19 of operating and maintaining 5.20 communication systems to participants 5.21 in a manner that reflects actual 5.22 usage. Costs may include acquisition, 5.23 licensing, insurance, maintenance, 5.24 repair, staff time, and other costs as 5.25 determined by the commissioner. 5.26 Nonprofit organizations and state, 5.27 county, and local government agencies 5.28 involved in the operation of programs 5.29 the commissioner supervises may 5.30 participate in the use of the 5.31 department's communication technology 5.32 and share in the cost of operation. 5.33 The commissioner may accept on behalf 5.34 of the state any gift, bequest, devise, 5.35 or personal property of any kind, or 5.36 money tendered to the state for any 5.37 lawful purpose pertaining to the 5.38 communication activities of the 5.39 department. Any money received for 5.40 this purpose must be deposited in the 5.41 department of human services 5.42 communication systems accounts. Money 5.43 collected by the commissioner for the 5.44 use of communication systems must be 5.45 deposited in the state communication 5.46 systems account and is appropriated to 5.47 the commissioner for purposes of this 5.48 section. 5.49 [ISSUANCE OPERATIONS CENTER.] Payments 5.50 to the commissioner from other 5.51 governmental units and private 5.52 enterprises for (1) services performed 5.53 by the issuance operations center, or 5.54 (2) reports generated by the payment 5.55 and eligibility systems must be 5.56 deposited in the state systems account 5.57 authorized in Minnesota Statutes, 5.58 section 256.014. These payments are 5.59 appropriated to the commissioner for 5.60 the operation of the issuance center or 5.61 system, in accordance with Minnesota 5.62 Statutes, section 256.014. 5.63 Subd. 3. Children's Grants 5.64 General 38,027,000 40,527,000 5.65 [GRANT TO PROMOTE COMPLIANCE WITH 5.66 INDIAN CHILD WELFARE ACT.] Of this 6.1 appropriation, $90,000 each year is for 6.2 the commissioner to provide grants 6.3 according to Minnesota Statutes, 6.4 section 257.3571, subdivision 2a, to 6.5 the Indian child welfare defense 6.6 corporation to promote statewide 6.7 compliance with the Indian Child 6.8 Welfare Act. 6.9 [CHILDREN'S MENTAL HEALTH.] Of this 6.10 appropriation, $500,000 in fiscal year 6.11 1998 and $1,000,000 in fiscal year 1999 6.12 is for the commissioner to award grants 6.13 to counties for children's mental 6.14 health services. These grants may be 6.15 used to provide any of the following 6.16 services specified in Minnesota 6.17 Statutes, section 245.4871; family 6.18 community support services under 6.19 subdivision 17; day treatment services 6.20 under subdivision 10; case management 6.21 services under subdivision 3; 6.22 professional home-based family 6.23 treatment under subdivision 31; and 6.24 outpatient services under subdivision 6.25 29. Grant funds must be used to 6.26 provide services according to an 6.27 individual family community support 6.28 plan under Minnesota Statutes, section 6.29 245.4882, subdivision 4, that must be 6.30 developed using a process that respects 6.31 the consumer's identified cultural 6.32 community and enhances consumer 6.33 empowerment. 6.34 In awarding these grants to counties, 6.35 the commissioner shall work with the 6.36 state advisory council on mental health 6.37 to ensure that the process for awarding 6.38 funds addresses the unmet need for 6.39 services under Minnesota Statutes, 6.40 sections 245.487 to 245.4888. The 6.41 commissioner shall also ensure that 6.42 these grant funds are not used to 6.43 replace existing funds, and that these 6.44 grant funds are used to enhance service 6.45 capacity at the community level 6.46 consistent with Minnesota Statutes, 6.47 sections 245.487 to 245.4888. 6.48 Subd. 4. Children's Services Management 6.49 General 3,161,000 3,192,000 6.50 Subd. 5. Basic Health Care Grants 6.51 Summary by Fund 6.52 General 819,924,000 938,440,000 6.53 Health Care 6.54 Access -0- -0- 6.55 The amounts that may be spent from this 6.56 appropriation for each purpose are as 6.57 follows: 6.58 (a) Minnesota Care Grants 6.59 Health Care 6.60 Access -0- -0- 7.1 (b) MA Basic Health Care Grants- 7.2 Families and Children 7.3 General 315,298,000 365,302,000 7.4 (c) MA Basic Health Care Grants- 7.5 Elderly & Disabled 7.6 General 335,659,000 404,346,000 7.7 [PUBLIC HEALTH NURSE ASSESSMENT.] The 7.8 reimbursement for public health nurse 7.9 visits relating to the provision of 7.10 personal care services under Minnesota 7.11 Statutes, sections 256B.0625, 7.12 subdivision 19a, and 256B.0627, is 7.13 $204.36 for the initial assessment 7.14 visit and $102.18 for each reassessment 7.15 visit. 7.16 [SURCHARGE COMPLIANCE.] In the event 7.17 that federal financial participation in 7.18 the Minnesota medical assistance 7.19 program is reduced as a result of a 7.20 determination that Minnesota is out of 7.21 compliance with Public Law Number 7.22 102-234 or its implementing regulations 7.23 or with any other federal law designed 7.24 to restrict provider tax programs or 7.25 intergovernmental transfers, the 7.26 commissioner shall appeal the 7.27 determination to the fullest extent 7.28 permitted by law and may ratably reduce 7.29 all medical assistance and general 7.30 assistance medical care payments to 7.31 providers other than the state of 7.32 Minnesota in order to eliminate any 7.33 shortfall resulting from the reduced 7.34 federal funding. Any amount later 7.35 recovered through the appeals process 7.36 shall be used to reimburse providers 7.37 for any ratable reductions taken. 7.38 (d) General Assistance Medical Care 7.39 General 168,967,000 168,792,000 7.40 Health Care 7.41 Access -0- -0- 7.42 [GAMC AND HEALTH CARE ACCESS FUND.] The 7.43 appropriation from the health care 7.44 access fund for fiscal year 1998 shall 7.45 be used for general assistance medical 7.46 care expenditures for: (1) adults with 7.47 dependent children under 21 whose gross 7.48 family income is equal to or less than 7.49 275 percent of the federal poverty 7.50 guidelines; and (2) adults without 7.51 children with earned income and whose 7.52 family gross income is between 75 7.53 percent of the federal poverty 7.54 guidelines and the amount set by 7.55 Minnesota Statutes, section 256.9354, 7.56 subdivision 5. 7.57 [TUBERCULOSIS COST OF CARE.] Of the 7.58 general fund appropriation, $89,000 for 7.59 the biennium is for the cost of care 7.60 that is required to be paid by the 8.1 commissioner under Minnesota Statutes, 8.2 section 144.4872, to diagnose or treat 8.3 tuberculosis carriers. 8.4 Subd. 6. Basic Health Care Management 8.5 General 23,977,000 24,583,000 8.6 Health Care 8.7 Access -0- -0- 8.8 [CONSUMER-OWNED HOUSING REVOLVING 8.9 ACCOUNT.] Effective the day following 8.10 final enactment, for the fiscal year 8.11 ending June 30, 1997, the commissioner 8.12 of human services may transfer $25,000 8.13 of the appropriation for basic health 8.14 care management to the commissioner of 8.15 the Minnesota housing finance agency to 8.16 establish an account to finance the 8.17 underwriting requirements of the 8.18 federal national mortgage association 8.19 pilot program for persons with 8.20 disabilities. Any unexpended balance 8.21 in this account does not cancel, but is 8.22 available to the commissioner of the 8.23 Minnesota housing finance agency for 8.24 the ongoing purposes of the account. 8.25 (a) Health Care Policy Administration 8.26 General 4,281,000 4,316,000 8.27 Health Care 8.28 Access -0- -0- 8.29 [CONSUMER SATISFACTION SURVEY.] Any 8.30 federal matching money received through 8.31 the medical assistance program for the 8.32 consumer satisfaction survey is 8.33 appropriated to the commissioner for 8.34 this purpose. The commissioner may 8.35 expend the federal money received for 8.36 the consumer satisfaction survey in 8.37 either year of the biennium. 8.38 (b) Health Care Operations 8.39 General 19,696,000 20,267,000 8.40 Health Care 8.41 Access -0- -0- 8.42 [PREPAID MEDICAL PROGRAMS.] The 8.43 nonfederal share of the prepaid medical 8.44 assistance program funds, which are 8.45 appropriated to fund county managed 8.46 care advocacy and enrollment operating 8.47 costs, shall be disbursed as grants 8.48 using either a reimbursement or block 8.49 grant mechanism. This appropriation may 8.50 also be transferred between grants and 8.51 a nongrant mechanism, and between 8.52 grants and nongrant administration 8.53 costs, with the approval of the 8.54 commissioner of finance. 8.55 [SYSTEMS CONTINUITY.] In the event of 8.56 disruption of technical systems or 8.57 computer operations, the commissioner 8.58 of human services may use available 9.1 grant appropriations to ensure 9.2 continuity of payments for maintaining 9.3 the health, safety, and well-being of 9.4 clients served by programs administered 9.5 by the department of human services. 9.6 Grant funds must be used in a manner 9.7 consistent with the original intent of 9.8 the appropriation. 9.9 Subd. 7. State-Operated Services 9.10 General 208,471,000 205,106,000 9.11 The amounts that may be spent from this 9.12 appropriation for each purpose are as 9.13 follows: 9.14 (a) RTC Facilities 9.15 General 193,738,000 189,050,000 9.16 [MITIGATION RELATED TO DD DOWNSIZING 9.17 AND MH PILOTS.] Money appropriated to 9.18 finance mitigation expenses related to 9.19 the downsizing of regional treatment 9.20 center developmental disabilities 9.21 programs and the establishment of 9.22 mental health pilot projects may be 9.23 transferred between fiscal years within 9.24 the biennium. 9.25 [FUNDING FOR GRAVE MARKERS.] Of this 9.26 appropriation, $200,000 for the 9.27 biennium ending June 30, 1999, is for 9.28 the commissioner to fund markers with 9.29 the names of individuals whose graves 9.30 are located at regional treatment 9.31 centers. This appropriation is 9.32 available only after all reasonable 9.33 efforts have been made to acquire funds 9.34 from private sources to fund the 9.35 markers, and after the private funds 9.36 collected, if any, have been exhausted. 9.37 [RTC CHEMICAL DEPENDENCY PROGRAMS.] 9.38 When the operations of the regional 9.39 treatment center chemical dependency 9.40 fund created in Minnesota Statutes, 9.41 section 246.18, subdivision 2, are 9.42 impeded by projected cash deficiencies 9.43 resulting from delays in the receipt of 9.44 grants, dedicated income, or other 9.45 similar receivables, and when the 9.46 deficiencies would be corrected within 9.47 the budget period involved, the 9.48 commissioner of finance may transfer 9.49 general fund cash reserves into this 9.50 account as necessary to meet cash 9.51 demands. The cash flow transfers must 9.52 be returned to the general fund in the 9.53 fiscal year that the transfer was 9.54 made. Any interest earned on general 9.55 fund cash flow transfers accrues to the 9.56 general fund and not the regional 9.57 treatment center chemical dependency 9.58 fund. 9.59 [RTC PILOT PROJECT.] The commissioner 9.60 may authorize the regional treatment 9.61 centers to enter into contracts with 9.62 health plans that provide services to 10.1 publicly funded clients to provide 10.2 services within the diagnostic 10.3 categories related to mental illness 10.4 and chemical dependency, provided that 10.5 the revenue is sufficient to cover 10.6 actual costs. Regional treatment 10.7 centers may establish revenue-based 10.8 acute care services to be provided 10.9 under these contracts, separate from 10.10 the appropriation-based services 10.11 otherwise provided at the regional 10.12 treatment center. The appropriation to 10.13 the regional treatment centers may be 10.14 used to cover start-up costs related to 10.15 these services, offset by revenue. The 10.16 commissioner, in conjunction with the 10.17 commissioner of administration, is 10.18 authorized to modify state contract 10.19 procedures that would otherwise impede 10.20 pilot projects in order for the 10.21 facility to participate in managed care 10.22 activities. The commissioner may 10.23 delegate the execution of these 10.24 contracts to the chief executive 10.25 officer of the regional treatment 10.26 center. The commissioner shall report 10.27 by January 15, 1998, to the house 10.28 health and human services and senate 10.29 health and family security committees 10.30 on pilot project development and 10.31 implementation. 10.32 [CAMBRIDGE REGIONAL HUMAN SERVICES 10.33 CENTER.] (a) The commissioner shall 10.34 maintain capacity at Cambridge regional 10.35 human services center and shall 10.36 continue to provide residential and 10.37 crisis services at Cambridge for 10.38 persons with complex behavioral and 10.39 social problems committed by the courts 10.40 from the Faribault regional center and 10.41 Cambridge regional human services 10.42 center catchment areas. Campus 10.43 programs shall operate with the aim of 10.44 facilitating the return of individuals 10.45 with clinically complex behavior and 10.46 social problems to community settings 10.47 and shall maintain sufficient support 10.48 services on campus as needed by the 10.49 programs. 10.50 (b) The commissioner shall develop and 10.51 present a plan and recommendations to 10.52 the legislature by January 15, 1998, 10.53 for the second phase of the Minnesota 10.54 extended treatment options (METO) 10.55 program at Cambridge regional human 10.56 services center to serve persons with 10.57 developmental disabilities who pose a 10.58 public risk. Phase two may increase 10.59 the on-campus program capacity of METO 10.60 by at least 36 additional beds. 10.61 [RTC RESTRUCTURING.] For purposes of 10.62 restructuring the regional treatment 10.63 centers and state nursing homes, any 10.64 regional treatment center or state 10.65 nursing home employee whose position is 10.66 to be eliminated shall be afforded the 10.67 options provided in applicable 10.68 collective bargaining agreements. All 11.1 salary and mitigation allocations from 11.2 fiscal year 1998 shall be carried 11.3 forward into fiscal year 1999. 11.4 Provided there is no conflict with any 11.5 collective bargaining agreement, any 11.6 regional treatment center or state 11.7 nursing home position reduction must 11.8 only be accomplished through 11.9 mitigation, attrition, transfer, and 11.10 other measures as provided in state or 11.11 applicable collective bargaining 11.12 agreements and in Minnesota Statutes, 11.13 section 252.50, subdivision 11, and not 11.14 through layoff. 11.15 [RTC POPULATION.] If the resident 11.16 population at the regional treatment 11.17 centers is projected to be higher than 11.18 the estimates upon which the medical 11.19 assistance forecast and budget 11.20 recommendations for the 1998-1999 11.21 biennium were based, the amount of the 11.22 medical assistance appropriation that 11.23 is attributable to the cost of services 11.24 that would have been provided as an 11.25 alternative to regional treatment 11.26 center services, including resources 11.27 for community placements and waivered 11.28 services for persons with mental 11.29 retardation and related conditions, is 11.30 transferred to the residential 11.31 facilities appropriation. 11.32 [REPAIRS AND BETTERMENTS.] The 11.33 commissioner may transfer unencumbered 11.34 appropriation balances between fiscal 11.35 years for the state residential 11.36 facilities repairs and betterments 11.37 account and special equipment. 11.38 [PROJECT LABOR.] Wages for project 11.39 labor may be paid by the commissioner 11.40 of human services out of repairs and 11.41 betterments money if the individual is 11.42 to be engaged in a construction project 11.43 or a repair project of short-term and 11.44 nonrecurring nature. Compensation for 11.45 project labor shall be based on the 11.46 prevailing wage rates, as defined in 11.47 Minnesota Statutes, section 177.42, 11.48 subdivision 6. Project laborers are 11.49 excluded from the provisions of 11.50 Minnesota Statutes, sections 43A.22 to 11.51 43A.30, and shall not be eligible for 11.52 state-paid insurance and benefits. 11.53 (b) State-Operated Community 11.54 Services - MI Adults 11.55 General 3,907,000 3,976,000 11.56 (c) State-Operated Community 11.57 Services - DD 11.58 General 10,826,000 12,080,000 11.59 Subd. 8. Continuing Care and 11.60 Community Support Grants 11.61 General 1,078,205,000 1,152,992,000 12.1 The amounts that may be spent from this 12.2 appropriation for each purpose are as 12.3 follows: 12.4 (a) Community Services Block Grants 12.5 54,203,000 54,203,000 12.6 [CSSA TRADITIONAL APPROPRIATION.] 12.7 Notwithstanding Minnesota Statutes, 12.8 section 256E.06, subdivisions 1 and 2, 12.9 the appropriations available under that 12.10 section in fiscal years 1998 and 1999 12.11 must be distributed to each county 12.12 proportionately to the aid received by 12.13 the county in calendar year 1996. The 12.14 commissioner, in consultation with 12.15 counties, shall study the formula 12.16 limitations in subdivision 2 of that 12.17 section, and report findings and any 12.18 recommendations for revision of the 12.19 CSSA formula and its formula limitation 12.20 provisions to the legislature by 12.21 January 15, 1998. 12.22 (b) Consumer Support Grants 12.23 1,757,000 1,757,000 12.24 (c) Aging Adult Service Grants 12.25 8,260,000 8,263,000 12.26 [OMBUDSMAN FOR OLDER MINNESOTANS.] Of 12.27 this appropriation, $225,000 each year 12.28 is for the board on aging's ombudsman 12.29 for older Minnesotans to expand its 12.30 activities relating to home care 12.31 services and other non-institutional 12.32 services, and to develop and implement 12.33 a continuing education program for 12.34 ombudsman volunteers. 12.35 [HEALTH CARE CONSUMER ASSISTANCE 12.36 GRANTS.] (a) Of this appropriation, 12.37 $125,000 in fiscal year 1998 and 12.38 $125,000 in fiscal year 1999 is to the 12.39 commissioner for the board on aging to 12.40 award grants for health insurance 12.41 counseling and assistance to the area 12.42 agencies on aging. 12.43 (b) The board shall explore 12.44 opportunities for obtaining alternative 12.45 funding from nonstate sources, 12.46 including contributions from 12.47 individuals seeking health insurance 12.48 counseling services. 12.49 [LIVING-AT-HOME/BLOCK NURSE PROGRAMS.] 12.50 Of this appropriation, $620,000 each 12.51 fiscal year is for the commissioner to 12.52 provide funding to 31 additional 12.53 living-at-home/block nurse programs; 12.54 $70,000 for the biennium is for the 12.55 commissioner to increase funding for 12.56 certain living-at-home/block nurse 12.57 programs so that funding for all 12.58 programs is at the same level for each 12.59 fiscal year; and $60,000 each fiscal 12.60 year is for the commissioner to provide 13.1 additional contract funding for the 13.2 organization awarded the contract for 13.3 the living-at-home/block nurse program. 13.4 [COUNTY MAINTENANCE; MEALS; AGING.] The 13.5 supplemental funding for nutrition 13.6 programs serving counties where 13.7 congregate and home-delivered meals 13.8 were locally financed prior to 13.9 participation in the nutrition program 13.10 of the Older Americans Act shall be 13.11 awarded at no less than the same levels 13.12 as in fiscal year 1997. 13.13 (d) Deaf and Hard-of-Hearing 13.14 Services Grants 13.15 1,599,000 1,549,000 13.16 [ASSISTANCE DOGS.] Of this 13.17 appropriation, $50,000 for the biennium 13.18 is for the commissioner to provide 13.19 grants to Minnesota nonprofit 13.20 organizations that train or provide 13.21 assistance dogs for persons with 13.22 disabilities. 13.23 [GRANT FOR SERVICES TO DEAF-BLIND 13.24 CHILDREN AND PERSONS.] Of this 13.25 appropriation, $200,000 for the 13.26 biennium is for a grant to an 13.27 organization that provides services to 13.28 deaf-blind persons. The grant must be 13.29 used to provide additional services to 13.30 deaf-blind children and their 13.31 families. Such services may include 13.32 providing intervenors to assist 13.33 deaf-blind children in participating in 13.34 their communities, and family education 13.35 specialists to teach siblings and 13.36 parents skills to support the 13.37 deaf-blind child in the family. The 13.38 commissioner shall use a 13.39 request-for-proposal process to award 13.40 the grants in this paragraph. 13.41 Of this appropriation, $200,000 for the 13.42 biennium is for a grant to an 13.43 organization that provides services to 13.44 deaf-blind persons. The grant must be 13.45 used to provide assistance to 13.46 deaf-blind persons who are working 13.47 towards establishing and maintaining 13.48 independence. The commissioner shall 13.49 use a request-for-proposal process to 13.50 award the grants in this paragraph. 13.51 [GRANT FOR SERVICES TO DEAF PERSONS 13.52 WITH MENTAL ILLNESS.] Of this 13.53 appropriation, $75,000 each year is for 13.54 a grant to a nonprofit agency that 13.55 serves deaf and hard-of-hearing adults 13.56 with mental illness through residential 13.57 programs and supported housing outreach 13.58 activities. The grant must be used to 13.59 expand community support services for 13.60 deaf and hard-of-hearing adults with 13.61 mental illness who use or wish to use 13.62 sign language as their primary means of 13.63 communication. 14.1 [ASSESSMENTS FOR DEAF, HARD-OF-HEARING 14.2 AND DEAF-BLIND CHILDREN.] Of this 14.3 appropriation, $200,000 each year is 14.4 for the commissioner to establish a 14.5 grant program for deaf, hard-of-hearing 14.6 and deaf-blind children in the state. 14.7 The grant program shall be used to 14.8 provide specialized statewide 14.9 psychological and social assessments, 14.10 family assessments, and school and 14.11 family consultation and training. 14.12 Services provided through this program 14.13 must be provided in cooperation with 14.14 the Minnesota resource center; the 14.15 department of children, families, and 14.16 learning; the St. Paul-Ramsey health 14.17 and wellness program serving deaf and 14.18 hard-of-hearing people; and greater 14.19 Minnesota community mental health 14.20 centers. 14.21 (e) Mental Health Grants 14.22 47,603,000 48,681,000 14.23 [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 14.24 $125,000 for fiscal year 1998 and 14.25 $125,000 for fiscal year 1999 shall be 14.26 transferred by the director of the 14.27 lottery from the lottery prize fund 14.28 created under Minnesota Statutes, 14.29 section 349A.10, subdivision 2, to the 14.30 general fund. $125,000 for fiscal year 14.31 1998 and $125,000 for fiscal year 1999 14.32 is appropriated from the general fund 14.33 to the commissioner for the purposes of 14.34 a grant to a compulsive gambling 14.35 council located in St. Louis county for 14.36 a statewide compulsive gambling 14.37 prevention and education project for 14.38 adolescents. 14.39 [WOMEN'S MENTAL HEALTH CRISIS SERVICES 14.40 PILOT.] Of this appropriation, $250,000 14.41 in fiscal year 1998 is for the 14.42 commissioner to develop a one-year 14.43 pilot project community-based crisis 14.44 center for women who are experiencing a 14.45 mental health crisis as a result of 14.46 childhood physical or sexual abuse. 14.47 The commissioner shall provide a grant 14.48 to Hennepin county to contract with a 14.49 four-bed adult foster care facility to 14.50 provide these services. The 14.51 commissioner shall apply to the federal 14.52 health care financing administration 14.53 for all necessary waivers of the 14.54 medical assistance requirements for 14.55 funding of the mental health services 14.56 so that the services provided through 14.57 the pilot project may be reimbursed by 14.58 medical assistance, effective July 1, 14.59 1998, or upon receipt of federal 14.60 approval, whichever occurs first. 14.61 (f) Developmental Disabilities 14.62 Support Grants 14.63 6,278,000 6,228,000 14.64 [EPILEPSY LIVING SKILLS.] Of this 15.1 appropriation, $60,000 each year is for 15.2 the purposes of providing increased 15.3 funding for the living skills training 15.4 program for persons with intractable 15.5 epilepsy who need assistance in the 15.6 transition to independent living. This 15.7 amount must be included in the base 15.8 amount for this program. 15.9 (g) Medical Assistance Long-Term 15.10 Care Waivers and Home Care 15.11 237,254,000 273,979,000 15.12 [COUNTY WAIVERED SERVICES RESERVE.] 15.13 Notwithstanding the provisions of 15.14 Minnesota Statutes, section 256B.092, 15.15 subdivision 4, and Minnesota Rules, 15.16 part 9525.1830, subpart 2, the 15.17 commissioner may approve written 15.18 procedures and criteria for the 15.19 allocation of home- and community-based 15.20 waivered services funding for persons 15.21 with mental retardation or related 15.22 conditions which enables a county to 15.23 maintain a reserve resource account. 15.24 The reserve resource account may not 15.25 exceed five percent of the county 15.26 agency's total annual allocation of 15.27 home- and community-based waivered 15.28 services funds. The reserve may be 15.29 utilized to ensure the county's ability 15.30 to meet the changing needs of current 15.31 recipients, to ensure the health and 15.32 safety needs of current recipients, or 15.33 to provide short-term emergency 15.34 intervention care to eligible waiver 15.35 recipients. 15.36 (h) Medical Assistance Long-Term 15.37 Care Facilities 15.38 570,518,000 593,797,000 15.39 [ICF/MR AND NURSING FACILITY 15.40 INFLATION.] The commissioner of human 15.41 services shall grant inflation 15.42 adjustments for nursing facilities with 15.43 rate years beginning during the 15.44 biennium according to Minnesota 15.45 Statutes, section 256B.431, and shall 15.46 grant inflation adjustments for 15.47 intermediate care facilities for 15.48 persons with mental retardation or 15.49 related conditions with rate years 15.50 beginning during the biennium according 15.51 to Minnesota Statutes, section 256B.501. 15.52 [ICF/MR RATE EXEMPTIONS.] For the rate 15.53 year beginning October 1, 1997, the 15.54 commissioner shall exempt ICF/MR 15.55 facilities from reductions to the 15.56 payment rates under Minnesota Statutes, 15.57 section 256B.501, subdivision 5b, 15.58 paragraph (d), clause (6), if the 15.59 facility: (1) has had a settle-up 15.60 payment rate established in the 15.61 reporting year preceding the rate year 15.62 for a one-time rate adjustment; (2) is 15.63 a newly established facility; (3) is an 15.64 A to B conversion project under the 16.1 payment rule; (4) has a payment rate 16.2 subject to a community conversion 16.3 project under Minnesota Statutes, 16.4 section 252.292; (5) has a payment rate 16.5 established under Minnesota Statutes, 16.6 section 245A.12 or 245A.13; or (6) is a 16.7 facility created by the relocation of 16.8 more than 25 percent of the capacity of 16.9 a related facility during the reporting 16.10 year. 16.11 (i) Alternative Care Grants 16.12 General 48,610,000 53,623,000 16.13 [PREADMISSION SCREENING TRANSFER.] 16.14 Effective the day following final 16.15 enactment, up to $40,000 of the 16.16 appropriation for preadmission 16.17 screening and alternative care for 16.18 fiscal year 1997 may be transferred to 16.19 the health care administration account 16.20 to pay the state's share of county 16.21 claims for conducting nursing home 16.22 assessments for persons with mental 16.23 illness or mental retardation as 16.24 required by Public Law Number 100-203. 16.25 [ALTERNATIVE CARE TRANSFER.] Any money 16.26 allocated to the alternative care 16.27 program that is not spent for the 16.28 purposes indicated does not cancel but 16.29 shall be transferred to the medical 16.30 assistance account. 16.31 [PREADMISSION SCREENING AMOUNT.] The 16.32 preadmission screening payment to all 16.33 counties shall continue at the payment 16.34 amount in effect for fiscal year 1997. 16.35 [PAS/AC APPROPRIATION.] The 16.36 commissioner may expend the money 16.37 appropriated for preadmission screening 16.38 and the alternative care program for 16.39 these purposes in either year of the 16.40 biennium. 16.41 (j) Group Residential Housing 16.42 General 62,115,000 69,276,000 16.43 (k) Chemical Dependency 16.44 Entitlement Grants 16.45 General 35,643,000 37,271,000 16.46 [CHEMICAL DEPENDENCY FUNDS TRANSFER.] 16.47 $11,340,000 from the consolidated 16.48 chemical dependency general reserve 16.49 fund available in fiscal year 1998 is 16.50 transferred to the general fund. 16.51 (l) Chemical Dependency 16.52 Nonentitlement Grants 16.53 General 4,365,000 4,365,000 16.54 [DETOXIFICATION TRANSPORTATION.] Any 16.55 amounts remaining after detoxification 16.56 transportation funds are allocated for 16.57 fiscal year 1997 under Minnesota 17.1 Statutes, section 254A.17, subdivision 17.2 3, do not cancel, but must be 17.3 reallocated to counties in proportion 17.4 to their unmet need. This provision is 17.5 effective the day following final 17.6 enactment. 17.7 Subd. 9. Continuing Care and 17.8 Community Support Management 17.9 General 20,855,000 21,654,000 17.10 State Government 17.11 Special Revenue 111,000 112,000 17.12 [QUALITY ASSURANCE PILOT PROJECT.] (a) 17.13 Of this appropriation, $114,200 each 17.14 year is for the commissioner to 17.15 transfer to the quality assurance 17.16 commission for the purposes of 17.17 Minnesota Statutes, section 256B.0951; 17.18 $10,000 each year is for the 17.19 commissioner to contract with an 17.20 independent entity to conduct a 17.21 financial review under Minnesota 17.22 Statutes, section 256B.0955, paragraph 17.23 (e); and $5,000 each year is for the 17.24 commissioner to establish and implement 17.25 an ongoing evaluation process under 17.26 Minnesota Statutes, section 256B.0955, 17.27 paragraph (d). 17.28 (b) Of this appropriation, $210,800 in 17.29 fiscal year 1998 and $241,800 in fiscal 17.30 year 1999 is for the commissioner to 17.31 provide grants to counties 17.32 participating in the alternative 17.33 quality assurance licensing system 17.34 under Minnesota Statutes, section 17.35 256B.0953. This appropriation shall be 17.36 transferred to the counties that choose 17.37 by January 15, 1998 to participate in 17.38 the alternative licensing system 17.39 beginning July 1, 1998. Each 17.40 participating county shall receive a 17.41 pro rata share of this appropriation, 17.42 based upon the county's calendar year 17.43 1997 case management caseload for 17.44 persons with developmental disabilities. 17.45 [JOINT-PURCHASER DEMO PROJECT 17.46 START-UP.] Of this appropriation, 17.47 $80,000 for the biennium ending June 17.48 30, 1999, is for a grant to the Goodhue 17.49 and Wabasha public health board to be 17.50 used for the development and start-up 17.51 operational costs for a joint purchaser 17.52 demonstration project described in Laws 17.53 1995, chapter 207, article 6, section 17.54 119, in Goodhue and Wabasha counties. 17.55 This is a one-time appropriation and 17.56 shall not become part of the base for 17.57 the 2000-2001 biennial budget. 17.58 [PILOT PROJECT FOR ASSISTED LIVING 17.59 SERVICES FOR SENIOR CITIZENS IN PUBLIC 17.60 HOUSING.] Of this appropriation, 17.61 $50,000 in fiscal year 1998 is for a 17.62 pilot project to provide assisted 17.63 living services for unserved and 17.64 underserved frail elderly and disabled 18.1 persons with a focus on those who 18.2 experience language and cultural 18.3 barriers. The project shall be 18.4 designed to offer frail elderly persons 18.5 an opportunity to receive 18.6 community-based support services in a 18.7 public housing setting to enable them 18.8 to remain in their homes. The project 18.9 shall also serve younger disabled 18.10 persons on waiver programs who live in 18.11 public housing and would otherwise be 18.12 in nursing homes. The commissioner 18.13 shall provide pilot project funding to 18.14 Hennepin county to contract with the 18.15 Korean service center at the Cedars 18.16 high-rises. The center shall agree to 18.17 do the following: 18.18 (1) facilitate or provide needed 18.19 community support services while taking 18.20 advantage of current local, state, and 18.21 federal programs that provide services 18.22 to senior citizens and handicapped 18.23 individuals; 18.24 (2) negotiate appropriate agreements 18.25 with the Minneapolis public housing 18.26 authority and Hennepin county; 18.27 (3) ensure that all participants are 18.28 screened for eligibility for services 18.29 by Hennepin county; 18.30 (4) become a licensed home care service 18.31 provider or subcontract with a licensed 18.32 provider to deliver needed services; 18.33 (5) contract for meals to be provided 18.34 through its congregate dining program; 18.35 and 18.36 (6) form other partnerships as needed 18.37 to ensure the development of a 18.38 successful, culturally sensitive 18.39 program for meeting the needs of 18.40 Korean, Southeast Asian, and other 18.41 frail elderly and disabled persons 18.42 living in public housing in southeast 18.43 Minneapolis. 18.44 The grantee must have the project 18.45 evaluated by an outside evaluator, 18.46 based on measurement standards 18.47 developed by the commissioner. The 18.48 grantee must submit the evaluation to 18.49 the commissioner no later than December 18.50 15, 1999, and the commissioner must 18.51 submit the evaluation with 18.52 recommendations on the project's 18.53 continuation and expansion by January 18.54 15, 2000. 18.55 [TRANSIT SERVICE SUBSIDIES.] The 18.56 commissioner shall examine 18.57 circumstances where providers receive 18.58 state or federal funds for transit 18.59 service operating subsidies or to 18.60 purchase transit equipment, and receive 18.61 medical assistance reimbursement for 18.62 medical transportation services in 18.63 amounts greater than the fee charged by 19.1 the provider to persons from whom 19.2 services are not reimbursed by medical 19.3 assistance. 19.4 The commissioner's analysis may involve 19.5 assistance from the commissioner of the 19.6 department of health. 19.7 The commissioner shall submit a report 19.8 on the study to the legislature by 19.9 January 15, 1998. 19.10 Subd. 10. Economic Support Grants 19.11 General 213,790,000 211,036,000 19.12 [GIFTS.] Notwithstanding any other law 19.13 to the contrary, the commissioner may 19.14 accept on behalf of the state 19.15 additional funding from sources other 19.16 than state funds for the purpose of 19.17 financing assistance program grants 19.18 costs or nongrant administrative 19.19 costs. All such additional funding is 19.20 appropriated to the commissioner for 19.21 use as designated by the grantee of 19.22 funding. 19.23 The amounts that may be spent from this 19.24 appropriation for each purpose are as 19.25 follows: 19.26 (a) Assistance to Families Grants 19.27 General 89,518,000 110,688,000 19.28 (b) Assistance to 19.29 Families - County 19.30 Management -0- -0- 19.31 (c) Work Grants 19.32 General 5,878,000 5,884,000 19.33 (d) Minnesota Family 19.34 Investment Plan 19.35 General 27,433,000 5,037,000 19.36 [WELFARE REFORM CARRYOVER.] Unexpended 19.37 grant funds for the statewide 19.38 implementation of the Minnesota family 19.39 investment program and employment and 19.40 training programs and for the work 19.41 first and work focused pilot programs 19.42 appropriated in fiscal year 1998 for 19.43 the implementation of welfare reform 19.44 initiatives do not cancel and are 19.45 available to the commissioner for these 19.46 purposes in fiscal year 1999. 19.47 (e) Aid to Families With 19.48 Dependent Children 19.49 General 619,000 -0- 19.50 [AFDC SUPPLEMENTARY GRANTS.] Of the 19.51 appropriation for aid to families with 19.52 dependent children, the commissioner 19.53 shall provide supplementary grants not 19.54 to exceed $200,000 a year for aid to 20.1 families with dependent children until 20.2 the AFDC program no longer exists. The 20.3 commissioner shall include the 20.4 following costs in determining the 20.5 amount of the supplementary grants: 20.6 major home repairs, repair of major 20.7 home appliances, utility recaps, 20.8 supplementary dietary needs not covered 20.9 by medical assistance, and replacements 20.10 of furnishings and essential major 20.11 appliances. 20.12 [CASH BENEFITS IN ADVANCE.] The 20.13 commissioner, with the advance approval 20.14 of the commissioner of finance, is 20.15 authorized to issue cash assistance 20.16 benefits up to three days before the 20.17 first day of each month, including 20.18 three days before the start of each 20.19 state fiscal year. Of the money 20.20 appropriated for cash assistance grants 20.21 for each fiscal year, up to three 20.22 percent of the annual state 20.23 appropriation is available to the 20.24 commissioner in the previous fiscal 20.25 year. If that amount is insufficient 20.26 for the costs incurred, an additional 20.27 amount of the appropriation as needed 20.28 may be transferred with the advance 20.29 approval of the commissioner of 20.30 finance. This paragraph is effective 20.31 the day following final enactment. 20.32 (f) Child Support Enforcement 20.33 General 5,790,000 5,372,000 20.34 [CHILD SUPPORT PAYMENT CENTER.] 20.35 Payments to the commissioner from other 20.36 governmental units, private 20.37 enterprises, and individuals for 20.38 services performed by the Child Support 20.39 Payment Center must be deposited in the 20.40 state systems account authorized in 20.41 Minnesota Statutes, section 256.014. 20.42 These payments are appropriated to the 20.43 commissioner for the operation of the 20.44 Child Support Payment Center or system, 20.45 in accordance with Minnesota Statutes, 20.46 section 256.014. 20.47 [CHILD SUPPORT ENFORCEMENT PAYMENT 20.48 CENTER RECOUPMENT ACCOUNT.] The child 20.49 support enforcement payment center is 20.50 authorized to establish an account to 20.51 cover checks issued in error or in 20.52 cases where insufficient funds are 20.53 available to pay the checks. All 20.54 recoupments against payments from the 20.55 account must be deposited in the child 20.56 support enforcement payment center 20.57 recoupment account and are appropriated 20.58 to the commissioner for the purposes of 20.59 the account. Any unexpended balance in 20.60 the account does not cancel, but is 20.61 available until expended. For the 20.62 period June 1, 1997, to June 30, 1997, 20.63 the commissioner may transfer general 20.64 fund administrative money to the child 20.65 support enforcement payment center 20.66 recoupment account to cover 21.1 underfinanced and unfunded checks 21.2 during this period only. This 21.3 paragraph is effective the day 21.4 following final enactment. 21.5 [CHILD SUPPORT ENFORCEMENT CARRYOVER.] 21.6 Unexpended funds for child support 21.7 enforcement grants and county 21.8 performance incentives for fiscal year 21.9 1998 do not cancel but are available to 21.10 the commissioner for these purposes for 21.11 fiscal year 1999. 21.12 [COOPERATION FOR CHILDREN, PARENT 21.13 EDUCATION.] Of this appropriation the 21.14 commissioner shall transfer to the 21.15 state court administrator $100,000 in 21.16 fiscal year 1998 and $100,000 in fiscal 21.17 year 1999 for the implementation of the 21.18 cooperation for the children program 21.19 and the parent education program. The 21.20 commissioner shall also request all 21.21 federal funds available for visitation 21.22 access grants under the authority of 21.23 the Personal Responsibility and Work 21.24 Opportunity Act of 1996. The 21.25 commissioner may accept on behalf of 21.26 the state any federal funding for the 21.27 purpose of financing visitation access 21.28 programs and shall transfer any funds 21.29 received for this purpose to the state 21.30 court administrator for implementation 21.31 of the parent education program and the 21.32 cooperation for the children program. 21.33 The state court administrator shall 21.34 monitor, evaluate and report on such 21.35 programs in accordance with any 21.36 applicable federal regulations. 21.37 [CHILD SUPPORT ENFORCEMENT 21.38 APPROPRIATIONS.] Of this appropriation 21.39 for the biennium ending June 30, 1999, 21.40 the commissioner shall transfer: 21.41 $150,000 to the attorney general for 21.42 the continuation of the public 21.43 education campaign specified in 21.44 Minnesota Statutes, section 8.35; and 21.45 $68,000 to the attorney general for the 21.46 purposes specified in Minnesota 21.47 Statutes, section 518.575. Any balance 21.48 remaining in the first year does not 21.49 cancel, but is available in the second 21.50 year. 21.51 (g) General Assistance 21.52 General 57,466,000 54,010,000 21.53 [GA STANDARD.] The commissioner shall 21.54 set the monthly standard of assistance 21.55 for general assistance units consisting 21.56 of an adult recipient who is childless 21.57 and unmarried or living apart from his 21.58 or her parents or a legal guardian at 21.59 $203. 21.60 (h) Minnesota Supplemental Aid 21.61 General 25,181,000 28,440,000 21.62 (i) Refugee Services 22.1 General 1,905,000 1,605,000 22.2 Subd. 11. Economic Support 22.3 Management 22.4 General 33,808,000 31,739,000 22.5 Health Care 22.6 Access -0- -0- 22.7 The amounts that may be spent from this 22.8 appropriation for each purpose are as 22.9 follows: 22.10 (a) Economic Support Policy 22.11 Administration 22.12 General 10,731,000 9,013,000 22.13 [COMBINED MANUAL PRODUCTION COSTS.] The 22.14 commissioner may increase the fee 22.15 charged to, and may retain money 22.16 received from, individuals and private 22.17 entities in order to recover the 22.18 difference between the costs of 22.19 producing the department of human 22.20 services combined manual and the 22.21 subsidized price charged to individuals 22.22 and private entities on January 1, 22.23 1996. This provision does not apply to 22.24 government agencies and nonprofit 22.25 agencies serving the legal or social 22.26 service needs of clients. 22.27 [PLAN FOR TRIBAL OPERATION OF FAMILY 22.28 ASSISTANCE PROGRAM.] Of this 22.29 appropriation, $148,000 is for the 22.30 commissioner to assist tribes in the 22.31 development of a plan for providing 22.32 state funds in support of a family 22.33 assistance program administered by 22.34 Indian tribes that have a reservation 22.35 in Minnesota and that have federal 22.36 approval to operate a tribal program. 22.37 The commissioner and the tribes shall 22.38 collaborate in the development of the 22.39 plan. The plan shall be reported to 22.40 the legislature no later than February 22.41 15, 1998. 22.42 [NEW CHANCE PROGRAM.] Of this 22.43 appropriation, $140,000 each year is 22.44 for a grant to the new chance program. 22.45 The new chance program shall provide 22.46 comprehensive services through a 22.47 private, nonprofit agency to young 22.48 parents in Hennepin county who have 22.49 dropped out of school and are receiving 22.50 public assistance. The program 22.51 administrator shall report annually to 22.52 the commissioner on skills development, 22.53 education, job training, and job 22.54 placement outcomes for program 22.55 participants. 22.56 (b) Economic Support Policy 22.57 Operations 22.58 General 28,477,000 28,126,000 22.59 Health Care 23.1 Access -0- -0- 23.2 [CITIZENSHIP TRAINING.] The funds 23.3 appropriated for citizenship training 23.4 shall be awarded to nonprofit 23.5 organizations through a competitive 23.6 bidding process based on criteria 23.7 established by the commissioner of 23.8 human services. Notice of the 23.9 availability of funds shall be 23.10 published in the State Register. 23.11 [ELECTRONIC BENEFIT TRANSFER (EBT) 23.12 COUNTY ALLOCATION.] Of the amount 23.13 appropriated for electronic benefit 23.14 transfer, an allocation shall be made 23.15 each year to counties for EBT-related 23.16 expenses. One hundred percent of the 23.17 appropriation shall be allocated to 23.18 counties based on each county's average 23.19 monthly number of food stamp households 23.20 as a proportion of statewide average 23.21 monthly food stamp households for the 23.22 fiscal year ending June 30, 1996. 23.23 [FRAUD PREVENTION AND CONTROL FUNDING.] 23.24 Unexpended funds appropriated for the 23.25 provision of program integrity 23.26 activities for fiscal year 1998 are 23.27 also available to the commissioner to 23.28 fund fraud prevention and control 23.29 initiatives, and do not cancel but are 23.30 available to the commissioner for these 23.31 purposes for fiscal year 1999. 23.32 Unexpended funds may be transferred 23.33 between the fraud prevention 23.34 investigation program and fraud control 23.35 programs to promote the provisions of 23.36 Minnesota Statutes, sections 256.983 23.37 and 256.9861. 23.38 [TRIBAL OPERATION OF ASSISTANCE 23.39 PROGRAMS; FEASIBILITY CONSIDERED.] The 23.40 commissioner of human services, in 23.41 consultation with the federally- 23.42 recognized Indian tribes, the 23.43 commissioner of children, families, and 23.44 learning and the commissioner of 23.45 economic security, shall explore the 23.46 feasibility of having the 23.47 federally-recognized Indian tribes 23.48 administer or operate state and 23.49 federally funded programs such as 23.50 MFIP-S, diversionary assistance, food 23.51 stamps, general assistance, emergency 23.52 assistance, child support enforcement, 23.53 and child care assistance. The 23.54 exploration shall consider the state 23.55 and federal funding needed for the 23.56 programs under consideration. 23.57 (c) Assistance to Families 23.58 State Management 23.59 -0- -0- 23.60 Subd. 12. Federal TANF Funds 23.61 [TRANSFER TO TANF CHILD CARE.] Of this 23.62 appropriation, $5,400,000 in fiscal 23.63 year 1998 from the federal TANF block 24.1 grant and $5,400,000 in fiscal year 24.2 1999 from the federal TANF block grant 24.3 is transferred to the commissioner of 24.4 children, families, and learning for 24.5 the purposes of providing TANF child 24.6 care assistance. 24.7 Sec. 3. COMMISSIONER OF HEALTH 24.8 Subdivision 1. Total 24.9 Appropriation 81,475,000 80,371,000 24.10 Summary by Fund 24.11 General 59,395,000 58,271,000 24.12 Metropolitan 24.13 Landfill Contingency 24.14 Action Fund 193,000 193,000 24.15 State Government 24.16 Special Revenue 21,737,000 21,907,000 24.17 Health Care 24.18 Access -0- -0- 24.19 Minnesota Resources 150,000 -0- 24.20 [LANDFILL CONTINGENCY.] The 24.21 appropriation from the metropolitan 24.22 landfill contingency action fund is for 24.23 monitoring well water supplies and 24.24 conducting health assessments in the 24.25 metropolitan area. 24.26 [FEES TO COVER COSTS, RECOVER 24.27 DEFICITS.] The commissioner of health 24.28 shall set fees to cover current program 24.29 costs and recover deficits. 24.30 Subd. 2. Health Systems 24.31 and Special Populations 56,195,000 56,098,000 24.32 Summary by Fund 24.33 General 47,096,000 47,026,000 24.34 State Government 24.35 Special Revenue 9,099,000 9,072,000 24.36 Health Care 24.37 Access -0- -0- 24.38 [FEES; DRUG AND ALCOHOL COUNSELOR 24.39 LICENSE.] When setting fees for the 24.40 drug and alcohol counselor license, the 24.41 department is exempt from Minnesota 24.42 Statutes, section 16A.1285, subdivision 24.43 2. 24.44 [FEES; HEARING INSTRUMENT DISPENSER 24.45 LICENSE.] When setting fees for the 24.46 hearing instrument dispenser license, 24.47 the department is exempt from Minnesota 24.48 Statutes, section 16A.1285, subdivision 24.49 2. 24.50 [STATE VITAL RECORDS REDESIGN PROJECT 24.51 ACCOUNT.] The amount appropriated for 24.52 the vital records redesign project 24.53 shall be available until expended for 25.1 ongoing development and operations. 25.2 [WIC PROGRAM.] Of this appropriation, 25.3 $650,000 in 1998 is provided to 25.4 maintain services of the program, 25.5 $700,000 in 1998 and $700,000 in 1999 25.6 is added to the base level funding for 25.7 the WIC food program in order to 25.8 maintain the existing level of the 25.9 program, and $100,000 in 1998 is for 25.10 the commissioner to develop and 25.11 implement an outreach program to 25.12 apprise potential recipients of the WIC 25.13 food program of the importance of good 25.14 nutrition and the availability of the 25.15 program. 25.16 [WIC TRANSFERS.] General fund 25.17 appropriations for the women, infants, 25.18 and children food supplement program 25.19 (WIC) are available for either year of 25.20 the biennium. Transfers of 25.21 appropriations between fiscal years 25.22 must be for the purpose of maximizing 25.23 federal funds or minimizing 25.24 fluctuations in the number of 25.25 participants. 25.26 [LOCAL PUBLIC HEALTH FINANCING.] Of the 25.27 appropriation, $6,026,000 in fiscal 25.28 year 1998 and $5,255,000 in fiscal year 25.29 1999 is for local public health 25.30 financing. Of this amount, $5,476,000 25.31 in fiscal year 1998 and $4,705,000 in 25.32 fiscal year 1999 shall be distributed 25.33 according to the community health 25.34 services subsidy formula in Minnesota 25.35 Statutes, section 145A.13. No more 25.36 than $550,000 each year is for 25.37 technical assistance provided by the 25.38 commissioner under Minnesota Statutes, 25.39 section 145A.12. 25.40 [JUVENILE ASSESSMENT CENTERS.] Of this 25.41 appropriation, $500,000 each year of 25.42 the biennium ending June 30, 1999, is 25.43 for the commissioner to develop and 25.44 pilot up to three juvenile assessment 25.45 centers, in partnership with the 25.46 commissioner of children, families and 25.47 learning. The commissioner may 25.48 transfer these appropriations to the 25.49 commissioner of children, families, and 25.50 learning and to other commissioners as 25.51 appropriate. The centers will serve as 25.52 central intake facilities for juveniles 25.53 entering the juvenile justice system or 25.54 involved in CHIPS proceedings; 25.55 facilitate screening for risk factors 25.56 for further involvement in the juvenile 25.57 justice system; refer juveniles to 25.58 appropriate service providers; and 25.59 provide decision-makers with timely 25.60 information. 25.61 [CARRYOVER; MINNESOTA CHILDREN WITH 25.62 SPECIAL HEALTH NEEDS.] General fund 25.63 appropriations for treatment services 25.64 in the services for children with 25.65 special health care needs program are 25.66 available for either year of the 26.1 biennium. 26.2 [HEALTH CARE ASSISTANCE FOR DISABLED 26.3 CHILDREN INELIGIBLE FOR SSI.] 26.4 Notwithstanding the requirements of 26.5 Minnesota Rules, part 4705.0100, 26.6 subpart 14, children who: (a) are 26.7 eligible for medical assistance as of 26.8 June 30, 1997, and become ineligible 26.9 for medical assistance due to changes 26.10 in supplemental security income 26.11 disability standards for children 26.12 enacted in (PRWORA) Public Law Number 26.13 104-193; and (b) are not eligible for 26.14 MinnesotaCare, are eligible for health 26.15 care services through Minnesota 26.16 services for children with special 26.17 health care needs under Minnesota 26.18 Rules, parts 4705.0100 to 4705.1600 for 26.19 the fiscal year ending June 30, 1998. 26.20 The commissioner of health shall report 26.21 to the legislature by March 1, 1998, on 26.22 the number of children eligible under 26.23 this provision, their health care 26.24 needs, family income as a percentage of 26.25 the federal poverty level, the extent 26.26 to which families have employer-based 26.27 health coverage, and recommendations on 26.28 how to meet the future needs of 26.29 children eligible under this provision. 26.30 [MERC TRUST FUND.] Of the general fund 26.31 appropriation, $7,200,000 each year is 26.32 for the medical education and research 26.33 (MERC) trust fund established under 26.34 Minnesota Statutes, section 62J.69. 26.35 The commissioner may use up to $150,000 26.36 of this appropriation each year for the 26.37 administration of the MERC trust fund. 26.38 [INDIAN DIABETES PREVENTION 26.39 ACTIVITIES.] (a) Of this general fund 26.40 appropriation, $90,000 in fiscal year 26.41 1998 is for development of a 26.42 comprehensive school-based intervention 26.43 program designed to reduce the risk 26.44 factors associated with diabetes among 26.45 American Indian school children in 26.46 grades 1 through 4. 26.47 (b) Of this general fund appropriation, 26.48 $90,000 in fiscal year 1999 is for the 26.49 implementation of the program developed 26.50 under paragraph (a). This 26.51 appropriation is available only if 26.52 matched by $1 of nonstate money for 26.53 each $1 of the appropriation. 26.54 [HOME VISITING PROGRAMS.] (a) Of this 26.55 appropriation, $140,000 in 1998 and 26.56 $1,295,000 in 1999 is for the home 26.57 visiting programs for infant care under 26.58 Minnesota Statutes, section 145A.16. 26.59 These amounts are available until June 26.60 30, 1999. 26.61 (b) Of this appropriation, $225,000 in 26.62 1998 and $180,000 in 1999 is to 26.63 continue funding the home visiting 26.64 programs that received one-year funding 26.65 under Laws 1995, chapter 480, article 27.1 1, section 9. This amount is available 27.2 until expended. 27.3 [FETAL ALCOHOL SYNDROME.] $1,000,000 is 27.4 appropriated from the general fund to 27.5 the commissioner of health for each 27.6 year of the biennium ending June 30, 27.7 1999, to prevent and reduce harm from 27.8 Fetal Alcohol Syndrome (FAS) and Fetal 27.9 Alcohol Effect (FAE). Of this amount: 27.10 (1) the commissioner shall transfer 27.11 $50,000 in fiscal year 1998 and $50,000 27.12 in fiscal year 1999 to the commissioner 27.13 of public safety to enforce Minnesota 27.14 Statutes, section 340A.410, subdivision 27.15 4b, and to develop a training packet 27.16 for alcohol beverage sales and service 27.17 providers; and (2) the commissioner 27.18 shall transfer $800,000 each year to 27.19 the commissioner of human services to 27.20 provide transitional chemical 27.21 dependency services to pregnant women. 27.22 Of the appropriation, $150,000 each 27.23 year is for training health care 27.24 providers to screen and refer pregnant 27.25 women for alcohol abuse, identifying 27.26 affected children and referring them to 27.27 needed services, and designing and 27.28 implementing a statewide plan to 27.29 promote responsible drinking and reduce 27.30 binge drinking, underage drinking, and 27.31 fetal alcohol exposure. 27.32 [COMPLAINT INVESTIGATIONS.] Of the 27.33 appropriation, $127,000 each year from 27.34 the state government special revenue 27.35 fund, and $88,000 each year from the 27.36 general fund, is for the commissioner 27.37 to conduct complaint investigations of 27.38 nursing facilities, hospitals and home 27.39 health care providers. 27.40 [HOME STAFFING STUDY.] The commissioner 27.41 of health, in consultation with the 27.42 commissioner of human services, shall 27.43 study nursing home staffing to 27.44 determine if Minnesota nursing homes 27.45 are adequately staffed to assure high 27.46 quality care of residents. The study 27.47 shall examine: 27.48 (1) Whether nursing home staff levels 27.49 and qualifications have changed to 27.50 reflect the rising acuity levels of 27.51 nursing home patients. 27.52 (2) Whether more training is necessary 27.53 for nursing assistant and who care for 27.54 sicker patients. 27.55 (3) The percentage of nursing care in 27.56 nursing homes that is delivered by 27.57 nursing assistants as opposed to 27.58 licensed nurses, how this has changed 27.59 over the past five years, and what the 27.60 implications are for care. 27.61 (4) Whether the use of nursing pools or 27.62 agencies has increased over the past 27.63 five years, the implications of the use 28.1 of pools for continuity of care and for 28.2 costs to nursing homes, and whether a 28.3 restriction on the use of nursing pools 28.4 is advisable. 28.5 (5) Whether injury rates are related to 28.6 staffing, and whether increased 28.7 staffing would reduce injury rates, 28.8 lead to greater continuity of care, and 28.9 lower worker compensation costs to the 28.10 nursing home industry. 28.11 (6) Whether high turnover rates and 28.12 difficulty in attracting and retaining 28.13 nursing assistant staff in nursing 28.14 homes are related to low wages, and 28.15 whether the state should provide wage 28.16 enhancements for nursing assistants to 28.17 bring wages to a level adequate to 28.18 attract and retain good staff. 28.19 (7) Whether Minnesota should adopt new 28.20 staffing standards for its nursing 28.21 homes to reflect the increases in 28.22 patients' acuity levels and the 28.23 increased use of nursing assistants for 28.24 nursing care, and whether the state 28.25 should adopt a "ratio" standard that 28.26 requires the number of licensed nurses 28.27 and nursing assistants on staff to be 28.28 based on the number of patients and the 28.29 time of day. 28.30 The commissioner shall present 28.31 recommendations to the legislature by 28.32 December 15, 1997. 28.33 Subd. 3. Health Protection 21,905,000 21,098,000 28.34 Summary by Fund 28.35 General 9,082,000 8,228,000 28.36 Metro Landfill 28.37 Contingency 193,000 193,000 28.38 State Government 28.39 Special Revenue 12,480,000 12,677,000 28.40 Minnesota Resources 150,000 -0- 28.41 [DEMO PROJECTS FOR HIV EDUCATION IN 28.42 SCHOOLS.] Of this appropriation, the 28.43 commissioner shall transfer $300,000 28.44 for the biennium ending June 30, 1999, 28.45 to the commissioner of children, 28.46 families, and learning to establish a 28.47 demonstration project to provide grants 28.48 to school districts under Minnesota 28.49 Statutes, section 121.203. In 28.50 selecting participating districts the 28.51 commissioner shall give first priority 28.52 to school districts outside of the 28.53 seven-county metropolitan area, and 28.54 second priority to school districts in 28.55 the seven-county metropolitan area 28.56 other than the Minneapolis and St. Paul 28.57 school districts. The commissioner 28.58 shall issue a request for proposals by 28.59 October 1, 1997, and shall select 28.60 districts by December 15, 1997. The 29.1 commissioner shall evaluate the 29.2 projects, and by June 15, 1999, develop 29.3 model programs for districts to 29.4 implement Minnesota Statutes, section 29.5 121.203. This appropriation shall not 29.6 become part of the base for 2000-2001 29.7 biennium. 29.8 [PREVENTION OF PERINATAL TRANSMISSION 29.9 OF HIV.] Of this appropriation, 29.10 $500,000 for the biennium is for 29.11 activities related to prevention of 29.12 perinatal transmission of HIV. Of this 29.13 amount, $225,000 in fiscal year 1998 29.14 and $200,000 in fiscal year 1999 is to 29.15 conduct a statewide education campaign 29.16 for pregnant women and their health 29.17 care providers, and $75,000 is for 29.18 demonstration grants to providers to 29.19 develop procedures for incorporating 29.20 HIV awareness and education into 29.21 perinatal care. 29.22 [EVALUATION REQUIRED.] Of this 29.23 appropriation, $100,000 for the 29.24 biennium is for the commissioner to 29.25 evaluate the effects of Minnesota 29.26 Statutes, section 151.40, subdivision 29.27 2, and Minnesota Statutes, section 29.28 152.01, subdivision 18, paragraph (b). 29.29 The commissioner shall submit an 29.30 interim evaluation report to the 29.31 legislature by January 15, 2000, and a 29.32 final report by January 15, 2002. 29.33 [PROVIDER REIMBURSEMENT FOR HEALTH CARE 29.34 SERVICES TO CRIME VICTIMS.] Of this 29.35 appropriation $25,000 each year is for 29.36 the commissioner to reimburse health 29.37 care providers for counseling, testing, 29.38 and early intervention services 29.39 provided to crime victims who requested 29.40 the services. 29.41 Subd. 4. Management and 29.42 Support Services 3,375,000 3,175,000 29.43 Summary by Fund 29.44 General 3,217,000 3,017,000 29.45 Health Care 29.46 Access -0- -0- 29.47 State Government 29.48 Special Revenue 158,000 158,000 29.49 [HEALTH DEPARTMENT COMPUTER PROJECTS.] 29.50 Money appropriated for computer 29.51 projects approved by the information 29.52 policy office, funded by the 29.53 legislature, and approved by the 29.54 commissioner of finance does not cancel 29.55 but is available for development and 29.56 implementation. 29.57 [HOSPITAL CONVERSION.] Of the 29.58 appropriation from the general fund, 29.59 for the fiscal year ending June 30, 29.60 1998, the commissioner of health shall 29.61 provide $75,000 to a 28-bed hospital 30.1 located in Chisago county that is in 30.2 the process of closing and converting 30.3 to an outpatient and emergency services 30.4 facility, for the facility's EMS and 30.5 advanced life support services. 30.6 Sec. 4. VETERANS NURSING 30.7 HOMES BOARD 20,709,000 24,342,000 30.8 [SPECIAL REVENUE ACCOUNT.] The general 30.9 fund appropriations made to the 30.10 veterans homes board shall be 30.11 transferred to a veterans homes special 30.12 revenue account in the special revenue 30.13 fund in the same manner as other 30.14 receipts are deposited in accordance 30.15 with Minnesota Statutes, section 30.16 198.34, and are appropriated to the 30.17 veterans homes board of directors for 30.18 the operation of board facilities and 30.19 programs. 30.20 [SETTING THE COST OF CARE.] The 30.21 veterans homes board may set the cost 30.22 of care at the Fergus Falls facility 30.23 for fiscal year 1998 based on the cost 30.24 of average skilled nursing care 30.25 provided to residents of the 30.26 Minneapolis veterans home for fiscal 30.27 year 1998. The board may set the cost 30.28 of care at the Fergus Falls facilities 30.29 for fiscal year 1999 based on the cost 30.30 of average skilled nursing care for 30.31 residents of the Minneapolis veterans 30.32 home for fiscal year 1999. 30.33 [LICENSED CAPACITY.] The department of 30.34 health shall not reduce the licensed 30.35 bed capacity for the Minneapolis 30.36 veterans home pending completion of the 30.37 project authorized by Laws 1990, 30.38 chapter 610, article 1, section 9, 30.39 subdivision 3. 30.40 [ALLOWANCE FOR FOOD.] The allowance for 30.41 food may be adjusted annually to 30.42 reflect changes in the producer price 30.43 index, as prepared by the United States 30.44 Bureau of Labor Statistics, with the 30.45 approval of the commissioner of 30.46 finance. Adjustments for fiscal year 30.47 1998 and fiscal year 1999 must be based 30.48 on the June 1996 and June 1997 producer 30.49 price index respectively, but the 30.50 adjustment must be prorated if it would 30.51 require money in excess of the 30.52 appropriation. 30.53 Sec. 5. HEALTH-RELATED BOARDS 30.54 Subdivision 1. Total 30.55 Appropriation 9,598,000 9,618,000 30.56 [STATE GOVERNMENT SPECIAL REVENUE 30.57 FUND.] The appropriations in this 30.58 section are from the state government 30.59 special revenue fund. 30.60 [NO SPENDING IN EXCESS OF REVENUES.] 30.61 The commissioner of finance shall not 30.62 permit the allotment, encumbrance, or 31.1 expenditure of money appropriated in 31.2 this section in excess of the 31.3 anticipated biennial revenues or 31.4 accumulated surplus revenues from fees 31.5 collected by the boards. Neither this 31.6 provision nor Minnesota Statutes, 31.7 section 214.06, applies to transfers 31.8 from the general contingent account. 31.9 Subd. 2. Board of Chiropractic 31.10 Examiners 332,000 340,000 31.11 Subd. 3. Board of Dentistry 742,000 760,000 31.12 Subd. 4. Board of Dietetic 31.13 and Nutrition Practice 90,000 90,000 31.14 Subd. 5. Board of Marriage and 31.15 Family Therapy 103,000 104,000 31.16 Subd. 6. Board of Medical 31.17 Practice 3,672,000 3,711,000 31.18 Of these appropriations, $291,000 the 31.19 first year and $296,000 the second year 31.20 are for the Health Professional 31.21 Services Activity. 31.22 Subd. 7. Board of Nursing 2,067,000 2,106,000 31.23 [DISCIPLINE AND LICENSING SYSTEMS 31.24 PROJECT.] Of this appropriation, 31.25 $235,000 the first year and $235,000 31.26 the second year is to complete the 31.27 implementation of the discipline and 31.28 licensing systems project. 31.29 Subd. 8. Board of Nursing 31.30 Home Administrators 177,000 181,000 31.31 Subd. 9. Board of Optometry 82,000 85,000 31.32 Subd. 10. Board of Pharmacy 1,020,000 1,040,000 31.33 Of these appropriations, $216,000 the 31.34 first year and $222,000 the second year 31.35 are for the health boards 31.36 administrative services unit. The 31.37 administrative services unit may 31.38 receive and expend reimbursements for 31.39 services performed for other agencies. 31.40 Subd. 11. Board of Podiatry 33,000 33,000 31.41 Subd. 12. Board of Psychology 424,000 436,000 31.42 Subd. 13. Board of Social Work 715,000 588,000 31.43 Subd. 14. Board of Veterinary 31.44 Medicine 141,000 144,000 31.45 Sec. 6. EMERGENCY MEDICAL 31.46 SERVICES BOARD 2,791,000 2,811,000 31.47 Summary by Fund 31.48 General 1,139,000 1,133,000 31.49 Trunk Highway 1,652,000 1,678,000 31.50 [CALS PROGRAM.] $206,000 is 32.1 appropriated from the general fund to 32.2 the emergency medical services 32.3 regulatory board to be available until 32.4 June 30, 1999. $200,000 of the 32.5 appropriation is to implement the 32.6 comprehensive advanced life support 32.7 (CALS) program or similar program. 32.8 $6,000 of the appropriation is for 32.9 administrative costs of implementing 32.10 the CALS program. 32.11 [EMS BOARD DATA COLLECTION.] Of this 32.12 appropriation, $52,000 for the biennium 32.13 ending June 30, 1999, is from the 32.14 general fund to the emergency medical 32.15 services regulatory to be used as 32.16 start-up costs for the financial data 32.17 collection system. 32.18 Sec. 7. COUNCIL ON DISABILITY 616,000 631,000 32.19 Sec. 8. OMBUDSMAN FOR MENTAL 32.20 HEALTH AND MENTAL RETARDATION 1,399,000 1,323,000 32.21 [CARRYOVER.] $25,000 of the 32.22 appropriation from Laws 1995, chapter 32.23 207, article 1, section 7, does not 32.24 cancel but is available until June 30, 32.25 1999. 32.26 Sec. 9. OMBUDSMAN 32.27 FOR FAMILIES 157,000 161,000 32.28 Sec. 10. TRANSFERS 32.29 Subdivision 1. Grant Programs 32.30 The commissioner of human services, 32.31 with the approval of the commissioner 32.32 of finance, and after notification of 32.33 the chair of the senate health care and 32.34 family services finance division and 32.35 the chair of the house health and human 32.36 services finance division, may transfer 32.37 unencumbered appropriation balances for 32.38 the biennium ending June 30, 1999, 32.39 within fiscal years among the aid to 32.40 families with dependent children, 32.41 Minnesota family investment 32.42 program-statewide, Minnesota family 32.43 investment plan, general assistance, 32.44 general assistance medical care, 32.45 medical assistance, Minnesota 32.46 supplemental aid, and group residential 32.47 housing programs, and the entitlement 32.48 portion of the chemical dependency 32.49 consolidated treatment fund, and 32.50 between fiscal years of the biennium. 32.51 Subd. 2. Approval Required 32.52 Positions, salary money, and nonsalary 32.53 administrative money may be transferred 32.54 within the departments of human 32.55 services and health and within the 32.56 programs operated by the veterans 32.57 nursing homes board as the 32.58 commissioners and the board consider 32.59 necessary, with the advance approval of 32.60 the commissioner of finance. The 32.61 commissioner of finance shall inform 33.1 the chairs of the house health and 33.2 human services finance division and the 33.3 senate health and family security 33.4 budget division quarterly about 33.5 transfers made under this provision. 33.6 Sec. 11. PROVISIONS 33.7 (a) Money appropriated to the 33.8 commissioner of human services for the 33.9 purchase of provisions within the item 33.10 "current expense" must be used solely 33.11 for that purpose. Money provided and 33.12 not used for the purchase of provisions 33.13 must be canceled into the fund from 33.14 which appropriated, except that money 33.15 provided and not used for the purchase 33.16 of provisions because of population 33.17 decreases may be transferred and used 33.18 for the purchase of drugs and medical 33.19 and hospital supplies and equipment 33.20 with written approval of the governor 33.21 after consultation with the legislative 33.22 advisory commission. 33.23 (b) For fiscal year 1998, the allowance 33.24 for food may be adjusted to the 33.25 equivalent of the 75th percentile of 33.26 the comparable raw food costs for 33.27 community nursing homes as reported to 33.28 the commissioner of human services. 33.29 For fiscal year 1999 an adjustment may 33.30 be made to reflect the annual change in 33.31 the United States Bureau of Labor 33.32 Statistics producer price index as of 33.33 June 1998 with the approval of the 33.34 commissioner of finance. The 33.35 adjustments for either year must be 33.36 prorated if they would require money in 33.37 excess of this appropriation. 33.38 Sec. 12. CARRYOVER LIMITATION 33.39 None of the appropriations in this act 33.40 which are allowed to be carried forward 33.41 from fiscal year 1998 to fiscal year 33.42 1999 shall become part of the base 33.43 level funding for the 2000-2001 33.44 biennial budget, unless specifically 33.45 directed by the legislature. 33.46 Sec. 13. SUNSET OF UNCODIFIED LANGUAGE 33.47 All uncodified language contained in 33.48 this article expires on June 30, 1999, 33.49 unless a different expiration is 33.50 explicit. 33.51 Sec. 14. COMMISSIONER OF 33.52 ADMINISTRATION 1,270,000 -0- 33.53 [VETERANS HOMES IMPROVEMENTS.] Of this 33.54 appropriation, $1,270,000 for the 33.55 biennium is for the commissioner to 33.56 accomplish the repair and replacement 33.57 of sanitary sewers, fire protection 33.58 water mains, roof drains, and deep 33.59 sandstone tunnels at the Minneapolis 33.60 veterans home, Minneapolis campus. 33.61 ARTICLE 2 34.1 HEALTH DEPARTMENT 34.2 Section 1. Minnesota Statutes 1996, section 62J.69, 34.3 subdivision 2, is amended to read: 34.4 Subd. 2. [ALLOCATION AND FUNDING FOR MEDICAL EDUCATION AND 34.5 RESEARCH.] (a) The commissioner may establish a trust fund for 34.6 the purposes of funding medical education and research 34.7 activities in the state of Minnesota. 34.8 (b) By January 1, 1997, the commissioner may appoint an 34.9 advisory committee to provide advice and oversight on the 34.10 distribution of funds from the medical education and research 34.11 trust fund. If a committee is appointed, the commissioner 34.12 shall: (1) consider the interest of all stakeholders when 34.13 selecting committee members; (2) select members that represent 34.14 both urban and rural interest; and (3) select members that 34.15 include ambulatory care as well as inpatient perspectives. The 34.16 commissioner shall appoint to the advisory committee 34.17 representatives of the following groups: medical researchers, 34.18 public and private academic medical centers, managed care 34.19 organizations, Blue Cross and Blue Shield of Minnesota, 34.20 commercial carriers, Minnesota Medical Association, Minnesota 34.21 Nurses Association, medical product manufacturers, employers, 34.22 and other relevant stakeholders, including consumers. The 34.23 advisory committee is governed by section 15.059, for membership 34.24 terms and removal of members and will sunset on June 30, 1999. 34.25 (c) Eligible applicants for funds are accredited medical 34.26 education teaching institutions, consortia, and programs. 34.27 Applications must be received by September 30 of each year for 34.28 distribution by January 1 of the following year. An application 34.29 for funds must include the following: 34.30 (1) the official name and address of the institution, 34.31 facility, or program that is applying for funding; 34.32 (2) the name, title, and business address of those persons 34.33 responsible for administering the funds; 34.34 (3) the total number, type, and specialty orientation of 34.35 eligible trainees in each accredited medical education program 34.36 applying for funds; 35.1 (4) audited clinical training costs per trainee for each 35.2 medical education program; 35.3 (5) a description of current sources of funding for medical 35.4 education costs including a description and dollar amount of all 35.5 state and federal financial support; 35.6 (6) other revenue received for the purposes of clinical 35.7 training; 35.8 (7) a statement identifying unfunded costs; and 35.9 (8) other supporting information the commissioner, with 35.10 advice from the advisory committee, determines is necessary for 35.11 the equitable distribution of funds. 35.12 (d) The commissioner shall distribute medical education 35.13 funds to all qualifying applicants based on the following basic 35.14 criteria: (1) total medical education funds available; (2) 35.15 total trainees in each eligible education program; and (3) the 35.16 statewide average cost per trainee, by type of trainee, in each 35.17 medical education program. Funds distributed shall not be used 35.18 to displace current funding appropriations from federal or state 35.19 sources. 35.20 (e) Medical education programs receiving funds from the 35.21 trust fund must submit annual cost and program reports based on 35.22 criteria established by the commissioner. The reports must 35.23 include: 35.24 (1) the total number of eligible trainees in the program; 35.25 (2) the type of programs and residencies funded; 35.26 (3) the average cost per trainee and a detailed breakdown 35.27 of the components of those costs; 35.28 (4) other state or federal appropriations received for the 35.29 purposes of clinical training; 35.30 (5) other revenue received for the purposes of clinical 35.31 training; and 35.32 (6) other information the commissioner, with advice from 35.33 the advisory committee, deems appropriate to evaluate the 35.34 effectiveness of the use of funds for clinical training. 35.35 The commissioner, with advice from the advisory committee, 35.36 will provide an annual summary report to the legislature on 36.1 program implementation due February 15 of each year. 36.2 (f) The commissioner is authorized to distribute funds made 36.3 available through: 36.4 (1) voluntary contributions by employers or other entities; 36.5 (2) allocations for the department of human services to 36.6 support medical education and research; and 36.7 (3) other sources as identified and deemed appropriate by 36.8 the legislature for inclusion in the trust fund. 36.9 (g) The advisory committee shall continue to study and make 36.10 recommendations on: 36.11 (1) the funding of medical research consistent with work 36.12 currently mandated by the legislature and under way at the 36.13 department of health; and 36.14 (2) the costs and benefits associated with medical 36.15 education and research. 36.16 (h) The commissioner of health, in consultation with the 36.17 medical education and research costs advisory committee, shall 36.18 continue to consider additional broad-based funding sources, and 36.19 shall recommend potential sources of funding to the legislative 36.20 commission on health care access by January 15, 1998. 36.21 (i) The commissioner of health, in consultation with the 36.22 commissioner of human services, shall assess the possibility of 36.23 further base rate reductions to the prepaid medical assistance 36.24 and prepaid general assistance medical care programs and shall 36.25 study the feasibility of inclusion of MinnesotaCare funding in 36.26 the trust fund. The study shall examine whether the 1999 36.27 allocation established in section 256B.69, subdivision 5c, 36.28 paragraph (b), sufficiently reflects the direct and indirect 36.29 components of medical education. The study shall also examine 36.30 the appropriateness of transferring an education component from 36.31 the MinnesotaCare rates, and the appropriate amount and timing 36.32 of any such transfer. Recommendations on the possible inclusion 36.33 of MinnesotaCare funding and any further base rate reductions 36.34 from the prepaid medical assistance and prepaid general 36.35 assistance medical care programs shall be reported to the 36.36 legislative commission on health care access by January 15, 1998. 37.1 Sec. 2. [62J.70] [AMBULANCE SERVICES FINANCIAL DATA.] 37.2 Subdivision 1. [ESTABLISHMENT.] The emergency medical 37.3 services regulatory board established under chapter 144E shall 37.4 establish a financial data collection system for all ambulance 37.5 services licensed in this state. To establish the financial 37.6 database, the emergency medical services regulatory board may 37.7 contract with an entity that has experience in ambulance service 37.8 financial data collection. 37.9 Subd. 2. [DATA CLASSIFICATION.] All financial data 37.10 collected by the emergency medical services regulatory board 37.11 shall be classified as nonpublic data under section 13.02, 37.12 subdivision 9. 37.13 Sec. 3. Minnesota Statutes 1996, section 103I.101, 37.14 subdivision 6, is amended to read: 37.15 Subd. 6. [FEES FOR VARIANCES.] The commissioner shall 37.16 charge a nonrefundable application fee of$100$120 to cover the 37.17 administrative cost of processing a request for a variance or 37.18 modification of rules adopted by the commissioner under this 37.19 chapter. 37.20 Sec. 4. Minnesota Statutes 1996, section 103I.208, is 37.21 amended to read: 37.22 103I.208 [WELLNOTIFICATION FILING FEES AND PERMIT FEES.] 37.23 Subdivision 1. [WELL NOTIFICATION FEE.] The well 37.24 notification fee to be paid by a property owner is: 37.25 (1) for a new well,$100$120, which includes the state 37.26 core function fee;and37.27 (2) for a well sealing, $20, which includes the state core 37.28 function fee; and 37.29 (3) for construction of a dewatering well,$100$120, which 37.30 includes the state core function fee, for each well except a 37.31 dewatering project comprising five or more wells shall be 37.32 assessed a single fee of$500$600 for the wells recorded on the 37.33 notification. 37.34 Subd. 1a. [STATE CORE FUNCTION FEE.] The state core 37.35 function fee to be collected by the state and delegated boards 37.36 of health and used to support state core functions is: 38.1 (1) for a new well, $20; and 38.2 (2) for a well sealing, $5. 38.3 Subd. 2. [PERMIT FEE.] The permit fee to be paid by a 38.4 property owner is: 38.5 (1) for a well that is not in use under a maintenance 38.6 permit, $100 annually; 38.7 (2) for construction of a monitoring well,$100$120, which 38.8 includes the state core function fee; 38.9 (3) for a monitoring well that is unsealed under a 38.10 maintenance permit, $100 annually; 38.11 (4) for monitoring wells used as a leak detection device at 38.12 a single motor fuel retail outlet or petroleum bulk storage site 38.13 excluding tank farms, the construction permit fee is$100$120, 38.14 which includes the state core function fee, per site regardless 38.15 of the number of wells constructed on the site, and the annual 38.16 fee for a maintenance permit for unsealed monitoring wells is 38.17 $100 per site regardless of the number of monitoring wells 38.18 located on site; 38.19 (5) for a groundwater thermal exchange device, in addition 38.20 to the notification fee for wells,$100$120, which includes the 38.21 state core function fee; 38.22 (6) for a vertical heat exchanger,$100$120;and38.23 (7) for a dewatering well that is unsealed under a 38.24 maintenance permit, $100 annually for each well, except a 38.25 dewatering project comprising more than five wells shall be 38.26 issued a single permit for $500 annually for wells recorded on 38.27 the permit; and 38.28 (8) for excavating holes for the purpose of installing 38.29 elevator shafts, $120 for each hole. 38.30 Sec. 5. Minnesota Statutes 1996, section 103I.401, 38.31 subdivision 1, is amended to read: 38.32 Subdivision 1. [PERMIT REQUIRED.] (a) A person may not 38.33 construct an elevator shaft until a permit for the hole or 38.34 excavation is issued by the commissioner. 38.35 (b)The fee for excavating holes for the purpose of38.36installing elevator shafts is $100 for each hole.39.1(c)The elevator shaft permit preempts local permits except 39.2 local building permits, and counties and home rule charter or 39.3 statutory cities may not require a permit for elevator shaft 39.4 holes or excavations. 39.5 Sec. 6. Minnesota Statutes 1996, section 144.121, 39.6 subdivision 1, is amended to read: 39.7 Subdivision 1. [REGISTRATION; FEES.] The fee for the 39.8 registration for X-ray machines andradiumother sources of 39.9 ionizing radiation required to be registered under rules adopted 39.10 by the state commissioner of health pursuant to section 144.12, 39.11 shall be in an amountprescribed by the commissioneras 39.12 described in subdivision 1a pursuant to section 144.122.The39.13first fee for registration shall be due on January 1, 1975.The 39.14 registration shall expire and be renewed as prescribed by the 39.15 commissioner pursuant to section 144.122. 39.16 Sec. 7. Minnesota Statutes 1996, section 144.121, is 39.17 amended by adding a subdivision to read: 39.18 Subd. 1a. [FEES FOR X-RAY MACHINES AND OTHER SOURCES OF 39.19 IONIZING RADIATION.] After July 1, 1997, a facility with x-ray 39.20 machines or other sources of ionizing radiation must biennially 39.21 pay an initial or biennial renewal registration fee consisting 39.22 of a base facility fee of $132 and an additional fee for each 39.23 x-ray machine or other source of ionizing radiation as follows: 39.24 (1) medical or veterinary equipment $106 39.25 (2) dental x-ray equipment $ 66 39.26 (3) accelerator $132 39.27 (4) radiation therapy equipment $132 39.28 (5) x-ray equipment not used on humans or animals $106 39.29 (6) devices with sources of ionizing radiation 39.30 not used on humans or animals $106 39.31 (7) sources of radium $198 39.32 Sec. 8. Minnesota Statutes 1996, section 144.121, is 39.33 amended by adding a subdivision to read: 39.34 Subd. 1b. [PENALTY FEE FOR LATE REGISTRATION.] 39.35 Applications for initial or renewal registrations submitted to 39.36 the commissioner after the time specified by the commissioner 40.1 shall be accompanied by a penalty fee of $20 in addition to the 40.2 fees prescribed in subdivision 1a. 40.3 Sec. 9. Minnesota Statutes 1996, section 144.121, is 40.4 amended by adding a subdivision to read: 40.5 Subd. 1c. [FEE FOR X-RAY MACHINES AND OTHER SOURCES OF 40.6 IONIZING RADIATION REGISTERED DURING LAST 12 MONTHS OF A 40.7 BIENNIAL REGISTRATION PERIOD.] The initial registration fee of 40.8 x-ray machines or other sources of radiation required to be 40.9 registered during the last 12 months of a biennial registration 40.10 period will be 50 percent of the applicable registration fee 40.11 prescribed in subdivision 1a. 40.12 Sec. 10. [144.124] [TESTS OF NEWBORN INFANTS FOR HEARING 40.13 LOSS.] 40.14 Subdivision 1. [LEGISLATIVE DECLARATION AND POLICY.] (a) 40.15 The legislature hereby finds, determines, and declares: 40.16 (1) that hearing loss occurs in newborn infants more 40.17 frequently than any other health condition for which newborn 40.18 infant screening is currently required; 40.19 (2) that 80 percent of the language ability of a child is 40.20 established by the time the child is 18 months of age, and that 40.21 hearing is vitally important to the health development of 40.22 language skills; 40.23 (3) that early detection of either mild or severe hearing 40.24 loss in a child and early intervention has been determined to be 40.25 highly effective in facilitating a child's healthy development 40.26 in a manner consistent with the child's age and cognitive 40.27 ability; 40.28 (4) that children with hearing loss who do not receive 40.29 early intervention require special educational services, and 40.30 that the costs of such publicly funded services exceed the costs 40.31 of screening infants for hearing loss; and 40.32 (5) that appropriate testing and identification of newborn 40.33 infants with hearing loss will facilitate early intervention, 40.34 and may therefore promote the healthy development of children 40.35 and reduce public expenditures. 40.36 (b) For these reasons, the legislature declares that it is 41.1 the public policy of this state that every newborn infant should 41.2 be screened for hearing loss unless the parents object on the 41.3 grounds that a test would conflict with their religious beliefs. 41.4 Subd. 2. [PROGRAM IMPLEMENTATION.] (a) To accomplish the 41.5 goal of screening all newborn infants for hearing loss, the 41.6 commissioner of health shall work with hospitals, the medical 41.7 community, audiologists, insurance companies, parents, and deaf 41.8 and hard-of-hearing citizens to establish and implement a 41.9 voluntary plan for hospitals and other health care facilities to 41.10 screen all infants for hearing loss. 41.11 (b) The commissioner of health shall appoint a department 41.12 work group to make recommendations to the commissioner on 41.13 formulating a plan to achieve, on a voluntary basis, universal 41.14 screening of infants for hearing loss. The work group shall 41.15 include the following representatives: 41.16 (1) a representative of the health insurance industry 41.17 designated by the health insurance industry; 41.18 (2) a representative of the Minnesota hospital and 41.19 healthcare partnership; 41.20 (3) a total of two representatives from the following 41.21 physician groups designated by the Minnesota medical 41.22 association: pediatrics, family practice, and ENT; 41.23 (4) two audiologists designated by the Minnesota 41.24 speech-language-hearing association and the Minnesota academy of 41.25 audiology; 41.26 (5) a representative of hospital neonatal nurseries; 41.27 (6) a representative of Part H (IDEA) early childhood 41.28 special education; 41.29 (7) the commissioner of health or a designee; 41.30 (8) a representative of the department of human services; 41.31 (9) a public health nurse; 41.32 (10) a parent of a deaf or hard-of-hearing child; 41.33 (11) a deaf or hard-of-hearing person; and 41.34 (12) a representative of the Minnesota commission serving 41.35 deaf and hard-of-hearing people. 41.36 Members of the work group shall not collect a per diem or 42.1 compensation as provided in section 15.0575. 42.2 (c) The plan shall include the following: 42.3 (1) measurable goals and timetables for achieving universal 42.4 screening of infants for hearing loss throughout the state; and 42.5 (2) the design and implementation of training necessary to 42.6 assist hospitals and other health care facilities to screen 42.7 infants for hearing loss according to recognized standards of 42.8 care. 42.9 (d) The work group shall report to the legislature by 42.10 January 1, 1998, on progress made toward achieving universal 42.11 screening of infants in Minnesota to assist the legislature in 42.12 determining whether this goal can be accomplished on a voluntary 42.13 basis. 42.14 Sec. 11. Minnesota Statutes 1996, section 144.125, is 42.15 amended to read: 42.16 144.125 [TESTS OF INFANTS FOR INBORN METABOLIC ERRORS.] 42.17 It is the duty of (1) the administrative officer or other 42.18 person in charge of each institution caring for infants 28 days 42.19 or less of age and (2) the person required in pursuance of the 42.20 provisions of section 144.215, to register the birth of a child, 42.21 to cause to have administered to every infant or child in its 42.22 care tests for hemoglobinopathy, phenylketonuria, and other 42.23 inborn errors of metabolism in accordance with rules prescribed 42.24 by the state commissioner of health. In determining which tests 42.25 must be administered, the commissioner shall take into 42.26 consideration the adequacy of laboratory methods to detect the 42.27 inborn metabolic error, the ability to treat or prevent medical 42.28 conditions caused by the inborn metabolic error, and the 42.29 severity of the medical conditions caused by the inborn 42.30 metabolic error. Testing and the recording and reporting of the 42.31 results of the tests shall be performed at the times and in the 42.32 manner prescribed by the commissioner of health. The 42.33 commissioner shall charge laboratory service fees for conducting 42.34 the tests of infants for inborn metabolic errors so that the 42.35 total of fees collected will approximate the costs of conducting 42.36 the tests and implementing and maintaining a system to follow-up 43.1 infants with inborn metabolic errors. Costs associated with 43.2 capital expenditures and the development of new procedures may 43.3 be prorated over a three-year period when calculating the amount 43.4 of the fees. 43.5 Sec. 12. Minnesota Statutes 1996, section 144.226, 43.6 subdivision 1, is amended to read: 43.7 Subdivision 1. [WHICH SERVICES ARE FOR FEE.] The fees 43.8 forany ofthe following services shall beinthe following or 43.9 an amount prescribed by rule of the commissioner: 43.10 (a) The fee for the issuance of a certified copy or 43.11 certification of a vital record, or a certification that the 43.12 record cannot be found;is $8. No fee shall be charged for a 43.13 certified birth or death record that is reissued within one year 43.14 of the original issue, if the previously issued record is 43.15 surrendered. 43.16 (b) The fee for the replacement of a birthcertificate;43.17 record for all events except adoption is $20. 43.18 (c) The fee for the filing of a delayed registration of 43.19 birth or death;is $20. 43.20 (d) Thealteration, correction, or completionfee for the 43.21 amendment of any vital record, provided thatwhen requested more 43.22 than one year after the filing of the record is $20. No fee 43.23 shall be charged for analteration, correction, or43.24completionamendment requested within one year after the filing 43.25 of the certificate; and. 43.26 (e) The fee for the verification of information fromor43.27noncertified copies ofvital records is $8 when the applicant 43.28 furnishes the specific information to locate the record. When 43.29 the applicant does not furnish specific information, the fee is 43.30 $20 per hour for staff time expended. Specific information 43.31 shall include the correct date of the event and the correct name 43.32 of the registrant. Fees charged shall approximate the costs 43.33 incurred in searching and copying the records. The fee shall be 43.34 payable at time of application. 43.35 (f) The fee for issuance of a certified or noncertified 43.36 copy of any document on file pertaining to a vital record or a 44.1 certification that the record cannot be found is $8. 44.2 Sec. 13. Minnesota Statutes 1996, section 144.226, is 44.3 amended by adding a subdivision to read: 44.4 Subd. 4. [VITAL RECORDS SURCHARGE.] In addition to any fee 44.5 prescribed under subdivision 1, there is a nonrefundable 44.6 surcharge of $3 for each certified and noncertified birth or 44.7 death record. The local or state registrar shall forward this 44.8 amount to the state treasurer to be deposited into the state 44.9 government special revenue fund. This surcharge shall not be 44.10 charged under those circumstances in which no fee for a birth or 44.11 death record is permitted under subdivision 1, paragraph (a). 44.12 This surcharge requirement expires June 30, 2002. 44.13 Sec. 14. Minnesota Statutes 1996, section 144.394, is 44.14 amended to read: 44.15 144.394 [SMOKING PREVENTIONHEALTH PROMOTION AND 44.16 EDUCATION.] 44.17 The commissioner may sell at market value,allnonsmoking44.18or tobacco use prevention advertisinghealth promotion and 44.19 health education materials. Proceeds from the sale of the 44.20advertisingmaterials are appropriated to the department of 44.21 health forits nonsmokingthe program that developed the 44.22 material. 44.23 Sec. 15. Minnesota Statutes 1996, section 144.767, 44.24 subdivision 1, is amended to read: 44.25 Subdivision 1. [REPORT TO EMPLOYER.] Results of tests 44.26 conducted under this section shall be reported by the facility 44.27 to a designated agent of the emergency medical services agency 44.28 that employs or uses the emergency medical services personnel 44.29 and to the emergency medical services personnel who report the 44.30 significant exposure. The test results shall be reported 44.31 without personally identifying information and may not be used 44.32 as evidence in any criminal prosecution. 44.33 Sec. 16. [145.9241] [PREVENTION OF PERINATAL TRANSMISSION 44.34 OF HIV.] 44.35 The commissioner shall conduct a statewide education 44.36 campaign to educate pregnant women and health care providers 45.1 about the risk of perinatal transmission of HIV and the value of 45.2 HIV screening early in pregnancy. The commissioner shall also 45.3 provide demonstration grants to health care providers to allow 45.4 these providers to develop procedures for incorporating HIV 45.5 awareness and education into prenatal care. 45.6 Sec. 17. Minnesota Statutes 1996, section 145.925, 45.7 subdivision 9, is amended to read: 45.8 Subd. 9. [RULES; REGIONAL FUNDING.] Notwithstanding any 45.9 rules to the contrary, including rules proposed in the State 45.10 Register on April 1, 1991, the commissioner, in allocating grant 45.11 funds for family planning special projects, shall not limit the 45.12 total amount of funds that can be allocated to an organization 45.13 that has submitted applications from more than one region, 45.14 except that no more than $75,000 may be allocated to any grantee 45.15 within a single region, except that if a county designates one 45.16 or more organizations to be its agent for providing family 45.17 planning services, the county may fund the organizations in an 45.18 amount greater than $75,000. For two or more organizations who 45.19 have submitted a joint application, that limit is $75,000 for 45.20 each organization, except that if a county designates one or 45.21 more organizations to be its agent for providing family planning 45.22 services, the county may fund the organizations in an amount 45.23 greater than $75,000. This subdivision does not affect any 45.24 procedure established in rule for allocating special project 45.25 money to the different regions. The commissioner shall revise 45.26 the rules for family planning special project grants so that 45.27 they conform to the requirements of this subdivision. In 45.28 adopting these revisions, the commissioner is not subject to the 45.29 rulemaking provisions of chapter 14, but is bound by section 45.30 14.38, subdivision 7. 45.31 Sec. 18. [145A.16] [UNIVERSALLY OFFERED HOME VISITING 45.32 PROGRAMS FOR INFANT CARE.] 45.33 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 45.34 establish a grant program for universally offered home visiting 45.35 programs funded at a level that could serve, if accepted, all 45.36 live births in designated geographic areas. The commissioner 46.1 shall designate the geographic area to be served by each 46.2 program. At least one program must provide home visiting 46.3 services to families within the seven-county metropolitan area, 46.4 and at least one program must provide home visiting services to 46.5 families outside the metropolitan area. The purpose of the 46.6 program is to strengthen families and to promote positive 46.7 parenting and healthy child development. 46.8 Subd. 2. [STEERING COMMITTEE.] The commissioner shall 46.9 establish an ad hoc steering committee to develop and implement 46.10 a comprehensive plan for the universally offered home visiting 46.11 programs. The members of the ad hoc steering committee shall 46.12 include, at a minimum, representatives of local public health 46.13 departments, public health nurses, other health care providers, 46.14 paraprofessionals, community-based family workers, 46.15 representatives of health insurance plans, and other individuals 46.16 with expertise in the field of home visiting, early childhood 46.17 health and development, and child abuse prevention. 46.18 Subd. 3. [PROGRAM REQUIREMENTS.] The commissioner shall 46.19 award grants using a request for proposal system. Existing home 46.20 visiting programs may apply for the grants. Health information 46.21 and assessment, counseling, social support, educational 46.22 services, and referrals to community resources must be offered 46.23 to all families, regardless of need or risk, beginning 46.24 prenatally or as soon after birth as possible, and continuing as 46.25 needed. Each program applying for a grant must have access to 46.26 adequate community resources to complement the home visiting 46.27 services and must be designed to: 46.28 (1) identify all newborn infants within the geographic area 46.29 served by the program. Identification may be made prenatally or 46.30 at the time of birth; 46.31 (2) offer a home visit by a trained home visitor. If home 46.32 visiting is accepted, the first visit must occur prenatally or 46.33 as soon after birth as possible and must include a public health 46.34 nursing assessment by a public health nurse; 46.35 (3) offer, at a minimum, information on infant care, child 46.36 growth and development, positive parenting, the prevention of 47.1 disease and exposure to environmental hazards, and support 47.2 services available in the community; 47.3 (4) provide information about and referral to health care 47.4 services, if needed, including family planning, pediatric 47.5 preventive services, immunizations, and developmental 47.6 assessments, and provide information on the availability of 47.7 public assistance programs as appropriate; 47.8 (5) recruit home visit workers who will represent, to the 47.9 extent possible, all the races, cultures, and languages spoken 47.10 by eligible families in the designated geographic areas; and 47.11 (6) train and supervise home visitors according to the 47.12 requirements established under subdivision 5. 47.13 Subd. 4. [COORDINATION.] To minimize duplication, a 47.14 program receiving a grant must establish a coalition that 47.15 includes parents, health care providers that provide services to 47.16 families with young children in the service area, and 47.17 representatives of local schools, governmental and nonprofit 47.18 agencies, community-based organizations, health insurance plans, 47.19 and local hospitals. The coalition must designate the roles of 47.20 all provider agencies, family identification methods, referral 47.21 mechanisms, and payment responsibilities appropriate for the 47.22 existing systems in the program's service area. The coalition 47.23 must also coordinate with other programs offered by school 47.24 boards under section 121.882, subdivision 2b, and programs 47.25 offered under section 145A.15. 47.26 Subd. 5. [TRAINING.] The commissioner shall establish 47.27 training requirements for home visitors and minimum requirements 47.28 for supervision by a public health nurse. The requirements for 47.29 nurses must be consistent with chapter 148. Training must 47.30 include child development, positive parenting techniques, and 47.31 diverse cultural practices in child rearing and family systems. 47.32 A program may use grant money to train home visitors. 47.33 Subd. 6. [EVALUATION.] (a) The commissioner shall evaluate 47.34 the effectiveness of the home visiting programs, taking into 47.35 consideration the following goals: 47.36 (1) appropriate child growth, development, and access to 48.1 health care; 48.2 (2) appropriate utilization of preventive health care and 48.3 medical care for acute illnesses; 48.4 (3) lower rates of substantiated child abuse and neglect; 48.5 (4) up-to-date immunizations; 48.6 (5) a reduction in unintended pregnancies; 48.7 (6) increasing families' understanding of lead poisoning 48.8 prevention; 48.9 (7) lower rates of unintentional injuries; and 48.10 (8) fewer hospitalizations and emergency room visits. 48.11 (b) The commissioner shall report to the legislature by 48.12 February 15, 1998, on the comprehensive plan for the universally 48.13 offered home visiting programs and recommend any draft 48.14 legislation needed to implement the plan. The commissioner 48.15 shall report to the legislature biennially beginning December 48.16 15, 2001, on the effectiveness of the universally offered home 48.17 visiting programs. In the report due December 15, 2001, the 48.18 commissioner shall include recommendations on the feasibility 48.19 and cost of expanding the program statewide. 48.20 Subd. 7. [TECHNICAL ASSISTANCE.] The commissioner shall 48.21 provide administrative and technical assistance to each program, 48.22 including assistance conducting short- and long-term evaluations 48.23 of the home visiting program required under subdivision 6. The 48.24 commissioner may request research and evaluation support from 48.25 the University of Minnesota. 48.26 Subd. 8. [MATCHING FUNDS.] The commissioner and the grant 48.27 programs shall seek to supplement any state funding with private 48.28 and other nonstate funding sources, including other grants and 48.29 insurance coverage for services provided. Program funding may 48.30 be used only to supplement, not to replace, existing funds being 48.31 used for home visiting. 48.32 Sec. 19. Minnesota Statutes 1996, section 151.40, is 48.33 amended to read: 48.34 151.40 [POSSESSION AND SALE OF HYPODERMIC SYRINGES AND 48.35 NEEDLES.] 48.36 Subdivision 1. [GENERALLY.] Except as otherwise provided 49.1 in subdivision 2, itshall beis unlawful for any person to 49.2 possess, control, manufacture, sell, furnish, dispense, or 49.3 otherwise dispose of hypodermic syringes or needles or any 49.4 instrument or implement which can be adapted for subcutaneous 49.5 injections, except by the following persons when acting in the 49.6 course of their practice or employment: licensed practitioners, 49.7 registered pharmacies and their employees or agents, licensed 49.8 pharmacists, licensed doctors of veterinary medicine or their 49.9 assistants, registered nurses, registered medical technologists, 49.10 medical interns, licensed drug wholesalers, their employees or 49.11 agents, licensed hospitals, licensed nursing homes, bona fide 49.12 hospitals where animals are treated, licensed morticians, 49.13 syringe and needle manufacturers, their dealers and agents, 49.14 persons engaged in animal husbandry, clinical laboratories, 49.15 persons engaged in bona fide research or education or industrial 49.16 use of hypodermic syringes and needles provided such persons 49.17 cannot use hypodermic syringes and needles for the 49.18 administration of drugs to human beings unless such drugs are 49.19 prescribed, dispensed, and administered by a person lawfully 49.20 authorized to do so, persons who administer drugs pursuant to an 49.21 order or direction of a licensed doctor of medicine or of a 49.22 licensed doctor of osteopathy duly licensed to practice medicine. 49.23 Subd. 2. [SALES OF LIMITED QUANTITIES OF CLEAN NEEDLES AND 49.24 SYRINGES.] (a) A registered pharmacy or its agent or a licensed 49.25 pharmacist may sell, without a prescription, unused hypodermic 49.26 needles and syringes in quantities of ten or fewer, provided 49.27 that the pharmacy or pharmacist complies with all of the 49.28 requirements of this subdivision. 49.29 (b) At any location where hypodermic needles and syringes 49.30 are kept for retail sale under this subdivision, the needles and 49.31 syringes shall be stored in a manner that makes them available 49.32 only to authorized personnel and not openly available to 49.33 customers. 49.34 (c) No registered pharmacy or licensed pharmacist may 49.35 advertise to the public the availability for retail sale, 49.36 without a prescription, of hypodermic needles or syringes in 50.1 quantities of ten or fewer. 50.2 (d) A registered pharmacy or licensed pharmacist that sells 50.3 hypodermic needles or syringes under this section may give the 50.4 purchaser the materials developed by the commissioner of health 50.5 under section 31. 50.6 Sec. 20. Minnesota Statutes 1996, section 153A.17, is 50.7 amended to read: 50.8 153A.17 [EXPENSES; FEES.] 50.9 The expenses for administering the certification 50.10 requirements including the complaint handling system for hearing 50.11 aid dispensers in sections 153A.14 and 153A.15 and the consumer 50.12 information center under section 153A.18 must be paid from 50.13 initial application and examination fees, renewal fees, 50.14 penalties, and fines. All fees are nonrefundable. The 50.15 certificate application fee is$280$165 for audiologists 50.16 registered under section 148.511 and $490 for all others, the 50.17 examination fee is $200 for the written portion and $200 for the 50.18 practical portion each time one or the other is taken, and the 50.19 trainee application fee is $100, except that the certification50.20application fee for a registered audiologist is $280 minus the50.21audiologist registration fee of $101.In addition, both50.22certification and examination fees are subject to50.23 Notwithstanding the policy set forth in section 16A.1285, 50.24 subdivision 2, a surcharge of$60$165 for audiologists 50.25 registered under section 148.511 and $330 for all others shall 50.26 be paid at the time of application or renewal until June 30, 50.27 2003, to recover, over a five-year period,the commissioner's 50.28 accumulated direct expenditures for administering the 50.29 requirements of this chapter, but not registration of hearing50.30instrument dispensers under section 214.13, before November 1,50.311994. The penalty fee for late submission of a renewal 50.32 application is$70$200. All fees, penalties, and fines 50.33 received must be deposited in the state government special 50.34 revenue fund. The commissioner may prorate the certification 50.35 fee for new applicants based on the number of quarters remaining 50.36 in the annual certification period. 51.1 Sec. 21. Minnesota Statutes 1996, section 157.16, 51.2 subdivision 3, is amended to read: 51.3 Subd. 3. [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 51.4 following fees are required for food and beverage service 51.5 establishments, hotels, motels, lodging establishments, and 51.6 resorts licensed under this chapter. Food and beverage service 51.7 establishments must pay the highest applicable fee under 51.8 paragraph (e), clause (1), (2), (3), or (4), and establishments 51.9 serving alcohol must pay the highest applicable fee under 51.10 paragraph (e), clause (6) or (7). 51.11 (b) All food and beverage service establishments, except 51.12 special event food stands, and all hotels, motels, lodging 51.13 establishments, and resorts shall pay an annual base fee of $100. 51.14 (c) A special event food stand shall pay a flat fee of $60 51.15 annually. "Special event food stand" means a fee category where 51.16 food is prepared or served in conjunction with celebrations, 51.17 county fairs, or special events from a special event food stand 51.18 as defined in section 157.15. 51.19 (d) A special event food stand-limited shall pay a flat fee 51.20 of $30. 51.21 (e) In addition to the base fee in paragraph (b), each food 51.22 and beverage service establishment, other than a special event 51.23 food stand, and each hotel, motel, lodging establishment, and 51.24 resort shall pay an additional annual fee for each fee category 51.25 as specified in this paragraph: 51.26 (1) Limited food menu selection, $30. "Limited food menu 51.27 selection" means a fee category that provides one or more of the 51.28 following: 51.29 (i) prepackaged food that receives heat treatment and is 51.30 served in the package; 51.31 (ii) frozen pizza that is heated and served; 51.32 (iii) a continental breakfast such as rolls, coffee, juice, 51.33 milk, and cold cereal; 51.34 (iv) soft drinks, coffee, or nonalcoholic beverages; or 51.35 (v) cleaning for eating, drinking, or cooking utensils, 51.36 when the only food served is prepared off site. 52.1 (2) Smallmenu selection with limited equipment52.2 establishment, including boarding establishments, $55. 52.3 "Smallmenu selection with limited equipmentestablishment" 52.4 means a fee category that has no salad bar and meets one or more 52.5 of the following: 52.6 (i) possesses food service equipment that consists of no 52.7 more than a deep fat fryer, a grill, two hot holding containers, 52.8 and one or more microwave ovens; 52.9 (ii) serves dipped ice cream or soft serve frozen desserts; 52.10 (iii) serves breakfast in an owner-occupied bed and 52.11 breakfast establishment;or52.12 (iv) is a boarding establishment; or 52.13 (v) meets the equipment criteria in clause (3), item (i) or 52.14 (ii), and has a maximum patron seating capacity of not more than 52.15 50. 52.16 (3)SmallMedium establishmentwith full menu selection, 52.17 $150. "SmallMedium establishmentwith full menu selection" 52.18 means a fee category that meets one or more of the following: 52.19 (i) possesses food service equipment that includes a range, 52.20 oven, steam table, salad bar, or salad preparation area; 52.21 (ii) possesses food service equipment that includes more 52.22 than one deep fat fryer, one grill, or two hot holding 52.23 containers; or 52.24 (iii) is an establishment where food is prepared at one 52.25 location and served at one or more separate locations. 52.26 Establishments meeting criteria in clause (2), item (v), 52.27 are not included in this fee category. 52.28 (4) Large establishmentwith full menu selection, $250. 52.29 "Large establishmentwith full menu selection" means either: 52.30 (i) a fee category that (A) meets the criteria in clause 52.31 (3), items (i) or (ii), for asmallmedium establishmentwith52.32full menu selection, (B) seats more than 175 people, and (C) 52.33 offers the full menu selection an average of five or more days a 52.34 week during the weeks of operation; or 52.35 (ii) a fee category that (A) meets the criteria in clause 52.36 (3), item (iii), for asmallmedium establishmentwith full menu53.1selection, and (B) prepares and serves 500 or more meals per day. 53.2 (5) Other food and beverage service, including food carts, 53.3 mobile food units, seasonal temporary food stands, and seasonal 53.4 permanent food stands, $30. 53.5 (6) Beer or wine table service, $30. "Beer or wine table 53.6 service" means a fee category where the only alcoholic beverage 53.7 service is beer or wine, served to customers seated at tables. 53.8 (7) Alcoholic beverage service, other than beer or wine 53.9 table service, $75. 53.10 "Alcohol beverage service, other than beer or wine table 53.11 service" means a fee category where alcoholic mixed drinks are 53.12 served or where beer or wine are served from a bar. 53.13 (8) Lodging per sleeping accommodation unit, $4, including 53.14 hotels, motels, lodging establishments, and resorts, up to a 53.15 maximum of $400. "Lodging per sleeping accommodation unit" 53.16 means a fee category including the number of guest rooms, 53.17 cottages, or other rental units of a hotel, motel, lodging 53.18 establishment, or resort; or the number of beds in a dormitory. 53.19 (9) First public swimming pool, $100; each additional 53.20 public swimming pool, $50. "Public swimming pool" means a fee 53.21 category that has the meaning given in Minnesota Rules, part 53.22 4717.0250, subpart 8. 53.23 (10) First spa, $50; each additional spa, $25. "Spa pool" 53.24 means a fee category that has the meaning given in Minnesota 53.25 Rules, part 4717.0250, subpart 9. 53.26 (11) Private sewer or water, $30. "Individual private 53.27 water" means a fee category with a water supply other than a 53.28 community public water supply as defined in Minnesota Rules, 53.29 chapter 4720. "Individual private sewer" means a fee category 53.30 with an individual sewage treatment system which uses subsurface 53.31 treatment and disposal. 53.32 (f) A fee is not required for a food and beverage service 53.33 establishment operated by a school as defined in sections 120.05 53.34 and 120.101. 53.35 (g) A fee of $150 for review of the construction plans must 53.36 accompany the initial license application for food and beverage 54.1 service establishments, hotels, motels, lodging establishments, 54.2 or resorts. 54.3 (h) When existing food and beverage service establishments, 54.4 hotels, motels, lodging establishments, or resorts are 54.5 extensively remodeled, a fee of $150 must be submitted with the 54.6 remodeling plans. 54.7 (i) Seasonal temporary food stands, special event food 54.8 stands, and special event food stands-limited are not required 54.9 to submit construction or remodeling plans for review. 54.10 Sec. 22. [157.25] [FOOD SAFETY QUALITY ASSURANCE.] 54.11 Subdivision 1. [DEFINITIONS.] For purposes of this 54.12 section, the following terms have the meanings given them: 54.13 (1) "critical control point" means a point or procedure in 54.14 a specific food system where loss of control may result in an 54.15 unacceptable health risk; 54.16 (2) "HACCP" means hazard analysis critical control point; 54.17 (3) "HACCP plan" means a written document that delineates 54.18 the formal procedures for following the HACCP principles 54.19 developed by the national advisory committee on microbiological 54.20 criteria for foods; and 54.21 (4) "hazard" means any biological, chemical, or physical 54.22 property that may cause an unacceptable consumer health risk. 54.23 Subd. 2. [PILOT PROJECT.] The commissioner of health shall 54.24 request proposals from the regulated food and beverage service 54.25 establishment industry to participate in a cooperative effort to 54.26 develop HACCP plans using quality assurance principles for 54.27 monitoring risks and hazards. The commissioner shall select up 54.28 to 25 proposals for HACCP plans. 54.29 Sec. 23. Minnesota Statutes 1996, section 256B.0625, 54.30 subdivision 14, is amended to read: 54.31 Subd. 14. [DIAGNOSTIC, SCREENING, AND PREVENTIVE 54.32 SERVICES.] (a) Medical assistance covers diagnostic, screening, 54.33 and preventive services. 54.34 (b) "Preventive services" include services related to 54.35 pregnancy, including: 54.36 (1) services for those conditions which may complicate a 55.1 pregnancy and which may be available to a pregnant woman 55.2 determined to be at risk of poor pregnancy outcome; and 55.3 (2) prenatal HIV risk assessment, education, counseling, 55.4 and testing. Preventive services available to a woman at risk 55.5 of poor pregnancy outcome may differ in an amount, duration, or 55.6 scope from those available to other individuals eligible for 55.7 medical assistance. 55.8 (c) "Screening services" include, but are not limited to, 55.9 blood lead tests. 55.10 Sec. 24. Minnesota Statutes 1996, section 256B.69, is 55.11 amended by adding a subdivision to read: 55.12 Subd. 5c. [MEDICAL EDUCATION AND RESEARCH TRUST FUND.] (a) 55.13 In January 1999 and each year thereafter, the commissioner of 55.14 human services shall transfer an amount equal to the reduction 55.15 in prepaid medical assistance and prepaid general assistance 55.16 medical care capitation rates, excluding nursing facility and 55.17 elderly waiver payments, resulting from paragraph (b) to the 55.18 medical education and research trust fund established under 55.19 section 62J.69. The medical education and research trust fund 55.20 shall disburse funds to eligible programs within 60 days of 55.21 receipt of funds from the commissioner of human services. 55.22 (b) The base rate prior to plan specific adjustments for 55.23 prepaid medical assistance and prepaid general assistance 55.24 medical care capitation rates shall be reduced 4.5 percent for 55.25 Hennepin county, 1.4 percent for the remaining metropolitan 55.26 counties, and 1.2 percent for the nonmetropolitan Minnesota 55.27 counties. 55.28 (c) In the event a federal waiver is not approved by June 55.29 1, 1998, the transfers in 1999 shall be delayed one year. 55.30 Sec. 25. Minnesota Statutes 1996, section 256J.69, is 55.31 amended by adding a subdivision to read: 55.32 Subd. 3. [MEDICAL ASSISTANCE AND GENERAL ASSISTANCE 55.33 SERVICE.] The commissioner of health, in consultation with the 55.34 medical education and research costs advisory committee, shall 55.35 develop a system to recognize those teaching programs which 55.36 serve higher numbers or high proportions of public program 56.1 recipients and shall report to the legislative commission on 56.2 health care access by January 15, 1998, on an allocation formula 56.3 to implement this system. 56.4 Sec. 26. [325F.785] [SALES OF HIV HOME COLLECTION KITS.] 56.5 Subdivision 1. [DEFINITION.] For purposes of this section, 56.6 "seller" means a person who regularly sells goods at retail to 56.7 purchasers. 56.8 Subd. 2. [PROVISION OF INFORMATION REQUIRED.] Effective 56.9 January 1, 1998, a seller may provide each purchaser of an HIV 56.10 home collection kit, at the time of purchase, with written 56.11 information about the phone numbers for public HIV counseling 56.12 and testing sites and the state's HIV hotline. 56.13 Sec. 27. Minnesota Statutes 1996, section 326.37, 56.14 subdivision 1, is amended to read: 56.15 Subdivision 1. [RULES.] The state commissioner of health 56.16 may, by rule, prescribe minimum standards which shall be 56.17 uniform, and which standards shall thereafter be effective for 56.18 all new plumbing installations, including additions, extensions, 56.19 alterations, and replacements connected with any water or sewage 56.20 disposal system owned or operated by or for any municipality, 56.21 institution, factory, office building, hotel, apartment 56.22 building, or any other place of business regardless of location 56.23 or the population of the city or town in which located. 56.24 Notwithstanding the provisions of Minnesota Rules, part 56.25 4715.3130, as they apply to review of plans and specifications, 56.26 the commissioner may allow plumbing construction, alteration, or 56.27 extension to proceed without approval of the plans or 56.28 specifications by the commissioner. 56.29 The commissioner shall administer the provisions of 56.30 sections 326.37 to 326.45 and for such purposes may employ 56.31 plumbing inspectors and other assistants. 56.32 Sec. 28. [AMERICAN INDIAN DIABETES PREVENTION ADVISORY 56.33 TASK FORCE.] 56.34 Subdivision 1. [ESTABLISHMENT.] The commissioner of health 56.35 shall convene an American Indian diabetes prevention advisory 56.36 task force. The task force must include representatives from 57.1 the American Indian tribes located in the state and urban 57.2 American Indian representatives. 57.3 Subd. 2. [DUTIES.] The task force shall advise the 57.4 commissioner on the adaptation of curricula and the 57.5 dissemination of information designed to reduce the risk factors 57.6 associated with diabetes among American Indian school children 57.7 in grades 1 through 4. The curricula and information must be 57.8 sensitive to traditional American Indian values and culture and 57.9 must encourage full participation by the American Indian 57.10 community. 57.11 Sec. 29. [RULE CHANGE; RADIOGRAPHIC ABSORPTIONMETRY.] 57.12 The commissioner of health shall amend Minnesota Rules, 57.13 part 4730.1210, subpart 2, item G, to permit the use of direct 57.14 exposure x-ray film in radiographic absorptionmetry for the 57.15 diagnosis and management of osteoporosis. The commissioner may 57.16 use the rulemaking procedures under Minnesota Statutes, section 57.17 14.388. 57.18 Sec. 30. [MINORITY HEALTH INITIATIVE.] 57.19 Subdivision 1. [PURPOSE.] The purpose of this section is 57.20 to plan for the expansion and increase of information and 57.21 statistical research on minority health in Minnesota. The plan 57.22 must build upon the recommendations of the 1997 populations of 57.23 color in Minnesota health status report. 57.24 Subd. 2. [REPORT TO THE LEGISLATURE.] (a) The commissioner 57.25 of health, through the office of minority health, shall prepare 57.26 and transmit to the legislature, according to Minnesota 57.27 Statutes, section 3.195, and no later than January 15, 1998, a 57.28 written report addressing the following: 57.29 (1) identifying the legal and administrative barriers that 57.30 hinder the sharing of information on minority health issues 57.31 among executive branch agencies, and recommending remedies to 57.32 these barriers; 57.33 (2) assessing the current database of information on 57.34 minority health issues, evaluating data collection standards and 57.35 procedures in the department of health, identifying minority 57.36 health issues that should be given priority for increased 58.1 research to close the gaps and disparities including cancer 58.2 incidence among populations of color, and recommending methods 58.3 for expanding the current database of information on minority 58.4 health; and 58.5 (3) planning a grant program targeted at supporting 58.6 minority health and wellness programs that focus on prevention 58.7 of illness and disease, health education, and health promotion. 58.8 (b) As part of the report in paragraph (a), the 58.9 commissioner, through the office of minority health, shall study 58.10 how the department of health could be better organized to 58.11 accomplish the tasks specified in paragraph (a) and shall 58.12 propose an organizational structure to accomplish these tasks. 58.13 (c) The commissioner, through the office of minority 58.14 health, may appoint advisory committees as appropriate to 58.15 accomplish the tasks in paragraphs (a) and (b). The terms, 58.16 compensation, and removal of members are governed by Minnesota 58.17 Statutes, section 15.059, except that members do not receive per 58.18 diem compensation. 58.19 Sec. 31. [MATERIALS RELATED TO COUNSELING AND TESTING.] 58.20 The commissioner of health shall provide technical 58.21 assistance to pharmacies and to sellers related to compliance 58.22 with Minnesota Statutes, sections 151.40 and 325F.785. The 58.23 commissioner shall develop printed materials, including the 58.24 written information described under Minnesota Statutes, section 58.25 325F.785, and shall provide these printed materials at no charge 58.26 to pharmacies that sell hypodermic needles or syringes under 58.27 Minnesota Statutes, section 151.40 and sellers of HIV home 58.28 collection kits under Minnesota Statutes, section 325F.785. A 58.29 pharmacy or seller may request and the commissioner may 58.30 authorize use of other methods for providing written information 58.31 to purchasers. 58.32 Sec. 32. [STUDY OF HIV AND HBV PREVENTION PROGRAM.] 58.33 The commissioner of health shall evaluate the effectiveness 58.34 of the HIV and HBV prevention program established under 58.35 Minnesota Statutes, sections 214.17 to 214.25. The commissioner 58.36 shall evaluate the effectiveness of the program in maintaining 59.1 public confidence in the safety of health care provider 59.2 settings, educating the public about HIV infection risk in such 59.3 settings, prevention of HIV and HBV infections, and fairly and 59.4 efficiently working with affected health care providers. The 59.5 results in Minnesota shall be compared to similar efforts in 59.6 other states. The commissioner shall present recommendations to 59.7 the legislature by January 15, 1998, on whether the program 59.8 should be continued, and whether modifications to the program 59.9 are necessary if a recommendation is made to continue the 59.10 program. 59.11 Sec. 33. [DEMONSTRATION PROJECTS FOR HIV EDUCATION IN 59.12 SCHOOLS.] 59.13 The commissioner of children, families, and learning shall 59.14 establish a demonstration project to provide grants to school 59.15 districts to develop effective strategies and programs to 59.16 prevent and reduce the risk of HIV/AIDS as required under 59.17 Minnesota Statutes, section 121.203. In selecting school 59.18 districts to participate in the demonstration project, the 59.19 commissioner shall give first priority to school districts 59.20 located outside of the seven-county metropolitan area, and 59.21 second priority to school districts in the seven-county 59.22 metropolitan area that are located outside of the cities of 59.23 Minneapolis and St. Paul. The commissioner shall issue a 59.24 request for proposals by October 1, 1997, and shall select 59.25 school districts by December 15, 1997. The commissioner shall 59.26 evaluate the demonstration projects and by June 15, 1999, 59.27 develop model programs for school districts to use in 59.28 implementing Minnesota Statutes, section 121.203. 59.29 Sec. 34. [REPORT TO LEGISLATURE.] 59.30 By July 1, 1999, the emergency medical services regulatory 59.31 board shall submit to the legislature a comprehensive proposal 59.32 for regulating ambulance service rates. 59.33 Sec. 35. [REPORT REQUIRED; CALS PROGRAM.] 59.34 The emergency medical services regulatory board, by 59.35 December 1, 1999, shall report to the chairs of the house health 59.36 and human services finance division and the senate health and 60.1 family security budget division on the implementation of the 60.2 comprehensive advanced life support (CALS) program or similar 60.3 program. 60.4 Sec. 36. [EFFECTIVE DATE.] 60.5 Sections 3 to 5 and 19 are effective July 1, 1998. 60.6 ARTICLE 3 60.7 LONG-TERM CARE FACILITIES 60.8 Section 1. Minnesota Statutes 1996, section 144A.071, 60.9 subdivision 1, is amended to read: 60.10 Subdivision 1. [FINDINGS.] The legislature declares that a 60.11 moratorium on the licensure and medical assistance certification 60.12 of new nursing home beds and construction projects that 60.13 exceedthe lesser of $500,000 or 25 percent of a facility's60.14appraised value$1,000,000 is necessary to control nursing home 60.15 expenditure growth and enable the state to meet the needs of its 60.16 elderly by providing high quality services in the most 60.17 appropriate manner along a continuum of care. 60.18 Sec. 2. Minnesota Statutes 1996, section 144A.071, 60.19 subdivision 2, is amended to read: 60.20 Subd. 2. [MORATORIUM.] The commissioner of health, in 60.21 coordination with the commissioner of human services, shall deny 60.22 each request for new licensed or certified nursing home or 60.23 certified boarding care beds except as provided in subdivision 3 60.24 or 4a, or section 144A.073. "Certified bed" means a nursing 60.25 home bed or a boarding care bed certified by the commissioner of 60.26 health for the purposes of the medical assistance program, under 60.27 United States Code, title 42, sections 1396 et seq. 60.28 The commissioner of human services, in coordination with 60.29 the commissioner of health, shall deny any request to issue a 60.30 license under section 252.28 and chapter 245A to a nursing home 60.31 or boarding care home, if that license would result in an 60.32 increase in the medical assistance reimbursement amount. 60.33 In addition, the commissioner of health must not approve 60.34 any construction project whose cost exceeds$500,000, or 2560.35percent of the facility's appraised value, whichever is less,60.36 $1,000,000 unless: 61.1 (a) any construction costs exceedingthe lesser of $500,00061.2or 25 percent of the facility's appraised value$1,000,000 are 61.3 not added to the facility's appraised value and are not included 61.4 in the facility's payment rate for reimbursement under the 61.5 medical assistance program; or 61.6 (b) the project: 61.7 (1) has been approved through the process described in 61.8 section 144A.073; 61.9 (2) meets an exception in subdivision 3 or 4a; 61.10 (3) is necessary to correct violations of state or federal 61.11 law issued by the commissioner of health; 61.12 (4) is necessary to repair or replace a portion of the 61.13 facility that was damaged by fire, lightning, groundshifts, or 61.14 other such hazards, including environmental hazards, provided 61.15 that the provisions of subdivision 4a, clause (a), are met; 61.16 (5) as of May 1, 1992, the facility has submitted to the 61.17 commissioner of health written documentation evidencing that the 61.18 facility meets the "commenced construction" definition as 61.19 specified in subdivision 1a, clause (d), or that substantial 61.20 steps have been taken prior to April 1, 1992, relating to the 61.21 construction project. "Substantial steps" require that the 61.22 facility has made arrangements with outside parties relating to 61.23 the construction project and include the hiring of an architect 61.24 or construction firm, submission of preliminary plans to the 61.25 department of health or documentation from a financial 61.26 institution that financing arrangements for the construction 61.27 project have been made; or 61.28 (6) is being proposed by a licensed nursing facility that 61.29 is not certified to participate in the medical assistance 61.30 program and will not result in new licensed or certified beds. 61.31 Prior to the final plan approval of any construction 61.32 project, the commissioner of health shall be provided with an 61.33 itemized cost estimate for the project construction costs. If a 61.34 construction project is anticipated to be completed in phases, 61.35 the total estimated cost of all phases of the project shall be 61.36 submitted to the commissioner and shall be considered as one 62.1 construction project. Once the construction project is 62.2 completed and prior to the final clearance by the commissioner, 62.3 the total project construction costs for the construction 62.4 project shall be submitted to the commissioner. If the final 62.5 project construction cost exceeds the dollar threshold in this 62.6 subdivision, the commissioner of human services shall not 62.7 recognize any of the project construction costs or the related 62.8 financing costs in excess of this threshold in establishing the 62.9 facility's property-related payment rate. 62.10 The dollar thresholds for construction projects are as 62.11 follows: for construction projects other than those authorized 62.12 in clauses (1) to (6), the dollar threshold is$500,000 or 2562.13percent of appraised value, whichever is less$1,000,000. For 62.14 projects authorized after July 1, 1993, under clause (1), the 62.15 dollar threshold is the cost estimate submitted with a proposal 62.16 for an exception under section 144A.073, plus inflation as 62.17 calculated according to section 256B.431, subdivision 3f, 62.18 paragraph (a). For projects authorized under clauses (2) to 62.19 (4), the dollar threshold is the itemized estimate project 62.20 construction costs submitted to the commissioner of health at 62.21 the time of final plan approval, plus inflation as calculated 62.22 according to section 256B.431, subdivision 3f, paragraph (a). 62.23 The commissioner of health shall adopt rules to implement 62.24 this section or to amend the emergency rules for granting 62.25 exceptions to the moratorium on nursing homes under section 62.26 144A.073. 62.27 Sec. 3. Minnesota Statutes 1996, section 144A.071, 62.28 subdivision 4a, is amended to read: 62.29 Subd. 4a. [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 62.30 best interest of the state to ensure that nursing homes and 62.31 boarding care homes continue to meet the physical plant 62.32 licensing and certification requirements by permitting certain 62.33 construction projects. Facilities should be maintained in 62.34 condition to satisfy the physical and emotional needs of 62.35 residents while allowing the state to maintain control over 62.36 nursing home expenditure growth. 63.1 The commissioner of health in coordination with the 63.2 commissioner of human services, may approve the renovation, 63.3 replacement, upgrading, or relocation of a nursing home or 63.4 boarding care home, under the following conditions: 63.5 (a) to license or certify beds in a new facility 63.6 constructed to replace a facility or to make repairs in an 63.7 existing facility that was destroyed or damaged after June 30, 63.8 1987, by fire, lightning, or other hazard provided: 63.9 (i) destruction was not caused by the intentional act of or 63.10 at the direction of a controlling person of the facility; 63.11 (ii) at the time the facility was destroyed or damaged the 63.12 controlling persons of the facility maintained insurance 63.13 coverage for the type of hazard that occurred in an amount that 63.14 a reasonable person would conclude was adequate; 63.15 (iii) the net proceeds from an insurance settlement for the 63.16 damages caused by the hazard are applied to the cost of the new 63.17 facility or repairs; 63.18 (iv) the new facility is constructed on the same site as 63.19 the destroyed facility or on another site subject to the 63.20 restrictions in section 144A.073, subdivision 5; 63.21 (v) the number of licensed and certified beds in the new 63.22 facility does not exceed the number of licensed and certified 63.23 beds in the destroyed facility; and 63.24 (vi) the commissioner determines that the replacement beds 63.25 are needed to prevent an inadequate supply of beds. 63.26 Project construction costs incurred for repairs authorized under 63.27 this clause shall not be considered in the dollar threshold 63.28 amount defined in subdivision 2; 63.29 (b) to license or certify beds that are moved from one 63.30 location to another within a nursing home facility, provided the 63.31 total costs of remodeling performed in conjunction with the 63.32 relocation of beds does not exceed25 percent of the appraised63.33value of the facility or $500,000, whichever is less$1,000,000; 63.34 (c) to license or certify beds in a project recommended for 63.35 approval under section 144A.073; 63.36 (d) to license or certify beds that are moved from an 64.1 existing state nursing home to a different state facility, 64.2 provided there is no net increase in the number of state nursing 64.3 home beds; 64.4 (e) to certify and license as nursing home beds boarding 64.5 care beds in a certified boarding care facility if the beds meet 64.6 the standards for nursing home licensure, or in a facility that 64.7 was granted an exception to the moratorium under section 64.8 144A.073, and if the cost of any remodeling of the facility does 64.9 not exceed25 percent of the appraised value of the facility or64.10$500,000, whichever is less$1,000,000. If boarding care beds 64.11 are licensed as nursing home beds, the number of boarding care 64.12 beds in the facility must not increase beyond the number 64.13 remaining at the time of the upgrade in licensure. The 64.14 provisions contained in section 144A.073 regarding the upgrading 64.15 of the facilities do not apply to facilities that satisfy these 64.16 requirements; 64.17 (f) to license and certify up to 40 beds transferred from 64.18 an existing facility owned and operated by the Amherst H. Wilder 64.19 Foundation in the city of St. Paul to a new unit at the same 64.20 location as the existing facility that will serve persons with 64.21 Alzheimer's disease and other related disorders. The transfer 64.22 of beds may occur gradually or in stages, provided the total 64.23 number of beds transferred does not exceed 40. At the time of 64.24 licensure and certification of a bed or beds in the new unit, 64.25 the commissioner of health shall delicense and decertify the 64.26 same number of beds in the existing facility. As a condition of 64.27 receiving a license or certification under this clause, the 64.28 facility must make a written commitment to the commissioner of 64.29 human services that it will not seek to receive an increase in 64.30 its property-related payment rate as a result of the transfers 64.31 allowed under this paragraph; 64.32 (g) to license and certify nursing home beds to replace 64.33 currently licensed and certified boarding care beds which may be 64.34 located either in a remodeled or renovated boarding care or 64.35 nursing home facility or in a remodeled, renovated, newly 64.36 constructed, or replacement nursing home facility within the 65.1 identifiable complex of health care facilities in which the 65.2 currently licensed boarding care beds are presently located, 65.3 provided that the number of boarding care beds in the facility 65.4 or complex are decreased by the number to be licensed as nursing 65.5 home beds and further provided that, if the total costs of new 65.6 construction, replacement, remodeling, or renovation exceed ten 65.7 percent of the appraised value of the facility or $200,000, 65.8 whichever is less, the facility makes a written commitment to 65.9 the commissioner of human services that it will not seek to 65.10 receive an increase in its property-related payment rate by 65.11 reason of the new construction, replacement, remodeling, or 65.12 renovation. The provisions contained in section 144A.073 65.13 regarding the upgrading of facilities do not apply to facilities 65.14 that satisfy these requirements; 65.15 (h) to license as a nursing home and certify as a nursing 65.16 facility a facility that is licensed as a boarding care facility 65.17 but not certified under the medical assistance program, but only 65.18 if the commissioner of human services certifies to the 65.19 commissioner of health that licensing the facility as a nursing 65.20 home and certifying the facility as a nursing facility will 65.21 result in a net annual savings to the state general fund of 65.22 $200,000 or more; 65.23 (i) to certify, after September 30, 1992, and prior to July 65.24 1, 1993, existing nursing home beds in a facility that was 65.25 licensed and in operation prior to January 1, 1992; 65.26 (j) to license and certify new nursing home beds to replace 65.27 beds in a facility condemned as part of an economic 65.28 redevelopment plan in a city of the first class, provided the 65.29 new facility is located within one mile of the site of the old 65.30 facility. Operating and property costs for the new facility 65.31 must be determined and allowed under existing reimbursement 65.32 rules; 65.33 (k) to license and certify up to 20 new nursing home beds 65.34 in a community-operated hospital and attached convalescent and 65.35 nursing care facility with 40 beds on April 21, 1991, that 65.36 suspended operation of the hospital in April 1986. The 66.1 commissioner of human services shall provide the facility with 66.2 the same per diem property-related payment rate for each 66.3 additional licensed and certified bed as it will receive for its 66.4 existing 40 beds; 66.5 (l) to license or certify beds in renovation, replacement, 66.6 or upgrading projects as defined in section 144A.073, 66.7 subdivision 1, so long as the cumulative total costs of the 66.8 facility's remodeling projects do not exceed25 percent of the66.9appraised value of the facility or $500,000, whichever is66.10less$1,000,000; 66.11 (m) to license and certify beds that are moved from one 66.12 location to another for the purposes of converting up to five 66.13 four-bed wards to single or double occupancy rooms in a nursing 66.14 home that, as of January 1, 1993, was county-owned and had a 66.15 licensed capacity of 115 beds; 66.16 (n) to allow a facility that on April 16, 1993, was a 66.17 106-bed licensed and certified nursing facility located in 66.18 Minneapolis to layaway all of its licensed and certified nursing 66.19 home beds. These beds may be relicensed and recertified in a 66.20 newly-constructed teaching nursing home facility affiliated with 66.21 a teaching hospital upon approval by the legislature. The 66.22 proposal must be developed in consultation with the interagency 66.23 committee on long-term care planning. The beds on layaway 66.24 status shall have the same status as voluntarily delicensed and 66.25 decertified beds, except that beds on layaway status remain 66.26 subject to the surcharge in section 256.9657. This layaway 66.27 provision expires July 1,19971998; 66.28 (o) to allow a project which will be completed in 66.29 conjunction with an approved moratorium exception project for a 66.30 nursing home in southern Cass county and which is directly 66.31 related to that portion of the facility that must be repaired, 66.32 renovated, or replaced, to correct an emergency plumbing problem 66.33 for which a state correction order has been issued and which 66.34 must be corrected by August 31, 1993; 66.35 (p) to allow a facility that on April 16, 1993, was a 66.36 368-bed licensed and certified nursing facility located in 67.1 Minneapolis to layaway, upon 30 days prior written notice to the 67.2 commissioner, up to 30 of the facility's licensed and certified 67.3 beds by converting three-bed wards to single or double 67.4 occupancy. Beds on layaway status shall have the same status as 67.5 voluntarily delicensed and decertified beds except that beds on 67.6 layaway status remain subject to the surcharge in section 67.7 256.9657, remain subject to the license application and renewal 67.8 fees under section 144A.07 and shall be subject to a $100 per 67.9 bed reactivation fee. In addition, at any time within three 67.10 years of the effective date of the layaway, the beds on layaway 67.11 status may be: 67.12 (1) relicensed and recertified upon relocation and 67.13 reactivation of some or all of the beds to an existing licensed 67.14 and certified facility or facilities located in Pine River, 67.15 Brainerd, or International Falls; provided that the total 67.16 project construction costs related to the relocation of beds 67.17 from layaway status for any facility receiving relocated beds 67.18 may not exceed the dollar threshold provided in subdivision 2 67.19 unless the construction project has been approved through the 67.20 moratorium exception process under section 144A.073; 67.21 (2) relicensed and recertified, upon reactivation of some 67.22 or all of the beds within the facility which placed the beds in 67.23 layaway status, if the commissioner has determined a need for 67.24 the reactivation of the beds on layaway status. 67.25 The property-related payment rate of a facility placing 67.26 beds on layaway status must be adjusted by the incremental 67.27 change in its rental per diem after recalculating the rental per 67.28 diem as provided in section 256B.431, subdivision 3a, paragraph 67.29 (d). The property-related payment rate for a facility 67.30 relicensing and recertifying beds from layaway status must be 67.31 adjusted by the incremental change in its rental per diem after 67.32 recalculating its rental per diem using the number of beds after 67.33 the relicensing to establish the facility's capacity day 67.34 divisor, which shall be effective the first day of the month 67.35 following the month in which the relicensing and recertification 67.36 became effective. Any beds remaining on layaway status more 68.1 than three years after the date the layaway status became 68.2 effective must be removed from layaway status and immediately 68.3 delicensed and decertified; 68.4 (q)to license and certify beds in a renovation and68.5remodeling project to convert 13 three-bed wards into 13 two-bed68.6rooms and 13 single-bed rooms, expand space, and add68.7improvements in a nursing home that, as of January 1, 1994, met68.8the following conditions: the nursing home was located in68.9Ramsey county; was not owned by a hospital corporation; had a68.10licensed capacity of 64 beds; and had been ranked among the top68.1115 applicants by the 1993 moratorium exceptions advisory review68.12panel. The total project construction cost estimate for this68.13project must not exceed the cost estimate submitted in68.14connection with the 1993 moratorium exception process;68.15(r)to license and certify beds in a renovation and 68.16 remodeling project to convert 12 four-bed wards into 24 two-bed 68.17 rooms, expand space, and add improvements in a nursing home 68.18 that, as of January 1, 1994, met the following conditions: the 68.19 nursing home was located in Ramsey county; had a licensed 68.20 capacity of 154 beds; and had been ranked among the top 15 68.21 applicants by the 1993 moratorium exceptions advisory review 68.22 panel. The total project construction cost estimate for this 68.23 project must not exceed the cost estimate submitted in 68.24 connection with the 1993 moratorium exception process; 68.25(s)(r) to license and certify up to 117 beds that are 68.26 relocated from a licensed and certified 138-bed nursing facility 68.27 located in St. Paul to a hospital with 130 licensed hospital 68.28 beds located in South St. Paul, provided that the nursing 68.29 facility and hospital are owned by the same or a related 68.30 organization and that prior to the date the relocation is 68.31 completed the hospital ceases operation of its inpatient 68.32 hospital services at that hospital. After relocation, the 68.33 nursing facility's status under section 256B.431, subdivision 68.34 2j, shall be the same as it was prior to relocation. The 68.35 nursing facility's property-related payment rate resulting from 68.36 the project authorized in this paragraph shall become effective 69.1 no earlier than April 1, 1996. For purposes of calculating the 69.2 incremental change in the facility's rental per diem resulting 69.3 from this project, the allowable appraised value of the nursing 69.4 facility portion of the existing health care facility physical 69.5 plant prior to the renovation and relocation may not exceed 69.6 $2,490,000; 69.7(t)(s) to license and certify two beds in a facility to 69.8 replace beds that were voluntarily delicensed and decertified on 69.9 June 28, 1991; 69.10(u)(t) to allow 16 licensed and certified beds located on 69.11 July 1, 1994, in a 142-bed nursing home and 21-bed boarding care 69.12 home facility in Minneapolis, notwithstanding the licensure and 69.13 certification after July 1, 1995, of the Minneapolis facility as 69.14 a 147-bed nursing home facility after completion of a 69.15 construction project approved in 1993 under section 144A.073, to 69.16 be laid away upon 30 days' prior written notice to the 69.17 commissioner. Beds on layaway status shall have the same status 69.18 as voluntarily delicensed or decertified beds except that they 69.19 shall remain subject to the surcharge in section 256.9657. The 69.20 16 beds on layaway status may be relicensed as nursing home beds 69.21 and recertified at any time within five years of the effective 69.22 date of the layaway upon relocation of some or all of the beds 69.23 to a licensed and certified facility located in Watertown, 69.24 provided that the total project construction costs related to 69.25 the relocation of beds from layaway status for the Watertown 69.26 facility may not exceed the dollar threshold provided in 69.27 subdivision 2 unless the construction project has been approved 69.28 through the moratorium exception process under section 144A.073. 69.29 The property-related payment rate of the facility placing 69.30 beds on layaway status must be adjusted by the incremental 69.31 change in its rental per diem after recalculating the rental per 69.32 diem as provided in section 256B.431, subdivision 3a, paragraph 69.33 (d). The property-related payment rate for the facility 69.34 relicensing and recertifying beds from layaway status must be 69.35 adjusted by the incremental change in its rental per diem after 69.36 recalculating its rental per diem using the number of beds after 70.1 the relicensing to establish the facility's capacity day 70.2 divisor, which shall be effective the first day of the month 70.3 following the month in which the relicensing and recertification 70.4 became effective. Any beds remaining on layaway status more 70.5 than five years after the date the layaway status became 70.6 effective must be removed from layaway status and immediately 70.7 delicensed and decertified; 70.8(v)(u) to license and certify beds that are moved within 70.9 an existing area of a facility or to a newly-constructed 70.10 addition which is built for the purpose of eliminating three- 70.11 and four-bed rooms and adding space for dining, lounge areas, 70.12 bathing rooms, and ancillary service areas in a nursing home 70.13 that, as of January 1, 1995, was located in Fridley and had a 70.14 licensed capacity of 129 beds;or70.15(w)(v) to relocate 36 beds in Crow Wing county and four 70.16 beds from Hennepin county to a 160-bed facility in Crow Wing 70.17 county, provided all the affected beds are under common 70.18 ownership.; or 70.19 (w) to license and certify beds in a renovation and 70.20 remodeling project to convert 13 three-bed wards into 13 two-bed 70.21 rooms and 13 single-bed rooms, expand space, and add 70.22 improvements in a nursing home that, as of January 1, 1994, met 70.23 the following conditions: the nursing home was located in 70.24 Ramsey county, was not owned by a hospital corporation, had a 70.25 licensed capacity of 64 beds, and had been ranked among the top 70.26 15 applicants by the 1993 moratorium exceptions advisory review 70.27 panel. The total project construction cost estimate for this 70.28 project must not exceed the cost estimate submitted in 70.29 connection with the 1993 moratorium exception process. 70.30 Sec. 4. Minnesota Statutes 1996, section 144A.073, 70.31 subdivision 2, is amended to read: 70.32 Subd. 2. [REQUEST FOR PROPOSALS.] At the authorization by 70.33 the legislature of additional medical assistance expenditures 70.34 for exceptions to the moratorium on nursing homes, the 70.35 interagency committee shall publish in the State Register a 70.36 request for proposals for nursing home projects to be licensed 71.1 or certified under section 144A.071, subdivision 4a, clause 71.2 (c). The public notice of this funding and the request for 71.3 proposals must specify how the approval criteria will be 71.4 prioritized by the advisory review panel, the interagency 71.5 long-term care planning committee, and the commissioner. The 71.6 notice must describe the information that must accompany a 71.7 request and state that proposals must be submitted to the 71.8 interagency committee within 90 days of the date of 71.9 publication. The notice must include the amount of the 71.10 legislative appropriation available for the additional costs to 71.11 the medical assistance program of projects approved under this 71.12 section. If no money is appropriated for a year, the 71.13 interagency committee shall publish a notice to that effect, and 71.14 no proposals shall be requested. If money is appropriated, the 71.15 interagency committee shall initiate the application and review 71.16 process described in this section at least twice each biennium 71.17 and up to four times each biennium, according to dates 71.18 established by rule. Authorized funds shall be allocated 71.19 proportionally to the number of processes. Funds not encumbered 71.20 by an earlier process within a biennium shall carry forward to 71.21 subsequent iterations of the process. Authorization for 71.22 expenditures does not carry forward into the following 71.23 biennium. To be considered for approval, a proposal must 71.24 include the following information: 71.25 (1) whether the request is for renovation, replacement, 71.26 upgrading, conversion, or relocation; 71.27 (2) a description of the problem the project is designed to 71.28 address; 71.29 (3) a description of the proposed project; 71.30 (4) an analysis of projected costs of the nursing facility 71.31 proposal, which are not required to exceed the cost threshold 71.32 referred to in section 144A.071, subdivision 1, to be considered 71.33 under this section, including initial construction and 71.34 remodeling costs; site preparation costs; financing costs, 71.35 including the current estimated long-term financing costs of the 71.36 proposal, which consists of estimates of the amount and sources 72.1 of money, reserves if required under the proposed funding 72.2 mechanism, annual payments schedule, interest rates, length of 72.3 term, closing costs and fees, insurance costs, and any completed 72.4 marketing study or underwriting review; and estimated operating 72.5 costs during the first two years after completion of the 72.6 project; 72.7 (5) for proposals involving replacement of all or part of a 72.8 facility, the proposed location of the replacement facility and 72.9 an estimate of the cost of addressing the problem through 72.10 renovation; 72.11 (6) for proposals involving renovation, an estimate of the 72.12 cost of addressing the problem through replacement; 72.13 (7) the proposed timetable for commencing construction and 72.14 completing the project; 72.15 (8) a statement of any licensure or certification issues, 72.16 such as certification survey deficiencies; 72.17 (9) the proposed relocation plan for current residents if 72.18 beds are to be closed so that the department of human services 72.19 can estimate the total costs of a proposal; and 72.20 (10) other information required by permanent rule of the 72.21 commissioner of health in accordance with subdivisions 4 and 8. 72.22 Sec. 5. Minnesota Statutes 1996, section 144A.073, is 72.23 amended by adding a subdivision to read: 72.24 Subd. 9. [BUDGET REQUEST.] The commissioner of finance 72.25 shall include in each biennial budget request a line-item for 72.26 the nursing home moratorium exception process. If the 72.27 commissioner does not request funding for this item, the 72.28 commissioner of finance must justify the decision in the budget 72.29 pages. 72.30 Sec. 6. Minnesota Statutes 1996, section 256B.421, 72.31 subdivision 1, is amended to read: 72.32 Subdivision 1. [SCOPE.] For the purposes of this section 72.33 and sections 256B.41, 256B.411, 256B.431, 256B.432, 72.34 256B.433, 256B.434, 256B.435, 256B.47, 256B.48, 256B.50, and 72.35 256B.502, the following terms and phrases shall have the meaning 72.36 given to them. 73.1 Sec. 7. Minnesota Statutes 1996, section 256B.431, is 73.2 amended by adding a subdivision to read: 73.3 Subd. 2s. [RATES FOR A RELOCATED FACILITY.] For a nursing 73.4 facility whose construction project was authorized according to 73.5 section 144A.073, subdivision 5, paragraph (g), the operating 73.6 cost payment rates for the third location shall be determined 73.7 based on Minnesota Rules, part 9549.0057. Subdivision 25, 73.8 paragraphs (b), clause (3); and (d), shall not apply until the 73.9 second rate year after the settle-up cost report is filed. 73.10 Notwithstanding this section, real estate taxes and special 73.11 assessments payable by the third location, a 501(c)(3) nonprofit 73.12 corporation, shall be included in the payment rates determined 73.13 under this subdivision for all subsequent rate years. 73.14 Sec. 8. Minnesota Statutes 1996, section 256B.431, 73.15 subdivision 25, is amended to read: 73.16 Subd. 25. [CHANGES TO NURSING FACILITY REIMBURSEMENT 73.17 BEGINNING JULY 1, 1995.] The nursing facility reimbursement 73.18 changes in paragraphs (a) to (h) shall apply in the sequence 73.19 specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 73.20 this section, beginning July 1, 1995. 73.21 (a) The eight-cent adjustment to care-related rates in 73.22 subdivision 22, paragraph (e), shall no longer apply. 73.23 (b) For rate years beginning on or after July 1, 1995, the 73.24 commissioner shall limit a nursing facility's allowable 73.25 operating per diem for each case mix category for each rate year 73.26 as in clauses (1) to (3). 73.27 (1) For the rate year beginning July 1, 1995, the 73.28 commissioner shall group nursing facilities into two groups, 73.29 freestanding and nonfreestanding, within each geographic group, 73.30 using their operating cost per diem for the case mix A 73.31 classification. A nonfreestanding nursing facility is a nursing 73.32 facility whose other operating cost per diem is subject to the 73.33 hospital attached, short length of stay, or the rule 80 limits. 73.34 All other nursing facilities shall be considered freestanding 73.35 nursing facilities. The commissioner shall then array all 73.36 nursing facilities in each grouping by their allowable case mix 74.1 A operating cost per diem. In calculating a nursing facility's 74.2 operating cost per diem for this purpose, the commissioner shall 74.3 exclude the raw food cost per diem related to providing special 74.4 diets that are based on religious beliefs, as determined in 74.5 subdivision 2b, paragraph (h). For those nursing facilities in 74.6 each grouping whose case mix A operating cost per diem: 74.7 (i) is at or below the median minus 1.0 standard deviation 74.8 of the array, the commissioner shall limit the nursing 74.9 facility's allowable operating cost per diem for each case mix 74.10 category to the lesser of the prior reporting year's allowable 74.11 operating cost per diems plus the inflation factor as 74.12 established in paragraph (f), clause (2), increased by six 74.13 percentage points, or the current reporting year's corresponding 74.14 allowable operating cost per diem; 74.15 (ii) is between minus .5 standard deviation and minus 1.0 74.16 standard deviation below the median of the array, the 74.17 commissioner shall limit the nursing facility's allowable 74.18 operating cost per diem for each case mix category to the lesser 74.19 of the prior reporting year's allowable operating cost per diems 74.20 plus the inflation factor as established in paragraph (f), 74.21 clause (2), increased by four percentage points, or the current 74.22 reporting year's corresponding allowable operating cost per 74.23 diem; or 74.24 (iii) is equal to or above minus .5 standard deviation 74.25 below the median of the array, the commissioner shall limit the 74.26 nursing facility's allowable operating cost per diem for each 74.27 case mix category to the lesser of the prior reporting year's 74.28 allowable operating cost per diems plus the inflation factor as 74.29 established in paragraph (f), clause (2), increased by three 74.30 percentage points, or the current reporting year's corresponding 74.31 allowable operating cost per diem. 74.32 (2) For the rate year beginning on July 1, 1996, the 74.33 commissioner shall limit the nursing facility's allowable 74.34 operating cost per diem for each case mix category to the lesser 74.35 of the prior reporting year's allowable operating cost per diems 74.36 plus the inflation factor as established in paragraph (f), 75.1 clause (2), increased by one percentage point or the current 75.2 reporting year's corresponding allowable operating cost per 75.3 diems; and 75.4 (3) For rate years beginning on or after July 1, 1997, the 75.5 commissioner shall limit the nursing facility's allowable 75.6 operating cost per diem for each case mix category to the lesser 75.7 of the reporting year prior to the current reporting year's 75.8 allowable operating cost per diems plus the inflation factor as 75.9 established in paragraph (f), clause (2), or the current 75.10 reporting year's corresponding allowable operating cost per 75.11 diems. 75.12 (c) For rate years beginning on July 1, 1995, the 75.13 commissioner shall limit the allowable operating cost per diems 75.14 for high cost nursing facilities. After application of the 75.15 limits in paragraph (b) to each nursing facility's operating 75.16 cost per diems, the commissioner shall group nursing facilities 75.17 into two groups, freestanding or nonfreestanding, within each 75.18 geographic group. A nonfreestanding nursing facility is a 75.19 nursing facility whose other operating cost per diems are 75.20 subject to hospital attached, short length of stay, or rule 80 75.21 limits. All other nursing facilities shall be considered 75.22 freestanding nursing facilities. The commissioner shall then 75.23 array all nursing facilities within each grouping by their 75.24 allowable case mix A operating cost per diems. In calculating a 75.25 nursing facility's operating cost per diem for this purpose, the 75.26 commissioner shall exclude the raw food cost per diem related to 75.27 providing special diets that are based on religious beliefs, as 75.28 determined in subdivision 2b, paragraph (h). For those nursing 75.29 facilities in each grouping whose case mix A operating cost per 75.30 diem exceeds 1.0 standard deviation above the median, the 75.31 commissioner shall reduce their allowable operating cost per 75.32 diems by two percent. For those nursing facilities in each 75.33 grouping whose case mix A operating cost per diem exceeds 0.5 75.34 standard deviation above the median but is less than or equal to 75.35 1.0 standard deviation above the median, the commissioner shall 75.36 reduce their allowable operating cost per diems by one percent. 76.1 (d) For rate years beginning on or after July 1, 1996, the 76.2 commissioner shall limit the allowable operating cost per diems 76.3 for high cost nursing facilities. After application of the 76.4 limits in paragraph (b) to each nursing facility's operating 76.5 cost per diems, the commissioner shall group nursing facilities 76.6 into two groups, freestanding or nonfreestanding, within each 76.7 geographic group. A nonfreestanding nursing facility is a 76.8 nursing facility whose other operating cost per diems are 76.9 subject to hospital attached, short length of stay, or rule 80 76.10 limits. All other nursing facilities shall be considered 76.11 freestanding nursing facilities. The commissioner shall then 76.12 array all nursing facilities within each grouping by their 76.13 allowable case mix A operating cost per diems. In calculating a 76.14 nursing facility's operating cost per diem for this purpose, the 76.15 commissioner shall exclude the raw food cost per diem related to 76.16 providing special diets that are based on religious beliefs, as 76.17 determined in subdivision 2b, paragraph (h). In those nursing 76.18 facilities in each grouping whose case mix A operating cost per 76.19 diem exceeds 1.0 standard deviation above the median, the 76.20 commissioner shall reduce their allowable operating cost per 76.21 diems by three percent. For those nursing facilities in each 76.22 grouping whose case mix A operating cost per diem exceeds 0.5 76.23 standard deviation above the median but is less than or equal to 76.24 1.0 standard deviation above the median, the commissioner shall 76.25 reduce their allowable operating cost per diems by two percent. 76.26 (e) For rate years beginning on or after July 1, 1995, the 76.27 commissioner shall determine a nursing facility's efficiency 76.28 incentive by first computing the allowable difference, which is 76.29 the lesser of $4.50 or the amount by which the facility's other 76.30 operating cost limit exceeds its nonadjusted other operating 76.31 cost per diem for that rate year. The commissioner shall 76.32 compute the efficiency incentive by: 76.33 (1) subtracting the allowable difference from $4.50 and 76.34 dividing the result by $4.50; 76.35 (2) multiplying 0.20 by the ratio resulting from clause 76.36 (1), and then; 77.1 (3) adding 0.50 to the result from clause (2); and 77.2 (4) multiplying the result from clause (3) times the 77.3 allowable difference. 77.4 The nursing facility's efficiency incentive payment shall 77.5 be the lesser of $2.25 or the product obtained in clause (4). 77.6 (f) For rate years beginning on or after July 1, 1995, the 77.7 forecasted price index for a nursing facility's allowable 77.8 operating cost per diems shall be determined under clauses (1) 77.9 to (3) using the change in the Consumer Price Index-All Items 77.10 (United States city average) (CPI-U) or the change in the 77.11 Nursing Home Market Basket, both as forecasted by Data Resources 77.12 Inc., whichever is applicable. The commissioner shall use the 77.13 indices as forecasted in the fourth quarter of the calendar year 77.14 preceding the rate year, subject to subdivision 2l, paragraph 77.15 (c). If, as a result of federal legislative or administrative 77.16 action, the methodology used to calculate the Consumer Price 77.17 Index-All Items (United States city average) (CPI-U) changes, 77.18 the commissioner shall develop a conversion factor or other 77.19 methodology to convert the CPI-U index factor that results from 77.20 the new methodology to an index factor that approximates, as 77.21 closely as possible, the index factor that would have resulted 77.22 from application of the original CPI-U methodology prior to any 77.23 changes in methodology. The commissioner shall use the 77.24 conversion factor or other methodology to calculate an adjusted 77.25 inflation index. The adjusted inflation index must be used to 77.26 calculate payment rates under this section instead of the CPI-U 77.27 index specified in paragraph (d). If the commissioner is 77.28 required to develop an adjusted inflation index, the 77.29 commissioner shall report to the legislature as part of the next 77.30 budget submission the fiscal impact of applying this index. 77.31 (1) The CPI-U forecasted index for allowable operating cost 77.32 per diems shall be based on the 21-month period from the 77.33 midpoint of the nursing facility's reporting year to the 77.34 midpoint of the rate year following the reporting year. 77.35 (2) The Nursing Home Market Basket forecasted index for 77.36 allowable operating costs and per diem limits shall be based on 78.1 the 12-month period between the midpoints of the two reporting 78.2 years preceding the rate year. 78.3 (3) For rate years beginning on or after July 1, 1996, the 78.4 forecasted index for operating cost limits referred to in 78.5 subdivision 21, paragraph (b), shall be based on the CPI-U for 78.6 the 12-month period between the midpoints of the two reporting 78.7 years preceding the rate year. 78.8 (g) After applying these provisions for the respective rate 78.9 years, the commissioner shall index these allowable operating 78.10 costs per diems by the inflation factor provided for in 78.11 paragraph (f), clause (1), and add the nursing facility's 78.12 efficiency incentive as computed in paragraph (e). 78.13 (h)(1) A nursing facility licensed for 302 beds on 78.14 September 30, 1993, that was approved under the moratorium 78.15 exception process in section 144A.073 for a partial replacement, 78.16 and completed the replacement project in December 1994, is 78.17 exempt from paragraphs (b) to (d) for rate years beginning on or 78.18 after July 1, 1995. 78.19 (2) For the rate year beginning July 1, 1997, after 78.20 computing this nursing facility's payment rate according to 78.21 section 256B.434, the commissioner shall make a one-year rate 78.22 adjustment of $8.62 to the facility's contract payment rate for 78.23 the rate effect of operating cost changes associated with the 78.24 facility's 1994 downsizing project. 78.25 (3) For rate years beginning on or after July 1, 1997, the 78.26 commissioner shall add 35 cents to the facility's base property 78.27 related payment rate for the rate effect of reducing its 78.28 licensed capacity to 290 beds from 302 beds and shall add 83 78.29 cents to the facility's real estate tax and special assessment 78.30 payment rate for payments in lieu of real estate taxes. The 78.31 adjustments in this clause shall remain in effect for the 78.32 duration of the facility's contract under section 256B.434. 78.33 (i) Notwithstanding Laws 1996, chapter 451, article 3, 78.34 section 11, paragraph (h), for the rate years beginning on July 78.35 1, 1996, July 1, 1997, and July 1, 1998, a nursing facility 78.36 licensed for 40 beds effective May 1, 1992, with a subsequent 79.1 increase of 20 Medicare/Medicaid certified beds, effective 79.2 January 26, 1993, in accordance with an increase in licensure is 79.3 exempt from paragraphs (b) to (d). 79.4 (j) For the rate year beginning July 1, 1997, the 79.5 commissioner shall compute the payment rate for a nursing 79.6 facility licensed for 94 beds on September 30, 1996, that 79.7 applied in October 1993 for approval of a total replacement 79.8 under the moratorium exception process in section 144A.073, and 79.9 completed the approved replacement in June 1995, with an 79.10 aggregate spend-up limit under paragraph (b) or Laws 1996, 79.11 chapter 451, article 3, section 11, increased by $3.98, and 79.12 after computing the facility's payment rate according to section 79.13 256B.431, the commissioner shall make a one year positive rate 79.14 adjustment of $3.19 for operating costs related to the newly 79.15 constructed total replacement, without application of paragraphs 79.16 (b) to (d) or Laws 1996, chapter 451, article 3, section 11. 79.17 The facility's per diems, before the $3.19 adjustment, shall be 79.18 used as the prior reporting year's allowable operating cost per 79.19 diems for payment rate calculation for the rate year beginning 79.20 July 1, 1998. 79.21 (k) For the purpose of applying the limit stated in 79.22 paragraph (b), clause (3), a nursing facility in Kandiyohi 79.23 county licensed for 86 beds that was granted hospital-attached 79.24 status on December 1, 1994, shall have the prior year's 79.25 allowable care-related per diems increased by $3.207 and the 79.26 prior year's other operating cost per diems increased by $4.777 79.27 before adding the inflation in paragraph (f), clause (2), for 79.28 the rate year beginning on July 1, 1997. 79.29 (l) For the purpose of applying the limit stated in 79.30 paragraph (b), clause (3), a 117 bed nursing facility located in 79.31 Pine county shall have the prior year's allowable operating cost 79.32 per diem payment rate increased by $1.50 before adding the 79.33 inflation in paragraph (f), clause (2), for the rate year 79.34 beginning on July 1, 1997. 79.35 Sec. 9. Minnesota Statutes 1996, section 256B.431, is 79.36 amended by adding a subdivision to read: 80.1 Subd. 26. [CHANGES TO NURSING FACILITY REIMBURSEMENT 80.2 BEGINNING JULY 1, 1997.] The nursing facility reimbursement 80.3 changes in paragraphs (a) to (f) shall apply in the sequence 80.4 specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 80.5 this section, beginning July 1, 1997. 80.6 (a) For rate years beginning on or after July 1, 1997, the 80.7 commissioner shall limit a nursing facility's allowable 80.8 operating per diem for each case mix category for each rate year 80.9 as follows: 80.10 (1) Notwithstanding Laws 1996, chapter 451, article 3, 80.11 section 11, paragraph (h), for purposes of computing the 80.12 spend-up limits for the rate year beginning July 1, 1997, the 80.13 nursing facility's prior cost report year's allowable operating 80.14 cost base shall be its allowed operating costs used to set the 80.15 payment rates paid for the rate year beginning July 1, 1996. 80.16 (2) The commissioner shall group nursing facilities into 80.17 two groups, freestanding and nonfreestanding, within each 80.18 geographic group, using their operating cost per diem for the 80.19 case mix A classification. A nonfreestanding nursing facility 80.20 is a nursing facility whose other operating cost per diem is 80.21 subject to the hospital attached, short length of stay, or the 80.22 rule 80 limits. All other nursing facilities shall be 80.23 considered freestanding nursing facilities. The commissioner 80.24 shall then array all nursing facilities in each grouping by 80.25 their allowable case mix A operating cost per diem. In 80.26 calculating a nursing facility's operating cost per diem for 80.27 this purpose, the commissioner shall exclude the raw food cost 80.28 per diem related to providing special diets that are based on 80.29 religious beliefs, as determined in subdivision 2b, paragraph 80.30 (h). For those nursing facilities in each grouping whose case 80.31 mix A operating cost per diem: 80.32 (i) is at or below the median of the array, the 80.33 commissioner shall limit the nursing facility's allowable 80.34 operating cost per diem for each case mix category to the lesser 80.35 of the prior reporting year's allowable operating cost per diems 80.36 plus the inflation factor as established in paragraph (d), 81.1 clause (2), increased by two percentage points, or the current 81.2 reporting year's corresponding allowable operating cost per 81.3 diem; or 81.4 (ii) is above the median of the array, the commissioner 81.5 shall limit the nursing facility's allowable operating cost per 81.6 diem for each case mix category to the lesser of the prior 81.7 reporting year's allowable operating cost per diems plus the 81.8 inflation factor as established in paragraph (d), clause (2), 81.9 increased by one percentage point, or the current reporting 81.10 year's corresponding allowable operating cost per diem. 81.11 (b) For rate years beginning on July 1, 1997, the 81.12 commissioner shall limit the allowable operating cost per diems 81.13 for high cost nursing facilities. After application of the 81.14 limits in paragraph (a) to each nursing facility's operating 81.15 cost per diems, the commissioner shall group nursing facilities 81.16 into two groups, freestanding or nonfreestanding, within each 81.17 geographic group. A nonfreestanding nursing facility is a 81.18 nursing facility whose other operating cost per diems are 81.19 subject to hospital attached, short length of stay, or rule 80 81.20 limits. All other nursing facilities shall be considered 81.21 freestanding nursing facilities. The commissioner shall then 81.22 array all nursing facilities within each grouping by their 81.23 allowable case mix A operating cost per diems. In calculating a 81.24 nursing facility's operating cost per diem for this purpose, the 81.25 commissioner shall exclude the raw food cost per diem related to 81.26 providing special diets that are based on religious beliefs, as 81.27 determined in subdivision 2b, paragraph (h). For those nursing 81.28 facilities in each grouping whose case mix A operating cost per 81.29 diem exceeds 1.0 standard deviation above the median, the 81.30 commissioner shall reduce their allowable operating cost per 81.31 diems by three percent. For those nursing facilities in each 81.32 grouping whose case mix A operating cost per diem exceeds 0.5 81.33 standard deviation above the median but is less than or equal to 81.34 1.0 standard deviation above the median, the commissioner shall 81.35 reduce their allowable operating cost per diems by two percent. 81.36 However, in no case shall a nursing facility's operating cost 82.1 per diems be reduced below its grouping's limit established at 82.2 0.5 standard deviations above the median. 82.3 (c) For rate years beginning on or after July 1, 1997, the 82.4 commissioner shall determine a nursing facility's efficiency 82.5 incentive by first computing the allowable difference, which is 82.6 the lesser of $4.50 or the amount by which the facility's other 82.7 operating cost limit exceeds its nonadjusted other operating 82.8 cost per diem for that rate year. In determining the amount of 82.9 the efficiency incentive for hospital attached nursing 82.10 facilities, the commissioner must use the other operating cost 82.11 limit applicable to the freestanding nursing facilities in their 82.12 same geographic group. The commissioner shall compute the 82.13 efficiency incentive by: 82.14 (1) subtracting the allowable difference from $4.50 and 82.15 dividing the result by $4.50; 82.16 (2) multiplying 0.20 by the ratio resulting from clause 82.17 (1), and then; 82.18 (3) adding 0.50 to the result from clause (2); and 82.19 (4) multiplying the result from clause (3) times the 82.20 allowable difference. 82.21 The nursing facility's efficiency incentive payment shall 82.22 be the lesser of $2.25 or the product obtained in clause (4). 82.23 (d) For rate years beginning on or after July 1, 1997, the 82.24 forecasted price index for a nursing facility's allowable 82.25 operating cost per diems shall be determined under clauses (1) 82.26 and (2) using the change in the Consumer Price Index-All Items 82.27 (United States city average) (CPI-U) as forecasted by Data 82.28 Resources Inc. The commissioner shall use the indices as 82.29 forecasted in the fourth quarter of the calendar year preceding 82.30 the rate year, subject to subdivision 2l, paragraph (c). 82.31 (1) The CPI-U forecasted index for allowable operating cost 82.32 per diems shall be based on the 21-month period from the 82.33 midpoint of the nursing facility's reporting year to the 82.34 midpoint of the rate year following the reporting year. 82.35 (2) For rate years beginning on or after July 1, 1997, the 82.36 forecasted index for operating cost limits referred to in 83.1 subdivision 21, paragraph (b), shall be based on the CPI-U for 83.2 the 12-month period between the midpoints of the two reporting 83.3 years preceding the rate year. 83.4 (e) After applying these provisions for the respective rate 83.5 years, the commissioner shall index these allowable operating 83.6 costs per diems by the inflation factor provided for in 83.7 paragraph (d), clause (1), and add the nursing facility's 83.8 efficiency incentive as computed in paragraph (c). 83.9 (f) Notwithstanding Laws 1996, chapter 451, article 3, 83.10 section 11, paragraph (h), for the rate years beginning on July 83.11 1, 1997, and July 1, 1998, a nursing facility licensed for 40 83.12 beds effective May 1, 1992, with a subsequent increase of 20 83.13 Medicare/Medicaid certified beds, effective January 26, 1993, in 83.14 accordance with an increase in licensure is exempt from 83.15 paragraphs (a) and (b). 83.16 Sec. 10. Minnesota Statutes 1996, section 256B.434, 83.17 subdivision 3, is amended to read: 83.18 Subd. 3. [DURATION AND TERMINATION OF CONTRACTS.] (a) 83.19 Subject to available resources, the commissioner may begin to 83.20 execute contracts with nursing facilities November 1, 1995. 83.21 (b) All contracts entered into under this section are for a 83.22 term offour yearsone year. Either party may terminate a 83.23 contracteffective July 1 of any year by providing written83.24notice to the other party no later than April 1 of that yearat 83.25 any time without cause by providing 30 calendar days advance 83.26 written notice to the other party. The decision to terminate a 83.27 contract is not appealable. If neither party provides written 83.28 notice of terminationby April 1, the contract is automatically83.29renewed for the next rate yearthe contract shall be 83.30 renegotiated for additional one-year terms, for up to a total of 83.31 four consecutive one-year terms. The provisions of the contract 83.32 shall be renegotiated annually by the parties prior to the 83.33 expiration date of the contract. The parties may voluntarily 83.34 renegotiate the terms of the contract at any time by mutual 83.35 agreement. 83.36 (c) If a nursing facility fails to comply with the terms of 84.1 a contract, the commissioner shall provide reasonable notice 84.2 regarding the breach of contract and a reasonable opportunity 84.3 for the facility to come into compliance. If the facility fails 84.4 to come into compliance or to remain in compliance, the 84.5 commissioner may terminate the contract. If a contract is 84.6 terminated, the contract payment remains in effect for the 84.7 remainder of the rate year in which the contract was terminated, 84.8 but in all other respects the provisions of this section do not 84.9 apply to that facility effective the date the contract is 84.10 terminated. The contract shall contain a provision governing 84.11 the transition back to the cost-based reimbursement system 84.12 established under section 256B.431, subdivision 25, and 84.13 Minnesota Rules, parts 9549.0010 to 9549.0080. A contract 84.14 entered into under this section may be amended by mutual 84.15 agreement of the parties. 84.16 Sec. 11. [256B.435] [NURSING FACILITY CONVERSION 84.17 DEMONSTRATION PROJECT.] 84.18 Subdivision 1. [DEMONSTRATION PROJECT.] The commissioner 84.19 shall design and implement a process to start July 1, 1998, 84.20 which will decrease the number of Minnesota nursing facilities 84.21 participating in the medical assistance program by June 30, 84.22 2002. That process must include voluntary nursing facility 84.23 closures and, as necessary, selective medical assistance 84.24 decertification of nursing facilities to achieve the goal of 84.25 approximately 20 fewer nursing facilities. The total number of 84.26 licensed nursing home and boarding care home beds participating 84.27 in the medical assistance program upon completion of the project 84.28 must decrease by at least 2000 beds. Nursing facilities subject 84.29 to this project include those with payment rates determined 84.30 under sections 256B.431, 256B.434, and 256B.48, subdivision 1a. 84.31 Subd. 2. [VOLUNTARY NURSING FACILITY CLOSURES.] (a) For 84.32 the rate years beginning on or after July 1, 1998, a nursing 84.33 facility may elect to cease operations as a nursing home or 84.34 boarding care facility, and apply for technical assistance and 84.35 incentive payments under this subdivision. The commissioner 84.36 shall issue a request for proposal (RFP) by October 1, 1997, 85.1 outlining the process and criteria for nursing facilities 85.2 interested in applying to voluntarily close. A nursing facility 85.3 seeking to transfer some of its nursing facility beds to another 85.4 location may be eligible for the incentives under this 85.5 subdivision provided that: 85.6 (1) the number of beds closed is at least 70 percent of its 85.7 capacity; 85.8 (2) the estimated cost to medical assistance of the 85.9 transferred beds, as determined by the commissioner, is at least 85.10 budget neutral; and 85.11 (3) other total closure proposals are given higher priority. 85.12 (b) The commissioner shall make available technical support 85.13 to facilitate a nursing facility seeking voluntary closure under 85.14 this section. Department technical support shall include 85.15 assistance in: general transition planning; coordination of 85.16 discharge planning and resident relocation efforts in 85.17 coordination with the affected county and nursing facility; 85.18 identification of alternative community resources and placements 85.19 for displaced facility residents; assessing potential alternate 85.20 uses of the facility's capital assets; and identifying possible 85.21 financing for facility renovations consistent with identified 85.22 alternative uses. 85.23 (c) The commissioner and the nursing facility may negotiate 85.24 a closure incentive payment of up to $1,000 per bed for a 85.25 nursing facility which agrees to delicense all or substantially 85.26 all of its licensed nursing home and boarding care home beds. 85.27 The nursing facility's proposal must include a plan for 85.28 cost-effective alternative placement of its residents. The 85.29 provider's proposal must also indicate the intended purpose of 85.30 the incentive payment. If the intended use of the incentive 85.31 payment is for facility renovations that will result in another 85.32 public use or for the promotion of another community 85.33 alternative, the commissioner must give higher priority to those 85.34 proposals. Once established, the commissioner's determination 85.35 and incentive payment are not appealable. The commissioner must 85.36 not exceed the biennial appropriation for this purpose. Nothing 86.1 shall preclude a nursing facility from electing to voluntarily 86.2 close without benefit of the incentive payments and technical 86.3 support and assistance set forth in this subdivision. 86.4 Subd. 3. [SELECTIVE DECERTIFICATION OF NURSING 86.5 FACILITIES.] (a) Beginning July 1, 1999, the commissioner shall 86.6 implement a process to reduce the number of nursing facility 86.7 beds through selective decertification in order to achieve the 86.8 goal of approximately 20 fewer nursing facilities participating 86.9 in the medical assistance program by June 30, 2002. The 86.10 mechanism to be utilized to implement the selective 86.11 decertification process will be by nonrenewal of provider 86.12 agreements. Notwithstanding section 256B.04, subdivisions 4 and 86.13 12, and Minnesota Rules, part 9505.0195, the commissioner may 86.14 terminate provider agreements. The commissioner, with 86.15 cooperation from the commissioner of health, shall develop any 86.16 necessary federal waiver requests to permit a selective medical 86.17 assistance decertification process. The commissioners should 86.18 submit any needed federal waiver requests by February 1, 1998. 86.19 (b) In developing the waiver and decertification process, 86.20 the commissioner shall develop criteria that will be used to 86.21 define which nursing facilities to decertify. The commissioner 86.22 shall consider using the following factors in developing 86.23 criteria: 86.24 (1) availability and capacity of cost-effective community 86.25 alternatives; 86.26 (2) future demographics and bed supply for county; 86.27 (3) high proportion of case mix A residents; 86.28 (4) low case mix score; 86.29 (5) high case mix A operating cost per diem; 86.30 (6) type of licensure; 86.31 (7) percent of total and medical assistance occupancy; 86.32 (8) a measure of care quality; and 86.33 (9) any other factor deemed relevant by the commissioner. 86.34 (c) In determining the nursing facility decertification 86.35 criteria to be used, the commissioner shall establish an 86.36 advisory committee. The advisory committee's composition shall 87.1 include consumers or their representatives, counties, 87.2 legislators, and providers or their representatives, as well as 87.3 representatives of the departments of health and human services. 87.4 (d) The commissioner shall recommend to the 1999 87.5 legislature adoption of a process and criteria for determining 87.6 the schedule by which nursing facilities will be decertified 87.7 beginning in fiscal year 2000 under this subdivision. 87.8 Subd. 4. [RULEMAKING EXEMPTION.] The commissioner is 87.9 exempt from all rulemaking requirements in chapter 14 for the 87.10 demonstration project under this section. 87.11 Subd. 5. [LEGISLATIVE REPORTS.] The commissioner shall 87.12 report annually to the legislature every February, from 1999 to 87.13 2003, on the status and progress of the demonstration project 87.14 and shall make recommendations as needed to improve the 87.15 project's effectiveness. 87.16 Sec. 12. Minnesota Statutes 1996, section 256I.05, is 87.17 amended by adding a subdivision to read: 87.18 Subd. 1d. [SUPPLEMENTARY SERVICE RATES FOR CERTAIN 87.19 FACILITIES SERVING PERSONS WITH MENTAL ILLNESS OR CHEMICAL 87.20 DEPENDENCY.] Notwithstanding the provisions of subdivisions 1a 87.21 and 1c for the fiscal year ending June 30, 1998, a county agency 87.22 may negotiate a supplementary service rate in addition to the 87.23 board and lodging rate for facilities licensed and registered by 87.24 the Minnesota department of health under section 157.17 prior to 87.25 December 31, 1994, if the facility meets the following criteria: 87.26 (1) at least 75 percent of the residents have a primary 87.27 diagnosis of mental illness, chemical dependency, or both, and 87.28 have related special needs; 87.29 (2) the facility provides 24-hour, on-site, year-round 87.30 supportive services by qualified staff capable of intervention 87.31 in a crisis of persons with late-state inebriety or mental 87.32 illness who are vulnerable to abuse or neglect; 87.33 (3) the services at the facility include, but are not 87.34 limited to: 87.35 (i) secure central storage of medication; 87.36 (ii) reminders and monitoring of medication for 88.1 self-administration; 88.2 (iii) support for developing an individual medical and 88.3 social service plan, updating the plan, and monitoring 88.4 compliance with the plan; and 88.5 (iv) assistance with setting up meetings, appointments, and 88.6 transportation to access medical, chemical health, and mental 88.7 health service providers; 88.8 (4) each resident has a documented need for at least one of 88.9 the services provided; 88.10 (5) each resident has been offered an opportunity to apply 88.11 for admission to a licensed residential treatment program for 88.12 mental illness, chemical dependency, or both, have refused that 88.13 offer, and the offer and their refusal has been documented to 88.14 writing; and 88.15 (6) the residents are not eligible for home and 88.16 community-based services waivers because of their unique need 88.17 for community support. 88.18 After the increase, the total supplementary service rate 88.19 must not exceed the statewide rate limit for residential care 88.20 services in effect January 1, 1997, for the community 88.21 alternatives for disabled individuals waivers services program 88.22 for individuals with a case mix "A" classification. 88.23 Sec. 13. Laws 1997, chapter 7, article 1, section 75, is 88.24 amended to read: 88.25 Sec. 75. [REPEALER; SECTION 144A.61, SUBDIVISION 6 NOTE.] 88.26 Laws 1989, chapter 282, article 3, section 28, subdivision 88.27 6, is repealed. 88.28 Sec. 14. [EFFECTIVE DATE.] 88.29 Section 8 is effective the day following final enactment. 88.30 ARTICLE 4 88.31 HEALTH CARE 88.32 Section 1. Minnesota Statutes 1996, section 62D.04, 88.33 subdivision 5, is amended to read: 88.34 Subd. 5. [PARTICIPATION; GOVERNMENT PROGRAMS.] Health 88.35 maintenance organizations shall, as a condition of receiving and 88.36 retaining a certificate of authority, participate in the medical 89.1 assistance, general assistance medical care, and MinnesotaCare 89.2 programs. A health maintenance organization is required to 89.3 submit proposals in good faith that meet the requirements of the 89.4 request for proposal provided that the requirements can be 89.5 reasonably met by a health maintenance organization to serve 89.6 individuals eligible for the above programs in a geographic 89.7 region of the state if, at the time of publication of a request 89.8 for proposal, the percentage of recipients in the public 89.9 programs in the region who are enrolled in the health 89.10 maintenance organization is less than the health maintenance 89.11 organization's percentage of the total number of individuals 89.12 enrolled in health maintenance organizations in the same 89.13 region. Geographic regions shall be defined by the commissioner 89.14 of human services in the request for proposals. 89.15 Sec. 2. Minnesota Statutes 1996, section 62N.10, 89.16 subdivision 4, is amended to read: 89.17 Subd. 4. [PARTICIPATION; GOVERNMENT PROGRAMS.] Integrated 89.18 service networks shall, as a condition of licensure, participate 89.19 in the medical assistance, general assistance medical care, and 89.20 MinnesotaCare programs. An integrated service network is 89.21 required to submit proposals in good faith that meet the 89.22 requirements of the request for proposals provided that the 89.23 requirements can be reasonably met by an integrated service 89.24 network to serve persons who are eligible for the above programs 89.25 if, at the time of publication of a request for proposal, the 89.26 percentage of recipients in the public programs in the region 89.27 who are enrolled in the integrated service network is less than 89.28 the integrated service network's percentage of the total number 89.29 of individuals enrolled in integrated service networks in the 89.30 same region. Geographic regions shall be defined by the 89.31 commissioner of human services in the request for proposals. 89.32 Sec. 3. Minnesota Statutes 1996, section 144.0721, 89.33 subdivision 3, is amended to read: 89.34 Subd. 3. [LEVEL OF CARE CRITERIA; MODIFICATIONS.] The 89.35 commissioner shall seek appropriate federal waivers to implement 89.36 this subdivision. Notwithstanding any laws or rules to the 90.1 contrary, effective July 1,19961997, Minnesota's level of care 90.2 criteria for admission of any person to a nursing facility 90.3 licensed under chapter 144A, or a boarding care home licensed 90.4 under sections 144.50 to 144.56, are modified as follows: 90.5 (1) the resident reimbursement classifications and 90.6 terminology established by rule under sections 256B.41 to 90.7 256B.48 are the basis for applying the level of care criteria 90.8 changes; 90.9 (2) an applicant to a certified nursing facility or 90.10 certified boarding care home who is dependent in zero, one, or 90.11 two case mix activities of daily living, is classified as a case 90.12 mix A, and is independent in orientation and self-preservation, 90.13 is reclassified as a high function class A person and is not 90.14 eligible for admission to Minnesota certified nursing facilities 90.15 or certified boarding care homes; 90.16 (3) applicants in clause (2) who are dependent in one or 90.17 two case mix activities of daily living, who are eligible for 90.18 assistance as determined under sections 256B.055 and 256B.056 or 90.19 meet eligibility criteria for section 256B.0913 are eligible for 90.20 a service allowance under section 256B.0913, subdivision 15, and 90.21 are not eligible for services under sections 256B.0913, 90.22 subdivisions 1 to 14, and 256B.0915.Applicants in clause (2)90.23shall have the option of receiving personal care assistant and90.24home health aide services under section 256B.0625, if otherwise90.25eligible, or of receiving the service allowance option, but not90.26both.Applicants in clause (2) shall have the option of 90.27 residing in community settings under sections 256I.01 to 90.28 256I.06, if otherwise eligible, or receiving the services 90.29 allowance option under section 256B.0913, subdivision 15, but 90.30 not both; 90.31 (4) residents of a certified nursing facility or certified 90.32 boarding care home who were admitted before July 1,19961997, 90.33 or individuals receiving services under section 256B.0913, 90.34 subdivisions 1 to 14, or 256B.0915, before July 1,19961997, 90.35 are not subject to the new level of care criteria unless the 90.36 resident is discharged home or to another service setting other 91.1 than a certified nursing facility or certified boarding care 91.2 home and applies for admission to a certified nursing facility 91.3 or certified boarding care home after June 30,19961997; 91.4 (5) the local screening teams under section 256B.0911shall91.5make preliminary determinations concerningmay determine the 91.6 existence of extraordinary circumstances which render 91.7 nonadmission to a certified nursing or certified boarding care 91.8 home a serious threat to the health and safety of applicants in 91.9 clause (2) and may authorizeanadmissionfor a short-term stay91.10atto a certified nursing facility or certified boarding care 91.11 home in accordance with a treatment and discharge planfor up to91.1230 days per year; and 91.13 (6) an individual deemed ineligible for admission to 91.14 Minnesota certified nursing facilities is entitled to an appeal 91.15 under section 256.045, subdivision 3. 91.16 If the commissioner determines upon appeal that an 91.17 applicant in clause (2) presents extraordinary circumstances 91.18 including but not limited to the absence or inaccessibility of 91.19 suitable alternatives, contravening family circumstances,andor 91.20 protective service issues, the applicant may be eligible for 91.21 admission to Minnesota certified nursing facilities or certified 91.22 boarding care homes. 91.23 Sec. 4. Minnesota Statutes 1996, section 254B.02, 91.24 subdivision 1, is amended to read: 91.25 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 91.26 The chemical dependency funds appropriated for allocation shall 91.27 be placed in a special revenue account.For the fiscal year91.28beginning July 1, 1987, funds shall be transferred to operate91.29the vendor payment, invoice processing, and collections system91.30for one year.The commissioner shall annually transfer funds 91.31 from the chemical dependency fund to pay for operation of the 91.32 drug and alcohol abuse normative evaluation system and to pay 91.33 for all costs incurred by adding two positions for licensing of 91.34 chemical dependency treatment and rehabilitation programs 91.35 located in hospitals for which funds are not otherwise 91.36 appropriated. For each year of the biennium ending June 30, 92.1 1999, the commissioner shall allocate funds to the American 92.2 Indian chemical dependency tribal account for treatment of 92.3 American Indians by eligible vendors under section 254B.05, 92.4 equal to the amount allocated in fiscal year 1997. The 92.5 commissioner shall annually divide the money available in the 92.6 chemical dependency fund that is not held in reserve by counties 92.7 from a previous allocation, or allocated to the American Indian 92.8 chemical dependency tribal account.TwelveSix percent of the 92.9 remaining money must be reserved for the nonreservation American 92.10 Indian chemical dependency allocation for treatment of American 92.11 Indians by eligible vendors under section 254B.05, subdivision 92.12 1. The remainder of the money must be allocated among the 92.13 counties according to the following formula, using state 92.14 demographer data and other data sources determined by the 92.15 commissioner: 92.16 (a) For purposes of this formula, American Indians and 92.17 children under age 14 are subtracted from the population of each 92.18 county to determine the restricted population. 92.19 (b) The amount of chemical dependency fund expenditures for 92.20 entitled persons for services not covered by prepaid plans 92.21 governed by section 256B.69 in the previous year is divided by 92.22 the amount of chemical dependency fund expenditures for entitled 92.23 persons for all services to determine the proportion of exempt 92.24 service expenditures for each county. 92.25 (c) The prepaid plan months of eligibility is multiplied by 92.26 the proportion of exempt service expenditures to determine the 92.27 adjusted prepaid plan months of eligibility for each county. 92.28 (d) The adjusted prepaid plan months of eligibility is 92.29 added to the number of restricted population fee for service 92.30 months of eligibility for aid to families with dependent 92.31 children, general assistance, and medical assistance and divided 92.32 by the county restricted population to determine county per 92.33 capita months of covered service eligibility. 92.34 (e) The number of adjusted prepaid plan months of 92.35 eligibility for the state is added to the number of fee for 92.36 service months of eligibility for aid to families with dependent 93.1 children, general assistance, and medical assistance for the 93.2 state restricted population and divided by the state restricted 93.3 population to determine state per capita months of covered 93.4 service eligibility. 93.5 (f) The county per capita months of covered service 93.6 eligibility is divided by the state per capita months of covered 93.7 service eligibility to determine the county welfare caseload 93.8 factor. 93.9 (g) The median married couple income for the most recent 93.10 three-year period available for the state is divided by the 93.11 median married couple income for the same period for each county 93.12 to determine the income factor for each county. 93.13 (h) The county restricted population is multiplied by the 93.14 sum of the county welfare caseload factor and the county income 93.15 factor to determine the adjusted population. 93.16 (i) $15,000 shall be allocated to each county. 93.17 (j) The remaining funds shall be allocated proportional to 93.18 the county adjusted population. 93.19 Sec. 5. Minnesota Statutes 1996, section 254B.09, 93.20 subdivision 4, is amended to read: 93.21 Subd. 4. [TRIBAL ALLOCATION.]Forty-two and one-half93.22 Eighty-five percent of the American Indian chemical dependency 93.23 tribal account must be allocated to the federally recognized 93.24 American Indian tribal governing bodies that have entered into 93.25 an agreement under subdivision 2 as follows: $10,000 must be 93.26 allocated to each governing body and the remainder must be 93.27 allocated in direct proportion to the population of the 93.28 reservation according to the most recently available estimates 93.29 from the federal Bureau of Indian Affairs. When a tribal 93.30 governing body has not entered into an agreement with the 93.31 commissioner under subdivision 2, the county may use funds 93.32 allocated to the reservation to pay for chemical dependency 93.33 services for a current resident of the county and of the 93.34 reservation. 93.35 Sec. 6. Minnesota Statutes 1996, section 254B.09, 93.36 subdivision 5, is amended to read: 94.1 Subd. 5. [TRIBAL RESERVE ACCOUNT.] The commissioner shall 94.2 reserve7.515 percent of the American Indian chemical 94.3 dependency tribal account. The reserve must be allocated to 94.4 those tribal units that have used all money allocated under 94.5 subdivision 4 according to agreements made under subdivision 2 94.6 and to counties submitting invoices for American Indians under 94.7 subdivision 1 when all money allocated under subdivision 4 has 94.8 been used. An American Indian tribal governing body or a county 94.9 submitting invoices under subdivision 1 may receive not more 94.10 than 30 percent of the reserve account in a year. The 94.11 commissioner may refuse to make reserve payments for persons not 94.12 eligible under section 254B.04, subdivision 1, if the tribal 94.13 governing body responsible for treatment placement has exhausted 94.14 its allocation. Money must be allocated as invoices are 94.15 received. 94.16 Sec. 7. Minnesota Statutes 1996, section 254B.09, 94.17 subdivision 7, is amended to read: 94.18 Subd. 7. [NONRESERVATION INDIAN ACCOUNT.]Fifty percent of94.19 The nonreservation American Indian chemical dependency 94.20 allocation must be held in reserve by the commissioner in an 94.21 account for treatment of Indians not residing on lands of a 94.22 reservation receiving money under subdivision 4. This money 94.23 must be used to pay for services certified by county invoice to 94.24 have been provided to an American Indian eligible recipient. 94.25 Money allocated under this subdivision may be used for payments 94.26 on behalf of American Indian county residents only if, in 94.27 addition to other placement standards, the county certifies that 94.28 the placement was appropriate to the cultural orientation of the 94.29 client. Any funds for treatment of nonreservation Indians 94.30 remaining at the end of a fiscal year shall be reallocated under 94.31 section 254B.02. 94.32 Sec. 8. Minnesota Statutes 1996, section 256.045, 94.33 subdivision 3, is amended to read: 94.34 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 94.35 hearings are available for the following: (1) any person 94.36 applying for, receiving or having received public assistance or 95.1 a program of social services granted by the state agency or a 95.2 county agency under sections 252.32, 256.031 to 256.036, and 95.3 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 95.4 federal Food Stamp Act whose application for assistance is 95.5 denied, not acted upon with reasonable promptness, or whose 95.6 assistance is suspended, reduced, terminated, or claimed to have 95.7 been incorrectly paid; (2) any patient or relative aggrieved by 95.8 an order of the commissioner under section 252.27; (3) a party 95.9 aggrieved by a ruling of a prepaid health plan; (4) any 95.10 individual or facility determined by a lead agency to have 95.11 maltreated a vulnerable adult under section 626.557 after they 95.12 have exercised their right to administrative reconsideration 95.13 under section 626.557; (5) any person whose claim for foster 95.14 care payment pursuant to a placement of the child resulting from 95.15 a child protection assessment under section 626.556 is denied or 95.16 not acted upon with reasonable promptness, regardless of funding 95.17 source; (6) any person to whom a right of appeal pursuant to 95.18 this section is given by other provision of law; or (7) an 95.19 applicant aggrieved by an adverse decision to an application for 95.20 a hardship waiver under section 256B.15. The failure to 95.21 exercise the right to an administrative reconsideration shall 95.22 not be a bar to a hearing under this section if federal law 95.23 provides an individual the right to a hearing to dispute a 95.24 finding of maltreatment. Individuals and organizations 95.25 specified in this section may contest the specified action, 95.26 decision, or final disposition before the state agency by 95.27 submitting a written request for a hearing to the state agency 95.28 within 30 days after receiving written notice of the action, 95.29 decision, or final disposition, or within 90 days of such 95.30 written notice if the applicant, recipient, patient, or relative 95.31 shows good cause why the request was not submitted within the 95.32 30-day time limit. 95.33 The hearing for an individual or facility under clause (4) 95.34 is the only administrative appeal to the final lead agency 95.35 disposition specifically, including a challenge to the accuracy 95.36 and completeness of data under section 13.04. Hearings 96.1 requested under clause (4) apply only to incidents of 96.2 maltreatment that occur on or after October 1, 1995. Hearings 96.3 requested by nursing assistants in nursing homes alleged to have 96.4 maltreated a resident prior to October 1, 1995, shall be held as 96.5 a contested case proceeding under the provisions of chapter 14. 96.6 For purposes of this section, bargaining unit grievance 96.7 procedures are not an administrative appeal. 96.8 The scope of hearings involving claims to foster care 96.9 payments under clause (5) shall be limited to the issue of 96.10 whether the county is legally responsible for a child's 96.11 placement under court order or voluntary placement agreement 96.12 and, if so, the correct amount of foster care payment to be made 96.13 on the child's behalf and shall not include review of the 96.14 propriety of the county's child protection determination or 96.15 child placement decision. 96.16 (b)Except for a prepaid health plan,A vendor of medical 96.17 care as defined in section 256B.02, subdivision 7, or a vendor 96.18 under contract with a county agency to provide social services 96.19 under section 256E.08, subdivision 4, is not a party and may not 96.20 request a hearing under this section, except if assisting a 96.21 recipient as provided in subdivision 4. 96.22 (c) An applicant or recipient is not entitled to receive 96.23 social services beyond the services included in the amended 96.24 community social services plan developed under section 256E.081, 96.25 subdivision 3, if the county agency has met the requirements in 96.26 section 256E.081. 96.27 Sec. 9. Minnesota Statutes 1996, section 256.045, 96.28 subdivision 5, is amended to read: 96.29 Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 96.30 This subdivision does not apply to appeals under subdivision 96.31 3b. A state human services referee shall conduct a hearing on 96.32 the appeal and shall recommend an order to the commissioner of 96.33 human services. The recommended order must be based on all 96.34 relevant evidence and must not be limited to a review of the 96.35 propriety of the state or county agency's action. A referee may 96.36 take official notice of adjudicative facts. The commissioner of 97.1 human services may accept the recommended order of a state human 97.2 services referee and issue the order to the county agency and 97.3 the applicant, recipient, former recipient, or prepaid health 97.4 plan. The commissioner on refusing to accept the recommended 97.5 order of the state human services referee, shall notify the 97.6 county agency and the applicant, recipient, former recipient, or 97.7 prepaid health plan of that fact and shall state reasons 97.8 therefor and shall allow each party ten days' time to submit 97.9 additional written argument on the matter. After the expiration 97.10 of the ten-day period, the commissioner shall issue an order on 97.11 the matter to the county agency and the applicant, recipient, 97.12 former recipient, or prepaid health plan. 97.13 A party aggrieved by an order of the commissioner may 97.14 appeal under subdivision 7, or request reconsideration by the 97.15 commissioner within 30 days after the date the commissioner 97.16 issues the order. The commissioner may reconsider an order upon 97.17 request of any party or on the commissioner's own motion. A 97.18 request for reconsideration does not stay implementation of the 97.19 commissioner's order. Upon reconsideration, the commissioner 97.20 may issue an amended order or an order affirming the original 97.21 order. 97.22 Any order of the commissioner issued under this subdivision 97.23 shall be conclusive upon the parties unless appeal is taken in 97.24 the manner provided by subdivision 7. Any order of the 97.25 commissioner is binding on the parties and must be implemented 97.26 by the state agencyor, a county agency, or a prepaid health 97.27 plan according to subdivision 3a, until the order is reversed by 97.28 the district court, or unless the commissioner or a district 97.29 court orders monthly assistance or aid or services paid or 97.30 provided under subdivision 10. 97.31Except for a prepaid health plan,A vendor of medical care 97.32 as defined in section 256B.02, subdivision 7, or a vendor under 97.33 contract with a county agency to provide social services under 97.34 section 256E.08, subdivision 4, is not a party and may not 97.35 request a hearing or seek judicial review of an order issued 97.36 under this section, unless assisting a recipient as provided in 98.1 subdivision 4. A prepaid health plan is a party to an appeal 98.2 under subdivision 3a, but cannot seek judicial review of an 98.3 order issued under this section. 98.4 Sec. 10. Minnesota Statutes 1996, section 256.045, 98.5 subdivision 7, is amended to read: 98.6 Subd. 7. [JUDICIAL REVIEW.] Except for a prepaid health 98.7 plan, any party who is aggrieved by an order of the commissioner 98.8 of human services, or the commissioner of health in appeals 98.9 within the commissioner's jurisdiction under subdivision 3b, may 98.10 appeal the order to the district court of the county responsible 98.11 for furnishing assistance, or, in appeals under subdivision 3b, 98.12 the county where the maltreatment occurred, by serving a written 98.13 copy of a notice of appeal upon the commissioner and any adverse 98.14 party of record within 30 days after the date the commissioner 98.15 issued the order, the amended order, or order affirming the 98.16 original order, and by filing the original notice and proof of 98.17 service with the court administrator of the district court. 98.18 Service may be made personally or by mail; service by mail is 98.19 complete upon mailing; no filing fee shall be required by the 98.20 court administrator in appeals taken pursuant to this 98.21 subdivision, with the exception of appeals taken under 98.22 subdivision 3b. The commissioner may elect to become a party to 98.23 the proceedings in the district court. Except for appeals under 98.24 subdivision 3b, any party may demand that the commissioner 98.25 furnish all parties to the proceedings with a copy of the 98.26 decision, and a transcript of any testimony, evidence, or other 98.27 supporting papers from the hearing held before the human 98.28 services referee, by serving a written demand upon the 98.29 commissioner within 30 days after service of the notice of 98.30 appeal. Any party aggrieved by the failure of an adverse party 98.31 to obey an order issued by the commissioner under subdivision 5 98.32 may compel performance according to the order in the manner 98.33 prescribed in sections 586.01 to 586.12. 98.34 Sec. 11. Minnesota Statutes 1996, section 256.476, 98.35 subdivision 2, is amended to read: 98.36 Subd. 2. [DEFINITIONS.] For purposes of this section, the 99.1 following terms have the meanings given them: 99.2 (a) "County board" means the county board of commissioners 99.3 for the county of financial responsibility as defined in section 99.4 256G.02, subdivision 4, or its designated representative. When 99.5 a human services board has been established under sections 99.6 402.01 to 402.10, it shall be considered the county board for 99.7 the purposes of this section. 99.8 (b) "Family" means the person's birth parents, adoptive 99.9 parents or stepparents, siblings or stepsiblings, children or 99.10 stepchildren, grandparents, grandchildren, niece, nephew, aunt, 99.11 uncle, or spouse. For the purposes of this section, a family 99.12 member is at least 18 years of age. 99.13 (c) "Functional limitations" means the long-term inability 99.14 to perform an activity or task in one or more areas of major 99.15 life activity, including self-care, understanding and use of 99.16 language, learning, mobility, self-direction, and capacity for 99.17 independent living. For the purpose of this section, the 99.18 inability to perform an activity or task results from a mental, 99.19 emotional, psychological, sensory, or physical disability, 99.20 condition, or illness. 99.21 (d) "Informed choice" means a voluntary decision made by 99.22 the person or the person's legal representative, after becoming 99.23 familiarized with the alternatives to: 99.24 (1) select a preferred alternative from a number of 99.25 feasible alternatives; 99.26 (2) select an alternative which may be developed in the 99.27 future; and 99.28 (3) refuse any or all alternatives. 99.29 (e) "Local agency" means the local agency authorized by the 99.30 county board to carry out the provisions of this section. 99.31 (f) "Person" or "persons" means a person or persons meeting 99.32 the eligibility criteria in subdivision 3. 99.33 (g)"Responsible individual""Authorized representative" 99.34 means an individual designated by the person or their legal 99.35 representative to act on their behalf. This individual may be a 99.36 family member, guardian, representative payee, or other 100.1 individual designated by the person or their legal 100.2 representative, if any, to assist in purchasing and arranging 100.3 for supports. For the purposes of this section,a responsible100.4individualan authorized representative is at least 18 years of 100.5 age. 100.6 (h) "Screening" means the screening of a person's service 100.7 needs under sections 256B.0911 and 256B.092. 100.8 (i) "Supports" means services, care, aids, home 100.9 modifications, or assistance purchased by the person or the 100.10 person's family. Examples of supports include respite care, 100.11 assistance with daily living, and adaptive aids. For the 100.12 purpose of this section, notwithstanding the provisions of 100.13 section 144A.43, supports purchased under the consumer support 100.14 program are not considered home care services. 100.15 (j) "Program of origination" means the program the 100.16 individual transferred from when approved for the consumer 100.17 support grant program. 100.18 Sec. 12. Minnesota Statutes 1996, section 256.476, 100.19 subdivision 3, is amended to read: 100.20 Subd. 3. [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 100.21 is eligible to apply for a consumer support grant if the person 100.22 meets all of the following criteria: 100.23 (1) the person is eligible for and has been approved to 100.24 receive services under medical assistance as determined under 100.25 sections 256B.055 and 256B.056 or the person is eligible for and 100.26 has been approved to receive services under alternative care 100.27 services as determined under section 256B.0913 or the person has 100.28 been approved to receive a grant under the developmental 100.29 disability family support program under section 252.32; 100.30 (2) the person is able to direct and purchase the person's 100.31 own care and supports, or the person has a family member, legal 100.32 representative, or otherresponsible individualauthorized 100.33 representative who can purchase and arrange supports on the 100.34 person's behalf; 100.35 (3) the person has functional limitations, requires ongoing 100.36 supports to live in the community, and is at risk of or would 101.1 continue institutionalization without such supports; and 101.2 (4) the person will live in a home. For the purpose of 101.3 this section, "home" means the person's own home or home of a 101.4 person's family member. These homes are natural home settings 101.5 and are not licensed by the department of health or human 101.6 services. 101.7 (b) Persons may not concurrently receive a consumer support 101.8 grant if they are: 101.9 (1) receiving home and community-based services under 101.10 United States Code, title 42, section 1396h(c); personal care 101.11 attendant and home health aide services under section 256B.0625; 101.12 a developmental disability family support grant; or alternative 101.13 care services under section 256B.0913; or 101.14 (2) residing in an institutional or congregate care setting. 101.15 (c) A person or person's family receiving a consumer 101.16 support grant shall not be charged a fee or premium by a local 101.17 agency for participating in the program. A person or person's 101.18 family is not eligible for a consumer support grant if their 101.19 income is at a level where they are required to pay a parental 101.20 fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 101.21 and rules adopted under those sections for medical assistance 101.22 services to a disabled child living with at least one parent. 101.23 (d) The commissioner may limit the participation of nursing 101.24 facility residents, residents of intermediate care facilities 101.25 for persons with mental retardation, and the recipients of 101.26 services from federal waiver programs in the consumer support 101.27 grant program if the participation of these individuals will 101.28 result in an increase in the cost to the state. 101.29 (e) The commissioner shall establish a budgeted 101.30 appropriation each fiscal year for the consumer support grant 101.31 program. The number of individuals participating in the program 101.32 will be adjusted so the total amount allocated to counties does 101.33 not exceed the amount of the budgeted appropriation. The 101.34 budgeted appropriation will be adjusted annually to accommodate 101.35 changes in demand for the consumer support grants. 101.36 Sec. 13. Minnesota Statutes 1996, section 256.476, 102.1 subdivision 4, is amended to read: 102.2 Subd. 4. [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 102.3 county board may choose to participate in the consumer support 102.4 grant program. If a county board chooses to participate in the 102.5 program, the local agency shall establish written procedures and 102.6 criteria to determine the amount and use of support grants. 102.7 These procedures must include, at least, the availability of 102.8 respite care, assistance with daily living, and adaptive aids. 102.9 The local agency may establish monthly or annual maximum amounts 102.10 for grants and procedures where exceptional resources may be 102.11 required to meet the health and safety needs of the person on a 102.12 time-limited basis, however, the total amount awarded to each 102.13 individual may not exceed the limits established in subdivision 102.14 5, paragraph (f). 102.15 (b) Support grants to a person or a person's familymay102.16 will be provided through a monthly subsidyor lump sumpayment 102.17basisand be in the form of cash, voucher, or direct county 102.18 payment to vendor. Support grant amounts must be determined by 102.19 the local agency. Each service and item purchased with a 102.20 support grant must meet all of the following criteria: 102.21 (1) it must be over and above the normal cost of caring for 102.22 the person if the person did not have functional limitations; 102.23 (2) it must be directly attributable to the person's 102.24 functional limitations; 102.25 (3) it must enable the person or the person's family to 102.26 delay or prevent out-of-home placement of the person; and 102.27 (4) it must be consistent with the needs identified in the 102.28 service plan, when applicable. 102.29 (c) Items and services purchased with support grants must 102.30 be those for which there are no other public or private funds 102.31 available to the person or the person's family. Fees assessed 102.32 to the person or the person's family for health and human 102.33 services are not reimbursable through the grant. 102.34 (d) In approving or denying applications, the local agency 102.35 shall consider the following factors: 102.36 (1) the extent and areas of the person's functional 103.1 limitations; 103.2 (2) the degree of need in the home environment for 103.3 additional support; and 103.4 (3) the potential effectiveness of the grant to maintain 103.5 and support the person in the family environment or the person's 103.6 own home. 103.7 (e) At the time of application to the program or screening 103.8 for other services, the person or the person's family shall be 103.9 provided sufficient information to ensure an informed choice of 103.10 alternatives by the person, the person's legal representative, 103.11 if any, or the person's family. The application shall be made 103.12 to the local agency and shall specify the needs of the person 103.13 and family, the form and amount of grant requested, the items 103.14 and services to be reimbursed, and evidence of eligibility for 103.15 medical assistance or alternative care program. 103.16 (f) Upon approval of an application by the local agency and 103.17 agreement on a support plan for the person or person's family, 103.18 the local agency shall make grants to the person or the person's 103.19 family. The grant shall be in an amount for the direct costs of 103.20 the services or supports outlined in the service agreement. 103.21 (g) Reimbursable costs shall not include costs for 103.22 resources already available, such as special education classes, 103.23 day training and habilitation, case management, other services 103.24 to which the person is entitled, medical costs covered by 103.25 insurance or other health programs, or other resources usually 103.26 available at no cost to the person or the person's family. 103.27 (h) The state of Minnesota, the county boards participating 103.28 in the consumer support grant program, or the agencies acting on 103.29 behalf of the county boards in the implementation and 103.30 administration of the consumer support grant program shall not 103.31 be liable for damages, injuries, or liabilities sustained 103.32 through the purchase of support by the individual, the 103.33 individual's family, or the authorized representative under this 103.34 section with funds received through the consumer support grant 103.35 program. Liabilities include but are not limited to: workers' 103.36 compensation liability, the Federal Insurance Contributions Act 104.1 (FICA), or the Federal Unemployment Tax Act (FUTA). For 104.2 purposes of this section, participating county boards and 104.3 agencies acting on behalf of county boards are exempt from the 104.4 provisions of section 268.04. 104.5 Sec. 14. Minnesota Statutes 1996, section 256.476, 104.6 subdivision 5, is amended to read: 104.7 Subd. 5. [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 104.8 For the purpose of transferring persons to the consumer support 104.9 grant program from specific programs or services, such as the 104.10 developmental disability family support program and alternative 104.11 care program, personal care attendant, home health aide, or 104.12 nursing facility services, the amount of funds transferred by 104.13 the commissioner between the developmental disability family 104.14 support program account, the alternative care account, the 104.15 medical assistance account, or the consumer support grant 104.16 account shall be based on each county's participation in 104.17 transferring persons to the consumer support grant program from 104.18 those programs and services. 104.19 (b) At the beginning of each fiscal year, county 104.20 allocations for consumer support grants shall be based on: 104.21 (1) the number of persons to whom the county board expects 104.22 to provide consumer supports grants; 104.23 (2) their eligibility for current program and services; 104.24 (3) the amount of nonfederal dollars expended on those 104.25 individuals for those programs and services; or in situations 104.26 where an individual is unable to obtain the support needed from 104.27 the program of origination due to the unavailability of service 104.28 providers at the time or the location where the supports are 104.29 needed, the allocation will be based on the county's best 104.30 estimate of the nonfederal dollars that would have been expended 104.31 if the services had been available; and 104.32 (4) projected dates when persons will start receiving 104.33 grants. County allocations shall be adjusted periodically by 104.34 the commissioner based on the actual transfer of persons or 104.35 service openings, and the nonfederal dollars associated with 104.36 those persons or service openings, to the consumer support grant 105.1 program. 105.2 (c) The amount of funds transferred by the commissioner 105.3 from the alternative care account and the medical assistance 105.4 account for an individual may be changed if it is determined by 105.5 the county or its agent that the individual's need for support 105.6 has changed. 105.7 (d) The authority to utilize funds transferred to the 105.8 consumer support grant account for the purposes of implementing 105.9 and administering the consumer support grant program will not be 105.10 limited or constrained by the spending authority provided to the 105.11 program of origination. 105.12 (e) The commissioner shall use up to five percent of each 105.13 county's allocation, as adjusted, for payments to that county 105.14 for administrative expenses, to be paid as a proportionate 105.15 addition to reported direct service expenditures. 105.16(d)(f) Except as provided below, the county allocation for 105.17 each individual or individual's family cannot exceed 80 percent 105.18 of the total nonfederal dollars expended on the individual by 105.19 the program of origination except for the developmental 105.20 disabilities family support grant program which can be approved 105.21 up to 100 percent of the nonfederal dollars and in situations as 105.22 described in paragraph (b), clause (4). In situations where 105.23 exceptional need exists or the individual's need for support 105.24 increases, up to 100 percent of the nonfederal dollars expended 105.25 may be allocated to the county. Allocations that exceed 80 105.26 percent of the nonfederal dollars expended on the individual by 105.27 the program of origination must be approved by the 105.28 commissioner. The remainder of the amount expended on the 105.29 individual by the program of origination will be used in the 105.30 following proportions: half will be made available to the 105.31 consumer support grant program and participating counties for 105.32 consumer training, resource development, and other costs, and 105.33 half will be returned to the state general fund. 105.34 (g) The commissioner may recover, suspend, or withhold 105.35 payments if the county board, local agency, or grantee does not 105.36 comply with the requirements of this section. 106.1 Sec. 15. Minnesota Statutes 1996, section 256.9363, 106.2 subdivision 7, is amended to read: 106.3 Subd. 7. [MANAGED CARE PLAN VENDOR REQUIREMENTS.] The 106.4 following requirements apply to all counties or vendors who 106.5 contract with the department of human services to serve 106.6 MinnesotaCare recipients. Managed care plan contractors: 106.7 (1) shall authorize and arrange for the provision of the 106.8 full range of services listed in section 256.9353, except dental 106.9 services provided under section 256B.037, in order to ensure 106.10 appropriate health care is delivered to enrollees; 106.11 (2) shall accept the prospective, per capita payment or 106.12 other contractually defined payment from the commissioner in 106.13 return for the provision and coordination of covered health care 106.14 services for eligible individuals enrolled in the program; 106.15 (3) may contract with other health care and social service 106.16 practitioners to provide services to enrollees; 106.17 (4) shall provide for an enrollee grievance process as 106.18 required by the commissioner and set forth in the contract with 106.19 the department; 106.20 (5) shall retain all revenue from enrollee copayments; 106.21 (6) shall accept all eligible MinnesotaCare enrollees, 106.22 without regard to health status or previous utilization of 106.23 health services; 106.24 (7) shall demonstrate capacity to accept financial risk 106.25 according to requirements specified in the contract with the 106.26 department. A health maintenance organization licensed under 106.27 chapter 62D, or a nonprofit health plan licensed under chapter 106.28 62C, is not required to demonstrate financial risk capacity, 106.29 beyond that which is required to comply with chapters 62C and 106.30 62D; and 106.31 (8) shall submit information as required by the 106.32 commissioner, including data required for assessing enrollee 106.33 satisfaction, quality of care, cost, and utilization of services. 106.34 Sec. 16. Minnesota Statutes 1996, section 256.969, 106.35 subdivision 1, is amended to read: 106.36 Subdivision 1. [HOSPITAL COST INDEX.] (a) The hospital 107.1 cost index shall be the change in the Consumer Price Index-All 107.2 Items (United States city average) (CPI-U) forecasted by Data 107.3 Resources, Inc. The commissioner shall use the indices as 107.4 forecasted in the third quarter of the calendar year prior to 107.5 the rate year. The hospital cost index may be used to adjust 107.6 the base year operating payment rate through the rate year on an 107.7 annually compounded basis. 107.8 (b) For fiscal years beginning on or after July 1, 1993, 107.9 the commissioner of human services shall not provide automatic 107.10 annual inflation adjustments for hospital payment rates under 107.11 medical assistance, nor under general assistance medical care, 107.12 except that the inflation adjustments under paragraph (a) for 107.13 medical assistance, excluding general assistance medical care, 107.14 shall apply through calendar year19971999. The commissioner 107.15 of finance shall include as a budget change request in each 107.16 biennial detailed expenditure budget submitted to the 107.17 legislature under section 16A.11 annual adjustments in hospital 107.18 payment rates under medical assistance and general assistance 107.19 medical care, based upon the hospital cost index. 107.20 Sec. 17. Minnesota Statutes 1996, section 256.9695, 107.21 subdivision 1, is amended to read: 107.22 Subdivision 1. [APPEALS.] A hospital may appeal a decision 107.23 arising from the application of standards or methods under 107.24 section 256.9685, 256.9686, or 256.969, if an appeal would 107.25 result in a change to the hospital's payment rate or payments. 107.26 Both overpayments and underpayments that result from the 107.27 submission of appeals shall be implemented. Regardless of any 107.28 appeal outcome, relative values shall not be recalculated. The 107.29 appeal shall be heard by an administrative law judge according 107.30 to sections 14.57 to 14.62, or upon agreement by both parties, 107.31 according to a modified appeals procedure established by the 107.32 commissioner and the office of administrative hearings. In any 107.33 proceeding under this section, the appealing party must 107.34 demonstrate by a preponderance of the evidence that the 107.35 commissioner's determination is incorrect or not according to 107.36 law. 108.1 (a) To appeal a payment rate or payment determination or a 108.2 determination made from base year information, the hospital 108.3 shall file a written appeal request to the commissioner within 108.4 60 days of the date the payment rate determination was mailed. 108.5 The appeal request shall specify: (i) the disputed items; (ii) 108.6 the authority in federal or state statute or rule upon which the 108.7 hospital relies for each disputed item; and (iii) the name and 108.8 address of the person to contact regarding the appeal. Facts to 108.9 be considered in any appeal of base year information are limited 108.10 to those in existence at the time the payment rates of the first 108.11 rate year were established from the base year information. In 108.12 the case of Medicare settled appeals, the 60-day appeal period 108.13 shall begin on the mailing date of the notice by the Medicare 108.14 program or the date the medical assistance payment rate 108.15 determination notice is mailed, whichever is later. 108.16 (b) To appeal a payment rate or payment change that results 108.17 from a difference in case mix between the base year and a rate 108.18 year, the procedures and requirements of paragraph (a) apply. 108.19 However, the appeal must be filed with the commissioner within 108.20 120 days after the end of a rate year. A case mix appeal must 108.21 apply to the cost of services to all medical assistance patients 108.22 that received inpatient services from the hospital during the 108.23 rate year appealed. For case mix appeals filed after January 1, 108.24 1997, the difference in case mix and the corresponding payment 108.25 adjustment must exceed a threshold of five percent. 108.26 Sec. 18. Minnesota Statutes 1996, section 256B.037, 108.27 subdivision 1a, is amended to read: 108.28 Subd. 1a. [MULTIPLE DENTAL PLAN AREAS.] After the 108.29 department has executed contracts with dental plans to provide 108.30 covered dental care services in a multiple dental plan area, the 108.31 department shall: 108.32 (1) inform applicants and recipients, in writing, of 108.33 available dental plans, when written notice of dental plan 108.34 selection must be submitted to the department, and when dental 108.35 plan participation begins; 108.36 (2)randomlyassign to a dental plan recipients who fail to 109.1 notify the department in writing of their dental plan choice; 109.2 and 109.3 (3) notify recipients, in writing, of their assigned dental 109.4 plan before the effective date of the recipient's dental plan 109.5 participation. 109.6 Sec. 19. Minnesota Statutes 1996, section 256B.037, 109.7 subdivision 2, is amended to read: 109.8 Subd. 2. [ESTABLISHMENT OF PREPAYMENT RATES.] The 109.9 commissioner shall consult with an independent actuary to 109.10 establish prepayment rates, but shall retain final authority 109.11 over the methodology used to establish the rates. Payment rates 109.12 may be adjusted to reflect increased availability of providers 109.13 under the demonstration project in subdivision 1. The 109.14 commissioner may negotiate contracts which make payment after 109.15 the month of coverage. Theprepaymentdental rates under this 109.16 section, combined with other prepaid programs, shall not result 109.17 in payments that exceed the per capita expenditures that would 109.18 have been made fordentalservices by the programs under a 109.19 fee-for-service reimbursement system. The package of dental 109.20 benefits provided to individuals under this subdivision shall 109.21 not be less than the package of benefits provided under 109.22 themedical assistance fee-for-service reimbursement system for109.23dental servicesprogram for which they are eligible. 109.24 Sec. 20. Minnesota Statutes 1996, section 256B.04, is 109.25 amended by adding a subdivision to read: 109.26 Subd. 1a. [COMPREHENSIVE HEALTH SERVICES SYSTEM.] The 109.27 commissioner shall carry out the duties in this section with the 109.28 participation of the boards of county commissioners, and with 109.29 full consideration for the interests of counties, to plan and 109.30 implement a unified, accountable, comprehensive health services 109.31 system that: 109.32 (1) promotes accessible and quality health care for all 109.33 Minnesotans; 109.34 (2) assures provision of adequate health care within 109.35 limited state and county resources; 109.36 (3) avoids shifting funding burdens to county tax 110.1 resources; 110.2 (4) provides statewide eligibility, benefit, and service 110.3 expectations; 110.4 (5) manages care, develops risk management strategies, and 110.5 contains cost in all health and human services; and 110.6 (6) supports effective implementation of publicly funded 110.7 health and human services for all areas of the state. 110.8 Sec. 21. Minnesota Statutes 1996, section 256B.055, 110.9 subdivision 12, is amended to read: 110.10 Subd. 12. [DISABLED CHILDREN.] (a) A person is eligible 110.11 for medical assistance if the person is under age 19 and 110.12 qualifies as a disabled individual under United States Code, 110.13 title 42, section 1382c(a), and would be eligible for medical 110.14 assistance under the state plan if residing in a medical 110.15 institution, and the child requires a level of care provided in 110.16 a hospital, nursing facility, or intermediate care facility for 110.17 persons with mental retardation or related conditions, for whom 110.18 home care is appropriate, provided that the cost to medical 110.19 assistance under this section is not more than the amount that 110.20 medical assistance would pay for if the child resides in an 110.21 institution. After the child is determined to be eligible under 110.22 this section, the commissioner shall review the child's 110.23 disability under United States Code, title 42, section 1382c(a) 110.24 and level of care defined under this section no more often than 110.25 annually and may elect, based on the recommendation of health 110.26 care professionals under contract with the state medical review 110.27 team, to extend the review of disability and level of care up to 110.28 a maximum of four years. The commissioner's decision on the 110.29 frequency of continuing review of disability and level of care 110.30 is not subject to administrative appeal under section 256.045. 110.31 Nothing in this subdivision shall be construed as affecting 110.32 other redeterminations of medical assistance eligibility under 110.33 this chapter and annual cost-effective reviews under this 110.34 section. 110.35 (b) For purposes of this subdivision, "hospital" means an 110.36 institution as defined in section 144.696, subdivision 3, 111.1 144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and 111.2 licensed pursuant to sections 144.50 to 144.58. For purposes of 111.3 this subdivision, a child requires a level of care provided in a 111.4 hospital if the child is determined by the commissioner to need 111.5 an extensive array of health services, including mental health 111.6 services, for an undetermined period of time, whose health 111.7 condition requires frequent monitoring and treatment by a health 111.8 care professional or by a person supervised by a health care 111.9 professional, who would reside in a hospital or require frequent 111.10 hospitalization if these services were not provided, and the 111.11 daily care needs are more complex than a nursing facility level 111.12 of care. 111.13 A child with serious emotional disturbance requires a level 111.14 of care provided in a hospital if the commissioner determines 111.15 that the individual requires 24-hour supervision because the 111.16 person exhibits recurrent or frequent suicidal or homicidal 111.17 ideation or behavior, recurrent or frequent psychosomatic 111.18 disorders or somatopsychic disorders that may become life 111.19 threatening, recurrent or frequent severe socially unacceptable 111.20 behavior associated with psychiatric disorder, ongoing and 111.21 chronic psychosis or severe, ongoing and chronic developmental 111.22 problems requiring continuous skilled observation, or severe 111.23 disabling symptoms for which office-centered outpatient 111.24 treatment is not adequate, and which overall severely impact the 111.25 individual's ability to function. 111.26 (c) For purposes of this subdivision, "nursing facility" 111.27 means a facility which provides nursing care as defined in 111.28 section 144A.01, subdivision 5, licensed pursuant to sections 111.29 144A.02 to 144A.10, which is appropriate if a person is in 111.30 active restorative treatment; is in need of special treatments 111.31 provided or supervised by a licensed nurse; or has unpredictable 111.32 episodes of active disease processes requiring immediate 111.33 judgment by a licensed nurse. For purposes of this subdivision, 111.34 a child requires the level of care provided in a nursing 111.35 facility if the child is determined by the commissioner to meet 111.36 the requirements of the preadmission screening assessment 112.1 document under section 256B.0911 and the home care independent 112.2 rating document under section 256B.0627, subdivision 5, 112.3 paragraph (f), item (iii), adjusted to address age-appropriate 112.4 standards for children age 18 and under, pursuant to section 112.5 256B.0627, subdivision 5, paragraph (d), clause (2). 112.6 (d) For purposes of this subdivision, "intermediate care 112.7 facility for persons with mental retardation or related 112.8 conditions" or "ICF/MR" means a program licensed to provide 112.9 services to persons with mental retardation under section 112.10 252.28, and chapter 245A, and a physical plant licensed as a 112.11 supervised living facility under chapter 144, which together are 112.12 certified by the Minnesota department of health as meeting the 112.13 standards in Code of Federal Regulations, title 42, part 483, 112.14 for an intermediate care facility which provides services for 112.15 persons with mental retardation or persons with related 112.16 conditions who require 24-hour supervision and active treatment 112.17 for medical, behavioral, or habilitation needs. For purposes of 112.18 this subdivision, a child requires a level of care provided in 112.19 an ICF/MR if the commissioner finds that the child has mental 112.20 retardation or a related condition in accordance with section 112.21 256B.092, is in need of a 24-hour plan of care and active 112.22 treatment similar to persons with mental retardation, and there 112.23 is a reasonable indication that the child will need ICF/MR 112.24 services. 112.25 (e) For purposes of this subdivision, a person requires the 112.26 level of care provided in a nursing facility if the person 112.27 requires 24-hour monitoring or supervision and a plan of mental 112.28 health treatment because of specific symptoms or functional 112.29 impairments associated with a serious mental illness or disorder 112.30 diagnosis, which meet severity criteria for mental health 112.31 established by the commissionerbased on standards developed for112.32the Wisconsin Katie Beckett programand published inJuly 1994112.33 March 1997 as the Minnesota Mental Health Level of Care for 112.34 Children and Adolescents with Severe Emotional Disorders. 112.35 (f) The determination of the level of care needed by the 112.36 child shall be made by the commissioner based on information 113.1 supplied to the commissioner by the parent or guardian, the 113.2 child's physician or physicians, and other professionals as 113.3 requested by the commissioner. The commissioner shall establish 113.4 a screening team to conduct the level of care determinations 113.5 according to this subdivision. 113.6 (g) If a child meets the conditions in paragraph (b), (c), 113.7 (d), or (e), the commissioner must assess the case to determine 113.8 whether: 113.9 (1) the child qualifies as a disabled individual under 113.10 United States Code, title 42, section 1382c(a), and would be 113.11 eligible for medical assistance if residing in a medical 113.12 institution; and 113.13 (2) the cost of medical assistance services for the child, 113.14 if eligible under this subdivision, would not be more than the 113.15 cost to medical assistance if the child resides in a medical 113.16 institution to be determined as follows: 113.17 (i) for a child who requires a level of care provided in an 113.18 ICF/MR, the cost of care for the child in an institution shall 113.19 be determined using the average payment rate established for the 113.20 regional treatment centers that are certified as ICFs/MR; 113.21 (ii) for a child who requires a level of care provided in 113.22 an inpatient hospital setting according to paragraph (b), 113.23 cost-effectiveness shall be determined according to Minnesota 113.24 Rules, part 9505.3520, items F and G; and 113.25 (iii) for a child who requires a level of care provided in 113.26 a nursing facility according to paragraph (c) or (e), 113.27 cost-effectiveness shall be determined according to Minnesota 113.28 Rules, part 9505.3040, except that the nursing facility average 113.29 rate shall be adjusted to reflect rates which would be paid for 113.30 children under age 16. The commissioner may authorize an amount 113.31 up to the amount medical assistance would pay for a child 113.32 referred to the commissioner by the preadmission screening team 113.33 under section 256B.0911. 113.34 (h) Children eligible for medical assistance services under 113.35 section 256B.055, subdivision 12, as of June 30, 1995, must be 113.36 screened according to the criteria in this subdivision prior to 114.1 January 1, 1996. Children found to be ineligible may not be 114.2 removed from the program until January 1, 1996. 114.3 Sec. 22. Minnesota Statutes 1996, section 256B.056, 114.4 subdivision 4, is amended to read: 114.5 Subd. 4. [INCOME.] To be eligible for medical assistance, 114.6 a person must not have, or anticipate receiving, semiannual 114.7 income in excess of 120 percent of the income standards by 114.8 family size used in the aid to families with dependent children 114.9 program, except that families and children may have an income up 114.10 to 133-1/3 percent of the AFDC income standard. In computing 114.11 income to determine eligibility of persons who are not residents 114.12 of long-term care facilities, the commissioner shall disregard 114.13 increases in income as required by Public Law Numbers 94-566, 114.14 section 503; 99-272; and 99-509. Veterans aid and attendance 114.15 benefits and Veterans Administration unusual medical expense 114.16 payments are considered income to the recipient. 114.17 Sec. 23. Minnesota Statutes 1996, section 256B.056, 114.18 subdivision 5, is amended to read: 114.19 Subd. 5. [EXCESS INCOME.] A person who has excess income 114.20 is eligible for medical assistance if the person has expenses 114.21 for medical care that are more than the amount of the person's 114.22 excess income, computed by deducting incurred medical expenses 114.23 from the excess income to reduce the excess to the income 114.24 standard specified in subdivision 4. The person shall elect to 114.25 have the medical expenses deducted at the beginning of a 114.26 one-month budget period or at the beginning of a six-month 114.27 budget period.Until June 30, 1993, or the date the Medicaid114.28Management Information System (MMIS) upgrade is implemented,114.29whichever occurs last,The commissioner shall allow persons 114.30 eligible for assistance on a one-month spenddown basis under 114.31 this subdivision to elect to pay the monthly spenddown amount in 114.32 advance of the month of eligibility to thelocalstate agency in 114.33 order to maintain eligibility on a continuous basis. If the 114.34 recipient does not pay the spenddown amount on or before 114.35 the10th20th of the month, the recipient is ineligible for this 114.36 option for the following month.The local agency must deposit115.1spenddown payments into its treasury and issue a monthly payment115.2to the state agency with the necessary individual account115.3information.The local agency shall code theclient eligibility115.4 Medicaid Management Information System (MMIS) to indicate that 115.5 thespenddown obligation has been satisfied for the month115.6paidrecipient has elected this option. The state agency shall 115.7 conveythis informationrecipient eligibility information 115.8 relative to the collection of the spenddown to providers through 115.9eligibility cards which list no remaining spenddown obligation.115.10After the implementation of the MMIS upgrade,the Electronic 115.11 Verification System (EVS). A recipient electing advance payment 115.12 must pay the state agency the monthly spenddown amount on or 115.13 before the10th20th of the month in order to be eligible for 115.14 this option in the following month. 115.15 Sec. 24. Minnesota Statutes 1996, section 256B.057, 115.16 subdivision 1, is amended to read: 115.17 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] An infant 115.18 less than one year of age or a pregnant woman who has written 115.19 verification of a positive pregnancy test from a physician or 115.20 licensed registered nurse, is eligible for medical assistance if 115.21 countable family income is equal to or less than 275 percent of 115.22 the federal poverty guideline for the same family size. For 115.23 purposes of this subdivision, "countable family income" means 115.24 the amount of income considered available using the methodology 115.25 of the AFDC program, except for the earned income disregard and 115.26 employment deductions. An amount equal to the amount of earned 115.27 income exceeding 275 percent of the federal poverty guideline, 115.28 up to a maximum of the amount by which the combined total of 185 115.29 percent of the federal poverty guideline plus the earned income 115.30 disregards and deductions of the AFDC program exceeds 275 115.31 percent of the federal poverty guideline will be deducted for 115.32 pregnant women and infants less than one year of age. 115.33Eligibility for a pregnant woman or infant less than one year of115.34age under this subdivision must be determined without regard to115.35asset standards established in section 256B.056, subdivision 3.115.36 An infant born on or after January 1, 1991, to a woman who 116.1 was eligible for and receiving medical assistance on the date of 116.2 the child's birth shall continue to be eligible for medical 116.3 assistance without redetermination until the child's first 116.4 birthday, as long as the child remains in the woman's household. 116.5 Sec. 25. Minnesota Statutes 1996, section 256B.057, 116.6 subdivision 1b, is amended to read: 116.7 Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] This 116.8 subdivision supersedes subdivision 1 as long as the Minnesota 116.9 health care reform waiver remains in effect. When the waiver 116.10 expires, the commissioner of human services shall publish a 116.11 notice in the State Register and notify the revisor of 116.12 statutes. An infant less than two years of age or a pregnant 116.13 woman who has written verification of a positive pregnancy test 116.14 from a physician or licensed registered nurse, is eligible for 116.15 medical assistance if countable family income is equal to or 116.16 less than 275 percent of the federal poverty guideline for the 116.17 same family size. For purposes of this subdivision, "countable 116.18 family income" means the amount of income considered available 116.19 using the methodology of the AFDC program, except for the earned 116.20 income disregard and employment deductions. An amount equal to 116.21 the amount of earned income exceeding 275 percent of the federal 116.22 poverty guideline, up to a maximum of the amount by which the 116.23 combined total of 185 percent of the federal poverty guideline 116.24 plus the earned income disregards and deductions of the AFDC 116.25 program exceeds 275 percent of the federal poverty guideline 116.26 will be deducted for pregnant women and infants less than two 116.27 years of age.Eligibility for a pregnant woman or infant less116.28than two years of age under this subdivision must be determined116.29without regard to asset standards established in section116.30256B.056, subdivision 3.116.31 An infant born on or after January 1, 1991, to a woman who 116.32 was eligible for and receiving medical assistance on the date of 116.33 the child's birth shall continue to be eligible for medical 116.34 assistance without redetermination until the child's second 116.35 birthday, as long as the child remains in the woman's household. 116.36 Sec. 26. Minnesota Statutes 1996, section 256B.057, 117.1 subdivision 2, is amended to read: 117.2 Subd. 2. [CHILDREN.] A child one through five years of age 117.3 in a family whose countable income is less than 133 percent of 117.4 the federal poverty guidelines for the same family size, is 117.5 eligible for medical assistance. A child six through 18 years 117.6 of age, who was born after September 30, 1983, in a family whose 117.7 countable income is less than 100 percent of the federal poverty 117.8 guidelines for the same family size is eligible for medical 117.9 assistance.Eligibility for children under this subdivision117.10must be determined without regard to asset standards established117.11in section 256B.056, subdivision 3.117.12 Sec. 27. Minnesota Statutes 1996, section 256B.0625, is 117.13 amended by adding a subdivision to read: 117.14 Subd. 31a. [AUGMENTATIVE AND ALTERNATIVE COMMUNICATION 117.15 SYSTEMS.] (a) Medical assistance covers augmentative and 117.16 alternative communication systems consisting of electronic or 117.17 nonelectronic devices and the related components necessary to 117.18 enable a person with severe expressive communication limitations 117.19 to produce or transmit messages or symbols in a manner that 117.20 compensates for that disability. 117.21 (b) By January 1, 1998, the commissioner, in cooperation 117.22 with the commissioner of administration, shall establish an 117.23 augmentative and alternative communication system purchasing 117.24 program within a state agency or by contract with a qualified 117.25 private entity. The purpose of this service is to facilitate 117.26 ready availability of the augmentative and alternative 117.27 communication systems needed to meet the needs of persons with 117.28 severe expressive communication limitations in an efficient and 117.29 cost-effective manner. This program shall: 117.30 (1) coordinate purchase and rental of augmentative and 117.31 alternative communication systems; 117.32 (2) negotiate agreements with manufacturers and vendors for 117.33 purchase of components of these systems, for warranty coverage, 117.34 and for repair service; 117.35 (3) when efficient and cost-effective, maintain and 117.36 refurbish if needed, an inventory of components of augmentative 118.1 and alternative communication systems for short- or long-term 118.2 loan to recipients; 118.3 (4) facilitate training sessions for service providers, 118.4 consumers, and families on augmentative and alternative 118.5 communication systems; and 118.6 (5) develop a recycling program for used augmentative and 118.7 alternative communications systems to be reissued and used for 118.8 trials and short-term use, when appropriate. 118.9 The availability of components of augmentative and 118.10 alternative communication systems through this program is 118.11 subject to prior authorization requirements established under 118.12 subdivision 25. 118.13 Reimbursement rates established by this purchasing program 118.14 are not subject to Minnesota Rules, part 9505.0445, item S or T. 118.15 (c) Augmentative and alternative communication systems and 118.16 related components that are prior authorized by the department 118.17 through pass through vendors during the period from January 1, 118.18 1997, until the augmentative and alternative communication 118.19 system purchasing program or other alternatives are operational 118.20 shall be paid under the medical assistance program at the actual 118.21 price charged the pass through vendor plus 20 percent to cover 118.22 administrative costs of prior authorization and billing and 118.23 shipping charges. 118.24 Sec. 28. Minnesota Statutes 1996, section 256B.0626, is 118.25 amended to read: 118.26 256B.0626 [ESTIMATION OF 50TH PERCENTILE OF PREVAILING 118.27 CHARGES.] 118.28 (a) The 50th percentile of the prevailing charge for the 118.29 base year identified in statute must be estimated by the 118.30 commissioner in the following situations: 118.31 (1) there were less thantenfive billings in the calendar 118.32 year specified in legislation governing maximum payment rates; 118.33 (2) the service was not available in the calendar year 118.34 specified in legislation governing maximum payment rates; 118.35 (3) the payment amount is the result of a provider appeal; 118.36 (4) the procedure code description has changed since the 119.1 calendar year specified in legislation governing maximum payment 119.2 rates, and, therefore, the prevailing charge information 119.3 reflects the same code but a different procedure description; or 119.4 (5) the 50th percentile reflects a payment which is grossly 119.5 inequitable when compared with payment rates for procedures or 119.6 services which are substantially similar. 119.7 (b) When one of the situations identified in paragraph (a) 119.8 occurs, the commissioner shall use the following methodology to 119.9 reconstruct a rate comparable to the 50th percentile of the 119.10 prevailing rate: 119.11 (1) refer to information which exists for the firstnine119.12 four billings in the calendar year specified in legislation 119.13 governing maximum payment rates; or 119.14 (2) refer to surrounding or comparable procedure codes; or 119.15 (3) refer to the 50th percentile of years subsequent to the 119.16 calendar year specified in legislation governing maximum payment 119.17 rates, and reduce that amount by applying an appropriate 119.18 Consumer Price Index formula; or 119.19 (4) refer to relative value indexes; or 119.20 (5) refer to reimbursement information from other third 119.21 parties, such as Medicare. 119.22 Sec. 29. Minnesota Statutes 1996, section 256B.0627, 119.23 subdivision 5, is amended to read: 119.24 Subd. 5. [LIMITATION ON PAYMENTS.] Medical assistance 119.25 payments for home care services shall be limited according to 119.26 this subdivision. 119.27 (a) [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 119.28 recipient may receive the following home care services during a 119.29 calendar year: 119.30 (1) any initial assessment;and119.31 (2) up to two reassessments per year done to determine a 119.32 recipient's need for personal care services; and 119.33 (3) up to five skilled nurse visits. 119.34 (b) [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 119.35 services above the limits in paragraph (a) must receive the 119.36 commissioner's prior authorization, except when: 120.1 (1) the home care services were required to treat an 120.2 emergency medical condition that if not immediately treated 120.3 could cause a recipient serious physical or mental disability, 120.4 continuation of severe pain, or death. The provider must 120.5 request retroactive authorization no later than five working 120.6 days after giving the initial service. The provider must be 120.7 able to substantiate the emergency by documentation such as 120.8 reports, notes, and admission or discharge histories; 120.9 (2) the home care services were provided on or after the 120.10 date on which the recipient's eligibility began, but before the 120.11 date on which the recipient was notified that the case was 120.12 opened. Authorization will be considered if the request is 120.13 submitted by the provider within 20 working days of the date the 120.14 recipient was notified that the case was opened; 120.15 (3) a third-party payor for home care services has denied 120.16 or adjusted a payment. Authorization requests must be submitted 120.17 by the provider within 20 working days of the notice of denial 120.18 or adjustment. A copy of the notice must be included with the 120.19 request; 120.20 (4) the commissioner has determined that a county or state 120.21 human services agency has made an error; or 120.22 (5) the professional nurse determines an immediate need for 120.23 up to 40 skilled nursing or home health aide visits per calendar 120.24 year and submits a request for authorization within 20 working 120.25 days of the initial service date, and medical assistance is 120.26 determined to be the appropriate payer. 120.27 (c) [RETROACTIVE AUTHORIZATION.] A request for retroactive 120.28 authorization will be evaluated according to the same criteria 120.29 applied to prior authorization requests. 120.30 (d) [ASSESSMENT AND SERVICE PLAN.] Assessments under 120.31 section 256B.0627, subdivision 1, paragraph (a), shall be 120.32 conducted initially, and at least annually thereafter, in person 120.33 with the recipient and result in a completed service plan using 120.34 forms specified by the commissioner. Within 30 days of 120.35 recipient or responsible party request for home care services, 120.36 the assessment, the service plan, and other information 121.1 necessary to determine medical necessity such as diagnostic or 121.2 testing information, social or medical histories, and hospital 121.3 or facility discharge summaries shall be submitted to the 121.4 commissioner. For personal care services: 121.5 (1) The amount and type of service authorized based upon 121.6 the assessment and service plan will follow the recipient if the 121.7 recipient chooses to change providers. 121.8 (2) If the recipient's medical need changes, the 121.9 recipient's provider may assess the need for a change in service 121.10 authorization and request the change from the county public 121.11 health nurse. Within 30 days of the request, the public health 121.12 nurse will determine whether to request the change in services 121.13 based upon the provider assessment, or conduct a home visit to 121.14 assess the need and determine whether the change is appropriate. 121.15 (3) To continue to receive personal care services when the 121.16 recipient displays no significant change, the county public 121.17 health nurse has the option to review with the commissioner, or 121.18 the commissioner's designee, the service plan on record and 121.19 receive authorization for up to an additional 12 months at a 121.20 time for up to three years. 121.21 (e) [PRIOR AUTHORIZATION.] The commissioner, or the 121.22 commissioner's designee, shall review the assessment, the 121.23 service plan, and any additional information that is submitted. 121.24 The commissioner shall, within 30 days after receiving a 121.25 complete request, assessment, and service plan, authorize home 121.26 care services as follows: 121.27 (1) [HOME HEALTH SERVICES.] All home health services 121.28 provided by a licensed nurse or a home health aide must be prior 121.29 authorized by the commissioner or the commissioner's designee. 121.30 Prior authorization must be based on medical necessity and 121.31 cost-effectiveness when compared with other care options. When 121.32 home health services are used in combination with personal care 121.33 and private duty nursing, the cost of all home care services 121.34 shall be considered for cost-effectiveness. The commissioner 121.35 shall limit nurse and home health aide visits to no more than 121.36 one visit each per day. 122.1 (2) [PERSONAL CARE SERVICES.] (i) All personal care 122.2 services and registered nurse supervision must be prior 122.3 authorized by the commissioner or the commissioner's designee 122.4 except for the assessments established in paragraph (a). The 122.5 amount of personal care services authorized must be based on the 122.6 recipient's home care rating. A child may not be found to be 122.7 dependent in an activity of daily living if because of the 122.8 child's age an adult would either perform the activity for the 122.9 child or assist the child with the activity and the amount of 122.10 assistance needed is similar to the assistance appropriate for a 122.11 typical child of the same age. Based on medical necessity, the 122.12 commissioner may authorize: 122.13 (A) up to two times the average number of direct care hours 122.14 provided in nursing facilities for the recipient's comparable 122.15 case mix level; or 122.16 (B) up to three times the average number of direct care 122.17 hours provided in nursing facilities for recipients who have 122.18 complex medical needs or are dependent in at least seven 122.19 activities of daily living and need physical assistance with 122.20 eating or have a neurological diagnosis; or 122.21 (C) up to 60 percent of the average reimbursement rate, as 122.22 of July 1, 1991, for care provided in a regional treatment 122.23 center for recipients who have Level I behavior, plus any 122.24 inflation adjustment as provided by the legislature for personal 122.25 care service; or 122.26 (D) up to the amount the commissioner would pay, as of July 122.27 1, 1991, plus any inflation adjustment provided for home care 122.28 services, for care provided in a regional treatment center for 122.29 recipients referred to the commissioner by a regional treatment 122.30 center preadmission evaluation team. For purposes of this 122.31 clause, home care services means all services provided in the 122.32 home or community that would be included in the payment to a 122.33 regional treatment center; or 122.34 (E) up to the amount medical assistance would reimburse for 122.35 facility care for recipients referred to the commissioner by a 122.36 preadmission screening team established under section 256B.0911 123.1 or 256B.092; and 123.2 (F) a reasonable amount of time for the provision of 123.3 nursing supervision of personal care services. 123.4 (ii) The number of direct care hours shall be determined 123.5 according to the annual cost report submitted to the department 123.6 by nursing facilities. The average number of direct care hours, 123.7 as established by May 1, 1992, shall be calculated and 123.8 incorporated into the home care limits on July 1, 1992. These 123.9 limits shall be calculated to the nearest quarter hour. 123.10 (iii) The home care rating shall be determined by the 123.11 commissioner or the commissioner's designee based on information 123.12 submitted to the commissioner by the county public health nurse 123.13 on forms specified by the commissioner. The home care rating 123.14 shall be a combination of current assessment tools developed 123.15 under sections 256B.0911 and 256B.501 with an addition for 123.16 seizure activity that will assess the frequency and severity of 123.17 seizure activity and with adjustments, additions, and 123.18 clarifications that are necessary to reflect the needs and 123.19 conditions of recipients who need home care including children 123.20 and adults under 65 years of age. The commissioner shall 123.21 establish these forms and protocols under this section and shall 123.22 use an advisory group, including representatives of recipients, 123.23 providers, and counties, for consultation in establishing and 123.24 revising the forms and protocols. 123.25 (iv) A recipient shall qualify as having complex medical 123.26 needs if the care required is difficult to perform and because 123.27 of recipient's medical condition requires more time than 123.28 community-based standards allow or requires more skill than 123.29 would ordinarily be required and the recipient needs or has one 123.30 or more of the following: 123.31 (A) daily tube feedings; 123.32 (B) daily parenteral therapy; 123.33 (C) wound or decubiti care; 123.34 (D) postural drainage, percussion, nebulizer treatments, 123.35 suctioning, tracheotomy care, oxygen, mechanical ventilation; 123.36 (E) catheterization; 124.1 (F) ostomy care; 124.2 (G) quadriplegia; or 124.3 (H) other comparable medical conditions or treatments the 124.4 commissioner determines would otherwise require institutional 124.5 care. 124.6 (v) A recipient shall qualify as having Level I behavior if 124.7 there is reasonable supporting evidence that the recipient 124.8 exhibits, or that without supervision, observation, or 124.9 redirection would exhibit, one or more of the following 124.10 behaviors that cause, or have the potential to cause: 124.11 (A) injury to the recipient's own body; 124.12 (B) physical injury to other people; or 124.13 (C) destruction of property. 124.14 (vi) Time authorized for personal care relating to Level I 124.15 behavior in subclause (v), items (A) to (C), shall be based on 124.16 the predictability, frequency, and amount of intervention 124.17 required. 124.18 (vii) A recipient shall qualify as having Level II behavior 124.19 if the recipient exhibits on a daily basis one or more of the 124.20 following behaviors that interfere with the completion of 124.21 personal care services under subdivision 4, paragraph (a): 124.22 (A) unusual or repetitive habits; 124.23 (B) withdrawn behavior; or 124.24 (C) offensive behavior. 124.25 (viii) A recipient with a home care rating of Level II 124.26 behavior in subclause (vii), items (A) to (C), shall be rated as 124.27 comparable to a recipient with complex medical needs under 124.28 subclause (iv). If a recipient has both complex medical needs 124.29 and Level II behavior, the home care rating shall be the next 124.30 complex category up to the maximum rating under subclause (i), 124.31 item (B). 124.32 (3) [PRIVATE DUTY NURSING SERVICES.] All private duty 124.33 nursing services shall be prior authorized by the commissioner 124.34 or the commissioner's designee. Prior authorization for private 124.35 duty nursing services shall be based on medical necessity and 124.36 cost-effectiveness when compared with alternative care options. 125.1 The commissioner may authorize medically necessary private duty 125.2 nursing services in quarter-hour units when: 125.3 (i) the recipient requires more individual and continuous 125.4 care than can be provided during a nurse visit; or 125.5 (ii) the cares are outside of the scope of services that 125.6 can be provided by a home health aide or personal care assistant. 125.7 The commissioner may authorize: 125.8 (A) up to two times the average amount of direct care hours 125.9 provided in nursing facilities statewide for case mix 125.10 classification "K" as established by the annual cost report 125.11 submitted to the department by nursing facilities in May 1992; 125.12 (B) private duty nursing in combination with other home 125.13 care services up to the total cost allowed under clause (2); 125.14 (C) up to 16 hours per day if the recipient requires more 125.15 nursing than the maximum number of direct care hours as 125.16 established in item (A) and the recipient meets the hospital 125.17 admission criteria established under Minnesota Rules, parts 125.18 9505.0500 to 9505.0540. 125.19 The commissioner may authorize up to 16 hours per day of 125.20 medically necessary private duty nursing services or up to 24 125.21 hours per day of medically necessary private duty nursing 125.22 services until such time as the commissioner is able to make a 125.23 determination of eligibility for recipients who are 125.24 cooperatively applying for home care services under the 125.25 community alternative care program developed under section 125.26 256B.49, or until it is determined by the appropriate regulatory 125.27 agency that a health benefit plan is or is not required to pay 125.28 for appropriate medically necessary health care services. 125.29 Recipients or their representatives must cooperatively assist 125.30 the commissioner in obtaining this determination. Recipients 125.31 who are eligible for the community alternative care program may 125.32 not receive more hours of nursing under this section than would 125.33 otherwise be authorized under section 256B.49. 125.34 (4) [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 125.35 ventilator-dependent, the monthly medical assistance 125.36 authorization for home care services shall not exceed what the 126.1 commissioner would pay for care at the highest cost hospital 126.2 designated as a long-term hospital under the Medicare program. 126.3 For purposes of this clause, home care services means all 126.4 services provided in the home that would be included in the 126.5 payment for care at the long-term hospital. 126.6 "Ventilator-dependent" means an individual who receives 126.7 mechanical ventilation for life support at least six hours per 126.8 day and is expected to be or has been dependent for at least 30 126.9 consecutive days. 126.10 (f) [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 126.11 or the commissioner's designee shall determine the time period 126.12 for which a prior authorization shall be effective. If the 126.13 recipient continues to require home care services beyond the 126.14 duration of the prior authorization, the home care provider must 126.15 request a new prior authorization. Under no circumstances, 126.16 other than the exceptions in paragraph (b), shall a prior 126.17 authorization be valid prior to the date the commissioner 126.18 receives the request or for more than 12 months. A recipient 126.19 who appeals a reduction in previously authorized home care 126.20 services may continue previously authorized services, other than 126.21 temporary services under paragraph (h), pending an appeal under 126.22 section 256.045. The commissioner must provide a detailed 126.23 explanation of why the authorized services are reduced in amount 126.24 from those requested by the home care provider. 126.25 (g) [APPROVAL OF HOME CARE SERVICES.] The commissioner or 126.26 the commissioner's designee shall determine the medical 126.27 necessity of home care services, the level of caregiver 126.28 according to subdivision 2, and the institutional comparison 126.29 according to this subdivision, the cost-effectiveness of 126.30 services, and the amount, scope, and duration of home care 126.31 services reimbursable by medical assistance, based on the 126.32 assessment, primary payer coverage determination information as 126.33 required, the service plan, the recipient's age, the cost of 126.34 services, the recipient's medical condition, and diagnosis or 126.35 disability. The commissioner may publish additional criteria 126.36 for determining medical necessity according to section 256B.04. 127.1 (h) [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 127.2 The agency nurse, the independently enrolled private duty nurse, 127.3 or county public health nurse may request a temporary 127.4 authorization for home care services by telephone. The 127.5 commissioner may approve a temporary level of home care services 127.6 based on the assessment, and service or care plan information, 127.7 and primary payer coverage determination information as required. 127.8 Authorization for a temporary level of home care services 127.9 including nurse supervision is limited to the time specified by 127.10 the commissioner, but shall not exceed 45 days, unless extended 127.11 because the county public health nurse has not completed the 127.12 required assessment and service plan, or the commissioner's 127.13 determination has not been made. The level of services 127.14 authorized under this provision shall have no bearing on a 127.15 future prior authorization. 127.16 (i) [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 127.17 Home care services provided in an adult or child foster care 127.18 setting must receive prior authorization by the department 127.19 according to the limits established in paragraph (a). 127.20 The commissioner may not authorize: 127.21 (1) home care services that are the responsibility of the 127.22 foster care provider under the terms of the foster care 127.23 placement agreement and administrative rules. Requests for home 127.24 care services for recipients residing in a foster care setting 127.25 must include the foster care placement agreement and 127.26 determination of difficulty of care; 127.27 (2) personal care services when the foster care license 127.28 holder is also the personal care provider or personal care 127.29 assistant unless the recipient can direct the recipient's own 127.30 care, or case management is provided as required in section 127.31 256B.0625, subdivision 19a; 127.32 (3) personal care services when the responsible party is an 127.33 employee of, or under contract with, or has any direct or 127.34 indirect financial relationship with the personal care provider 127.35 or personal care assistant, unless case management is provided 127.36 as required in section 256B.0625, subdivision 19a; 128.1 (4) home care services when the number of foster care 128.2 residents is greater than four unless the county responsible for 128.3 the recipient's foster placement made the placement prior to 128.4 April 1, 1992, requests that home care services be provided, and 128.5 case management is provided as required in section 256B.0625, 128.6 subdivision 19a; or 128.7 (5) home care services when combined with foster care 128.8 payments, other than room and board payments that exceed the 128.9 total amount that public funds would pay for the recipient's 128.10 care in a medical institution. 128.11 Sec. 30. Minnesota Statutes 1996, section 256B.064, 128.12 subdivision 1a, is amended to read: 128.13 Subd. 1a. [GROUNDS FOR MONETARY RECOVERY AND SANCTIONS 128.14 AGAINST VENDORS.] The commissioner may seek monetary recovery 128.15 and impose sanctions against vendors of medical care for any of 128.16 the following: fraud, theft, or abuse in connection with the 128.17 provision of medical care to recipients of public assistance; a 128.18 pattern of presentment of false or duplicate claims or claims 128.19 for services not medically necessary; a pattern of making false 128.20 statements of material facts for the purpose of obtaining 128.21 greater compensation than that to which the vendor is legally 128.22 entitled; suspension or termination as a Medicare vendor;and128.23 refusal to grant the state agency access during regular business 128.24 hours to examine all records necessary to disclose the extent of 128.25 services provided to program recipients; and any reason for 128.26 which a vendor could be excluded from participation in the 128.27 Medicare program under section 1128, 1128A, or 1866(b)(2) of the 128.28 Social Security Act. The determination of services not 128.29 medically necessary may be made by the commissioner in 128.30 consultation with a peer advisory task force appointed by the 128.31 commissioner on the recommendation of appropriate professional 128.32 organizations. The task force expires as provided in section 128.33 15.059, subdivision 5. 128.34 Sec. 31. Minnesota Statutes 1996, section 256B.064, 128.35 subdivision 1c, is amended to read: 128.36 Subd. 1c. [METHODS OF MONETARY RECOVERY.] The commissioner 129.1 may obtain monetary recoveryfor the conduct described in129.2subdivision 1a by the followingfrom a vendor who has been 129.3 improperly paid either as a result of conduct described in 129.4 subdivision 1a or as a result of a vendor or department error, 129.5 regardless of whether the error was intentional. The 129.6 commissioner may obtain monetary recovery using methods, 129.7 including but not limited to the following: assessing and 129.8 recovering moneyerroneouslyimproperly paid and debiting from 129.9 future payments any moneyerroneouslyimproperly paid, except129.10that. Patterns need not be proven as a precondition to monetary 129.11 recoveryforof erroneous or false claims, duplicate claims, 129.12 claims for services not medically necessary, or claims based on 129.13 false statements. The commissionermayshall charge interest on 129.14 money to be recovered if the recovery is to be made by 129.15 installment payments or debits. The interest charged shall be 129.16 the rate established by the commissioner of revenue under 129.17 section 270.75. 129.18 Sec. 32. Minnesota Statutes 1996, section 256B.064, 129.19 subdivision 2, is amended to read: 129.20 Subd. 2. [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.] 129.21 (a) The commissioner shall determine monetary amounts to be 129.22 recovered and the sanction to be imposed upon a vendor of 129.23 medical care for conduct described by subdivision 1a. Exceptin129.24the case of a conviction for conduct described in subdivision 1a129.25 as provided in paragraph (b), neither a monetary recovery nor a 129.26 sanction will besoughtimposed by the commissioner without 129.27 prior notice and an opportunity for a hearing,pursuant129.28 according to chapter 14, on the commissioner's proposed action, 129.29 provided that the commissioner may suspend or reduce payment to 129.30 a vendor of medical care, except a nursing home or convalescent 129.31 care facility, after notice and prior to the hearing if in the 129.32 commissioner's opinion that action is necessary to protect the 129.33 public welfare and the interests of the program. 129.34 (b) Except for a nursing home or convalescent care 129.35 facility, the commissioner may withhold or reduce payments to a 129.36 vendor of medical care without providing advance notice of such 130.1 withholding or reduction if either of the following occurs: 130.2 (1) the vendor is convicted of a crime involving the 130.3 conduct described in subdivision 1a; or 130.4 (2) the commissioner receives reliable evidence of fraud or 130.5 willful misrepresentation by the vendor. 130.6 (c) The commissioner must send notice of the withholding or 130.7 reduction of payments under paragraph (b) within five days of 130.8 taking such action. The notice must: 130.9 (1) state that payments are being withheld according to 130.10 paragraph (b); 130.11 (2) except in the case of a conviction for conduct 130.12 described in subdivision 1a, state that the withholding is for a 130.13 temporary period and cite the circumstances under which 130.14 withholding will be terminated; 130.15 (3) identify the types of claims to which the withholding 130.16 applies; and 130.17 (4) inform the vendor of the right to submit written 130.18 evidence for consideration by the commissioner. 130.19 The withholding or reduction of payments will not continue 130.20 after the commissioner determines there is insufficient evidence 130.21 of fraud or willful misrepresentation by the vendor, or after 130.22 legal proceedings relating to the alleged fraud or willful 130.23 misrepresentation are completed, unless the commissioner has 130.24 sent notice of intention to impose monetary recovery or 130.25 sanctions under paragraph (a). 130.26 (d) Upon receipt of a notice under paragraph (a) that a 130.27 monetary recovery or sanction is to be imposed, a vendor may 130.28 request a contested case, as defined in section 14.02, 130.29 subdivision 3, by filing with the commissioner a written request 130.30 of appeal. The appeal request must be received by the 130.31 commissioner no later than 30 days after the date the 130.32 notification of monetary recovery or sanction was mailed to the 130.33 vendor. The appeal request must specify: 130.34 (1) each disputed item, the reason for the dispute, and an 130.35 estimate of the dollar amount involved for each disputed item; 130.36 (2) the computation that the vendor believes is correct; 131.1 (3) the authority in statute or rule upon which the vendor 131.2 relies for each disputed item; 131.3 (4) the name and address of the person or entity with whom 131.4 contacts may be made regarding the appeal; and 131.5 (5) other information required by the commissioner. 131.6 Sec. 33. Minnesota Statutes 1996, section 256B.0911, 131.7 subdivision 7, is amended to read: 131.8 Subd. 7. [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 131.9 (a) Medical assistance reimbursement for nursing facilities 131.10 shall be authorized for a medical assistance recipient only if a 131.11 preadmission screening has been conducted prior to admission or 131.12 the local county agency has authorized an exemption. Medical 131.13 assistance reimbursement for nursing facilities shall not be 131.14 provided for any recipient who the local screener has determined 131.15 does not meet the level of care criteria for nursing facility 131.16 placement or, if indicated, has not had a level II PASARR 131.17 evaluation completed unless an admission for a recipient with 131.18 mental illness is approved by the local mental health authority 131.19 or an admission for a recipient with mental retardation or 131.20 related condition is approved by the state mental retardation 131.21 authority. The county preadmission screening team may deny 131.22 certified nursing facility admission using the level of care 131.23 criteria established under section 144.0721 and deny medical 131.24 assistance reimbursement for certified nursing facility care. 131.25 Persons receiving care in a certified nursing facility or 131.26 certified boarding care home who are reassessed by the 131.27 commissioner of health according to section 144.0722 and 131.28 determined to no longer meet the level of care criteria for a 131.29 certified nursing facility or certified boarding care home may 131.30 no longer remain a resident in the certified nursing facility or 131.31 certified boarding care home and must be relocated to the 131.32 community as provided under paragraphs (b), (c), and (d), if the 131.33 persons were admitted on or after July 1,19961997. 131.34 (b) A resident who, upon reassessment, is determined to no 131.35 longer meet the level of care criteria for a certified nursing 131.36 facility or certified boarding care home is deemed to not need 132.1 the services provided by a nursing facility. Such a resident 132.2 may not receive medical assistance payment for nursing facility 132.3 or boarding care services and must be discharged according to 132.4 this subdivision. 132.5 A resident who is determined to no longer need nursing 132.6 facility services may ask for a reconsideration of the 132.7 resident's case mix and level of care assessment under section 132.8 144.0722. If reconsideration is not requested, the resident may 132.9 not appeal the assessment. If the resident is determined to not 132.10 meet the level of care criteria for treatment in a nursing 132.11 facility, the commissioner of human services shall notify the 132.12 nursing facility that the resident's health has improved 132.13 sufficiently so the resident no longer needs the services 132.14 provided by a nursing facility and that the resident must be 132.15 discharged within 60 days after the facility receives notice, 132.16 regardless of the source of payment for the resident's care. 132.17 The ground for discharge shall be that the resident's health has 132.18 improved sufficiently so that the resident no longer needs the 132.19 services of the nursing facility. The nursing facility shall 132.20 discharge the resident according to federal regulations that 132.21 govern discharge of residents of certified nursing facilities. 132.22 If the resident's care is paid for by medical assistance, the 132.23 commissioner of human services must also notify the resident 132.24 that medical assistance payment for the resident's nursing 132.25 facility services will terminate 60 days after the resident 132.26 receives the notice. 132.27 (c) The resident may request, within 14 days of receiving 132.28 notice of discharge or of termination of medical assistance 132.29 payments, an assessment from the local screening team defined 132.30 under section 256B.0911 to determine whether extraordinary 132.31 circumstances as defined in section 144.0721, subdivision 3, 132.32 exist. The screening team must issue a written decision within 132.33 ten days of the resident's request. If the screening team finds 132.34 that extraordinary circumstances exist, the resident need not be 132.35 discharged and medical assistance payments shall not be 132.36 discontinued on the resident's behalf. 133.1 (d) A resident notified of discharge or of discontinuance 133.2 of medical assistance payment under this section may appeal 133.3 under section 256.045 within 30 days of receiving notice of 133.4 discharge or of termination of medical assistance payments, or 133.5 within 30 days of the screening team's decision that 133.6 extraordinary circumstances do not exist, whichever is later. 133.7 Medical assistance payments shall continue and the resident 133.8 shall not be discharged until the commissioner of human services 133.9 issues a decision on the appeal. The nursing facility may 133.10 participate in the hearing for the limited purpose of proving 133.11 that the resident meets the level of care criteria. If, after a 133.12 hearing, the commissioner of human services determines either 133.13 that the resident meets the level of care criteria for nursing 133.14 facility services or that extraordinary circumstances as defined 133.15 in section 144.0721, subdivision 3, exist, medical assistance 133.16 shall not be terminated and the resident shall not be 133.17 discharged. A resident's appeal of discharge under this section 133.18 may be appealed only under section 256.045 and not section 133.19 144.135. 133.20 (e) Persons receiving services under section 256B.0913, 133.21 subdivisions 1 to 14, or 256B.0915 who are reassessed and found 133.22 to not meet the level of care criteria for admission to a 133.23 certified nursing facility or certified boarding care home may 133.24 no longer receive these services if persons were admitted to the 133.25 program on or after July 1,19961997. Reassessed individuals 133.26 ineligible for services under section 256B.0913, subdivisions 1 133.27 to 14, or 256B.0915, are entitled to an appeal under section 133.28 256.045, subdivision 3. The commissioner shall make a request 133.29 to the health care financing administration for a waiver 133.30 allowing screening team approval of Medicaid payments for 133.31 certified nursing facility care. An individual has a choice and 133.32 makes the final decision between nursing facility placement and 133.33 community placement after the screening team's recommendation, 133.34 except as provided in paragraphs (b) and (c). 133.35(b)(f) The local county mental health authority or the 133.36 state mental retardation authority under Public Law Numbers 134.1 100-203 and 101-508 may prohibit admission to a nursing 134.2 facility, if the individual does not meet the nursing facility 134.3 level of care criteria or needs specialized services as defined 134.4 in Public Law Numbers 100-203 and 101-508. For purposes of this 134.5 section, "specialized services" for a person with mental 134.6 retardation or a related condition means "active treatment" as 134.7 that term is defined in Code of Federal Regulations, title 42, 134.8 section 483.440(a)(1). 134.9(c)(g) Upon the receipt by the commissioner of approval by 134.10 the Secretary of Health and Human Services of the waiver 134.11 requested under paragraph (a), the local screener shall deny 134.12 medical assistance reimbursement for nursing facility care for 134.13 an individual whose long-term care needs can be met in a 134.14 community-based setting and whose cost of community-based home 134.15 care services is less than 75 percent of the average payment for 134.16 nursing facility care for that individual's case mix 134.17 classification, and who is either: 134.18 (i) a current medical assistance recipient being screened 134.19 for admission to a nursing facility; or 134.20 (ii) an individual who would be eligible for medical 134.21 assistance within 180 days of entering a nursing facility and 134.22 who meets a nursing facility level of care. 134.23(d)(h) Appeals from the screening team's recommendation or 134.24 the county agency's final decision shall be made according to 134.25 section 256.045, subdivision 3. 134.26 Sec. 34. Minnesota Statutes 1996, section 256B.0913, 134.27 subdivision 7, is amended to read: 134.28 Subd. 7. [CASE MANAGEMENT.]The lead agency shall appoint134.29a social worker from the county agency or a registered nurse134.30from the county public health nursing service of the local board134.31of health to be the case manager for any person receiving134.32services funded by the alternative care program.Providers of 134.33 case management services for persons receiving services funded 134.34 by the alternative care program must meet the qualification 134.35 requirements and standards specified in section 256B.0915, 134.36 subdivision 1b. The case manager must ensure the health and 135.1 safety of the individual client and is responsible for the 135.2 cost-effectiveness of the alternative care individual care 135.3 plan. The county may allow a case manager employed by the 135.4 county to delegate certain aspects of the case management 135.5 activity to another individual employed by the county provided 135.6 there is oversight of the individual by the case manager. The 135.7 case manager may not delegate those aspects which require 135.8 professional judgment including assessments, reassessments, and 135.9 care plan development. 135.10 Sec. 35. Minnesota Statutes 1996, section 256B.0913, 135.11 subdivision 10, is amended to read: 135.12 Subd. 10. [ALLOCATION FORMULA.] (a) The alternative care 135.13 appropriation for fiscal years 1992 and beyond shall cover only 135.14 180-day eligible clients. 135.15 (b) Prior to July 1 of each year, the commissioner shall 135.16 allocate to county agencies the state funds available for 135.17 alternative care for persons eligible under subdivision 2. The 135.18 allocation for fiscal year 1992 shall be calculated using a base 135.19 that is adjusted to exclude the medical assistance share of 135.20 alternative care expenditures. The adjusted base is calculated 135.21 by multiplying each county's allocation for fiscal year 1991 by 135.22 the percentage of county alternative care expenditures for 135.23 180-day eligible clients. The percentage is determined based on 135.24 expenditures for services rendered in fiscal year 1989 or 135.25 calendar year 1989, whichever is greater. 135.26 (c) If the county expenditures for 180-day eligible clients 135.27 are 95 percent or more of its adjusted base allocation, the 135.28 allocation for the next fiscal year is 100 percent of the 135.29 adjusted base, plus inflation to the extent that inflation is 135.30 included in the state budget. 135.31 (d) If the county expenditures for 180-day eligible clients 135.32 are less than 95 percent of its adjusted base allocation, the 135.33 allocation for the next fiscal year is the adjusted base 135.34 allocation less the amount of unspent funds below the 95 percent 135.35 level. 135.36 (e) For fiscal year 1992 only, a county may receive an 136.1 increased allocation if annualized service costs for the month 136.2 of May 1991 for 180-day eligible clients are greater than the 136.3 allocation otherwise determined. A county may apply for this 136.4 increase by reporting projected expenditures for May to the 136.5 commissioner by June 1, 1991. The amount of the allocation may 136.6 exceed the amount calculated in paragraph (b). The projected 136.7 expenditures for May must be based on actual 180-day eligible 136.8 client caseload and the individual cost of clients' care plans. 136.9 If a county does not report its expenditures for May, the amount 136.10 in paragraph (c) or (d) shall be used. 136.11 (f) Calculations for paragraphs (c) and (d) are to be made 136.12 as follows: for each county, the determination of expenditures 136.13 shall be based on payments for services rendered from April 1 136.14 through March 31 in the base year, to the extent that claims 136.15 have been submitted by June 1 of that year. Calculations for 136.16 paragraphs (c) and (d) must also include the funds transferred 136.17 to the consumer support grant program for clients who have 136.18 transferred to that program from April 1 through March 31 in the 136.19 base year. 136.20 Sec. 36. Minnesota Statutes 1996, section 256B.0913, 136.21 subdivision 15, is amended to read: 136.22 Subd. 15. [SERVICE ALLOWANCE FUND AVAILABILITY.] (a) 136.23 Effective July 1,19961997, the commissioner may use 136.24 alternative care funds for services to high function class A 136.25 persons as defined in section 144.0721, subdivision 3, clause 136.26 (2). The county alternative care grant allocation will be 136.27 supplemented with a special allocation amountbased on the136.28projected number of eligible high function class A's and136.29computed on the basis of $240 per month per projected eligible136.30person. Individual monthly expenditures under the service136.31allowance option are permitted to be either greater or less than136.32the amount of $240 per month based on individual need. County136.33allocations shall be adjusted periodically based on the actual136.34provision of services to high function class A persons. The 136.35 allocation will be distributed by a population based formula and 136.36 shall not exceed the proportion of projected savings made 137.1 available under section 144.0721, subdivision 3. 137.2 (b) Counties shall have the option of providing services, 137.3 cash service allowances, vouchers, or a combination of these 137.4 options to high function class A persons defined in section 137.5 144.0721, subdivision 3, clause (2). High function class A 137.6 persons may choose services from among the categories of 137.7 services listed under subdivision 5, except for case management 137.8 services. 137.9 (c) If the special allocation under this section to a 137.10 county is not sufficient to serve all persons who qualify 137.11 foralternative care servicesthe service allowance, the county 137.12 is not required to provide anyalternative careservices to a 137.13 high function class A person but shall establish a waiting list 137.14 to provide services as special allocation funding becomes 137.15 available. 137.16 Sec. 37. Minnesota Statutes 1996, section 256B.0915, 137.17 subdivision 1b, is amended to read: 137.18 Subd. 1b. [PROVIDER QUALIFICATIONS AND STANDARDS.] The 137.19 commissioner must enroll qualified providers of elderly case 137.20 management services under the home and community-based waiver 137.21 for the elderly under section 1915(c) of the Social Security 137.22 Act. The enrollment process shall ensure the provider's ability 137.23 to meet the qualification requirements and standards in this 137.24 subdivision and other federal and state requirements of this 137.25 service. An elderly case management provider is an enrolled 137.26 medical assistance provider who is determined by the 137.27 commissioner to have all of the following characteristics: 137.28 (1)the legal authority for alternative care program137.29administration under section 256B.0913;137.30(2)the demonstrated capacity and experience to provide the 137.31 components of case management to coordinate and link community 137.32 resources needed by the eligible population; 137.33(3)(2) administrative capacity and experience in serving 137.34 the target population for whom it will provide services and in 137.35 ensuring quality of services under state and federal 137.36 requirements; 138.1(4) the legal authority to provide preadmission screening138.2under section 256B.0911, subdivision 4;138.3(5)(3) a financial management system that provides 138.4 accurate documentation of services and costs under state and 138.5 federal requirements; 138.6(6)(4) the capacity to document and maintain individual 138.7 case records under state and federal requirements; and 138.8(7)(5) the county may allow a case manager employed by the 138.9 county to delegate certain aspects of the case management 138.10 activity to another individual employed by the county provided 138.11 there is oversight of the individual by the case manager. The 138.12 case manager may not delegate those aspects which require 138.13 professional judgment including assessments, reassessments, and 138.14 care plan development. 138.15 Sec. 38. Minnesota Statutes 1996, section 256B.0915, is 138.16 amended by adding a subdivision to read: 138.17 Subd. 7. [PREPAID ELDERLY WAIVER SERVICES.] An individual 138.18 for whom a prepaid health plan is liable for nursing home 138.19 services or elderly waiver services according to section 138.20 256B.69, subdivision 6a, is not eligible to receive 138.21 county-administered elderly waiver services under this section. 138.22 Sec. 39. Minnesota Statutes 1996, section 256B.0917, 138.23 subdivision 7, is amended to read: 138.24 Subd. 7. [CONTRACT.] (a) The commissioner of human 138.25 services shall execute a contract withan organization138.26experienced in establishing and operating community-based138.27programs that have used the principles listed in subdivision 8,138.28paragraph (b), in order to meet the independent living and138.29health needs of senior citizens aged 65 and over and provide138.30community-based long-term care for senior citizens in their138.31homesLiving at Home/Block Nurse Program, Inc. (LAH/BN, Inc.). 138.32 Theorganizationcontract shall require LAH/BN, Inc. to: 138.33 (1)assist the commissioner in developingdevelop criteria 138.34 for andin awardingaward grants to establish community-based 138.35 organizations that will implement living-at-home/block nurse 138.36 programs throughout the state; 139.1 (2)assist the commissioner in awardingaward grants to 139.2 enable current living-at-home/block nurse programs to continue 139.3 to implement the combined living-at-home/block nurse program 139.4 model; 139.5 (3) serve as a state technical assistance center to assist 139.6 and coordinate the living-at-home/block nurse programs 139.7 established; and 139.8 (4)develop the implementation plan required by subdivision139.910manage contracts with individual living-at-home/block nurse 139.10 programs. 139.11 (b) The contract shall be effective July 1, 1997, and 139.12 section 16B.17 shall not apply. 139.13 Sec. 40. Minnesota Statutes 1996, section 256B.0917, 139.14 subdivision 8, is amended to read: 139.15 Subd. 8. [LIVING-AT-HOME/BLOCK NURSE PROGRAM GRANT.] (a) 139.16 Thecommissioner, in cooperation with theorganization awarded 139.17 the contract under subdivision 7, shall develop and administer a 139.18 grant program to establish or expand up to1546 community-based 139.19 organizations that will implement living-at-home/block nurse 139.20 programs that are designed to enable senior citizens to live as 139.21 independently as possible in their homes and in their 139.22 communities. At leastsevenone-half of the programs must be in 139.23 counties outside the seven-county metropolitan area.The139.24living-at-home/block nurse program funds shall be available to139.25the four to six SAIL projects established under this section.139.26 Nonprofit organizations and units of local government are 139.27 eligible to apply for grants to establish the community 139.28 organizations that will implement living-at-home/block nurse 139.29 programs. In awarding grants, thecommissionerorganization 139.30 awarded the contract under subdivision 7 shall give preference 139.31 to nonprofit organizations and units of local government from 139.32 communities that: 139.33 (1) have high nursing home occupancy rates; 139.34 (2) have a shortage of health care professionals;and139.35 (3) are located in counties adjacent to, or are located in, 139.36 counties with existing living-at-home/block nurse programs; and 140.1 (4) meet other criteria established bythe commissioner140.2 LAH/BN, Inc., in consultation with theorganization under140.3contractcommissioner. 140.4 (b) Grant applicants must also meet the following criteria: 140.5 (1) the local community demonstrates a readiness to 140.6 establish a community model of care, including the formation of 140.7 a board of directors, advisory committee, or similar group, of 140.8 which at least two-thirds is comprised of community citizens 140.9 interested in community-based care for older persons; 140.10 (2) the program has sponsorship by a credible, 140.11 representative organization within the community; 140.12 (3) the program has defined specific geographic boundaries 140.13 and defined its organization, staffing and coordination/delivery 140.14 of services; 140.15 (4) the program demonstrates a team approach to 140.16 coordination and care, ensuring that the older adult 140.17 participants, their families, the formal and informal providers 140.18 are all part of the effort to plan and provide services; and 140.19 (5) the program provides assurances that all community 140.20 resources and funding will be coordinated and that other funding 140.21 sources will be maximized, including a person's own resources. 140.22 (c) Grant applicants must provide a minimum of five percent 140.23 of total estimated development costs from local community 140.24 funding. Grants shall be awarded fortwo-yearfour-year 140.25 periods, and the base amount shall not exceed$40,000$80,000 140.26 per applicant for the grant period. Thecommissioner, in140.27consultation with theorganization under contract,may increase 140.28 the grant amount for applicants from communities that have 140.29 socioeconomic characteristics that indicate a higher level of 140.30 need fordevelopmentassistance. Subject to the availability of 140.31 funding, grants and grant renewals awarded or entered into on or 140.32 after July 1, 1997, shall be renewed by LAH/BN, Inc. every four 140.33 years, unless LAH/BN, Inc. determines that the grant recipient 140.34 has not satisfactorily operated the living-at-home/block nurse 140.35 program in compliance with the requirements of paragraphs (b) 140.36 and (d). Grants provided to living-at-home/block nurse programs 141.1 under this paragraph may be used for both program development 141.2 and the delivery of services. 141.3 (d) Each living-at-home/block nurse program shall be 141.4 designed by representatives of the communities being served to 141.5 ensure that the program addresses the specific needs of the 141.6 community residents. The programs must be designed to: 141.7 (1) incorporate the basic community, organizational, and 141.8 service delivery principles of the living-at-home/block nurse 141.9 program model; 141.10 (2) provide senior citizens with registered nurse directed 141.11 assessment, provision and coordination of health and personal 141.12 care services on a sliding fee basis as an alternative to 141.13 expensive nursing home care; 141.14 (3) provide information, support services, homemaking 141.15 services, counseling, and training for the client and family 141.16 caregivers; 141.17 (4) encourage the development and use of respite care, 141.18 caregiver support, and in-home support programs, such as adult 141.19 foster care and in-home adult day care; 141.20 (5) encourage neighborhood residents and local 141.21 organizations to collaborate in meeting the needs of senior 141.22 citizens in their communities; 141.23 (6) recruit, train, and direct the use of volunteers to 141.24 provide informal services and other appropriate support to 141.25 senior citizens and their caregivers; and 141.26 (7) provide coordination and management of formal and 141.27 informal services to senior citizens and their families using 141.28 less expensive alternatives. 141.29 Sec. 41. Minnesota Statutes 1996, section 256B.431, 141.30 subdivision 3f, is amended to read: 141.31 Subd. 3f. [PROPERTY COSTS AFTER JULY 1, 1988.] (a) 141.32 [INVESTMENT PER BED LIMIT.] For the rate year beginning July 1, 141.33 1988, the replacement-cost-new per bed limit must be $32,571 per 141.34 licensed bed in multiple bedrooms and $48,857 per licensed bed 141.35 in a single bedroom. For the rate year beginning July 1, 1989, 141.36 the replacement-cost-new per bed limit for a single bedroom must 142.1 be $49,907 adjusted according to Minnesota Rules, part 142.2 9549.0060, subpart 4, item A, subitem (1). Beginning January 1, 142.3 1990, the replacement-cost-new per bed limits must be adjusted 142.4 annually as specified in Minnesota Rules, part 9549.0060, 142.5 subpart 4, item A, subitem (1). Beginning January 1, 1991, the 142.6 replacement-cost-new per bed limits will be adjusted annually as 142.7 specified in Minnesota Rules, part 9549.0060, subpart 4, item A, 142.8 subitem (1), except that the index utilized will be the Bureau 142.9 of the Census: Composite fixed-weighted price index as 142.10 published in theSurvey of Current BusinessC30 Report, Value of 142.11 New Construction Put in Place. 142.12 (b) [RENTAL FACTOR.] For the rate year beginning July 1, 142.13 1988, the commissioner shall increase the rental factor as 142.14 established in Minnesota Rules, part 9549.0060, subpart 8, item 142.15 A, by 6.2 percent rounded to the nearest 100th percent for the 142.16 purpose of reimbursing nursing facilities for soft costs and 142.17 entrepreneurial profits not included in the cost valuation 142.18 services used by the state's contracted appraisers. For rate 142.19 years beginning on or after July 1, 1989, the rental factor is 142.20 the amount determined under this paragraph for the rate year 142.21 beginning July 1, 1988. 142.22 (c) [OCCUPANCY FACTOR.] For rate years beginning on or 142.23 after July 1, 1988, in order to determine property-related 142.24 payment rates under Minnesota Rules, part 9549.0060, for all 142.25 nursing facilities except those whose average length of stay in 142.26 a skilled level of care within a nursing facility is 180 days or 142.27 less, the commissioner shall use 95 percent of capacity days. 142.28 For a nursing facility whose average length of stay in a skilled 142.29 level of care within a nursing facility is 180 days or less, the 142.30 commissioner shall use the greater of resident days or 80 142.31 percent of capacity days but in no event shall the divisor 142.32 exceed 95 percent of capacity days. 142.33 (d) [EQUIPMENT ALLOWANCE.] For rate years beginning on 142.34 July 1, 1988, and July 1, 1989, the commissioner shall add ten 142.35 cents per resident per day to each nursing facility's 142.36 property-related payment rate. The ten-cent property-related 143.1 payment rate increase is not cumulative from rate year to rate 143.2 year. For the rate year beginning July 1, 1990, the 143.3 commissioner shall increase each nursing facility's equipment 143.4 allowance as established in Minnesota Rules, part 9549.0060, 143.5 subpart 10, by ten cents per resident per day. For rate years 143.6 beginning on or after July 1, 1991, the adjusted equipment 143.7 allowance must be adjusted annually for inflation as in 143.8 Minnesota Rules, part 9549.0060, subpart 10, item E. For the 143.9 rate period beginning October 1, 1992, the equipment allowance 143.10 for each nursing facility shall be increased by 28 percent. For 143.11 rate years beginning after June 30, 1993, the allowance must be 143.12 adjusted annually for inflation. 143.13 (e) [POST CHAPTER 199 RELATED-ORGANIZATION DEBTS AND 143.14 INTEREST EXPENSE.] For rate years beginning on or after July 1, 143.15 1990, Minnesota Rules, part 9549.0060, subpart 5, item E, shall 143.16 not apply to outstanding related organization debt incurred 143.17 prior to May 23, 1983, provided that the debt was an allowable 143.18 debt under Minnesota Rules, parts 9510.0010 to 9510.0480, the 143.19 debt is subject to repayment through annual principal payments, 143.20 and the nursing facility demonstrates to the commissioner's 143.21 satisfaction that the interest rate on the debt was less than 143.22 market interest rates for similar arms-length transactions at 143.23 the time the debt was incurred. If the debt was incurred due to 143.24 a sale between family members, the nursing facility must also 143.25 demonstrate that the seller no longer participates in the 143.26 management or operation of the nursing facility. Debts meeting 143.27 the conditions of this paragraph are subject to all other 143.28 provisions of Minnesota Rules, parts 9549.0010 to 9549.0080. 143.29 (f) [BUILDING CAPITAL ALLOWANCE FOR NURSING FACILITIES 143.30 WITH OPERATING LEASES.] For rate years beginning on or after 143.31 July 1, 1990, a nursing facility with operating lease costs 143.32 incurred for the nursing facility's buildings shall receive its 143.33 building capital allowance computed in accordance with Minnesota 143.34 Rules, part 9549.0060, subpart 8. 143.35 Sec. 42. Minnesota Statutes 1996, section 256B.69, 143.36 subdivision 2, is amended to read: 144.1 Subd. 2. [DEFINITIONS.] For the purposes of this section, 144.2 the following terms have the meanings given. 144.3 (a) "Commissioner" means the commissioner of human services. 144.4 For the remainder of this section, the commissioner's 144.5 responsibilities for methods and policies for implementing the 144.6 project will be proposed by the project advisory committees and 144.7 approved by the commissioner. 144.8 (b) "Demonstration provider" meansan individual, agency,144.9organization, or group of these entitiesa health maintenance 144.10 organization or community integrated service network authorized 144.11 and operating under chapter 62D or 62N that participates in the 144.12 demonstration project according to criteria, standards, methods, 144.13 and other requirements established for the project and approved 144.14 by the commissioner. 144.15 (c) "Eligible individuals" means those persons eligible for 144.16 medical assistance benefits as defined in sections 256B.055, 144.17 256B.056, and 256B.06. 144.18 (d) "Limitation of choice" means suspending freedom of 144.19 choice while allowing eligible individuals to choose among the 144.20 demonstration providers. 144.21 (e) This paragraph supersedes paragraph (c) as long as the 144.22 Minnesota health care reform waiver remains in effect. When the 144.23 waiver expires, this paragraph expires and the commissioner of 144.24 human services shall publish a notice in the State Register and 144.25 notify the revisor of statutes. "Eligible individuals" means 144.26 those persons eligible for medical assistance benefits as 144.27 defined in sections 256B.055, 256B.056, and 256B.06. 144.28 Notwithstanding sections 256B.055, 256B.056, and 256B.06, an 144.29 individual who becomes ineligible for the program because of 144.30 failure to submit income reports or recertification forms in a 144.31 timely manner, shall remain enrolled in the prepaid health plan 144.32 and shall remain eligible to receive medical assistance coverage 144.33 through the last day of the month following the month in which 144.34 the enrollee became ineligible for the medical assistance 144.35 program. 144.36 Sec. 43. Minnesota Statutes 1996, section 256B.69, 145.1 subdivision 3a, is amended to read: 145.2 Subd. 3a. [COUNTY AUTHORITY.] (a) The commissioner, when 145.3 implementing the general assistance medical care, or medical 145.4 assistance prepayment program within a county, must include the 145.5 county board in the process of development, approval, and 145.6 issuance of the request for proposals to provide services to 145.7 eligible individuals within the proposed county. County boards 145.8 must be given reasonable opportunity to make recommendations 145.9 regarding the development, issuance, review of responses, and 145.10 changes needed in the request for proposals. The commissioner 145.11 must provide county boards the opportunity to review each 145.12 proposal based on the identification of community needs under 145.13 chapters 145A and 256E and county advocacy activities. If a 145.14 county board finds that a proposal does not address certain 145.15 community needs, the county board and commissioner shall 145.16 continue efforts for improving the proposal and network prior to 145.17 the approval of the contract. The county board shall make 145.18 recommendations regarding the approval of local networks and 145.19 their operations to ensure adequate availability and access to 145.20 covered services. The provider or health plan must respond 145.21 directly to county advocates and the state prepaid medical 145.22 assistance ombudsperson regarding service delivery and must be 145.23 accountable to the state regarding contracts with medical 145.24 assistance and general assistance medical care funds. The 145.25 county board may recommend a maximum number of participating 145.26 health plans after considering the size of the enrolling 145.27 population; ensuring adequate access and capacity; considering 145.28 the client and county administrative complexity; and considering 145.29 the need to promote the viability of locally developed health 145.30 plans. The county board or a single entity representing a group 145.31 of county boards and the commissioner shall mutually select 145.32 health plans for participation at the time of initial 145.33 implementation of the prepaid medical assistance program in that 145.34 county or group of counties and at the time of contract renewal. 145.35 The commissioner shall also seek input for contract requirements 145.36 from the county or single entity representing a group of county 146.1 boards at each contract renewal and incorporate those 146.2 recommendations into the contract negotiation process. The 146.3 commissioner, in conjunction with the county board, shall 146.4 actively seek to develop a mutually agreeable timetable prior to 146.5 the development of the request for proposal, but counties must 146.6 agree to initial enrollment beginning on or before January 1, 146.7 1999, in either the prepaid medical assistance and general 146.8 assistance medical care programs or county-based purchasing 146.9 under section 256B.692. At least 90 days before enrollment in 146.10 the medical assistance and general assistance medical care 146.11 prepaid programs begins in a county in which the prepaid 146.12 programs have not been established, the commissioner shall 146.13 provide a report to the chairs of senate and house committees 146.14 having jurisdiction over state health care programs which 146.15 verifies that the commissioner complied with the requirements 146.16 for county involvement that are specified in this subdivision. 146.17 (b) The commissioner shall seek a federal waiver to allow a 146.18 fee-for-service plan option to MinnesotaCare enrollees. The 146.19 commissioner shall develop an increase of the premium fees 146.20 required under section 256.9356 up to 20 percent of the premium 146.21 fees for the enrollees who elect the fee-for-service option. 146.22 Prior to implementation, the commissioner shall submit this fee 146.23 schedule to the chair and ranking minority member of the senate 146.24 health care committee, the senate health care and family 146.25 services funding division, the house of representatives health 146.26 and human services committee, and the house of representatives 146.27 health and human services finance division. 146.28 (c) At the option of the county board, the board may 146.29 develop contract requirements related to the achievement of 146.30 local public health goals to meet the health needs of the 146.31 medical assistance and general assistance medical care 146.32 enrollees. If the county board and the commissioner mutually 146.33 agree to such requirements, the department shall include such 146.34 requirements in all health plan contracts governing the prepaid 146.35 medical assistance and general assistance medical care programs 146.36 in that county at initial implementation of the program in that 147.1 county and at the time of contract renewal. The county board 147.2 may participate in the enforcement of the contract provisions 147.3 related to local public health goals. 147.4 (d) For counties in which prepaid medical assistance and 147.5 general assistance medical care programs have not been 147.6 established, the commissioner shall not implement those programs 147.7 if a county board submits acceptable and timely preliminary and 147.8 final proposals under section 256B.692, until county-based 147.9 purchasing is no longer operational in that county. For 147.10 counties in which prepaid medical assistance and general 147.11 assistance medical care programs are in existence on or after 147.12 September 1, 1997, the commissioner must terminate contracts 147.13 with health plans according to section 256B.692, subdivision 5, 147.14 if the county board submits and the commissioner accepts 147.15 preliminary and final proposals according to that subdivision. 147.16 However, in order to ensure quality of care, no individual 147.17 currently enrolled with a prepaid health plan in a state 147.18 prepayment program may be required to change to a county 147.19 purchasing program until: 147.20 (1) the commissioner of health has determined that the 147.21 county purchasing program meets all requirements of section 147.22 256B.692 and is capable of meeting all member health care needs; 147.23 and 147.24 (2) the individual has been given sufficient information to 147.25 make an informed decision through an open enrollment process. 147.26 (e) In the event that a county board or a single entity 147.27 representing a group of county boards and the commissioner 147.28 cannot reach agreement regarding: (i) the selection of 147.29 participating health plans in that county; (ii) contract 147.30 requirements; or (iii) implementation and enforcement of county 147.31 requirements including provisions regarding local public health 147.32 goals, the commissioner shall resolve all disputes after taking 147.33 into account the recommendations of a three-person mediation 147.34 panel. The panel shall be composed of one designee of the 147.35 president of the association of Minnesota counties, one designee 147.36 of the commissioner of human services, and one designee of the 148.1 commissioner of health. 148.2 Sec. 44. Minnesota Statutes 1996, section 256B.69, 148.3 subdivision 4, is amended to read: 148.4 Subd. 4. [LIMITATION OF CHOICE.] The commissioner shall 148.5 develop criteria to determine when limitation of choice may be 148.6 implemented in the experimental counties. The criteria shall 148.7 ensure that all eligible individuals in the county have 148.8 continuing access to the full range of medical assistance 148.9 services as specified in subdivision 6. The commissioner shall 148.10 exempt the following persons from participation in the project, 148.11 in addition to those who do not meet the criteria for limitation 148.12 of choice: (1) persons eligible for medical assistance 148.13 according to section 256B.055, subdivision 1; (2) persons 148.14 eligible for medical assistance due to blindness or disability 148.15 as determined by the social security administration or the state 148.16 medical review team, unless: (i) they are 65 years of age or 148.17 older, or (ii) they reside in Itasca county or they reside in a 148.18 county in which the commissioner conducts a pilot project under 148.19 a waiver granted pursuant to section 1115 of the Social Security 148.20 Act; (3) recipients who currently have private coverage through 148.21 a health maintenance organization; (4) recipients who are 148.22 eligible for medical assistance by spending down excess income 148.23 for medical expenses other than the nursing facility per diem 148.24 expense; (5) recipients who receive benefits under the Refugee 148.25 Assistance Program, established under United States Code, title 148.26 8, section 1522(e); (6) children who are both determined to be 148.27 severely emotionally disturbed and receiving case management 148.28 services according to section 256B.0625, subdivision 20; and (7) 148.29 adults under age 65 who are both determined to be seriously and 148.30 persistently mentally ill and received case management services 148.31 according to section 256B.0625, subdivision 20. Children under 148.32 age 21 who are in foster placement may enroll in the project on 148.33 an elective basis. Individuals excluded under clauses (6) and 148.34 (7) may choose to enroll on an elective basis. The commissioner 148.35 may allow persons with a one-month spenddown who are otherwise 148.36 eligible to enroll to voluntarily enroll or remain enrolled, if 149.1 they elect to prepay their monthly spenddown to the state. 149.2 Effective July 1, 1999, the commissioner may require individuals 149.3 who are eligible for medical assistance on a spenddown basis to 149.4 enroll in the prepaid medical assistance program and may require 149.5 that the spenddown amount be paid to the state, county, or 149.6 health plan as a condition of eligibility for medical 149.7 assistance. The commissioner shall request any necessary 149.8 federal authority to require the enrollment of individuals with 149.9 spenddowns into the prepaid medical assistance demonstration 149.10 project. Beginning on or after July 1, 1997, the commissioner 149.11 may require those individuals to enroll in the prepaid medical 149.12 assistance program who otherwise would have been excluded under 149.13 clauses (1) and (3) and under Minnesota Rules, part 9500.1452, 149.14 subpart 2, items H, K, and L. Before limitation of choice is 149.15 implemented, eligible individuals shall be notified and after 149.16 notification, shall be allowed to choose only among 149.17 demonstration providers. The commissioner may assign an 149.18 individual with private coverage through a health maintenance 149.19 organization, to the same health maintenance organization for 149.20 medical assistance coverage, if the health maintenance 149.21 organization is under contract for medical assistance in the 149.22 individual's county of residence. After initially choosing a 149.23 provider, the recipient is allowed to change that choice only at 149.24 specified times as allowed by the commissioner. If a 149.25 demonstration provider ends participation in the project for any 149.26 reason, a recipient enrolled with that provider must select a 149.27 new provider but may change providers without cause once more 149.28 within the first 60 days after enrollment with the second 149.29 provider. 149.30 Sec. 45. Minnesota Statutes 1996, section 256B.69, 149.31 subdivision 5, is amended to read: 149.32 Subd. 5. [PROSPECTIVE PER CAPITA PAYMENT.] The 149.33 commissioner shall establish the method and amount of payments 149.34 for services. The commissioner shall annually contract with 149.35 demonstration providers to provide services consistent with 149.36 these established methods and amounts for payment. 150.1Notwithstanding section 62D.02, subdivision 1, payments for150.2services rendered as part of the project may be made to150.3providers that are not licensed health maintenance organizations150.4on a risk-based, prepaid capitation basis.150.5 If allowed by the commissioner, a demonstration provider 150.6 may contract with an insurer, health care provider, nonprofit 150.7 health service plan corporation, or the commissioner, to provide 150.8 insurance or similar protection against the cost of care 150.9 provided by the demonstration provider or to provide coverage 150.10 against the risks incurred by demonstration providers under this 150.11 section. The recipients enrolled with a demonstration provider 150.12 are a permissible group under group insurance laws and chapter 150.13 62C, the Nonprofit Health Service Plan Corporations Act. Under 150.14 this type of contract, the insurer or corporation may make 150.15 benefit payments to a demonstration provider for services 150.16 rendered or to be rendered to a recipient. Any insurer or 150.17 nonprofit health service plan corporation licensed to do 150.18 business in this state is authorized to provide this insurance 150.19 or similar protection. 150.20 Payments to providers participating in the project are 150.21 exempt from the requirements of sections 256.966 and 256B.03, 150.22 subdivision 2. The commissioner shall complete development of 150.23 capitation rates for payments before delivery of services under 150.24 this section is begun. For payments made during calendar year 150.25 1990 and later years, the commissioner shall contract with an 150.26 independent actuary to establish prepayment rates. 150.27 By January 15, 1996, the commissioner shall report to the 150.28 legislature on the methodology used to allocate to participating 150.29 counties available administrative reimbursement for advocacy and 150.30 enrollment costs. The report shall reflect the commissioner's 150.31 judgment as to the adequacy of the funds made available and of 150.32 the methodology for equitable distribution of the funds. The 150.33 commissioner must involve participating counties in the 150.34 development of the report. 150.35 Sec. 46. Minnesota Statutes 1996, section 256B.69, 150.36 subdivision 5b, is amended to read: 151.1 Subd. 5b. [PROSPECTIVE REIMBURSEMENT RATES.] For prepaid 151.2 medical assistance and general assistance medical care program 151.3 contract rates set by the commissioner under subdivision 5 and 151.4 effective on or after January 1,1997, through December 31,151.5 1998, capitation rates for nonmetropolitan counties shall on a 151.6 weighted average be no less than8587 percent of the capitation 151.7 rates for metropolitan counties, excluding Hennepin county. The 151.8 commissioner shall make a pro rata adjustment in capitation 151.9 rates paid to counties other than nonmetropolitan counties in 151.10 order to make this provision budget neutral. 151.11 Sec. 47. Minnesota Statutes 1996, section 256B.69, 151.12 subdivision 6, is amended to read: 151.13 Subd. 6. [SERVICE DELIVERY.] (a) Each demonstration 151.14 provider shall be responsible for the health care coordination 151.15 for eligible individuals. Demonstration providers: 151.16 (1) shall authorize and arrange for the provision of all 151.17 needed health services including but not limited to the full 151.18 range of services listed in sections 256B.02, subdivision 8, and 151.19 256B.0625, except dental services provided under section 151.20 256B.037, in order to ensure appropriate health care is 151.21 delivered to enrollees; 151.22 (2) shall accept the prospective, per capita payment from 151.23 the commissioner in return for the provision of comprehensive 151.24 and coordinated health care services for eligible individuals 151.25 enrolled in the program; 151.26 (3) may contract with other health care and social service 151.27 practitioners to provide services to enrollees; and 151.28 (4) shall institute recipient grievance procedures 151.29 according to the method established by the project, utilizing 151.30 applicable requirements of chapter 62D. Disputes not resolved 151.31 through this process shall be appealable to the commissioner as 151.32 provided in subdivision 11. 151.33 (b) Demonstration providers must comply with the standards 151.34 for claims settlement under section 72A.201, subdivisions 4, 5, 151.35 7, and 8, when contracting with other health care and social 151.36 service practitioners to provide services to enrollees. A 152.1 demonstration provider must pay a clean claim, as defined in 152.2 Code of Federal Regulations, title 42, section 447.45(b), within 152.3 30 business days of the date of acceptance of the claim. 152.4 Sec. 48. Minnesota Statutes 1996, section 256B.69, is 152.5 amended by adding a subdivision to read: 152.6 Subd. 6a. [NURSING HOME SERVICES.] (a) Notwithstanding 152.7 Minnesota Rules, part 9500.1457, subpart 1, item B, nursing 152.8 facility services as defined in section 256B.0625, subdivision 152.9 2, which are provided in a nursing facility certified by the 152.10 Minnesota department of health for services provided and 152.11 eligible for payment under Medicaid, shall be covered under the 152.12 prepaid medical assistance program for individuals who are not 152.13 residing in a nursing facility at the time of enrollment in the 152.14 prepaid medical assistance program. Liability for coverage of 152.15 nursing facility services by a participating health plan is 152.16 limited to 365 days for any person enrolled under the prepaid 152.17 medical assistance program. 152.18 (b) For individuals enrolled in the Minnesota senior health 152.19 options project authorized under subdivision 23, nursing 152.20 facility services shall be covered according to the terms and 152.21 conditions of the federal waiver governing that demonstration 152.22 project. 152.23 Sec. 49. Minnesota Statutes 1996, section 256B.69, is 152.24 amended by adding a subdivision to read: 152.25 Subd. 6b. [ELDERLY WAIVER SERVICES.] Notwithstanding 152.26 Minnesota Rules, part 9500.1457, subpart 1, item C, elderly 152.27 waiver services shall be covered under the prepaid medical 152.28 assistance program for all individuals who are eligible 152.29 according to section 256B.0915. For individuals enrolled in the 152.30 Minnesota senior health options project authorized under 152.31 subdivision 23, elderly waiver services shall be covered 152.32 according to the terms and conditions of the federal waiver 152.33 governing that demonstration project. 152.34 Sec. 50. [256B.692] [COUNTY-BASED PURCHASING.] 152.35 Subdivision 1. [IN GENERAL.] County boards or groups of 152.36 county boards may elect to purchase or provide health care 153.1 services on behalf of persons eligible for medical assistance 153.2 and general assistance medical care who would otherwise be 153.3 required to or may elect to participate in the prepaid medical 153.4 assistance or prepaid general assistance medical care programs, 153.5 according to sections 256B.69 and 256D.03. Counties that elect 153.6 to purchase or provide health care under this section must 153.7 provide all services included in prepaid managed care programs 153.8 according to sections 256B.69, subdivisions 1 to 22, and 153.9 256D.03. County-based purchasing under this section is governed 153.10 by section 256B.69, unless otherwise provided for under this 153.11 section. 153.12 Subd. 2. [DUTIES OF THE COMMISSIONER OF HEALTH.] 153.13 Notwithstanding chapters 62D and 62N, a county that elects to 153.14 purchase medical assistance and general assistance medical care 153.15 in return for a fixed sum without regard to the frequency or 153.16 extent of services furnished to any particular enrollee is not 153.17 required to obtain a certificate of authority under chapter 62D 153.18 or 62N. A county that elects to purchase medical assistance and 153.19 general assistance medical care services under this section must 153.20 satisfy the commissioner of health that the requirements of 153.21 chapter 62D, applicable to health maintenance organizations, or 153.22 chapter 62N, applicable to community integrated service 153.23 networks, will be met. A county must also assure the 153.24 commissioner of health that the requirements of section 72A.201 153.25 will be met. All enforcement and rulemaking powers available 153.26 under chapters 62D and 62N are hereby granted to the 153.27 commissioner of health with respect to counties that purchase 153.28 medical assistance and general assistance medical care services 153.29 under this section. 153.30 Subd. 3. [REQUIREMENTS OF THE COUNTY BOARD.] A county 153.31 board that intends to purchase or provide health care under this 153.32 section, which may include purchasing all or part of these 153.33 services from health plans or individual providers on a 153.34 fee-for-service basis, or providing these services directly, 153.35 must demonstrate the ability to follow and agree to the 153.36 following requirements: 154.1 (1) purchase all covered services for a fixed payment from 154.2 the state that does not exceed the estimated state and federal 154.3 cost that would have occurred under the prepaid medical 154.4 assistance and general assistance medical care programs; 154.5 (2) ensure that covered services are accessible to all 154.6 enrollees and that enrollees have a reasonable choice of 154.7 providers, as well as health plans or networks, when possible. 154.8 If the county is also a provider of service, the county board 154.9 shall develop a process to ensure that providers employed by the 154.10 county are not the sole referral source and are not the sole 154.11 provider of health care services, if other providers which meet 154.12 the same quality and cost requirements are available; 154.13 (3) issue payments to participating vendors or networks in 154.14 a timely manner; 154.15 (4) establish a process to ensure and improve the quality 154.16 of care provided; 154.17 (5) provide appropriate quality and other required data in 154.18 a format required by the state; 154.19 (6) provide a system for advocacy, enrollee protection, and 154.20 complaints and appeals that is independent of care providers or 154.21 other risk bearers and complies with section 256B.69; 154.22 (7) for counties within the seven-county metropolitan area, 154.23 ensure that the implementation and operation of the Minnesota 154.24 senior health options demonstration project, authorized under 154.25 section 256B.69, subdivision 23, will not be impeded; 154.26 (8) ensure that all recipients that are enrolled in the 154.27 prepaid medical assistance or general assistance medical care 154.28 program will be transferred to county-based purchasing without 154.29 utilizing the department's fee-for-service claims payment 154.30 system; and 154.31 (9) ensure that the state and the medical assistance and 154.32 general assistance medical care recipients shall be held 154.33 harmless for the payment of obligations incurred by the county 154.34 if the county, or a health plan providing services on behalf of 154.35 the county, or a provider participating in county purchasing, 154.36 becomes insolvent and the state has made the payments due to the 155.1 county under this section. 155.2 Subd. 4. [PAYMENTS TO COUNTIES.] The commissioner shall 155.3 pay counties that are purchasing or providing health care under 155.4 this section a per capita payment for all enrolled recipients. 155.5 Payments shall not exceed payments that otherwise would have 155.6 been paid to health plans under medical assistance and general 155.7 assistance medical care for that county or region. This payment 155.8 is in addition to any administrative allocation to counties for 155.9 education, enrollment, and advocacy. The state of Minnesota and 155.10 the United States Department of Health and Human Services are 155.11 not liable for any costs incurred by a county that exceed the 155.12 payments to the county made under this subdivision. A county 155.13 whose costs exceed the payments made by the state, or any 155.14 affected enrollees or creditors of that county, shall have no 155.15 rights under chapter 61B or section 62D.181. A county may 155.16 assign risk for the cost of care to a third party. 155.17 Subd. 5. [COUNTY PROPOSALS.] (a) On or before September 1, 155.18 1997, a county board that wishes to purchase or provide health 155.19 care under this section must submit a preliminary proposal that 155.20 substantially demonstrates the county's ability to meet all the 155.21 requirements of this section in response to criteria for 155.22 proposals issued by the department on or before July 1, 1997. 155.23 The county board must submit a final proposal on or before July 155.24 1, 1998, that demonstrates the ability to meet all the 155.25 requirements of this section, including beginning enrollment on 155.26 January 1, 1999. 155.27 Counties submitting preliminary proposals must establish a 155.28 local planning process that involves input from medical 155.29 assistance and general assistance medical care recipients, 155.30 recipient advocates, providers, and representatives of local 155.31 school districts, labor, and tribal government, to advise on the 155.32 development of a final proposal and its implementation. 155.33 (b) After January 1, 1999, for a county in which the 155.34 prepaid medical assistance program is in existence, the county 155.35 board must submit a preliminary proposal at least 15 months 155.36 prior to termination of health plan contracts in that county and 156.1 a final proposal six months prior to the health plan contract 156.2 termination date in order to begin enrollment after the 156.3 termination. Nothing in this section shall impede or delay 156.4 implementation or continuation of the prepaid medical assistance 156.5 and general assistance medical care programs in counties for 156.6 which the board does not submit a proposal, or submits a 156.7 proposal that is not in compliance with this section. 156.8 Subd. 6. [COMMISSIONER'S AUTHORITY.] The commissioner may: 156.9 (a) reject any preliminary or final proposal that 156.10 substantially fails to meet the requirements of this section, or 156.11 that the commissioner determines would substantially impair the 156.12 state's ability to purchase health care services in other areas 156.13 of the state, or would substantially impair the implementation 156.14 and operation of the Minnesota senior health options 156.15 demonstration project authorized under section 256B.69, 156.16 subdivision 23; and 156.17 (b) assume operation of a county's purchasing of health 156.18 care for enrollees in medical assistance and general assistance 156.19 medical care in the event that the contract with the county is 156.20 terminated. 156.21 Subd. 7. [DISPUTE RESOLUTION.] In the event the 156.22 commissioner rejects a proposal under subdivision 6, the county 156.23 board may request the recommendation of a three-person mediation 156.24 panel. The commissioner shall resolve all disputes after taking 156.25 into account the recommendations of the mediation panel. The 156.26 panel shall be composed of one designee of the president of the 156.27 association of Minnesota counties, one designee of the 156.28 commissioner of human services, and one designee of the 156.29 commissioner of health. 156.30 Subd. 8. [APPEALS.] A county that conducts county-based 156.31 purchasing shall be considered to be a prepaid health plan for 156.32 purposes of section 256.045. 156.33 Subd. 9. [FEDERAL APPROVAL.] The commissioner shall 156.34 request any federal waivers and federal approval required to 156.35 implement this section. County-based purchasing shall not be 156.36 implemented without obtaining all federal approval required to 157.1 maintain federal matching funds in the medical assistance 157.2 program. 157.3 Subd. 10. [REPORT TO THE LEGISLATURE.] The commissioner 157.4 shall submit a report to the legislature by February 1, 1998, on 157.5 the preliminary proposals submitted on or before September 1, 157.6 1997. 157.7 Sec. 51. Minnesota Statutes 1996, section 256D.03, 157.8 subdivision 3, is amended to read: 157.9 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 157.10 (a) General assistance medical care may be paid for any person 157.11 who is not eligible for medical assistance under chapter 256B, 157.12 including eligibility for medical assistance based on a 157.13 spenddown of excess income according to section 256B.056, 157.14 subdivision 5, and: 157.15 (1) who is receiving assistance under section 256D.05, or 157.16 who is having a payment made on the person's behalf under 157.17 sections 256I.01 to 256I.06; or 157.18 (2)(i) who is a resident of Minnesota; and whose equity in 157.19 assets is not in excess of $1,000 per assistance unit.No asset157.20test shall be applied to children and their parents living in157.21the same household.Exempt assets, the reduction of excess 157.22 assets, and the waiver of excess assets must conform to the 157.23 medical assistance program in chapter 256B, with the following 157.24 exception: the maximum amount of undistributed funds in a trust 157.25 that could be distributed to or on behalf of the beneficiary by 157.26 the trustee, assuming the full exercise of the trustee's 157.27 discretion under the terms of the trust, must be applied toward 157.28 the asset maximum; and 157.29 (ii) who has countable income not in excess of the 157.30 assistance standards established in section 256B.056, 157.31 subdivision 4, or whose excess income is spent down pursuant to 157.32 section 256B.056, subdivision 5, using a six-month budget 157.33 period, except that a one-month budget period must be used for157.34recipients residing in a long-term care facility. The method 157.35 for calculating earned income disregards and deductions for a 157.36 person who resides with a dependent child under age 21 shallbe158.1as specified in section 256.74, subdivision 1follow section 158.2 256B.056, subdivision 1a. However, if a disregard of $30 and 158.3 one-third of the remainderdescribed in section 256.74,158.4subdivision 1, clause (4),has been applied to the wage earner's 158.5 income, the disregard shall not be applied again until the wage 158.6 earner's income has not been considered in an eligibility 158.7 determination for general assistance, general assistance medical 158.8 care, medical assistance, oraid to families with dependent158.9childrenMFIP-S for 12 consecutive months. The earned income 158.10 and work expense deductions for a person who does not reside 158.11 with a dependent child under age 21 shall be the same as the 158.12 method used to determine eligibility for a person under section 158.13 256D.06, subdivision 1, except the disregard of the first $50 of 158.14 earned income is not allowed; or 158.15 (3) who would be eligible for medical assistance except 158.16 that the person resides in a facility that is determined by the 158.17 commissioner or the federal health care financing administration 158.18 to be an institution for mental diseases. 158.19 (b) Eligibility is available for the month of application, 158.20 and for three months prior to application if the person was 158.21 eligible in those prior months. A redetermination of 158.22 eligibility must occur every 12 months. 158.23 (c) General assistance medical care is not available for a 158.24 person in a correctional facility unless the person is detained 158.25 by law for less than one year in a county correctional or 158.26 detention facility as a person accused or convicted of a crime, 158.27 or admitted as an inpatient to a hospital on a criminal hold 158.28 order, and the person is a recipient of general assistance 158.29 medical care at the time the person is detained by law or 158.30 admitted on a criminal hold order and as long as the person 158.31 continues to meet other eligibility requirements of this 158.32 subdivision. 158.33 (d) General assistance medical care is not available for 158.34 applicants or recipients who do not cooperate with the county 158.35 agency to meet the requirements of medical assistance. 158.36 (e) In determining the amount of assets of an individual, 159.1 there shall be included any asset or interest in an asset, 159.2 including an asset excluded under paragraph (a), that was given 159.3 away, sold, or disposed of for less than fair market value 159.4 within the 60 months preceding application for general 159.5 assistance medical care or during the period of eligibility. 159.6 Any transfer described in this paragraph shall be presumed to 159.7 have been for the purpose of establishing eligibility for 159.8 general assistance medical care, unless the individual furnishes 159.9 convincing evidence to establish that the transaction was 159.10 exclusively for another purpose. For purposes of this 159.11 paragraph, the value of the asset or interest shall be the fair 159.12 market value at the time it was given away, sold, or disposed 159.13 of, less the amount of compensation received. For any 159.14 uncompensated transfer, the number of months of ineligibility, 159.15 including partial months, shall be calculated by dividing the 159.16 uncompensated transfer amount by the average monthly per person 159.17 payment made by the medical assistance program to skilled 159.18 nursing facilities for the previous calendar year. The 159.19 individual shall remain ineligible until this fixed period has 159.20 expired. The period of ineligibility may exceed 30 months, and 159.21 a reapplication for benefits after 30 months from the date of 159.22 the transfer shall not result in eligibility unless and until 159.23 the period of ineligibility has expired. The period of 159.24 ineligibility begins in the month the transfer was reported to 159.25 the county agency, or if the transfer was not reported, the 159.26 month in which the county agency discovered the transfer, 159.27 whichever comes first. For applicants, the period of 159.28 ineligibility begins on the date of the first approved 159.29 application. 159.30 (f)(1) Beginning October 1, 1993, an undocumented alien or 159.31 a nonimmigrant is ineligible for general assistance medical care 159.32 other than emergency services. For purposes of this 159.33 subdivision, a nonimmigrant is an individual in one or more of 159.34 the classes listed in United States Code, title 8, section 159.35 1101(a)(15), and an undocumented alien is an individual who 159.36 resides in the United States without the approval or 160.1 acquiescence of the Immigration and Naturalization Service. 160.2 (2) This subdivision does not apply to a child under age 160.3 18, to a Cuban or Haitian entrant as defined in Public Law 160.4 Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 160.5 is aged, blind, or disabled as defined in United States Code, 160.6 title 42, section 1382c(a)(1). 160.7 (3) For purposes of paragraph (f), "emergency services" has 160.8 the meaning given in Code of Federal Regulations, title 42, 160.9 section 440.255(b)(1), except that it also means services 160.10 rendered because of suspected or actual pesticide poisoning. 160.11 Sec. 52. Minnesota Statutes 1996, section 256G.02, 160.12 subdivision 6, is amended to read: 160.13 Subd. 6. [EXCLUDED TIME.] "Excluded time" means: 160.14 (a) any period an applicant spends in a hospital, 160.15 sanitarium, nursing home, shelter other than an emergency 160.16 shelter, halfway house, foster home, semi-independent living 160.17 domicile or services program, residential facility offering 160.18 care, board and lodging facility or other institution for the 160.19 hospitalization or care of human beings, as defined in section 160.20 144.50, 144A.01, or 245A.02, subdivision 14; maternity home, 160.21 battered women's shelter, or correctional facility; or any 160.22 facility based on an emergency hold under sections 253B.05, 160.23 subdivisions 1 and 2, and 253B.07, subdivision 6; 160.24 (b) any period an applicant spends on a placement basis in 160.25 a training and habilitation program, including a rehabilitation 160.26 facility or work or employment program as defined in section 160.27 268A.01; or receiving personal care assistant services pursuant 160.28 to section 256B.0627, subdivision 4; semi-independent living 160.29 services provided under section 252.275, and Minnesota Rules, 160.30 parts 9525.0500 to 9525.0660; day training and habilitation 160.31 programs, and community-based servicesand assisted living 160.32 services; and 160.33 (c) any placement for a person with an indeterminate 160.34 commitment, including independent living. 160.35 Sec. 53. Minnesota Statutes 1996, section 256I.05, 160.36 subdivision 1a, is amended to read: 161.1 Subd. 1a. [SUPPLEMENTARY RATES.] In addition to the room 161.2 and board rate specified in subdivision 1, the county agency may 161.3 negotiate a payment not to exceed $426.37 for other services 161.4 necessary to provide room and board provided by the group 161.5 residence if the residence is licensed by or registered by the 161.6 department of health, or licensed by the department of human 161.7 services to provide services in addition to room and board, and 161.8 if the provider of services is not also concurrently receiving 161.9 funding for services for a recipient under a home and 161.10 community-based waiver under title XIX of the Social Security 161.11 Act; or funding from the medical assistance program under 161.12 section 256B.0627, subdivision 4, for personal care services for 161.13 residents in the setting; or residing in a setting which 161.14 receives funding under Minnesota Rules, parts 9535.2000 to 161.15 9535.3000. If funding is available for other necessary services 161.16 through a home and community-based waiver, or personal care 161.17 services under section 256B.0627, subdivision 4, then the GRH 161.18 rate is limited to the rate set in subdivision 1. The 161.19 registration and licensure requirement does not apply to 161.20 establishments which are exempt from state licensure because 161.21 they are located on Indian reservations and for which the tribe 161.22 has prescribed health and safety requirements. Service payments 161.23 under this section may be prohibited under rules to prevent the 161.24 supplanting of federal funds with state funds. The commissioner 161.25 shall pursue the feasibility of obtaining the approval of the 161.26 Secretary of Health and Human Services to provide home and 161.27 community-based waiver services under title XIX of the Social 161.28 Security Act for residents who are not eligible for an existing 161.29 home and community-based waiver due to a primary diagnosis of 161.30 mental illness or chemical dependency and shall apply for a 161.31 waiver if it is determined to be cost-effective. The 161.32 commissioner is authorized to make cost-neutral transfers from 161.33 the GRH fund for beds under this section to other funding 161.34 programs administered by the department after consultation with 161.35 the county or counties in which the affected beds are located. 161.36 The commissioner may also make cost neutral transfers from the 162.1 GRH fund to county human service agencies for beds permanently 162.2 removed from the GRH census under a plan submitted by the county 162.3 agency and approved by the commissioner. The commissioner shall 162.4 report the amount of any transfers under this provision annually 162.5 to the legislature. 162.6 Sec. 54. Minnesota Statutes 1996, section 469.155, 162.7 subdivision 4, is amended to read: 162.8 Subd. 4. [REFINANCING HEALTH FACILITIES.] It may issue 162.9 revenue bonds to pay, purchase, or discharge all or any part of 162.10 the outstanding indebtedness of a contracting party engaged 162.11 primarily in the operation of one or more nonprofit hospitals or 162.12 nursing homes previously incurred in the acquisition or 162.13 betterment of its existing hospital or nursing home facilities 162.14 to the extent deemed necessary by the governing body of the 162.15 municipality or redevelopment agency; this may include any 162.16 unpaid interest on the indebtedness accrued or to accrue to the 162.17 date on which the indebtedness is finally paid, and any premium 162.18 the governing body of the municipality or redevelopment agency 162.19 determines to be necessary to be paid to pay, purchase, or 162.20 defease the outstanding indebtedness. If revenue bonds are 162.21 issued for this purpose, the refinancing and the existing 162.22 properties of the contracting party shall be deemed to 162.23 constitute a project under section 469.153, subdivision 2, 162.24 clause (d).Revenue bonds may not be issued pursuant to this162.25subdivision unless the application for approval of the project162.26pursuant to section 469.154 shows that a reduction in debt162.27service charges is estimated to result and will be reflected in162.28charges to patients and third-party payors. Proceeds of revenue162.29bonds issued pursuant to this subdivision may not be used for162.30any purpose inconsistent with the provisions of chapter 256B.162.31Nothing in this subdivision prohibits the use of revenue bond162.32proceeds to pay outstanding indebtedness of a contracting party162.33to the extent permitted by law on March 28, 1978.162.34 Sec. 55. [WAIVER MODIFICATION.] 162.35 The commissioner of human services shall seek federal 162.36 approval for any modifications to the health care reform waiver 163.1 necessary to implement the asset standard changes in sections 20 163.2 to 22 and 27. 163.3 Sec. 56. [NEED FOR NONSTANDARD WHEELCHAIRS.] 163.4 The commissioner of human services, in consultation with 163.5 the System of Technology to Achieve Results (STAR) program, 163.6 shall present a report to the legislature by January 1, 1998, on 163.7 the need for nonstandard wheelchairs for recipients residing in 163.8 long-term care facilities. A standard wheelchair is a manual 163.9 wheelchair that is 16 to 20 inches wide and 18 inches deep with 163.10 sling seat and back upholstery and a seat height of 19-1/2 163.11 inches. The report shall: 163.12 (1) determine how many medical assistance recipients who 163.13 reside in long-term care facilities cannot independently operate 163.14 a standard wheelchair, but can safely and independently operate 163.15 a power or other nonstandard wheelchair; 163.16 (2) determine how many medical assistance recipients who 163.17 reside in long-term care facilities require a wheelchair to be 163.18 permanently modified by the addition of an item to accommodate 163.19 their health needs; 163.20 (3) determine how many medical assistance recipients who 163.21 reside in long-term care facilities have seating or positioning 163.22 needs which cannot be accommodated in a standard wheelchair; 163.23 (4) determine the average cost of a nonstandard wheelchair; 163.24 (5) determine the capability of long-term care facilities 163.25 to provide nonstandard wheelchairs to meet medical assistance 163.26 recipients needs; and 163.27 (6) determine to what extent in the past four years the 163.28 department of health has enforced regulations or rules relating 163.29 to a long-term care facility's obligation to meet the mobility 163.30 needs of residents. 163.31 Sec. 57. [REPEALER.] 163.32 Minnesota Statutes 1996, section 256B.0625, subdivision 163.33 13b, is repealed the day following final enactment. Minnesota 163.34 Statutes 1996, sections 256B.057, subdivisions 2a and 2b; and 163.35 469.154, subdivision 6, are repealed. 163.36 Sec. 58. [EFFECTIVE DATE.] 164.1 Sections 11 to 14 and 35 are effective the day following 164.2 final enactment. 164.3 ARTICLE 5 164.4 CHILDREN'S PROGRAMS 164.5 Section 1. Minnesota Statutes 1996, section 245.4882, 164.6 subdivision 5, is amended to read: 164.7 Subd. 5. [SPECIALIZED RESIDENTIAL TREATMENT SERVICES.] The 164.8 commissioner of human services shall continue efforts to further 164.9 interagency collaboration to develop a comprehensive system of 164.10 services, including family community support and specialized 164.11 residential treatment services for children. The services shall 164.12 be designed for children with emotional disturbance who exhibit 164.13 violent or destructive behavior and for whom local treatment 164.14 services are not feasible due to the small number of children 164.15 statewide who need the services and the specialized nature of 164.16 the services required. The services shall be located in 164.17 community settings.If no appropriate services are available in164.18Minnesota or within the geographical area in which the residents164.19of the county normally do business, the commissioner is164.20responsible, effective July 1, 1997, for 50 percent of the164.21nonfederal costs of out-of-state treatment of children for whom164.22no appropriate resources are available in Minnesota. Counties164.23are eligible to receive enhanced state funding under this164.24section only if they have established juvenile screening teams164.25under section 260.151, subdivision 3, and if the out-of-state164.26treatment has been approved by the commissioner. By January 1,164.271995, the commissioners of human services and corrections shall164.28jointly develop a plan, including a financing strategy, for164.29increasing the in-state availability of treatment within a164.30secure setting. By July 1, 1994, the commissioner of human164.31services shall also:164.32(1) conduct a study and develop a plan to meet the needs of164.33children with both a developmental disability and severe164.34emotional disturbance; and164.35(2) study the feasibility of expanding medical assistance164.36coverage to include specialized residential treatment for the165.1children described in this subdivision.165.2 Sec. 2. Minnesota Statutes 1996, section 245.493, 165.3 subdivision 1, is amended to read: 165.4 Subdivision 1. [REQUIREMENTS TO QUALIFY AS A LOCAL 165.5 CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 165.6 a local children's mental health collaborative and be eligible 165.7 to receive start-up funds, the representatives of the local 165.8 system of care, including entities provided under section 165.9 245.4875, subdivision 6, and nongovernmental entities such as 165.10 parents of children in the target population; parent and 165.11 consumer organizations; community, civic, and religious 165.12 organizations; private and nonprofit mental and physical health 165.13 care providers; culturally specific organizations; local 165.14 foundations; and businesses, or at a minimum one county, one 165.15 school district or special education cooperative,andone mental 165.16 health entity, and, by July 1, 1998, one juvenile justice or 165.17 corrections entity, must agree to the following: 165.18 (1) to establish a local children's mental health 165.19 collaborative and develop an integrated service system; and 165.20 (2) to commit resources to providing services through the 165.21 local children's mental health collaborative. 165.22 Sec. 3. Minnesota Statutes 1996, section 245.493, is 165.23 amended by adding a subdivision to read: 165.24 Subd. 1a. [DUTIES OF CERTAIN COORDINATING BODIES.] By 165.25 mutual agreement of the collaborative and a coordinating body 165.26 listed in this subdivision, a children's mental health 165.27 collaborative or a collaborative established by the merger of a 165.28 children's mental health collaborative and a family services 165.29 collaborative under section 121.8355, may assume the duties of a 165.30 community transition interagency committee established under 165.31 section 120.17, subdivision 16; an interagency early 165.32 intervention committee established under 120.1701, subdivision 165.33 5; a local advisory council established under section 245.4875, 165.34 subdivision 5; or a local coordinating council established under 165.35 section 245.4875, subdivision 6. 165.36 Sec. 4. Minnesota Statutes 1996, section 256.01, 166.1 subdivision 2, is amended to read: 166.2 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 166.3 section 241.021, subdivision 2, the commissioner of human 166.4 services shall: 166.5 (1) Administer and supervise all forms of public assistance 166.6 provided for by state law and other welfare activities or 166.7 services as are vested in the commissioner. Administration and 166.8 supervision of human services activities or services includes, 166.9 but is not limited to, assuring timely and accurate distribution 166.10 of benefits, completeness of service, and quality program 166.11 management. In addition to administering and supervising human 166.12 services activities vested by law in the department, the 166.13 commissioner shall have the authority to: 166.14 (a) require county agency participation in training and 166.15 technical assistance programs to promote compliance with 166.16 statutes, rules, federal laws, regulations, and policies 166.17 governing human services; 166.18 (b) monitor, on an ongoing basis, the performance of county 166.19 agencies in the operation and administration of human services, 166.20 enforce compliance with statutes, rules, federal laws, 166.21 regulations, and policies governing welfare services and promote 166.22 excellence of administration and program operation; 166.23 (c) develop a quality control program or other monitoring 166.24 program to review county performance and accuracy of benefit 166.25 determinations; 166.26 (d) require county agencies to make an adjustment to the 166.27 public assistance benefits issued to any individual consistent 166.28 with federal law and regulation and state law and rule and to 166.29 issue or recover benefits as appropriate; 166.30 (e) delay or deny payment of all or part of the state and 166.31 federal share of benefits and administrative reimbursement 166.32 according to the procedures set forth in section 256.017; and 166.33 (f) make contracts with and grants to public and private 166.34 agencies and organizations, both profit and nonprofit, and 166.35 individuals, using appropriated funds. 166.36 (2) Inform county agencies, on a timely basis, of changes 167.1 in statute, rule, federal law, regulation, and policy necessary 167.2 to county agency administration of the programs. 167.3 (3) Administer and supervise all child welfare activities; 167.4 promote the enforcement of laws protecting handicapped, 167.5 dependent, neglected and delinquent children, and children born 167.6 to mothers who were not married to the children's fathers at the 167.7 times of the conception nor at the births of the children; 167.8 license and supervise child-caring and child-placing agencies 167.9 and institutions; supervise the care of children in boarding and 167.10 foster homes or in private institutions; and generally perform 167.11 all functions relating to the field of child welfare now vested 167.12 in the state board of control. 167.13 (4) Administer and supervise all noninstitutional service 167.14 to handicapped persons, including those who are visually 167.15 impaired, hearing impaired, or physically impaired or otherwise 167.16 handicapped. The commissioner may provide and contract for the 167.17 care and treatment of qualified indigent children in facilities 167.18 other than those located and available at state hospitals when 167.19 it is not feasible to provide the service in state hospitals. 167.20 (5) Assist and actively cooperate with other departments, 167.21 agencies and institutions, local, state, and federal, by 167.22 performing services in conformity with the purposes of Laws 167.23 1939, chapter 431. 167.24 (6) Act as the agent of and cooperate with the federal 167.25 government in matters of mutual concern relative to and in 167.26 conformity with the provisions of Laws 1939, chapter 431, 167.27 including the administration of any federal funds granted to the 167.28 state to aid in the performance of any functions of the 167.29 commissioner as specified in Laws 1939, chapter 431, and 167.30 including the promulgation of rules making uniformly available 167.31 medical care benefits to all recipients of public assistance, at 167.32 such times as the federal government increases its participation 167.33 in assistance expenditures for medical care to recipients of 167.34 public assistance, the cost thereof to be borne in the same 167.35 proportion as are grants of aid to said recipients. 167.36 (7) Establish and maintain any administrative units 168.1 reasonably necessary for the performance of administrative 168.2 functions common to all divisions of the department. 168.3 (8) Act as designated guardian of both the estate and the 168.4 person of all the wards of the state of Minnesota, whether by 168.5 operation of law or by an order of court, without any further 168.6 act or proceeding whatever, except as to persons committed as 168.7 mentally retarded. For children under the guardianship of the 168.8 commissioner whose interests would be best served by adoptive 168.9 placement, the commissioner may contract with a licensed 168.10 child-placing agency to provide adoption services. A contract 168.11 with a licensed child-placing agency must be designed to 168.12 supplement existing county efforts, and shall not replace 168.13 existing county programs, unless the replacement is agreed to by 168.14 the county board and the appropriate exclusive bargaining 168.15 representative, or the commissioner has evidence that the 168.16 county's rate of placing these children continues to be 168.17 substantially below that of other counties. 168.18 (9) Act as coordinating referral and informational center 168.19 on requests for service for newly arrived immigrants coming to 168.20 Minnesota. 168.21 (10) The specific enumeration of powers and duties as 168.22 hereinabove set forth shall in no way be construed to be a 168.23 limitation upon the general transfer of powers herein contained. 168.24 (11) Establish county, regional, or statewide schedules of 168.25 maximum fees and charges which may be paid by county agencies 168.26 for medical, dental, surgical, hospital, nursing and nursing 168.27 home care and medicine and medical supplies under all programs 168.28 of medical care provided by the state and for congregate living 168.29 care under the income maintenance programs. 168.30 (12) Have the authority to conduct and administer 168.31 experimental projects to test methods and procedures of 168.32 administering assistance and services to recipients or potential 168.33 recipients of public welfare. To carry out such experimental 168.34 projects, it is further provided that the commissioner of human 168.35 services is authorized to waive the enforcement of existing 168.36 specific statutory program requirements, rules, and standards in 169.1 one or more counties. The order establishing the waiver shall 169.2 provide alternative methods and procedures of administration, 169.3 shall not be in conflict with the basic purposes, coverage, or 169.4 benefits provided by law, and in no event shall the duration of 169.5 a project exceed four years. It is further provided that no 169.6 order establishing an experimental project as authorized by the 169.7 provisions of this section shall become effective until the 169.8 following conditions have been met: 169.9 (a) The proposed comprehensive plan, including estimated 169.10 project costs and the proposed order establishing the waiver, 169.11 shall be filed with the secretary of the senate and chief clerk 169.12 of the house of representatives at least 60 days prior to its 169.13 effective date. 169.14 (b) The secretary of health, education, and welfare of the 169.15 United States has agreed, for the same project, to waive state 169.16 plan requirements relative to statewide uniformity. 169.17 (c) A comprehensive plan, including estimated project 169.18 costs, shall be approved by the legislative advisory commission 169.19 and filed with the commissioner of administration. 169.20 (13) In accordance with federal requirements, establish 169.21 procedures to be followed by local welfare boards in creating 169.22 citizen advisory committees, including procedures for selection 169.23 of committee members. 169.24 (14) Allocate federal fiscal disallowances or sanctions 169.25 which are based on quality control error rates for the aid to 169.26 families with dependent children, medical assistance, or food 169.27 stamp program in the following manner: 169.28 (a) One-half of the total amount of the disallowance shall 169.29 be borne by the county boards responsible for administering the 169.30 programs. For the medical assistance and AFDC programs, 169.31 disallowances shall be shared by each county board in the same 169.32 proportion as that county's expenditures for the sanctioned 169.33 program are to the total of all counties' expenditures for the 169.34 AFDC and medical assistance programs. For the food stamp 169.35 program, sanctions shall be shared by each county board, with 50 169.36 percent of the sanction being distributed to each county in the 170.1 same proportion as that county's administrative costs for food 170.2 stamps are to the total of all food stamp administrative costs 170.3 for all counties, and 50 percent of the sanctions being 170.4 distributed to each county in the same proportion as that 170.5 county's value of food stamp benefits issued are to the total of 170.6 all benefits issued for all counties. Each county shall pay its 170.7 share of the disallowance to the state of Minnesota. When a 170.8 county fails to pay the amount due hereunder, the commissioner 170.9 may deduct the amount from reimbursement otherwise due the 170.10 county, or the attorney general, upon the request of the 170.11 commissioner, may institute civil action to recover the amount 170.12 due. 170.13 (b) Notwithstanding the provisions of paragraph (a), if the 170.14 disallowance results from knowing noncompliance by one or more 170.15 counties with a specific program instruction, and that knowing 170.16 noncompliance is a matter of official county board record, the 170.17 commissioner may require payment or recover from the county or 170.18 counties, in the manner prescribed in paragraph (a), an amount 170.19 equal to the portion of the total disallowance which resulted 170.20 from the noncompliance, and may distribute the balance of the 170.21 disallowance according to paragraph (a). 170.22 (15) Develop and implement special projects that maximize 170.23 reimbursements and result in the recovery of money to the 170.24 state. For the purpose of recovering state money, the 170.25 commissioner may enter into contracts with third parties. Any 170.26 recoveries that result from projects or contracts entered into 170.27 under this paragraph shall be deposited in the state treasury 170.28 and credited to a special account until the balance in the 170.29 account reaches $1,000,000. When the balance in the account 170.30 exceeds $1,000,000, the excess shall be transferred and credited 170.31 to the general fund. All money in the account is appropriated 170.32 to the commissioner for the purposes of this paragraph. 170.33 (16) Have the authority to make direct payments to 170.34 facilities providing shelter to women and their children 170.35 pursuant to section 256D.05, subdivision 3. Upon the written 170.36 request of a shelter facility that has been denied payments 171.1 under section 256D.05, subdivision 3, the commissioner shall 171.2 review all relevant evidence and make a determination within 30 171.3 days of the request for review regarding issuance of direct 171.4 payments to the shelter facility. Failure to act within 30 days 171.5 shall be considered a determination not to issue direct payments. 171.6 (17) Have the authority to establish and enforce the 171.7 following county reporting requirements: 171.8 (a) The commissioner shall establish fiscal and statistical 171.9 reporting requirements necessary to account for the expenditure 171.10 of funds allocated to counties for human services programs. 171.11 When establishing financial and statistical reporting 171.12 requirements, the commissioner shall evaluate all reports, in 171.13 consultation with the counties, to determine if the reports can 171.14 be simplified or the number of reports can be reduced. 171.15 (b) The county board shall submit monthly or quarterly 171.16 reports to the department as required by the commissioner. 171.17 Monthly reports are due no later than 15 working days after the 171.18 end of the month. Quarterly reports are due no later than 30 171.19 calendar days after the end of the quarter, unless the 171.20 commissioner determines that the deadline must be shortened to 171.21 20 calendar days to avoid jeopardizing compliance with federal 171.22 deadlines or risking a loss of federal funding. Only reports 171.23 that are complete, legible, and in the required format shall be 171.24 accepted by the commissioner. 171.25 (c) If the required reports are not received by the 171.26 deadlines established in clause (b), the commissioner may delay 171.27 payments and withhold funds from the county board until the next 171.28 reporting period. When the report is needed to account for the 171.29 use of federal funds and the late report results in a reduction 171.30 in federal funding, the commissioner shall withhold from the 171.31 county boards with late reports an amount equal to the reduction 171.32 in federal funding until full federal funding is received. 171.33 (d) A county board that submits reports that are late, 171.34 illegible, incomplete, or not in the required format for two out 171.35 of three consecutive reporting periods is considered 171.36 noncompliant. When a county board is found to be noncompliant, 172.1 the commissioner shall notify the county board of the reason the 172.2 county board is considered noncompliant and request that the 172.3 county board develop a corrective action plan stating how the 172.4 county board plans to correct the problem. The corrective 172.5 action plan must be submitted to the commissioner within 45 days 172.6 after the date the county board received notice of noncompliance. 172.7 (e) The final deadline for fiscal reports or amendments to 172.8 fiscal reports is one year after the date the report was 172.9 originally due. If the commissioner does not receive a report 172.10 by the final deadline, the county board forfeits the funding 172.11 associated with the report for that reporting period and the 172.12 county board must repay any funds associated with the report 172.13 received for that reporting period. 172.14 (f) The commissioner may not delay payments, withhold 172.15 funds, or require repayment under paragraph (c) or (e) if the 172.16 county demonstrates that the commissioner failed to provide 172.17 appropriate forms, guidelines, and technical assistance to 172.18 enable the county to comply with the requirements. If the 172.19 county board disagrees with an action taken by the commissioner 172.20 under paragraph (c) or (e), the county board may appeal the 172.21 action according to sections 14.57 to 14.69. 172.22 (g) Counties subject to withholding of funds under 172.23 paragraph (c) or forfeiture or repayment of funds under 172.24 paragraph (e) shall not reduce or withhold benefits or services 172.25 to clients to cover costs incurred due to actions taken by the 172.26 commissioner under paragraph (c) or (e). 172.27 (18) Allocate federal fiscal disallowances or sanctions for 172.28 audit exceptions when federal fiscal disallowances or sanctions 172.29 are based on a statewide random sample for the foster care 172.30 program under title IV-E of the Social Security Act, United 172.31 States Code, title 42, in direct proportion to each county's 172.32 title IV-E foster care maintenance claim for that period. 172.33 Sec. 5. Minnesota Statutes 1996, section 256.01, is 172.34 amended by adding a subdivision to read: 172.35 Subd. 14. [CHILD WELFARE REFORM PILOTS.] The commissioner 172.36 of human services shall encourage local reforms in the delivery 173.1 of child welfare services and is authorized to approve local 173.2 pilot programs which focus on reforming the child protection and 173.3 child welfare systems in Minnesota. Authority to approve pilots 173.4 includes authority to waive existing state rule and statutory 173.5 requirements as needed to accomplish reform efforts. Pilot 173.6 programs must be required to address responsibility for safety 173.7 and protection of children, be time limited, and include 173.8 evaluation of the pilot program. 173.9 Sec. 6. Minnesota Statutes 1996, section 256.045, 173.10 subdivision 3, is amended to read: 173.11 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 173.12 hearings are available for the following: (1) any person 173.13 applying for, receiving or having received public assistance or 173.14 a program of social services granted by the state agency or a 173.15 county agency under sections 252.32, 256.031 to 256.036, and 173.16 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 173.17 federal Food Stamp Act whose application for assistance is 173.18 denied, not acted upon with reasonable promptness, or whose 173.19 assistance is suspended, reduced, terminated, or claimed to have 173.20 been incorrectly paid; (2) any patient or relative aggrieved by 173.21 an order of the commissioner under section 252.27; (3) a party 173.22 aggrieved by a ruling of a prepaid health plan; (4) any 173.23 individual or facility determined by a lead agency to have 173.24 maltreated a vulnerable adult under section 626.557 after they 173.25 have exercised their right to administrative reconsideration 173.26 under section 626.557; (5) any person whose claim for foster 173.27 care payment pursuant to a placement of the child resulting from 173.28 a child protection assessment under section 626.556 is denied or 173.29 not acted upon with reasonable promptness, regardless of funding 173.30 source; (6) any person to whom a right of appeal pursuant to 173.31 this section is given by other provision of law;or(7) an 173.32 applicant aggrieved by an adverse decision to an application for 173.33 a hardship waiver under section 256B.15; or (8) an individual or 173.34 facility determined to have maltreated a minor under section 173.35 626.556, after the individual or facility has exercised the 173.36 right to administrative reconsideration under section 626.556. 174.1 The failure to exercise the right to an administrative 174.2 reconsideration shall not be a bar to a hearing under this 174.3 section if federal law provides an individual the right to a 174.4 hearing to dispute a finding of maltreatment. Individuals and 174.5 organizations specified in this section may contest the 174.6 specified action, decision, or final disposition before the 174.7 state agency by submitting a written request for a hearing to 174.8 the state agency within 30 days after receiving written notice 174.9 of the action, decision, or final disposition, or within 90 days 174.10 of such written notice if the applicant, recipient, patient, or 174.11 relative shows good cause why the request was not submitted 174.12 within the 30-day time limit. 174.13 The hearing for an individual or facility under clause (4) 174.14 or (8) is the only administrative appeal to the finallead174.15 agencydispositiondetermination specifically, including a 174.16 challenge to the accuracy and completeness of data under section 174.17 13.04. Hearings requested under clause (4) apply only to 174.18 incidents of maltreatment that occur on or after October 1, 174.19 1995. Hearings requested by nursing assistants in nursing homes 174.20 alleged to have maltreated a resident prior to October 1, 1995, 174.21 shall be held as a contested case proceeding under the 174.22 provisions of chapter 14. Hearings requested under clause (8) 174.23 apply only to incidents of maltreatment that occur on or after 174.24 July 1, 1997. A hearing for an individual or facility under 174.25 clause (8) is only available when there is no juvenile court or 174.26 adult criminal action pending. If such action is filed in 174.27 either court while an administrative review is pending, the 174.28 administrative review must be suspended until the judicial 174.29 actions are completed. If the juvenile court action or criminal 174.30 charge is dismissed or the criminal action overturned, the 174.31 matter may be considered in an administrative hearing. 174.32 For purposes of this section, bargaining unit grievance 174.33 procedures are not an administrative appeal. 174.34 The scope of hearings involving claims to foster care 174.35 payments under clause (5) shall be limited to the issue of 174.36 whether the county is legally responsible for a child's 175.1 placement under court order or voluntary placement agreement 175.2 and, if so, the correct amount of foster care payment to be made 175.3 on the child's behalf and shall not include review of the 175.4 propriety of the county's child protection determination or 175.5 child placement decision. 175.6 (b) Except for a prepaid health plan, a vendor of medical 175.7 care as defined in section 256B.02, subdivision 7, or a vendor 175.8 under contract with a county agency to provide social services 175.9 under section 256E.08, subdivision 4, is not a party and may not 175.10 request a hearing under this section, except if assisting a 175.11 recipient as provided in subdivision 4. 175.12 (c) An applicant or recipient is not entitled to receive 175.13 social services beyond the services included in the amended 175.14 community social services plan developed under section 256E.081, 175.15 subdivision 3, if the county agency has met the requirements in 175.16 section 256E.081. 175.17 Sec. 7. Minnesota Statutes 1996, section 256.045, 175.18 subdivision 3b, is amended to read: 175.19 Subd. 3b. [STANDARD OF EVIDENCE FOR MALTREATMENT 175.20 HEARINGS.] The state human services referee shall determine that 175.21 maltreatment has occurred if a preponderance of evidence exists 175.22 to support the final disposition undersectionsections 626.556 175.23 and 626.557. 175.24 The state human services referee shall recommend an order 175.25 to the commissioner of health or human services, as applicable, 175.26 who shall issue a final order. The commissioner shall affirm, 175.27 reverse, or modify the final disposition. Any order of the 175.28 commissioner issued in accordance with this subdivision is 175.29 conclusive upon the parties unless appeal is taken in the manner 175.30 provided in subdivision 7. In any licensing appeal under 175.31 chapter 245A and sections 144.50 to 144.58 and 144A.02 to 175.32 144A.46, the commissioner'sfindingsdetermination as towhether175.33 maltreatmentoccurredis conclusive. 175.34 Sec. 8. Minnesota Statutes 1996, section 256.045, 175.35 subdivision 4, is amended to read: 175.36 Subd. 4. [CONDUCT OF HEARINGS.] (a) All hearings held 176.1 pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 176.2 according to the provisions of the federal Social Security Act 176.3 and the regulations implemented in accordance with that act to 176.4 enable this state to qualify for federal grants-in-aid, and 176.5 according to the rules and written policies of the commissioner 176.6 of human services. County agencies shall install equipment 176.7 necessary to conduct telephone hearings. A state human services 176.8 referee may schedule a telephone conference hearing when the 176.9 distance or time required to travel to the county agency offices 176.10 will cause a delay in the issuance of an order, or to promote 176.11 efficiency, or at the mutual request of the parties. Hearings 176.12 may be conducted by telephone conferences unless the applicant, 176.13 recipient, former recipient, person, or facility contesting 176.14 maltreatment objects. The hearing shall not be held earlier 176.15 than five days after filing of the required notice with the 176.16 county or state agency. The state human services referee shall 176.17 notify all interested persons of the time, date, and location of 176.18 the hearing at least five days before the date of the hearing. 176.19 Interested persons may be represented by legal counsel or other 176.20 representative of their choice, including a provider of therapy 176.21 services, at the hearing and may appear personally, testify and 176.22 offer evidence, and examine and cross-examine witnesses. The 176.23 applicant, recipient, former recipient, person, or facility 176.24 contesting maltreatment shall have the opportunity to examine 176.25 the contents of the case file and all documents and records to 176.26 be used by the county or state agency at the hearing at a 176.27 reasonable time before the date of the hearing and during the 176.28 hearing.In cases alleging discharge for maltreatment,In 176.29 hearings under subdivision 3, paragraph (b), clauses (4) and 176.30 (8), either party may subpoena the private data relating to the 176.31 investigationmemorandumprepared by theleadagency under 176.32 section 626.556 or 626.557 that is not otherwise accessible 176.33 under section 13.04, provided thenameidentity of the reporter 176.34 may not be disclosed. 176.35 (b) The private data obtained by subpoena in a hearing 176.36 under subdivision 3, paragraph (a), clause (4) or (8), must be 177.1 subject to a protective order which prohibits its disclosure for 177.2 any other purpose outside the hearing provided for in this 177.3 section without prior order of the district court. Disclosure 177.4 without court order is punishable by a sentence of not more than 177.5 90 days imprisonment or a fine of not more than $700, or both. 177.6 These restrictions on the use of private data do not prohibit 177.7 access to the data under section 13.03, subdivision 6. Except 177.8 for appeals under subdivision 3, paragraph (a), clauses (4), 177.9 (5), and (8), upon request, the county agency shall provide 177.10 reimbursement for transportation, child care, photocopying, 177.11 medical assessment, witness fee, and other necessary and 177.12 reasonable costs incurred by the applicant, recipient, or former 177.13 recipient in connection with the appeal, except in appeals177.14brought under subdivision 3b. All evidence, except that 177.15 privileged by law, commonly accepted by reasonable people in the 177.16 conduct of their affairs as having probative value with respect 177.17 to the issues shall be submitted at the hearing and such hearing 177.18 shall not be "a contested case" within the meaning of section 177.19 14.02, subdivision 3. The agency must present its evidence 177.20 prior to or at the hearing, and may not submit evidence after 177.21 the hearing except by agreement of the parties at the hearing, 177.22 provided therecipientpetitioner has the opportunity to respond. 177.23 Sec. 9. Minnesota Statutes 1996, section 256.045, 177.24 subdivision 5, is amended to read: 177.25 Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 177.26This subdivision does not apply to appeals under subdivision177.273b.A state human services referee shall conduct a hearing on 177.28 the appeal and shall recommend an order to the commissioner of 177.29 human services. The recommended order must be based on all 177.30 relevant evidence and must not be limited to a review of the 177.31 propriety of the state or county agency's action. A referee may 177.32 take official notice of adjudicative facts. The commissioner of 177.33 human services may accept the recommended order of a state human 177.34 services referee and issue the order to the county agency and 177.35 the applicant, recipient, former recipient, or prepaid health 177.36 plan. The commissioner on refusing to accept the recommended 178.1 order of the state human services referee, shall notify the 178.2countypetitioner, the agencyand the applicant, recipient,178.3former recipient, or prepaid health plan of that fact and shall 178.4 state reasons therefor and shall allow each party ten days' time 178.5 to submit additional written argument on the matter. After the 178.6 expiration of the ten-day period, the commissioner shall issue 178.7 an order on the matter to thecountypetitioner, the agencyand178.8the applicant, recipient, former recipient, or prepaid health 178.9 plan. 178.10 A party aggrieved by an order of the commissioner may 178.11 appeal under subdivision 7, or request reconsideration by the 178.12 commissioner within 30 days after the date the commissioner 178.13 issues the order. The commissioner may reconsider an order upon 178.14 request of any party or on the commissioner's own motion. A 178.15 request for reconsideration does not stay implementation of the 178.16 commissioner's order. Upon reconsideration, the commissioner 178.17 may issue an amended order or an order affirming the original 178.18 order. 178.19 Any order of the commissioner issued under this subdivision 178.20 shall be conclusive upon the parties unless appeal is taken in 178.21 the manner provided by subdivision 7. Any order of the 178.22 commissioner is binding on the parties and must be implemented 178.23 by the state agency or a county agency until the order is 178.24 reversed by the district court, or unless the commissioner or a 178.25 district court orders monthly assistance or aid or services paid 178.26 or provided under subdivision 10. 178.27 Except for a prepaid health plan, a vendor of medical care 178.28 as defined in section 256B.02, subdivision 7, or a vendor under 178.29 contract with a county agency to provide social services under 178.30 section 256E.08, subdivision 4, is not a party and may not 178.31 request a hearing or seek judicial review of an order issued 178.32 under this section, unless assisting a recipient as provided in 178.33 subdivision 4. 178.34 Sec. 10. Minnesota Statutes 1996, section 256.045, 178.35 subdivision 8, is amended to read: 178.36 Subd. 8. [HEARING.] Any party may obtain a hearing at a 179.1 special term of the district court by serving a written notice 179.2 of the time and place of the hearing at least ten days prior to 179.3 the date of the hearing.Except for appeals under subdivision179.43b,The court may consider the matter in or out of chambers, and 179.5 shall take no new or additional evidence unless it determines 179.6 that such evidence is necessary for a more equitable disposition 179.7 of the appeal. 179.8 Sec. 11. Minnesota Statutes 1996, section 256.82, is 179.9 amended by adding a subdivision to read: 179.10 Subd. 5. [DIFFICULTY OF CARE ASSESSMENT PILOT 179.11 PROJECT.] Notwithstanding any law to the contrary, the 179.12 commissioner of human services shall conduct a two-year 179.13 statewide pilot project beginning July 1, 1997, to conduct a 179.14 difficulty of care assessment process which both assesses an 179.15 individual child's current functioning and identifies needs in a 179.16 variety of life situations. The pilot project must take into 179.17 consideration existing difficulty of care payments so that, to 179.18 the extent possible, no child for whom a difficulty of care rate 179.19 is currently established will be adversely affected. The pilot 179.20 project must include an evaluation and an interim report to the 179.21 legislature by January 15, 1999. 179.22 Sec. 12. Minnesota Statutes 1996, section 256F.11, 179.23 subdivision 2, is amended to read: 179.24 Subd. 2. [FUND DISTRIBUTION.] In distributing funds, the 179.25 commissioner shall give priority consideration to agencies and 179.26 organizations with experience in working with abused or 179.27 neglected children and their families, and with children at high 179.28 risk of abuse and neglect and their families, and serve 179.29 communities which demonstrate the greatest need for these 179.30 services. Funds shall be distributed to crisis nurseries 179.31 according to a formula developed by the commissioner in 179.32 consultation with the Minnesota crisis nursery association. 179.33 This formula shall include funding for all existing crisis 179.34 nursery programs that meet program requirements as specified in 179.35 paragraph (a), and consideration of factors reflecting the need 179.36 for services in each service area, including, but not limited 180.1 to, the number of children 18 years of age and under living in 180.2 the service area, the percent of children 18 years of age and 180.3 under living in poverty in the service area, and factors 180.4 reflecting the cost of providing services, including, but not 180.5 limited to, the number of days of service provided in the 180.6 previous year. At least 25 percent of available funds for state 180.7 fiscal year 1998 shall be set aside to accomplish any of the 180.8 following: establish new crisis nursery programs; increase 180.9 statewide availability of crisis nursery services; and enhance 180.10 or expand services at existing crisis nursery programs. 180.11 (a) The crisis nurseries must: 180.12 (1) be available 24 hours a day, seven days a week; 180.13 (2) provide services for children up to three days at any 180.14 one time; 180.15 (3) make referrals for parents to counseling services and 180.16 other community resources to help alleviate the underlying cause 180.17 of the precipitating stress or crisis; 180.18 (4) provide services without a fee for a maximum of 30 days 180.19 in any year; 180.20 (5) provide services to children from birth to 12 years of 180.21 age; 180.22 (6) provide an initial assessment and intake interview 180.23 conducted by a skilled professional who will identify the 180.24 presenting problem and make an immediate referral to an 180.25 appropriate agency or program to prevent maltreatment and 180.26 out-of-home placement of children; 180.27 (7) maintain the clients' confidentiality to the extent 180.28 required by law, and also comply with statutory reporting 180.29 requirements which may mandate a report to child protective 180.30 services; 180.31 (8) contain a volunteer component; 180.32 (9) provide preservice training and ongoing training to 180.33 providers and volunteers; 180.34 (10) evaluate the services provided by documenting use of 180.35 services, the result of family referrals made to community 180.36 resources, and how the services reduced the risk of 181.1 maltreatment; 181.2 (11) provide age appropriate programming; 181.3 (12) provide developmental assessments; 181.4 (13) provide medical assessments as determined by using a 181.5 risk screening tool; 181.6 (14) meet United States Department of Agriculture 181.7 regulations concerning meals and provide three meals a day and 181.8 three snacks during a 24-hour period; and 181.9 (15) provide appropriate sleep and nap arrangements for 181.10 children. 181.11 (b) The crisis nurseries are encouraged to provide: 181.12 (1) on-site support groups for facility model programs, or 181.13 agency sponsored parent support groups for volunteer family 181.14 model programs; 181.15 (2) parent education classes or programs that include 181.16 parent-child interaction; and 181.17 (3) opportunities for parents to volunteer, if appropriate, 181.18 to assist with child care in a supervised setting in order to 181.19 enhance their parenting skills and self-esteem, in addition to 181.20 providing them the opportunity to give something back to the 181.21 program. 181.22 (c) Parents shall retain custody of their children during 181.23 placement in a crisis facility. 181.24 The crisis nurseries are encouraged to include one or more 181.25 parents who have used the crisis nursery services on the 181.26 program's multidisciplinary advisory board. 181.27 Sec. 13. [257.85] [RELATIVE CUSTODY ASSISTANCE.] 181.28 Subdivision 1. [CITATION.] This section may be cited as 181.29 the "Relative Custody Assistance Act." 181.30 Subd. 2. [PURPOSE.] The purpose of the Relative Custody 181.31 Assistance Act is to assist relatives who provide a permanent 181.32 placement for children who have been in court-ordered foster 181.33 care by taking permanent legal and physical custody of the 181.34 child. Relative custody assistance is designed to remove 181.35 barriers to establishing custody with a relative that result 181.36 from the special needs of the child and the limited financial 182.1 resources available to the relative custodian to meet those 182.2 needs. This section establishes a system of financial support 182.3 through state and county partnership for relatives who assume 182.4 permanent legal and physical custody of a child through a 182.5 Minnesota juvenile court order entered pursuant to section 182.6 260.191, subdivision 3b, and finding: 182.7 (1) that the child cannot return to the home of the child's 182.8 parents; and 182.9 (2) that it is in the child's best interests that permanent 182.10 legal and physical custody be transferred to the relative. 182.11 Relative custody assistance is designed to determine a 182.12 supplement to the cash assistance otherwise available to the 182.13 relative custodian of a child that would raise the total amount 182.14 of assistance to the amount the child would be eligible to 182.15 receive through the adoption assistance program if an adoption 182.16 assistance agreement were entered on the child's behalf. A 182.17 percentage of the supplement so determined is then paid based 182.18 upon the income of the relative custodian's family. 182.19 Subd. 3. [SCOPE.] The provisions of this section apply to 182.20 those situations in which the legal and physical custody of a 182.21 child is established with a relative according to section 182.22 260.191, subdivision 3b, by a court order issued on or after 182.23 July 1, 1997. 182.24 Subd. 4. [DEFINITIONS.] For purposes of this section, the 182.25 terms defined in this subdivision have the meanings given them. 182.26 (a) "AFDC or MFIP standard" means the monthly standard of 182.27 need used to calculate assistance under the AFDC program, the 182.28 transitional standard used to calculate assistance under the 182.29 MFIP-S program, or, if neither of those is applicable, the 182.30 analogous transitional standard used to calculate assistance 182.31 under the MFIP or MFIP-R programs. 182.32 (b) "Local agency" means the local social service agency 182.33 with legal custody of a child prior to the transfer of permanent 182.34 legal and physical custody to a relative. 182.35 (c) "Permanent legal and physical custody" means permanent 182.36 legal and physical custody ordered by a Minnesota juvenile court 183.1 under section 260.191, subdivision 3b. 183.2 (d) "Relative" means an individual, other than a parent, 183.3 who is related to a child by blood, marriage, or adoption. 183.4 (e) "Relative custodian" means a relative of a child for 183.5 whom the relative has permanent legal and physical custody. 183.6 (f) "Relative custody assistance agreement" means an 183.7 agreement entered into between a local agency and the relative 183.8 of a child who has been or will be awarded permanent legal and 183.9 physical custody of the child. 183.10 (g) "Relative custody assistance payment" means a monthly 183.11 cash grant made to a relative custodian pursuant to a relative 183.12 custody assistance agreement and in an amount calculated under 183.13 subdivision 8. 183.14 (h) "Remains in the physical custody of the relative 183.15 custodian" means that the relative custodian is providing 183.16 day-to-day care for the child and that the child lives with the 183.17 relative custodian; absence from the relative custodian's home 183.18 for a period of more than 120 days raises a presumption that the 183.19 child no longer remains in the physical custody of the relative 183.20 custodian. 183.21 Subd. 5. [DUTIES OF LOCAL AGENCY.] When a local agency 183.22 seeks a court order under section 260.191, subdivision 3b, to 183.23 establish permanent legal and physical custody of a child with a 183.24 relative, or if such an order is issued by the court, the local 183.25 agency shall perform the duties in this subdivision. 183.26 (a) As soon as possible after the local agency determines 183.27 that it will seek to establish permanent legal and physical 183.28 custody of the child with a relative or, if the agency did not 183.29 seek to establish custody, as soon as possible after the 183.30 issuance of the court order establishing custody, the local 183.31 agency shall inform the relative about the relative custody 183.32 assistance program, including eligibility criteria and payment 183.33 levels. Anytime prior to, but not later than seven days after, 183.34 the date the court issues the order establishing permanent legal 183.35 and physical custody of the child with a relative, the local 183.36 agency shall determine whether the eligibility criteria in 184.1 subdivision 7 are met to allow the relative to receive relative 184.2 custody assistance. Not later than seven days after determining 184.3 whether the eligibility criteria are met, the local agency shall 184.4 inform the relative custodian of its determination and of the 184.5 process for appealing that determination under subdivision 10. 184.6 (b) If the local agency determines that the relative 184.7 custodian is eligible to receive relative custody assistance, 184.8 the local agency shall prepare the relative custody assistance 184.9 agreement and ensure that it meets the requirements of 184.10 subdivision 6. 184.11 (c) The local agency shall make monthly payments to the 184.12 relative as set forth in the relative custody assistance 184.13 agreement. On a quarterly basis and on a form to be provided by 184.14 the commissioner, the local agency shall make claims for 184.15 reimbursement from the commissioner for relative custody 184.16 assistance payments made. 184.17 (d) For a relative custody assistance agreement that is in 184.18 place for longer than one year, and as long as the agreement 184.19 remains in effect, the local agency shall send an annual 184.20 affidavit form to the relative custodian of the eligible child 184.21 within the month before the anniversary date of the agreement. 184.22 The local agency shall monitor whether the annual affidavit is 184.23 returned by the relative custodian within 30 days following the 184.24 anniversary date of the agreement. The local agency shall 184.25 review the affidavit and any other information in its possession 184.26 to ensure continuing eligibility for relative custody assistance 184.27 and that the amount of payment made according to the agreement 184.28 is correct. 184.29 (e) When the local agency determines that a relative 184.30 custody assistance agreement should be terminated or modified, 184.31 it shall provide notice of the proposed termination or 184.32 modification to the relative custodian at least ten days before 184.33 the proposed action along with information about the process for 184.34 appealing the proposed action. 184.35 Subd. 6. [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A 184.36 relative custody assistance agreement will not be effective, 185.1 unless it is signed by the local agency and the relative 185.2 custodian no later than 30 days after the date of the order 185.3 establishing permanent legal and physical custody with the 185.4 relative, except that a local agency may enter into a relative 185.5 custody assistance agreement with a relative custodian more than 185.6 30 days after the date of the order if it certifies that the 185.7 delay in entering the agreement was through no fault of the 185.8 relative custodian. There must be a separate agreement for each 185.9 child for whom the relative custodian is receiving relative 185.10 custody assistance. 185.11 (b) Regardless of when the relative custody assistance 185.12 agreement is signed by the local agency and relative custodian, 185.13 the effective date of the agreement shall be the first day of 185.14 the month following the date of the order establishing permanent 185.15 legal and physical custody or the date that the last party signs 185.16 the agreement, whichever occurs later. 185.17 (c) If MFIP-S is not the applicable program for a child at 185.18 the time that a relative custody assistance agreement is entered 185.19 on behalf of the child, when MFIP-S becomes the applicable 185.20 program, if the relative custodian had been receiving custody 185.21 assistance payments calculated based upon a different program, 185.22 the amount of relative custody assistance payment under 185.23 subdivision 8 shall be recalculated under the MFIP-S program. 185.24 (d) The relative custody assistance agreement shall be in a 185.25 form specified by the commissioner and shall include provisions 185.26 relating to the following: 185.27 (1) the responsibilities of all parties to the agreement; 185.28 (2) the payment terms, including the financial 185.29 circumstances of the relative custodian, the needs of the child, 185.30 the amount and calculation of the relative custody assistance 185.31 payments, and that the amount of the payments shall be 185.32 reevaluated annually; 185.33 (3) the effective date of the agreement, which shall also 185.34 be the anniversary date for the purpose of submitting the annual 185.35 affidavit under subdivision 9; 185.36 (4) that failure to submit the affidavit as required by 186.1 subdivision 9 will be grounds for terminating the agreement; 186.2 (5) the agreement's expected duration, which shall not 186.3 extend beyond the child's eighteenth birthday; 186.4 (6) any specific known circumstances that could cause the 186.5 agreement or payments to be modified, reduced, or terminated and 186.6 the relative custodian's appeal rights under subdivision 10; 186.7 (7) that the relative custodian must notify the local 186.8 agency within 30 days of any of the following: 186.9 (i) a change in the child's status; 186.10 (ii) a change in the relationship between the relative 186.11 custodian and the child; 186.12 (iii) a change in composition or level of income of the 186.13 relative custodian's family; 186.14 (iv) a change in eligibility or receipt of benefits under 186.15 AFDC, MFIP-S, or other assistance program; and 186.16 (v) any other change that could effect eligibility for or 186.17 amount of relative custody assistance; 186.18 (8) that failure to provide notice of a change as required 186.19 by clause (7) will be grounds for terminating the agreement; 186.20 (9) that the amount of relative custody assistance is 186.21 subject to the availability of state funds to reimburse the 186.22 local agency making the payments; 186.23 (10) that the relative custodian may choose to temporarily 186.24 stop receiving payments under the agreement at any time by 186.25 providing 30 days' notice to the local agency and may choose to 186.26 begin receiving payments again by providing the same notice but 186.27 any payments the relative custodian chooses not to receive are 186.28 forfeit; and 186.29 (11) that the local agency will continue to be responsible 186.30 for making relative custody assistance payments under the 186.31 agreement regardless of the relative custodian's place of 186.32 residence. 186.33 Subd. 7. [ELIGIBILITY CRITERIA.] A local agency shall 186.34 enter into a relative custody assistance agreement under 186.35 subdivision 6 if it certifies that the following criteria are 186.36 met: 187.1 (1) the juvenile court has determined or is expected to 187.2 determine that the child, under the former or current custody of 187.3 the local agency, cannot return to the home of the child's 187.4 parents; 187.5 (2) the court, upon determining that it is in the child's 187.6 best interests, has issued or is expected to issue an order 187.7 transferring permanent legal and physical custody of the child 187.8 to the relative; and 187.9 (3) the child either: 187.10 (i) is a member of a sibling group to be placed together; 187.11 or 187.12 (ii) has a physical, mental, emotional, or behavioral 187.13 disability that will require financial support. 187.14 When the local agency bases its certification that the 187.15 criteria in clause (1) or (2) are met upon the expectation that 187.16 the juvenile court will take a certain action, the relative 187.17 custody assistance agreement does not become effective until and 187.18 unless the court acts as expected. 187.19 Subd. 8. [AMOUNT OF RELATIVE CUSTODY ASSISTANCE 187.20 PAYMENTS.] (a) The amount of a monthly relative custody 187.21 assistance payment shall be determined according to the 187.22 provisions of this paragraph. 187.23 (1) The total maximum assistance rate is equal to the base 187.24 assistance rate plus, if applicable, the supplemental assistance 187.25 rate. 187.26 (i) The base assistance rate is equal to the maximum amount 187.27 that could be received as basic maintenance for a child of the 187.28 same age under the adoption assistance program. 187.29 (ii) The local agency shall determine whether the child has 187.30 physical, mental, emotional, or behavioral disabilities that 187.31 require care, supervision, or structure beyond that ordinarily 187.32 provided in a family setting to children of the same age such 187.33 that the child would be eligible for supplemental maintenance 187.34 payments under the adoption assistance program if an adoption 187.35 assistance agreement were entered on the child's behalf. If the 187.36 local agency determines that the child has such a disability, 188.1 the supplemental assistance rate shall be the maximum amount of 188.2 monthly supplemental maintenance payment that could be received 188.3 on behalf of a child of the same age, disabilities, and 188.4 circumstances under the adoption assistance program. 188.5 (2) The net maximum assistance rate is equal to the total 188.6 maximum assistance rate from clause (1) less the following 188.7 offsets: 188.8 (i) if the child is or will be part of an assistance unit 188.9 receiving an AFDC, MFIP-S, or other MFIP grant, the portion of 188.10 the AFDC or MFIP standard relating to the child; 188.11 (ii) Supplemental Security Income payments received by or 188.12 on behalf of the child; 188.13 (iii) veteran's benefits received by or on behalf of the 188.14 child; and 188.15 (iv) any other income of the child, including child support 188.16 payments made on behalf of the child. 188.17 (3) The relative custody assistance payment to be made to 188.18 the relative custodian shall be a percentage of the net maximum 188.19 assistance rate calculated in clause (2) based upon the gross 188.20 income of the relative custodian's family, including the child 188.21 for whom the relative has permanent legal and physical custody. 188.22 In no case shall the amount of the relative custody assistance 188.23 payment exceed that which the child could qualify for under the 188.24 adoption assistance program if an adoption assistance agreement 188.25 were entered on the child's behalf. The relative custody 188.26 assistance payment shall be calculated as follows: 188.27 (i) if the relative custodian's gross family income is less 188.28 than or equal to 200 percent of federal poverty guidelines, the 188.29 relative custody assistance payment shall be the full amount of 188.30 the net maximum assistance rate; 188.31 (ii) if the relative custodian's gross family income is 188.32 greater than 200 percent and less than or equal to 225 percent 188.33 of federal poverty guidelines, the relative custody assistance 188.34 payment shall be 80 percent of the net maximum assistance rate; 188.35 (iii) if the relative custodian's gross family income is 188.36 greater than 225 percent and less than or equal to 250 percent 189.1 of federal poverty guidelines, the relative custody assistance 189.2 payment shall be 60 percent of the net maximum assistance rate; 189.3 (iv) if the relative custodian's gross family income is 189.4 greater than 250 percent and less than or equal to 275 percent 189.5 of federal poverty guidelines, the relative custody assistance 189.6 payment shall be 40 percent of the net maximum assistance rate; 189.7 (v) if the relative custodian's gross family income is 189.8 greater than 275 percent and less than or equal to 300 percent 189.9 of federal poverty guidelines, the relative custody assistance 189.10 payment shall be 20 percent of the net maximum assistance rate; 189.11 or 189.12 (vi) if the relative custodian's gross family income is 189.13 greater than 300 percent of federal poverty guidelines, no 189.14 relative custody assistance payment shall be made. 189.15 (b) This paragraph sets forth the provisions pertaining to 189.16 the relationship between relative custody assistance and AFDC, 189.17 MFIP-S, or other MFIP programs: 189.18 (1) the relative custodian of a child for whom the relative 189.19 is receiving relative custody assistance is expected to seek 189.20 whatever assistance is available for the child through the AFDC, 189.21 MFIP-S, or other MFIP programs. If a relative custodian fails 189.22 to apply for assistance through AFDC, MFIP-S, or other MFIP 189.23 program for which the child is eligible, the child's portion of 189.24 the AFDC or MFIP standard will be calculated as if application 189.25 had been made and assistance received; 189.26 (2) the portion of the AFDC or MFIP standard relating to 189.27 each child for whom relative custody assistance is being 189.28 received shall be calculated as follows: 189.29 (i) determine the total AFDC or MFIP standard for the 189.30 assistance unit; 189.31 (ii) determine the amount that the AFDC or MFIP standard 189.32 would have been if the assistance unit had not included the 189.33 children for whom relative custody assistance is being received; 189.34 (iii) subtract the amount determined in item (ii) from the 189.35 amount determined in item (i); and 189.36 (iv) divide the result in item (iii) by the number of 190.1 children for whom relative custody assistance is being received 190.2 that are part of the assistance unit; or 190.3 (3) if a child for whom relative custody assistance is 190.4 being received is not eligible for assistance through the AFDC, 190.5 MFIP-S, or other MFIP programs, the portion of AFDC or MFIP 190.6 standard relating to that child shall be equal to zero. 190.7 Subd. 9. [ANNUAL AFFIDAVIT.] When a relative custody 190.8 assistance agreement remains in effect for more than one year, 190.9 the local agency shall require the relative custodian to 190.10 annually submit an affidavit in a form to be specified by the 190.11 commissioner. The affidavit must be submitted to the local 190.12 agency each year no later than 30 days after the relative 190.13 custody assistance agreement's anniversary date. The affidavit 190.14 shall document the following: 190.15 (1) that the child remains in the physical custody of the 190.16 relative custodian; 190.17 (2) that there is a continuing need for the relative 190.18 custody assistance payments due to the child's physical, mental, 190.19 emotional, or behavioral needs; and 190.20 (3) the current gross income of the relative custodian's 190.21 family. 190.22 The relative custody assistance agreement may be modified 190.23 based on information or documentation presented to the local 190.24 agency under this requirement and as required by annual 190.25 adjustments to the federal poverty guidelines. 190.26 Subd. 10. [RIGHT OF APPEAL.] A relative custodian who 190.27 enters into a relative custody assistance agreement with a local 190.28 agency has the right to appeal to the commissioner under section 190.29 256.045 when the local agency establishes, denies, terminates, 190.30 or modifies the agreement. Upon appeal, the commissioner may 190.31 review only: 190.32 (1) whether the local agency has met the legal requirements 190.33 imposed by this chapter for establishing, denying, terminating, 190.34 or modifying the agreement; 190.35 (2) whether the amount of the relative custody assistance 190.36 payment was correctly calculated under the method in subdivision 191.1 8; 191.2 (3) whether the local agency paid for correct time periods 191.3 under the relative custody assistance agreement; 191.4 (4) whether the child remains in the physical custody of 191.5 the relative custodian; 191.6 (5) whether the local agency correctly calculated the 191.7 amount of the supplemental assistance rate based on a change in 191.8 the child's physical, mental, emotional, or behavioral needs, 191.9 the relative custodian's failure to document the continuing need 191.10 for the supplemental assistance rate after the local agency has 191.11 requested such documentation; and 191.12 (6) whether the local agency correctly calculated or 191.13 terminated the amount of relative custody assistance based on 191.14 the relative custodian's failure to provide documentation of the 191.15 gross income of the relative custodian's family after the local 191.16 agency has requested such documentation. 191.17 Subd. 11. [CHILD'S COUNTY OF RESIDENCE.] For the purposes 191.18 of the Unitary Residency Act, time spent by a child in the 191.19 custody of a relative custodian receiving payments under this 191.20 section is not excluded time. A child is a resident of the 191.21 county where the relative custodian is a resident. 191.22 Subd. 12. [FINANCIAL CONSIDERATIONS.] (a) Payment of 191.23 relative custody assistance pursuant to a relative custody 191.24 assistance agreement is subject to the availability of state 191.25 funds and payments may be reduced or suspended on order of the 191.26 commissioner if insufficient funds are available. 191.27 (b) Upon receipt from a local agency of a claim for 191.28 reimbursement, the commissioner shall reimburse the local agency 191.29 in an amount equal to 100 percent of the relative custody 191.30 assistance payments provided to relative custodians. The local 191.31 agency may not seek and the commissioner shall not provide 191.32 reimbursement for the administrative costs associated with 191.33 performing the duties in subdivision 5. 191.34 (c) For the purposes of determining eligibility or payment 191.35 amounts under the AFDC, MFIP-S, and other MFIP programs, 191.36 relative custody assistance payments shall be considered 192.1 excluded income. 192.2 Sec. 14. Minnesota Statutes 1996, section 393.07, 192.3 subdivision 2, is amended to read: 192.4 Subd. 2. [ADMINISTRATION OF PUBLIC WELFARE.] The local 192.5 social services agency, subject to the supervision of the 192.6 commissioner of human services, shall administer all forms of 192.7 public welfare, both for children and adults, responsibility for 192.8 which now or hereafter may be imposed on the commissioner of 192.9 human services by law, including general assistance, aid to 192.10 dependent children, county supplementation, if any, or state aid 192.11 to recipients of supplemental security income for aged, blind 192.12 and disabled, child welfare services, mental health services, 192.13 and other public assistance or public welfare services, provided 192.14 that the local social services agency shall not employ public 192.15 health nursing or home health service personnel other than 192.16 homemaker-home help aides, but shall contract for or purchase 192.17 the necessary services from existing community agencies. The 192.18 duties of the local social services agency shall be performed in 192.19 accordance with the standards and rules which may be promulgated 192.20 by the commissioner of human services to achieve the purposes 192.21 intended by law and in order to comply with the requirements of 192.22 the federal Social Security Act in respect to public assistance 192.23 and child welfare services, so that the state may qualify for 192.24 grants-in-aid available under that act. To avoid administrative 192.25 penalties under section 256.017, the local social services 192.26 agency must comply with (1) policies established by state law 192.27 and (2) instructions from the commissioner relating (i) to 192.28 public assistance program policies consistent with federal law 192.29 and regulation and state law and rule and (ii) to local agency 192.30 program operations. The commissioner may enforce local social 192.31 services agency compliance with the instructions, and may delay, 192.32 withhold, or deny payment of all or part of the state and 192.33 federal share of benefits and federal administrative 192.34 reimbursement, according to the provisions under section 192.35 256.017. The local social services agency shall supervise wards 192.36 of the commissioner and, when so designated, act as agent of the 193.1 commissioner of human services in the placement of the 193.2 commissioner's wards in adoptive homes or in other foster care 193.3 facilities. The local social services agency shall cooperate as 193.4 needed when the commissioner contracts with a licensed child 193.5 placement agency for adoption services for a child under the 193.6 commissioner's guardianship. The local social services agency 193.7 may contract with a bank or other financial institution to 193.8 provide services associated with the processing of public 193.9 assistance checks and pay a service fee for these services, 193.10 provided the fee charged does not exceed the fee charged to 193.11 other customers of the institution for similar services. 193.12 Sec. 15. Minnesota Statutes 1996, section 466.01, 193.13 subdivision 1, is amended to read: 193.14 Subdivision 1. [MUNICIPALITY.] For the purposes of 193.15 sections 466.01 to 466.15, "municipality" means any city, 193.16 whether organized under home rule charter or otherwise, any 193.17 county, town, public authority, public corporation, nonprofit 193.18 firefighting corporation that has associated with it a relief 193.19 association as defined in section 424A.001, subdivision 4, 193.20 special district, school district, however organized, county 193.21 agricultural society organized pursuant to chapter 38, joint 193.22 powers board or organization created under section 471.59 or 193.23 other statute, public library, regional public library system, 193.24 multicounty multitype library system, family services 193.25 collaborative established under section 121.8355, children's 193.26 mental health collaboratives established under sections 245.491 193.27 to 245.496, or a collaborative established by the merger of a 193.28 children's mental health collaborative and a family services 193.29 collaborative, other political subdivision, or community action 193.30 agency. 193.31 Sec. 16. Minnesota Statutes 1996, section 471.59, 193.32 subdivision 11, is amended to read: 193.33 Subd. 11. [JOINT POWERS BOARD.] (a) Two or more 193.34 governmental units, through action of their governing bodies, by 193.35 adoption of a joint powers agreement that complies with the 193.36 provisions of subdivisions 1 to 5, may establish a joint board 194.1 to issue bonds or obligations under any law by which any of the 194.2 governmental units establishing the joint board may 194.3 independently issue bonds or obligations and may use the 194.4 proceeds of the bonds or obligations to carry out the purposes 194.5 of the law under which the bonds or obligations are issued. A 194.6 joint board established under this section may issue obligations 194.7 and other forms of indebtedness only in accordance with express 194.8 authority granted by the action of the governing bodies of the 194.9 governmental units that established the joint board. Except as 194.10 provided in paragraph (b), the joint board established under 194.11 this subdivision must be composed solely of members of the 194.12 governing bodies of the governmental unit that established the 194.13 joint board. A joint board established under this subdivision 194.14 may not pledge the full faith and credit or taxing power of any 194.15 of the governmental units that established the joint board. The 194.16 obligations or other forms of indebtedness must be obligations 194.17 of the joint board issued on behalf of the governmental units 194.18 creating the joint board. The obligations or other forms of 194.19 indebtedness must be issued in the same manner and subject to 194.20 the same conditions and limitations that would apply if the 194.21 obligations were issued or indebtedness incurred by one of the 194.22 governmental units that established the joint board, provided 194.23 that any reference to a governmental unit in the statute, law, 194.24 or charter provision authorizing the issuance of the bonds or 194.25 the incurring of the indebtedness is considered a reference to 194.26 the joint board. 194.27 (b) Notwithstanding paragraph (a), one school district, one 194.28 county, and one public health entity, through action of their 194.29 governing bodies, may establish a joint board to establish and 194.30 govern a family services collaborative under section 121.8355. 194.31 The school district, county, and public health entity may 194.32 include other governmental entities at their discretion. The 194.33 membership of a board established under this paragraph, in 194.34 addition to members of the governing bodies of the participating 194.35 governmental units, must include the representation required by 194.36 section 121.8355, subdivision 1, paragraph (a), selected in 195.1 accordance with section 121.8355, subdivision 1, paragraph (c). 195.2 (c) Notwithstanding paragraph (a), counties, school 195.3 districts, and mental health entities, through action of their 195.4 governing bodies, may establish a joint board to establish and 195.5 govern a children's mental health collaborative under sections 195.6 245.491 to 245.496, or a collaborative established by the merger 195.7 of a children's mental health collaborative and a family 195.8 services collaborative under section 121.8355. The county, 195.9 school district, and mental health entities may include other 195.10 entities at their discretion. The membership of a board 195.11 established under this paragraph, in addition to members of the 195.12 governing bodies of the participating governmental units, must 195.13 include the representation provided by section 245.493, 195.14 subdivision 1. 195.15 Sec. 17. Minnesota Statutes 1996, section 626.556, 195.16 subdivision 10b, is amended to read: 195.17 Subd. 10b. [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN A 195.18 FACILITY.] (a) The commissioner shall immediately investigate if 195.19 the report alleges that: 195.20 (1) a child who is in the care of a facility as defined in 195.21 subdivision 2 is neglected, physically abused, or sexually 195.22 abused by an individual in that facility, or has been so 195.23 neglected or abused by an individual in that facility within the 195.24 three years preceding the report; or 195.25 (2) a child was neglected, physically abused, or sexually 195.26 abused by an individual in a facility defined in subdivision 2, 195.27 while in the care of that facility within the three years 195.28 preceding the report. 195.29 The commissioner shall arrange for the transmittal to the 195.30 commissioner of reports received by local agencies and may 195.31 delegate to a local welfare agency the duty to investigate 195.32 reports. In conducting an investigation under this section, the 195.33 commissioner has the powers and duties specified for local 195.34 welfare agencies under this section. The commissioner or local 195.35 welfare agency may interview any children who are or have been 195.36 in the care of a facility under investigation and their parents, 196.1 guardians, or legal custodians. 196.2 (b) Prior to any interview, the commissioner or local 196.3 welfare agency shall notify the parent, guardian, or legal 196.4 custodian of a child who will be interviewed in the manner 196.5 provided for in subdivision 10d, paragraph (a). If reasonable 196.6 efforts to reach the parent, guardian, or legal custodian of a 196.7 child in an out-of-home placement have failed, the child may be 196.8 interviewed if there is reason to believe the interview is 196.9 necessary to protect the child or other children in the 196.10 facility. The commissioner or local agency must provide the 196.11 information required in this subdivision to the parent, 196.12 guardian, or legal custodian of a child interviewed without 196.13 parental notification as soon as possible after the interview. 196.14 When the investigation is completed, any parent, guardian, or 196.15 legal custodian notified under this subdivision shall receive 196.16 the written memorandum provided for in subdivision 10d, 196.17 paragraph (c). 196.18 (c) In conducting investigations under this subdivision the 196.19 commissioner or local welfare agency shall obtain access to 196.20 information consistent with subdivision 10, paragraphs (h), (i), 196.21 and (j). 196.22 (d) Except for foster care and family child care, the 196.23 commissioner has the primary responsibility for the 196.24 investigations and notifications required under subdivisions 10d 196.25 and 10f for reports that allege maltreatment related to the care 196.26 provided by or in facilities licensed by the commissioner. The 196.27 commissioner may request assistance from the local social 196.28 service agency. 196.29 Sec. 18. Minnesota Statutes 1996, section 626.556, 196.30 subdivision 10d, is amended to read: 196.31 Subd. 10d. [NOTIFICATION OF NEGLECT OR ABUSE IN A 196.32 FACILITY.] (a) When a report is received that alleges neglect, 196.33 physical abuse, or sexual abuse of a child while in the care of 196.34 a facility required to be licensed pursuant tosections 245A.01196.35to 245A.16chapter 245A, the commissioner or local welfare 196.36 agency investigating the report shall provide the following 197.1 information to the parent, guardian, or legal custodian of a 197.2 child alleged to have been neglected, physically abused, or 197.3 sexually abused: the name of the facility; the fact that a 197.4 report alleging neglect, physical abuse, or sexual abuse of a 197.5 child in the facility has been received; the nature of the 197.6 alleged neglect, physical abuse, or sexual abuse; that the 197.7 agency is conducting an investigation; any protective or 197.8 corrective measures being taken pending the outcome of the 197.9 investigation; and that a written memorandum will be provided 197.10 when the investigation is completed. 197.11 (b) The commissioner or local welfare agency may also 197.12 provide the information in paragraph (a) to the parent, 197.13 guardian, or legal custodian of any other child in the facility 197.14 if the investigative agency knows or has reason to believe the 197.15 alleged neglect, physical abuse, or sexual abuse has occurred. 197.16 In determining whether to exercise this authority, the 197.17 commissioner or local welfare agency shall consider the 197.18 seriousness of the alleged neglect, physical abuse, or sexual 197.19 abuse; the number of children allegedly neglected, physically 197.20 abused, or sexually abused; the number of alleged perpetrators; 197.21 and the length of the investigation. The facility shall be 197.22 notified whenever this discretion is exercised. 197.23 (c) When the commissioner or local welfare agency has 197.24 completed its investigation, every parent, guardian, or legal 197.25 custodian notified of the investigation by the commissioner or 197.26 local welfare agency shall be provided with the following 197.27 information in a written memorandum: the name of the facility 197.28 investigated; the nature of the alleged neglect, physical abuse, 197.29 or sexual abuse; the investigator's name; a summary of the 197.30 investigation findings; a statement whether maltreatment was 197.31 found; and the protective or corrective measures that are being 197.32 or will be taken. The memorandum shall be written in a manner 197.33 that protects the identity of the reporter and the child and 197.34 shall not contain the name, or to the extent possible, reveal 197.35 the identity of the alleged perpetrator or of those interviewed 197.36 during the investigation. The commissioner or local welfare 198.1 agency shall also provide the written memorandum to the parent, 198.2 guardian, or legal custodian of each child in the facility if 198.3 maltreatment is determined to exist. 198.4 Sec. 19. Minnesota Statutes 1996, section 626.556, 198.5 subdivision 10e, is amended to read: 198.6 Subd. 10e. [DETERMINATIONS.] Upon the conclusion of every 198.7 assessment or investigation it conducts, the local welfare 198.8 agency shall make two determinations: first, whether 198.9 maltreatment has occurred; and second, whether child protective 198.10 services are needed. When maltreatment is determined in an 198.11 investigation involving a facility, the investigating agency 198.12 shall also determine whether the facility or individual was 198.13 responsible for the maltreatment using the mitigating factors in 198.14 paragraph (d). Determinations under this subdivision must be 198.15 made based on a preponderance of the evidence. 198.16 (a) For the purposes of this subdivision, "maltreatment" 198.17 means any of the following acts or omissions committed by a 198.18 person responsible for the child's care: 198.19 (1) physical abuse as defined in subdivision 2, paragraph 198.20 (d); 198.21 (2) neglect as defined in subdivision 2, paragraph (c); 198.22 (3) sexual abuse as defined in subdivision 2, paragraph 198.23 (a); or 198.24 (4) mental injury as defined in subdivision 2, paragraph 198.25 (k). 198.26 (b) For the purposes of this subdivision, a determination 198.27 that child protective services are needed means that the local 198.28 welfare agency has documented conditions during the assessment 198.29 or investigation sufficient to cause a child protection worker, 198.30 as defined in section 626.559, subdivision 1, to conclude that a 198.31 child is at significant risk of maltreatment if protective 198.32 intervention is not provided and that the individuals 198.33 responsible for the child's care have not taken or are not 198.34 likely to take actions to protect the child from maltreatment or 198.35 risk of maltreatment. 198.36 (c) This subdivision does not mean that maltreatment has 199.1 occurred solely because the child's parent, guardian, or other 199.2 person responsible for the child's care in good faith selects 199.3 and depends upon spiritual means or prayer for treatment or care 199.4 of disease or remedial care of the child, in lieu of medical 199.5 care. However, if lack of medical care may result in serious 199.6 danger to the child's health, the local welfare agency may 199.7 ensure that necessary medical services are provided to the child. 199.8 (d) When determining whether the facility or individual is 199.9 the responsible party for determined maltreatment in a facility, 199.10 the investigating agency shall consider at least the following 199.11 mitigating factors: 199.12 (1) whether the actions of the facility or the individual 199.13 caregivers were in accordance with, and followed the terms of, 199.14 an erroneous physician order, prescription, individual care 199.15 plan, or directive; however, this is not a mitigating factor 199.16 when the facility or caregiver was responsible for the issuance 199.17 of the erroneous order, prescription, individual care plan, or 199.18 directive or knew or should have known of the errors and took no 199.19 reasonable measures to correct the defect before administering 199.20 care; 199.21 (2) comparative responsibility between the facility, other 199.22 caregivers, and requirements placed upon an employee, including 199.23 the facility's compliance with related regulatory standards and 199.24 the adequacy of facility policies and procedures, facility 199.25 training, an individual's participation in the training, the 199.26 caregiver's supervision, and facility staffing levels and the 199.27 scope of the individual employee's authority and discretion; and 199.28 (3) whether the facility or individual followed 199.29 professional standards in exercising professional judgment. 199.30 Sec. 20. Minnesota Statutes 1996, section 626.556, 199.31 subdivision 10f, is amended to read: 199.32 Subd. 10f. [NOTICE OF DETERMINATIONS.] Within ten working 199.33 days of the conclusion of an assessment, the local welfare 199.34 agency shall notify the parent or guardian of the child, the 199.35 person determined to be maltreating the child, and if 199.36 applicable, the director of the facility, of the determination 200.1 and a summary of the specific reasons for the determination. 200.2 The notice must also include a certification that the 200.3 information collection procedures under subdivision 10, 200.4 paragraphs (h), (i), and (j), were followed and a notice of the 200.5 right of a data subject to obtain access to other private data 200.6 on the subject collected, created, or maintained under this 200.7 section. In addition, the notice shall include the length of 200.8 time that the records will be kept under subdivision 11c. When 200.9 there is no determination of either maltreatment or a need for 200.10 services, the notice shall also include the alleged 200.11 perpetrator's right to have the records destroyed. The 200.12 investigating agency shall notify the designee of the child who 200.13 is the subject of the report, and any person or facility 200.14 determined to have maltreated a child, of their appeal rights 200.15 under this section. 200.16 Sec. 21. Minnesota Statutes 1996, section 626.556, is 200.17 amended by adding a subdivision to read: 200.18 Subd. 10i. [ADMINISTRATIVE RECONSIDERATION OF THE FINAL 200.19 DETERMINATION OF MALTREATMENT.] (a) An individual or facility 200.20 that the commissioner or a local social service agency 200.21 determines has maltreated a child, or the child's designee, 200.22 regardless of the determination, who contests the investigating 200.23 agency's final determination regarding maltreatment, may request 200.24 the investigating agency to reconsider its final determination 200.25 regarding maltreatment. The request for reconsideration must be 200.26 submitted in writing to the investigating agency within 15 200.27 calendar days after receipt of notice of the final determination 200.28 regarding maltreatment. 200.29 (b) If the investigating agency denies the request or fails 200.30 to act upon the request within 15 calendar days after receiving 200.31 the request for reconsideration, the person or facility entitled 200.32 to a fair hearing under section 256.045 may submit to the 200.33 commissioner of human services a written request for a hearing 200.34 under that section. 200.35 (c) If, as a result of the reconsideration, the 200.36 investigating agency changes the final determination of 201.1 maltreatment, it shall notify the parties specified in 201.2 subdivisions 10b, 10d, and 10f. 201.3 Sec. 22. Minnesota Statutes 1996, section 626.556, 201.4 subdivision 11c, is amended to read: 201.5 Subd. 11c. [WELFARE, COURT SERVICES AGENCY, AND SCHOOL 201.6 RECORDS MAINTAINED.] Notwithstanding sections 138.163 and 201.7 138.17, records maintained or records derived from reports of 201.8 abuse by local welfare agencies, court services agencies, or 201.9 schools under this section shall be destroyed as provided in 201.10 paragraphs (a) to (d) by the responsible authority. 201.11 (a) If upon assessment or investigation there is no 201.12 determination of maltreatment or the need for child protective 201.13 services, the records may be maintained for a period of four 201.14 years. After the individual alleged to have maltreated a child 201.15 is notified under subdivision 10f of the determinations at the 201.16 conclusion of the assessment or investigation, upon that 201.17 individual's request, records shall be destroyed within 30 201.18 days or after the appeal rights under subdivision 10i have been 201.19 concluded, whichever is later. 201.20 (b) All records relating to reports which, upon assessment 201.21 or investigation, indicate either maltreatment or a need for 201.22 child protective services shall be maintained for at least ten 201.23 years after the date of the final entry in the case record. 201.24 (c) All records regarding a report of maltreatment, 201.25 including any notification of intent to interview which was 201.26 received by a school under subdivision 10, paragraph (d), shall 201.27 be destroyed by the school when ordered to do so by the agency 201.28 conducting the assessment or investigation. The agency shall 201.29 order the destruction of the notification when other records 201.30 relating to the report under investigation or assessment are 201.31 destroyed under this subdivision. 201.32 (d) Private or confidential data released to a court 201.33 services agency under subdivision 10h must be destroyed by the 201.34 court services agency when ordered to do so by the local welfare 201.35 agency that released the data. The local welfare agency shall 201.36 order destruction of the data when other records relating to the 202.1 assessment or investigation are destroyed under this subdivision. 202.2 Sec. 23. Minnesota Statutes 1996, section 626.558, 202.3 subdivision 1, is amended to read: 202.4 Subdivision 1. [ESTABLISHMENT OF THE TEAM.] A county shall 202.5 establish a multidisciplinary child protection team that may 202.6 include, but not be limited to, the director of the local 202.7 welfare agency or designees, the county attorney or designees, 202.8 the county sheriff or designees, representatives of health and 202.9 education, representatives of mental health or other appropriate 202.10 human service or community-based agencies, and parent groups. 202.11 As used in this section, a "community-based agency" may include, 202.12 but is not limited to, schools, social service agencies, family 202.13 service and mental health collaboratives, early childhood and 202.14 family education programs, Head Start, or other agencies serving 202.15 children and families. 202.16 Sec. 24. Minnesota Statutes 1996, section 626.558, 202.17 subdivision 2, is amended to read: 202.18 Subd. 2. [DUTIES OF TEAM.] A multidisciplinary child 202.19 protection team may provide public and professional education, 202.20 develop resources for prevention, intervention, and treatment, 202.21 and provide case consultation to the local welfare agencyto202.22better enable the agency to carry out its child protection202.23functions under section 626.556 and the community social202.24services act.or other interested community-based agencies. The 202.25 community-based agencies may request case consultation from the 202.26 multidisciplinary child protection team regarding a child or 202.27 family for whom the community-based agency is providing 202.28 services. As used in this section, "case consultation" means a 202.29 case review process in which recommendations are made concerning 202.30 services to be provided to the identified children and family. 202.31 Case consultation may be performed by a committee or 202.32 subcommittee of members representing human services, including 202.33 mental health and chemical dependency; law enforcement, 202.34 including probation and parole; the county attorney; health 202.35 care; education; community-based agencies and other necessary 202.36 agencies; and persons directly involved in an individual case as 203.1 designated by other members performing case consultation. 203.2 Sec. 25. Minnesota Statutes 1996, section 626.559, 203.3 subdivision 5, is amended to read: 203.4 Subd. 5. [TRAININGREVENUE.] The commissioner of human 203.5 services shall add the following funds to the funds appropriated 203.6 under section 626.5591, subdivision 2, to develop and support 203.7 training: 203.8 (a) The commissioner of human services shall submit claims 203.9 for federal reimbursement earned through the activities and 203.10 services supported through department of human services child 203.11 protection or child welfare training funds. Federal revenue 203.12 earned must be used to improve and expand training services by 203.13 the department. The department expenditures eligible for 203.14 federal reimbursement under this section must not be made from 203.15 federal funds or funds used to match other federal funds. 203.16 (b) Each year, the commissioner of human services shall 203.17 withhold from funds distributed to each county under Minnesota 203.18 Rules, parts 9550.0300 to 9550.0370, an amount equivalent to 1.5 203.19 percent of each county's annual Title XX allocation under 203.20 section 256E.07. The commissioner must use these funds to 203.21 ensure decentralization of training. 203.22 (c) The federal revenueearnedunder this subdivision is 203.23 available for these purposes until the funds are expended. 203.24 Sec. 26. [EVALUATION REPORT REQUIRED.] 203.25 The commissioner shall report the results of the evaluation 203.26 required under section 5 to the chairs of the house and senate 203.27 health and human services policy committees by January 1, 1999. 203.28 Sec. 27. [UNIFORM CONTRIBUTION SCHEDULE FOR OUT-OF-HOME 203.29 PLACEMENT; REPORT.] 203.30 The commissioner of human services shall prepare 203.31 recommendations and report to the 1998 legislature regarding a 203.32 uniform relative contribution schedule to reimburse costs 203.33 associated with out-of-home placement. The commissioner shall 203.34 use the child support guidelines in Minnesota Statutes, chapter 203.35 518, as the basis for the uniform contribution schedule. The 203.36 recommendations and report are due December 1, 1997. 204.1 Sec. 28. [MALTREATMENT OF MINORS ADVISORY COMMITTEE.] 204.2 The commissioner of human services, with the cooperation of 204.3 the commissioners of health and children, families, and learning 204.4 and the attorney general, shall establish an advisory committee 204.5 to review the Maltreatment of Minors Act, Minnesota Statutes, 204.6 section 626.556, to determine whether existing state policy and 204.7 procedures for protecting children who are at risk of 204.8 maltreatment in the home, school, or community are effective. 204.9 The committee shall include consumers, advocacy and 204.10 provider organizations, county practitioners and administrators, 204.11 school districts, law enforcement agencies, communities of 204.12 color, professional associations, labor organizations, office of 204.13 the ombudsman for mental health and mental retardation, and the 204.14 commissioners of health, human services, and children, families, 204.15 and learning. 204.16 In making recommendations, the advisory committee shall 204.17 review all services and protections available under existing 204.18 state and federal laws with the focus on eliminating duplication 204.19 of effort among various local, state, and federal agencies and 204.20 minimizing possible conflicts of interest by establishing a 204.21 statewide process of coordination of responsibilities. The 204.22 advisory committee shall submit a report to the legislature by 204.23 February 15, 1998, that includes a detailed plan with specific 204.24 law, rule, or administrative procedure changes to implement the 204.25 recommendations. 204.26 ARTICLE 6 204.27 CHILD SUPPORT ENFORCEMENT 204.28 Section 1. Minnesota Statutes 1996, section 13.46, 204.29 subdivision 2, is amended to read: 204.30 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 204.31 a statute specifically provides a different classification, data 204.32 on individuals collected, maintained, used, or disseminated by 204.33 the welfare system is private data on individuals, and shall not 204.34 be disclosed except: 204.35 (1)pursuantaccording to section 13.05; 204.36 (2)pursuantaccording to court order; 205.1 (3)pursuantaccording to a statute specifically 205.2 authorizing access to the private data; 205.3 (4) to an agent of the welfare system, including a law 205.4 enforcement person, attorney, or investigator acting for it in 205.5 the investigation or prosecution of a criminal or civil 205.6 proceeding relating to the administration of a program; 205.7 (5) to personnel of the welfare system who require the data 205.8 to determine eligibility, amount of assistance, and the need to 205.9 provide services of additional programs to the individual; 205.10 (6) to administer federal funds or programs; 205.11 (7) between personnel of the welfare system working in the 205.12 same program; 205.13 (8) the amounts of cash public assistance and relief paid 205.14 to welfare recipients in this state, including their names, 205.15 social security numbers, income, addresses, and other data as 205.16 required, upon request by the department of revenue to 205.17 administer the property tax refund law, supplemental housing 205.18 allowance, early refund of refundable tax credits, and the 205.19 income tax. "Refundable tax credits" means the dependent care 205.20 credit under section 290.067, the Minnesota working family 205.21 credit under section 290.0671, the property tax refund under 205.22 section 290A.04, and, if the required federal waiver or waivers 205.23 are granted, the federal earned income tax credit under section 205.24 32 of the Internal Revenue Code; 205.25 (9) to the Minnesota department of economic security for 205.26 the purpose of monitoring the eligibility of the data subject 205.27 for reemployment insurance, for any employment or training 205.28 program administered, supervised, or certified by that agency, 205.29 or for the purpose of administering any rehabilitation program, 205.30 whether alone or in conjunction with the welfare system, and to 205.31 verify receipt of energy assistance for the telephone assistance 205.32 plan; 205.33 (10) to appropriate parties in connection with an emergency 205.34 if knowledge of the information is necessary to protect the 205.35 health or safety of the individual or other individuals or 205.36 persons; 206.1 (11) data maintained by residential programs as defined in 206.2 section 245A.02 may be disclosed to the protection and advocacy 206.3 system established in this statepursuantaccording to Part C of 206.4 Public Law Number 98-527 to protect the legal and human rights 206.5 of persons with mental retardation or other related conditions 206.6 who live in residential facilities for these persons if the 206.7 protection and advocacy system receives a complaint by or on 206.8 behalf of that person and the person does not have a legal 206.9 guardian or the state or a designee of the state is the legal 206.10 guardian of the person; 206.11 (12) to the county medical examiner or the county coroner 206.12 for identifying or locating relatives or friends of a deceased 206.13 person; 206.14 (13) data on a child support obligor who makes payments to 206.15 the public agency may be disclosed to the higher education 206.16 services office to the extent necessary to determine eligibility 206.17 under section 136A.121, subdivision 2, clause (5); 206.18 (14) participant social security numbers and names 206.19 collected by the telephone assistance program may be disclosed 206.20 to the department of revenue to conduct an electronic data match 206.21 with the property tax refund database to determine eligibility 206.22 under section 237.70, subdivision 4a; 206.23 (15) the current address of a recipient of aid to families 206.24 with dependent children may be disclosed to law enforcement 206.25 officers who provide the name and social security number of the 206.26 recipient and satisfactorily demonstrate that: (i) the 206.27 recipient is a fugitive felon, including the grounds for this 206.28 determination; (ii) the location or apprehension of the felon is 206.29 within the law enforcement officer's official duties; and (iii) 206.30 the request is made in writing and in the proper exercise of 206.31 those duties; 206.32 (16) the current address of a recipient of general 206.33 assistance, work readiness, or general assistance medical care 206.34 may be disclosed to probation officers and corrections agents 206.35 who are supervising the recipient, and to law enforcement 206.36 officers who are investigating the recipient in connection with 207.1 a felony level offense; 207.2 (17) information obtained from food stamp applicant or 207.3 recipient households may be disclosed to local, state, or 207.4 federal law enforcement officials, upon their written request, 207.5 for the purpose of investigating an alleged violation of the 207.6 food stamp act, in accordance with Code of Federal Regulations, 207.7 title 7, section 272.1(c); 207.8 (18) data on a child support obligor who is in arrears may 207.9 be disclosed for purposes of publishing the data pursuant to 207.10 section 518.575; 207.11 (19) data on child support payments made by a child support 207.12 obligor may be disclosed to the obligee; 207.13 (20) data in the work reporting system may be disclosed 207.14 under section 256.998, subdivision 7; 207.15 (21) to the department of children, families, and learning 207.16 for the purpose of matching department of children, families, 207.17 and learning student data with public assistance data to 207.18 determine students eligible for free and reduced price meals, 207.19 meal supplements, and free milkpursuantaccording to United 207.20 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 207.21 and 1773; to produce accurate numbers of students receiving aid 207.22 to families with dependent children as required by section 207.23 124.175; and to allocate federal and state funds that are 207.24 distributed based on income of the student's family;or207.25 (22) the current address and telephone number of program 207.26 recipients and emergency contacts may be released to the 207.27 commissioner of health or a local board of health as defined in 207.28 section 145A.02, subdivision 2, when the commissioner or local 207.29 board of health has reason to believe that a program recipient 207.30 is a disease case, carrier, suspect case, or at risk of illness, 207.31 and the data are necessary to locate the person.; or 207.32 (23) to other agencies, statewide systems, and political 207.33 subdivisions of this state, including the attorney general, and 207.34 agencies of other states, interstate information networks, 207.35 federal agencies, and other entities as required by federal 207.36 regulation or law for the administration of the child support 208.1 enforcement program. 208.2 (b) Information on persons who have been treated for drug 208.3 or alcohol abuse may only be disclosed in accordance with the 208.4 requirements of Code of Federal Regulations, title 42, sections 208.5 2.1 to 2.67. 208.6 (c) Data provided to law enforcement agencies under 208.7 paragraph (a), clause (15), (16), or (17), or paragraph (b), are 208.8 investigative data and are confidential or protected nonpublic 208.9 while the investigation is active. The data are private after 208.10 the investigation becomes inactive under section 13.82, 208.11 subdivision 5, paragraph (a) or (b). 208.12 (d) Mental health data shall be treated as provided in 208.13 subdivisions 7, 8, and 9, but is not subject to the access 208.14 provisions of subdivision 10, paragraph (b). 208.15 Sec. 2. Minnesota Statutes 1996, section 13.99, is amended 208.16 by adding a subdivision to read: 208.17 Subd. 101d. [CHILD SUPPORT PARTIES.] Certain data 208.18 regarding the location of parties in connection with child 208.19 support proceedings are governed by sections 256.87, subdivision 208.20 8; 257.70; and 518.005, subdivision 5. Certain data on newly 208.21 hired employees maintained by the public authority for support 208.22 enforcement are governed by section 256.998. 208.23 Sec. 3. [13B.06] [CHILD SUPPORT OR MAINTENANCE OBLIGOR 208.24 DATA MATCHES.] 208.25 Subdivision 1. [DEFINITIONS.] The definitions in this 208.26 subdivision apply to this section. 208.27 (a) "Account" means a demand deposit account, checking or 208.28 negotiable withdraw order account, savings account, time deposit 208.29 account, or money market mutual fund. 208.30 (b) "Account information" means the type of account, the 208.31 account number, whether the account is singly or jointly owned, 208.32 and, in the case of jointly owned accounts, the name and address 208.33 of the nonobligor account owner if available. 208.34 (c) "Financial institution" means any of the following that 208.35 do business within the state: 208.36 (1) federal or state commercial banks and federal or state 209.1 savings banks, including savings and loan associations and 209.2 cooperative banks; 209.3 (2) federal and state chartered credit unions; 209.4 (3) benefit associations; 209.5 (4) life insurance companies; 209.6 (5) safe deposit companies; and 209.7 (6) money market mutual funds. 209.8 (d) "Obligor" means an individual who is in arrears in 209.9 court-ordered child support or maintenance payments, or both, in 209.10 an amount equal to or greater than three times the obligor's 209.11 total monthly support and maintenance payments, irrespective of 209.12 when the arrears arose, and is not in compliance with a written 209.13 payment agreement regarding both current support and arrearages 209.14 approved by the court, an administrative law judge, or the 209.15 public authority. 209.16 (e) "Public authority" means the public authority 209.17 responsible for child support enforcement. 209.18 Subd. 2. [DATA MATCH SYSTEM ESTABLISHED.] The commissioner 209.19 of human services shall establish a process for the comparison 209.20 of account information data held by financial institutions with 209.21 the public authority's database of child support obligors. The 209.22 commissioner shall inform the financial industry of the 209.23 requirements of this section and the means by which financial 209.24 institutions can comply. The commissioner may contract for 209.25 services to carry out this section. 209.26 Subd. 3. [DUTY TO PROVIDE DATA.] On written request by a 209.27 public authority, a financial institution shall provide to the 209.28 public authority on a quarterly basis the name, address, social 209.29 security number, tax identification number if known, and all 209.30 account information for each obligor who maintains an account at 209.31 the financial institution. 209.32 Subd. 4. [METHOD TO PROVIDE DATA.] (a) To comply with the 209.33 requirements of this section, a financial institution may either: 209.34 (1) provide to the public authority a list of all account 209.35 holders for the public authority to compare against its list of 209.36 child support obligors for the purpose of identifying which 210.1 obligors maintain an account at the financial institution; or 210.2 (2) obtain a list of child support obligors from the public 210.3 authority and compare that data to the data maintained at the 210.4 financial institution to identify which of the identified 210.5 obligors maintains an account at the financial institution. 210.6 (b) A financial institution shall elect either method in 210.7 writing upon written request of the public authority, and the 210.8 election remains in effect unless the public authority agrees in 210.9 writing to a change. 210.10 (c) The commissioner shall keep track of the number of 210.11 financial institutions who are electing to report under 210.12 paragraph (a), clauses (1) and (2), respectively, and shall 210.13 report this information to the legislature by December 1, 1999. 210.14 Subd. 5. [MEANS TO PROVIDE DATA.] A financial institution 210.15 may provide the required data by submitting electronic media in 210.16 a compatible format, delivering, mailing, or telefaxing a copy 210.17 of the data, or by other means authorized by the commissioner of 210.18 human services that will result in timely reporting. 210.19 Subd. 6. [ACCESS TO DATA.] (a) With regard to account 210.20 information on all account holders provided by a financial 210.21 institution under subdivision 4, paragraph (a), clause (1), the 210.22 commissioner of human services shall retain the reported 210.23 information only until the account information is compared 210.24 against the public authority's obligor database. 210.25 Notwithstanding section 138.17, all account information that 210.26 does not pertain to an obligor listed in the public authority's 210.27 database must be immediately discarded, and no retention or 210.28 publication may be made of that data by the public authority. 210.29 All account information that does pertain to an obligor listed 210.30 in the public authority's database must be incorporated into the 210.31 public authority's database. Access to that data is governed by 210.32 chapter 13. 210.33 (b) With regard to data on obligors provided by the public 210.34 authority to a financial institution under subdivision 4, 210.35 paragraph (a), clause (2), the financial institution shall 210.36 retain the reported information only until the financial 211.1 institution's database is compared against the public 211.2 authority's database. All data that does not pertain to an 211.3 account holder at the financial institution must be immediately 211.4 discarded, and no retention or publication may be made of that 211.5 data by the financial institution. 211.6 Subd. 7. [FEES.] A financial institution may charge and 211.7 collect a fee from the public authority for providing account 211.8 information to the public authority. No financial institution 211.9 shall charge or collect a fee that exceeds its actual costs of 211.10 complying with this section. The commissioner, together with an 211.11 advisory group consisting of representatives of the financial 211.12 institutions in the state, shall determine a fee structure that 211.13 minimizes the cost to the state and reasonably meets the needs 211.14 of the financial institutions, and shall report to the chairs of 211.15 the judiciary committees in the house of representatives and the 211.16 senate by February 1, 1998, a recommended fee structure for 211.17 inclusion in this section. 211.18 Subd. 8. [FAILURE TO RESPOND TO REQUEST FOR 211.19 INFORMATION.] The public authority shall send by certified mail 211.20 a written notice of noncompliance to a financial institution 211.21 that fails to respond to a first written request for information 211.22 under this section. The notice of noncompliance must explain 211.23 the requirements of this section and advise the financial 211.24 institution of the penalty for noncompliance. A financial 211.25 institution that receives a second notice of noncompliance is 211.26 subject to a civil penalty of $1,000 for its failure to comply. 211.27 A financial institution that continues to fail to comply with 211.28 this section is subject to a civil penalty of $5,000 for the 211.29 third and each subsequent failure to comply. These penalties 211.30 may be imposed and collected by the public authority. 211.31 A financial institution that has been served with a notice 211.32 of noncompliance and incurs a second or subsequent notice of 211.33 noncompliance has the right to a contested case hearing under 211.34 chapter 14. A financial institution has 20 days from the date 211.35 of the service of the notice of noncompliance to file a request 211.36 for a contested case hearing with the commissioner. The order 212.1 of the administrative law judge constitutes the final decision 212.2 in the case. 212.3 Subd. 9. [IMMUNITY.] A financial institution that provides 212.4 or reasonably attempts to provide information to the public 212.5 authority in compliance with this section is not liable to any 212.6 person for disclosing the information or for taking any other 212.7 action in good faith as authorized by this section or section 212.8 548.092. 212.9 Subd. 10. [CIVIL ACTION FOR UNAUTHORIZED DISCLOSURE BY 212.10 FINANCIAL INSTITUTION.] (a) An account holder may bring a civil 212.11 action in district court against a financial institution for 212.12 unauthorized disclosure of data received from the public 212.13 authority under subdivision 4, paragraph (a), clause (2). A 212.14 financial institution found to have violated this subdivision 212.15 shall be liable as provided in paragraph (b) or (c). 212.16 (b) Any financial institution that willfully and 212.17 maliciously discloses data received from the public authority 212.18 under subdivision 4 is liable to that account holder in an 212.19 amount equal to the sum of: 212.20 (1) any actual damages sustained by the consumer as a 212.21 result of the disclosure; and 212.22 (2) in the case of any successful action to enforce any 212.23 liability under this section, the costs of the action taken and 212.24 reasonable attorney fees as determined by the court. 212.25 (c) Any financial institution that negligently discloses 212.26 data received from the public authority under subdivision 4 is 212.27 liable to that account holder in an amount equal to any actual 212.28 damages sustained by the account holder as a result of the 212.29 disclosure. 212.30 (d) A financial institution may not be held liable in any 212.31 action brought under this subdivision if the financial 212.32 institution shows, by a preponderance of evidence, that the 212.33 disclosure was not intentional and resulted from a bona fide 212.34 error notwithstanding the maintenance of procedures reasonably 212.35 adapted to avoid any error. 212.36 Sec. 4. [256.741] [CHILD SUPPORT AND MAINTENANCE.] 213.1 Subdivision 1. [PUBLIC ASSISTANCE.] (a) The term "public 213.2 assistance" as used in this chapter and chapters 257, 518, and 213.3 518C includes any form of cash assistance provided under Title 213.4 IV-A of the Social Security Act, including child care 213.5 assistance; any form of medical assistance as defined under 213.6 Title XIX of the Social Security Act, including MinnesotaCare; 213.7 and foster care as provided under Title IV-E of the Social 213.8 Security Act. 213.9 (b) The term "child support agency" as used in this section 213.10 refers to the public authority responsible for child support 213.11 enforcement. 213.12 (c) The term "public assistance agency" as used in this 213.13 section refers to any public authority providing public 213.14 assistance to an individual. 213.15 Subd. 2. [ASSIGNMENT OF SUPPORT AND MAINTENANCE 213.16 RIGHTS.] (a) An individual receiving public assistance in the 213.17 form of cash assistance is considered to have assigned to the 213.18 state at the time of application all rights to child support and 213.19 maintenance from any other person the applicant or recipient may 213.20 have in the individual's own behalf or in the behalf of any 213.21 other family member for whom application for public assistance 213.22 is made. An assistance unit is ineligible for aid to families 213.23 with dependent children or its successor program unless the 213.24 caregiver assigns all rights to child support and spousal 213.25 maintenance benefits under this section. 213.26 (1) An assignment made according to this section is 213.27 effective as to: 213.28 (i) any current child support and current spousal 213.29 maintenance; and 213.30 (ii) any accrued child support and spousal maintenance 213.31 arrears. 213.32 (2) An assignment made after September 30, 1997, is 213.33 effective as to: 213.34 (i) any current child support and current spousal 213.35 maintenance; 213.36 (ii) any accrued child support and spousal maintenance 214.1 arrears collected before October 1, 2000; and 214.2 (iii) any accrued child support and spousal maintenance 214.3 arrears collected under federal tax intercept. 214.4 (b) An individual receiving public assistance in the form 214.5 of medical assistance, including MinnesotaCare, is considered to 214.6 have assigned to the state at the time of application all rights 214.7 to medical support from any other person the individual may have 214.8 in the individual's own behalf or in the behalf of any other 214.9 family member for whom medical assistance is provided. 214.10 An assignment made after September 30, 1997, is effective 214.11 as to any medical support accruing after the date of medical 214.12 assistance or MinnesotaCare eligibility. 214.13 (c) An individual receiving public assistance in the form 214.14 of child care assistance under title IV-A of the Social Security 214.15 Act is considered to have assigned to the state at the time of 214.16 application all rights to child care support from any other 214.17 person the individual may have in the individual's own behalf or 214.18 in the behalf of any other family member for whom child care 214.19 assistance is provided. 214.20 An assignment made according to this paragraph is effective 214.21 as to: 214.22 (1) any current child care support and any child care 214.23 support arrears assigned and accruing after the effective date 214.24 of this section that are collected before October 1, 2000; and 214.25 (2) any accrued child care support arrears collected under 214.26 federal tax intercept. 214.27 Subd. 3. [EXISTING ASSIGNMENTS.] All assignments based on 214.28 the receipt of public assistance in existence prior to the 214.29 effective date of this section are permanently assigned to the 214.30 state. 214.31 Subd. 4. [EFFECT OF ASSIGNMENT.] All assignments in this 214.32 section take effect upon a determination that the applicant is 214.33 eligible for public assistance. The amount of support assigned 214.34 under this subdivision cannot exceed the total amount of public 214.35 assistance issued. 214.36 Subd. 5. [COOPERATION WITH CHILD SUPPORT 215.1 ENFORCEMENT.] After notification from a public assistance agency 215.2 that an individual has applied for or is receiving any form of 215.3 public assistance, the child support agency shall determine 215.4 whether the party is cooperating with the agency in establishing 215.5 paternity, child support, modification of an existing child 215.6 support order, or enforcement of an existing child support 215.7 order. The public assistance agency shall notify each applicant 215.8 or recipient in writing of the right to claim a good cause 215.9 exemption from cooperating with the requirements in this 215.10 section. A copy of the notice shall be furnished to the 215.11 applicant or recipient, and the applicant or recipient and a 215.12 representative from the public authority shall acknowledge 215.13 receipt of the notice by signing and dating a copy of the notice. 215.14 The individual shall cooperate with the child support 215.15 agency by: 215.16 (1) providing all known information regarding the alleged 215.17 father or obligor including name, address, social security 215.18 number, telephone number, place of employment or school, and the 215.19 names and addresses of any relatives; 215.20 (2) appearing at interviews, hearings, and legal 215.21 proceedings; 215.22 (3) submitting to genetic tests including genetic testing 215.23 of the child, under a judicial or administrative order; and 215.24 (4) providing additional information known by the 215.25 individual as necessary for cooperating in good faith with the 215.26 child support agency. 215.27 The caregiver of a minor child shall cooperate with the 215.28 efforts of the public authority to collect support according to 215.29 this subdivision. A caregiver shall forward to the public 215.30 authority all support the caregiver receives during the period 215.31 the assignment of support required under section 256.741, 215.32 subdivision 1, is in effect. Support received by a caregiver, 215.33 and not forwarded to the public authority, must be repaid to the 215.34 child support enforcement unit for any month following the date 215.35 on which initial eligibility is determined, except as provided 215.36 under subdivision 8, paragraph (b), clause (4). 216.1 Subd. 6. [DETERMINATION.] If the individual cannot provide 216.2 the information required in subdivision 5, before making a 216.3 determination that the individual is cooperating, the child 216.4 support agency shall make a finding that the individual could 216.5 not reasonably be expected to provide the information. In 216.6 making this finding, the child support agency shall consider: 216.7 (1) the age of the child for whom support is being sought; 216.8 (2) the circumstances surrounding the conception of the 216.9 child; 216.10 (3) the age and mental capacity of the parent or caregiver 216.11 of the child for whom support is being sought; 216.12 (4) the time period that has expired since the parent or 216.13 caregiver of the child for whom support is sought last had 216.14 contact with the alleged father or obligor, or such person's 216.15 relatives; and 216.16 (5) statements from the applicant or recipient or other 216.17 individuals that show evidence of an inability to provide 216.18 correct information about the alleged father or obligor because 216.19 of deception by the alleged father or obligor. 216.20 Subd. 7. [NONCOOPERATION.] Unless good cause is found to 216.21 exist under subdivision 10, upon a determination of 216.22 noncooperation by the child support agency, the agency shall 216.23 promptly notify the individual and each public assistance agency 216.24 providing public assistance to the individual that the 216.25 individual is not cooperating with the child support agency. 216.26 Upon notice of noncooperation, the individual shall be 216.27 sanctioned in the amount determined according to the public 216.28 assistance agency responsible for enforcing the sanction. 216.29 Subd. 8. [REFUSAL TO COOPERATE WITH SUPPORT 216.30 REQUIREMENTS.] (a) Failure by a caregiver to satisfy any of the 216.31 requirements of subdivision 5 constitutes refusal to cooperate, 216.32 and the sanctions under subdivision 8a apply. The IV-D agency 216.33 must determine whether a caregiver has refused to cooperate 216.34 according to the applicable provisions of this section. 216.35 (b) Determination by the IV-D agency that a caregiver has 216.36 refused to cooperate shall give rise to sanctions under 217.1 subdivision 8a. 217.2 Subd. 8a. [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 217.3 REQUIREMENTS.] (a) The grant of an MFIP-S caregiver who refuses 217.4 to cooperate, as determined by the child support enforcement 217.5 agency, with support requirements under this section and section 217.6 256J.30, if enacted, must be reduced by 25 percent, and the 217.7 assistance unit's rent and utilities, if any, shall be vendor 217.8 paid up to the amount of the reduced MFIP-S grant. The residual 217.9 amount of the grant, if any, must be paid to the caregiver. A 217.10 sanction under this subdivision becomes effective ten days after 217.11 the required notice is given. The sanction must be in effect 217.12 for a minimum of one month, and shall be removed only when the 217.13 caregiver cooperates with the support requirements. For 217.14 purposes of this subdivision, each month that a participant 217.15 fails to comply with a requirement of section 256J.30, if 217.16 enacted, shall be considered a separate occurrence of 217.17 noncompliance. A participant who has had one or more sanctions 217.18 imposed must remain in compliance with the provisions of this 217.19 chapter for 12 months in order for a subsequent sanction to be 217.20 considered a first occurrence. A sanction under this 217.21 subdivision is not subject to the notice requirements of section 217.22 256J.57, subdivision 2, if enacted. 217.23 (b) For a participant who is subject concurrently to 217.24 sanctions under paragraph (a) and sanctions under section 217.25 256J.46, subdivision 2, if enacted, for failure to comply with 217.26 other program requirements, the sanctions shall be prescribed in 217.27 the order and manner in this paragraph. The participant's grant 217.28 must be reduced by 25 percent, and the assistance unit's rent 217.29 and utilities shall be vendor paid up to the amount of the 217.30 reduced grant, as provided in subdivision 1. The residual 217.31 amount of the grant after vendor payment, if any, must be 217.32 reduced by ten percent of the applicable transitional standard 217.33 before it is paid to the participant. If the assistance unit is 217.34 a two-parent family and both parents are in noncompliance under 217.35 this subdivision, the residual amount of the grant, if any, must 217.36 be reduced by an additional five percent of the applicable 218.1 transitional standard before it is paid to the participant. The 218.2 sanction must be in effect for a minimum of one month, and shall 218.3 be removed only when the participant is in compliance. 218.4 Subd. 9. [GOOD CAUSE EXEMPTION FROM COOPERATING WITH 218.5 SUPPORT REQUIREMENTS.] The IV-A or IV-D agency must notify the 218.6 caregiver that the caregiver may claim a good cause exemption 218.7 from cooperating with the requirements in subdivision 5. Good 218.8 cause may be claimed and exemptions determined according to 218.9 subdivisions 10 to 13. 218.10 Subd. 10. [GOOD CAUSE EXEMPTION.] (a) Cooperation with the 218.11 child support agency under subdivision 5 is not necessary if the 218.12 individual asserts, and both the child support agency and the 218.13 public assistance agency find, good cause exists under this 218.14 subdivision for failing to cooperate. An individual may request 218.15 a good cause exemption by filing a written claim with the public 218.16 assistance agency on a form provided by the commissioner of 218.17 human services. Upon notification of a claim for good cause 218.18 exemption, the child support agency shall cease all child 218.19 support enforcement efforts until the claim for good cause 218.20 exemption is reviewed and the validity of the claim is 218.21 determined. Designated representatives from public assistance 218.22 agencies and at least one representative from the child support 218.23 enforcement agency shall review each claim for a good cause 218.24 exemption and determine its validity. 218.25 (b) Good cause exists when an individual documents that 218.26 pursuit of child support enforcement services could reasonably 218.27 result in: 218.28 (1) physical or emotional harm to the child for whom 218.29 support is sought; 218.30 (2) physical harm to the parent or caregiver with whom the 218.31 child is living that would reduce the ability to adequately care 218.32 for the child; or 218.33 (3) emotional harm to the parent or caregiver with whom the 218.34 child is living, of such nature or degree that it would reduce 218.35 the person's ability to adequately care for the child. 218.36 The physical and emotional harm under this paragraph must 219.1 be of a serious nature in order to justify a finding of good 219.2 cause exemption. A finding of good cause exemption based on 219.3 emotional harm may only be based upon a demonstration of 219.4 emotional impairment that substantially affects the individual's 219.5 ability to function. 219.6 (c) Good cause also exists when the designated 219.7 representatives in this subdivision believe that pursuing child 219.8 support enforcement would be detrimental to the child for whom 219.9 support is sought and the individual applicant or recipient 219.10 documents any of the following: 219.11 (1) the child for whom child support enforcement is sought 219.12 was conceived as a result of incest or rape; 219.13 (2) legal proceedings for the adoption of the child are 219.14 pending before a court of competent jurisdiction; or 219.15 (3) the parent or caregiver of the child is currently being 219.16 assisted by a public or licensed private social service agency 219.17 to resolve the issues of whether to keep the child or place the 219.18 child for adoption. 219.19 The parent or caregiver's right to claim a good cause 219.20 exemption based solely on this paragraph expires if the 219.21 assistance lasts more than 90 days. 219.22 (d) The public authority shall consider the best interests 219.23 of the child in determining good cause. 219.24 Subd. 11. [PROOF OF GOOD CAUSE.] (a) An individual seeking 219.25 a good cause exemption has 20 days from the date the good cause 219.26 claim was provided to the public assistance agency to supply 219.27 evidence supporting the claim. The public assistance agency may 219.28 extend the time period in this section if it believes the 219.29 individual is cooperating and needs additional time to submit 219.30 the evidence required by this section. Failure to provide such 219.31 evidence shall result in the child support agency resuming child 219.32 support enforcement efforts. 219.33 (b) Evidence supporting a good cause claim includes, but is 219.34 not limited to: 219.35 (1) a birth certificate, or medical or law enforcement 219.36 records indicating that the child was conceived as the result of 220.1 incest or rape; 220.2 (2) court documents or other records indicating that legal 220.3 proceedings for adoption are pending before a court of competent 220.4 jurisdiction; 220.5 (3) court, medical, criminal, child protective services, 220.6 social services, domestic violence advocate services, 220.7 psychological, or law enforcement records indicating that the 220.8 alleged father or obligor might inflict physical or emotional 220.9 harm on the child, parent, or caregiver; 220.10 (4) medical records or written statements from a licensed 220.11 medical professional indicating the emotional health history or 220.12 status of the custodial parent, child, or caregiver, or 220.13 indicating a diagnosis or prognosis concerning their emotional 220.14 health; 220.15 (5) a written statement from a public or licensed private 220.16 social services agency that the individual is deciding whether 220.17 to keep the child or place the child for adoption; or 220.18 (6) sworn statements from individuals other than the 220.19 applicant or recipient that provide evidence supporting the good 220.20 cause claim. 220.21 (c) The child support agency and the public assistance 220.22 agency shall assist an individual in obtaining the evidence in 220.23 this section upon request of the individual. 220.24 Subd. 12. [DECISION.] A good cause exemption shall be 220.25 granted if the individual's claim and the investigation of the 220.26 supporting evidence satisfy the investigating agencies that the 220.27 individual has good cause for refusing to cooperate. 220.28 Subd. 13. [DURATION.] A good cause exemption shall not 220.29 continue for more than one year without redetermination of 220.30 cooperation and good cause pursuant to this section. The child 220.31 support agency may redetermine cooperation and the designated 220.32 representatives in subdivision 10 may redetermine the granting 220.33 of a good cause exemption before the one-year expiration in this 220.34 subdivision. 220.35 A good cause exemption must be allowed under subsequent 220.36 applications and redeterminations without additional evidence 221.1 when the factors which led to the exemption continue to exist. 221.2 A good cause exemption must end when the factors that led to the 221.3 exemption have changed. 221.4 Sec. 5. Minnesota Statutes 1996, section 256.87, 221.5 subdivision 1, is amended to read: 221.6 Subdivision 1. [ACTIONS AGAINST PARENTS FOR ASSISTANCE 221.7 FURNISHED.] A parent of a child is liable for the amount of 221.8 assistance furnishedunder sections 256.031 to 256.0361, 256.72221.9to 256.87, orunder Title IV-A or IV-E of the Social Security 221.10 Act or medical assistance underchapter 256, 256B, or 256DTitle 221.11 XIX of the Social Security Act to and for the benefit of the 221.12 child, including any assistance furnished for the benefit of the 221.13 caretaker of the child, which the parent has had the ability to 221.14 pay. Ability to pay must be determined according to chapter 221.15 518. The parent's liability is limited to the two years 221.16 immediately preceding the commencement of the action, except 221.17 that where child support has been previously ordered, the state 221.18 or county agency providing the assistance, as assignee of the 221.19 obligee, shall be entitled to judgments for child support 221.20 payments accruing within ten years preceding the date of the 221.21 commencement of the action up to the full amount of assistance 221.22 furnished. The action may be ordered by the state agency or 221.23 county agency and shall be brought in the name of the countyby221.24the county attorney of the county in which the assistance was221.25granted,orbyin the name of the state agency against the 221.26 parent for the recovery of the amount of assistance granted, 221.27 together with the costs and disbursements of the action. 221.28 Sec. 6. Minnesota Statutes 1996, section 256.87, 221.29 subdivision 1a, is amended to read: 221.30 Subd. 1a. [CONTINUING SUPPORT CONTRIBUTIONS.] In addition 221.31 to granting the county or state agency a money judgment, the 221.32 court may, upon a motion or order to show cause, order 221.33 continuing support contributions by a parent found able to 221.34 reimburse the county or state agency. The order shall be 221.35 effective for the period of time during which the recipient 221.36 receives public assistance from any county or state agency and 222.1 thereafter. The order shall require support according to 222.2 chapter 518. An order for continuing contributions is 222.3 reinstated without further hearing upon notice to the parent by 222.4 any county or state agency that assistance is again being 222.5 provided for the child of the parentunder sections 256.031 to222.6256.0361, 256.72 to 256.87, orunder Title IV-A or IV-E of the 222.7 Social Security Act or medical assistance underchapter 256,222.8256B, or 256DTitle XIX of the Social Security Act. The notice 222.9 shall be in writing and shall indicate that the parent may 222.10 request a hearing for modification of the amount of support or 222.11 maintenance. 222.12 Sec. 7. Minnesota Statutes 1996, section 256.87, 222.13 subdivision 3, is amended to read: 222.14 Subd. 3. [CONTINUING CONTRIBUTIONS TO FORMER RECIPIENT.] 222.15 The order for continuing support contributions shall remain in 222.16 effect following the period after public assistance granted 222.17 undersections 256.72 to 256.87Title IV-A or IV-E of the Social 222.18 Security Act is terminated unless the former recipient files an 222.19 affidavit with the court requesting termination of the order. 222.20 Sec. 8. Minnesota Statutes 1996, section 256.87, 222.21 subdivision 5, is amended to read: 222.22 Subd. 5. [CHILD NOT RECEIVING ASSISTANCE.] A person or 222.23 entity having physical custody of a dependent child not 222.24 receiving public assistanceunder sections 256.031 to 256.0361,222.25or 256.72 to 256.87as defined in section 256.741 has a cause of 222.26 action for child support against the child'sabsentnoncustodial 222.27 parents. Upon a motion served on theabsentnoncustodial 222.28 parent, the court shall order child support payments, including 222.29 medical support and child care support, from the 222.30absentnoncustodial parent under chapter 518.The absentA 222.31 noncustodial parent's liability may include up to the two years 222.32 immediately preceding the commencement of the action. This 222.33 subdivision applies only if the person or entity has physical 222.34 custody with the consent of a custodial parent or approval of 222.35 the court. 222.36 Sec. 9. Minnesota Statutes 1996, section 256.87, is 223.1 amended by adding a subdivision to read: 223.2 Subd. 8. [DISCLOSURE PROHIBITED.] Notwithstanding 223.3 statutory or other authorization for the public authority to 223.4 release private data on the location of a party to the action, 223.5 information on the location of one party may not be released to 223.6 the other party by the public authority if: 223.7 (1) the public authority has knowledge that a protective 223.8 order with respect to the other party has been entered; or 223.9 (2) the public authority has reason to believe that the 223.10 release of the information may result in physical or emotional 223.11 harm to the other party. 223.12 Sec. 10. Minnesota Statutes 1996, section 256.978, 223.13 subdivision 1, is amended to read: 223.14 Subdivision 1. [REQUEST FOR INFORMATION.] Thecommissioner223.15of human servicespublic authority responsible for child support 223.16 in this state or any other state, in order to locate a person to 223.17 establish paternity,and child support or to modify or enforce 223.18 child support,or to enforce a child support obligation in223.19arrears,may request information reasonably necessary to the 223.20 inquiry from the records of all departments, boards, bureaus, or 223.21 other agencies of this state, which shall, notwithstanding the 223.22 provisions of section 268.12, subdivision 12, or any other law 223.23 to the contrary, provide the information necessary for this 223.24 purpose. Employers, utility companies, insurance companies, 223.25 financial institutions, and labor associations doing business in 223.26 this state shall provide information as provided under 223.27 subdivision 2 upon written or electronic request by an agency 223.28 responsible for child support enforcement regarding individuals 223.29 owing or allegedly owing a duty to support within 30 days ofthe223.30receiptservice of thewrittenrequest made by the public 223.31 authority. Information requested and used or transmitted by the 223.32 commissionerpursuantaccording to the authority conferred by 223.33 this section may be made availableonly to public officials and223.34agencies of this state and its political subdivisions and other223.35states of the union and their political subdivisions who are223.36seeking to enforce the support liability of parents or to locate224.1parents. The commissioner may not release the information to an224.2agency or political subdivision of another state unless the224.3agency or political subdivision is directed to maintain the data224.4consistent with its classification in this state. Information224.5obtained under this section may not be released except to the224.6extent necessary for the administration of the child support224.7enforcement program or when otherwise authorized by law.to 224.8 other agencies, statewide systems, and political subdivisions of 224.9 this state, and agencies of other states, interstate information 224.10 networks, federal agencies, and other entities as required by 224.11 federal regulation or law for the administration of the child 224.12 support enforcement program. 224.13 For purposes of this section, "state" includes the District 224.14 of Columbia, Puerto Rico, the United States Virgin Islands, and 224.15 any territory or insular possession subject to the jurisdiction 224.16 of the United States. 224.17 Sec. 11. Minnesota Statutes 1996, section 256.978, 224.18 subdivision 2, is amended to read: 224.19 Subd. 2. [ACCESS TO INFORMATION.] (a) Awrittenrequest 224.20 for information by the public authority responsible for child 224.21 support of this state or any other state may be made to: 224.22 (1) employers when there is reasonable cause to believe 224.23 that the subject of the inquiry is or was an employee or 224.24 independent contractor of the employer. Information to be 224.25 released by employers is limited to place of residence, 224.26 employment status, wage or payment information, benefit 224.27 information, and social security number; 224.28 (2) utility companies when there is reasonable cause to 224.29 believe that the subject of the inquiry is or was a retail 224.30 customer of the utility company. Customer information to be 224.31 released by utility companies is limited to place of residence, 224.32 home telephone, work telephone, source of income, employer and 224.33 place of employment, and social security number; 224.34 (3) insurance companies when there isan arrearage of child224.35support and there isreasonable cause to believe that the 224.36 subject of the inquiry is or was receiving funds either in the 225.1 form of a lump sum or periodic payments. Information to be 225.2 released by insurance companies is limited to place of 225.3 residence, home telephone, work telephone, employer, social 225.4 security number, and amounts and type of payments made to the 225.5 subject of the inquiry; 225.6 (4) labor organizations when there is reasonable cause to 225.7 believe that the subject of the inquiry is or was a member of 225.8 the labor association. Information to be released by labor 225.9 associations is limited to place of residence, home telephone, 225.10 work telephone, social security number, and current and past 225.11 employment information; and 225.12 (5) financial institutions whenthere is an arrearage of225.13child support andthere is reasonable cause to believe that the 225.14 subject of the inquiry has or has had accounts, stocks, loans, 225.15 certificates of deposits, treasury bills, life insurance 225.16 policies, or other forms of financial dealings with the 225.17 institution. Information to be released by the financial 225.18 institution is limited to place of residence, home telephone, 225.19 work telephone, identifying information on the type of financial 225.20 relationships, social security number, current value of 225.21 financial relationships, and current indebtedness of the subject 225.22 with the financial institution. 225.23 (b) For purposes of this subdivision, utility companies 225.24 include telephone companies, radio common carriers, and 225.25 telecommunications carriers as defined in section 237.01, and 225.26 companies that provide electrical, telephone, natural gas, 225.27 propane gas, oil, coal, or cable television services to retail 225.28 customers. The term financial institution includes banks, 225.29 savings and loans, credit unions, brokerage firms, mortgage 225.30 companies,andinsurance companies., benefit associations, safe 225.31 deposit companies, money market mutual funds, or similar 225.32 entities authorized to do business in the state. 225.33 Sec. 12. Minnesota Statutes 1996, section 256.9792, 225.34 subdivision 1, is amended to read: 225.35 Subdivision 1. [ARREARAGE COLLECTIONS.] Arrearage 225.36 collection projects are created to increase the revenue to the 226.1 state and counties, reduceAFDCpublic assistance expenditures 226.2 for former public assistance cases, and increase payments of 226.3 arrearages to persons who are not receiving public assistance by 226.4 submitting cases for arrearage collection to collection 226.5 entities, including but not limited to, the department of 226.6 revenue and private collection agencies. 226.7 Sec. 13. Minnesota Statutes 1996, section 256.9792, 226.8 subdivision 2, is amended to read: 226.9 Subd. 2. [DEFINITIONS.] (a) The definitions in this 226.10 subdivision apply to this section: 226.11 (b) "Public assistance arrearage case" means a case where 226.12 current support may be due, no payment, with the exception of 226.13 tax offset, has been made within the last 90 days, and the 226.14 arrearages are assigned to the public agencypursuantaccording 226.15 to section256.74, subdivision 5256.741. 226.16 (c) "Public authority" means the public authority 226.17 responsible for child support enforcement. 226.18 (d) "Nonpublic assistance arrearage case" means a support 226.19 case where arrearages have accrued that have not been assigned 226.20pursuantaccording to section256.74, subdivision 5256.741. 226.21 Sec. 14. Minnesota Statutes 1996, section 256.998, 226.22 subdivision 1, is amended to read: 226.23 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 226.24 subdivision apply to this section. 226.25 (b) "Date of hiring" means the earlier of: (1) the first 226.26 day for which an employee is owed compensation by an employer; 226.27 or (2) the first day that an employee reports to work or 226.28 performs labor or services for an employer. 226.29 (c) "Earnings" means payment owed by an employer for labor 226.30 or services rendered by an employee. 226.31 (d) "Employee" means a person who resides or works in 226.32 Minnesotaand, performs services for compensation, in whatever 226.33 form, for an employer and satisfies the criteria of an employee 226.34 under chapter 24 of the Internal Revenue Code. Employee does 226.35 not include: 226.36 (1) persons hired for domestic service in the private home 227.1 of the employer, as defined in the Federal Tax Code.; or 227.2 (2) an employee of the federal or state agency performing 227.3 intelligence or counterintelligence functions, if the head of 227.4 such agency has determined that reporting according to this law 227.5 would endanger the safety of the employee or compromise an 227.6 ongoing investigation or intelligence mission. 227.7 (e) "Employer" means a person or entity located or doing 227.8 business in this state that employs one or more employees for 227.9 payment, and satisfies the criteria of an employer under chapter 227.10 24 of the Internal Revenue Code. Employer includes a labor 227.11 organization as defined in paragraph (g). Employer also 227.12 includes the state, political or other governmental subdivisions 227.13 of the state, and the federal government. 227.14 (f) "Hiring" means engaging a person to perform services 227.15 for compensation and includes the reemploying or return to work 227.16 of any previous employee who was laid off, furloughed, 227.17 separated, granted a leave without pay, or terminated from 227.18 employment. 227.19 (g) "Labor organization" means entities located or doing 227.20 business in this state that meet the criteria of labor 227.21 organization under section 2(5) of the National Labor Relations 227.22 Act. This includes any entity, that may also be known as a 227.23 hiring hall, used to carry out requirements described in chapter 227.24 7 of the National Labor Relations Act. 227.25 (h) "Payor" means a person or entity located or doing 227.26 business in Minnesota who pays money to an independent 227.27 contractor according to an agreement for the performance of 227.28 services. 227.29 Sec. 15. Minnesota Statutes 1996, section 256.998, 227.30 subdivision 6, is amended to read: 227.31 Subd. 6. [SANCTIONS.] If an employer fails to report under 227.32 this section, the commissioner of human services, by certified 227.33 mail, shall send the employer a written notice of noncompliance 227.34 requesting that the employer comply with the reporting 227.35 requirements of this section. The notice of noncompliance must 227.36 explain the reporting procedure under this section and advise 228.1 the employer of the penalty for noncompliance. An employer who 228.2 has received a notice of noncompliance and later incurs a second 228.3 violation is subject to a civil penalty of$50$25 for each 228.4 intentionally unreported employee. An employer who has received 228.5 a notice of noncomplianceand later incurs a third or subsequent228.6violationis subject to a civil penalty of $500 for each 228.7 intentionally unreported employee., if noncompliance is the 228.8 result of a conspiracy between an employer and an employee not 228.9 to supply the required report or to supply a false or incomplete 228.10 report. These penalties may be imposed and collected by the 228.11 commissioner of human services. An employer who has been served 228.12 with a notice of noncompliance and incurs a second or subsequent 228.13 notice of noncompliance, has the right to a contested case 228.14 hearing according to chapter 14. An employer has 20 days from 228.15 the date of service of the notice of noncompliance, to file a 228.16 request for a contested case hearing with the commissioner. The 228.17 order of the administrative law judge constitutes the final 228.18 decision in the case. 228.19 Sec. 16. Minnesota Statutes 1996, section 256.998, 228.20 subdivision 7, is amended to read: 228.21 Subd. 7. [ACCESS TO DATA.] The commissioner of human 228.22 services shall retain the information reported to the work 228.23 reporting system for a period of six months. Data in the work 228.24 reporting system may be disclosed to the public authority 228.25 responsible for child support enforcement, federal agencies,and228.26 state and local agencies of other states for the purposes of 228.27 enforcing state and federal laws governing child support., and 228.28 agencies responsible for the administration of programs under 228.29 Title IV-A of the Social Security Act, the department of 228.30 economic security, and the department of labor and industry. 228.31 Sec. 17. Minnesota Statutes 1996, section 256.998, is 228.32 amended by adding a subdivision to read: 228.33 Subd. 10. [USE OF WORK REPORTING SYSTEM INFORMATION IN 228.34 DETERMINING ELIGIBILITY FOR PUBLIC ASSISTANCE PROGRAMS.] The 228.35 commissioner of human services is authorized to use information 228.36 from the work reporting system to determine eligibility for 229.1 applicants and recipients of public assistance programs 229.2 administered by the department of human services. Data 229.3 including names, dates of birth, and social security numbers of 229.4 people applying for or receiving public assistance benefits will 229.5 be compared to the work reporting system information to 229.6 determine if applicants or recipients of public assistance are 229.7 employed. County agencies will be notified of discrepancies in 229.8 information obtained from the work reporting system. 229.9 Sec. 18. Minnesota Statutes 1996, section 256.998, is 229.10 amended by adding a subdivision to read: 229.11 Subd. 11. [ACTION ON INFORMATION.] Upon receipt of the 229.12 discrepant information, county agencies will notify clients of 229.13 the information and request verification of employment status 229.14 and earnings. County agencies must attempt to resolve the 229.15 discrepancy within 45 days of receipt of the information. 229.16 Sec. 19. Minnesota Statutes 1996, section 256.998, is 229.17 amended by adding a subdivision to read: 229.18 Subd. 12. [CLIENT NOTIFICATION.] Persons applying for 229.19 public assistance programs administered by the department of 229.20 human services will be notified at the time of application that 229.21 data including their name, date of birth, and social security 229.22 number will be shared with the work reporting system to 229.23 determine possible employment. All current public assistance 229.24 recipients will be notified of this provision prior to its 229.25 implementation. 229.26 Sec. 20. Minnesota Statutes 1996, section 256F.04, 229.27 subdivision 1, is amended to read: 229.28 Subdivision 1. [FAMILY PRESERVATION FUND.] The 229.29 commissioner shall establish a family preservation fund to 229.30 assist counties in providing placement prevention and family 229.31 reunification services.This fund shall include a basic grant229.32for family preservation services, a placement earnings grant229.33under section 256.8711, subdivision 6b, paragraph (a), and a229.34development grant under section 256.8711, subdivision 6a, to229.35assist counties in developing and expanding their family229.36preservation core services as defined in section 256F.03,230.1subdivision 10. Beginning with calendar year 1998, after each230.2annual or quarterly calculation, these three component grants230.3shall be added together and treated as a single family230.4preservation grant.230.5 Sec. 21. Minnesota Statutes 1996, section 256F.04, 230.6 subdivision 2, is amended to read: 230.7 Subd. 2. [FORMS AND INSTRUCTIONS.] The commissioner shall 230.8 provide necessary forms and instructions to the counties for 230.9 their community social services plan, as required in section 230.10 256E.09, that incorporate the information necessary to apply for 230.11 a family preservation fund grant, and to exercise county options 230.12 under section 256F.05,subdivisions 7, paragraph (a), or230.13 subdivision 8, paragraph (c). 230.14 Sec. 22. Minnesota Statutes 1996, section 256F.05, 230.15 subdivision 2, is amended to read: 230.16 Subd. 2. [MONEY AVAILABLE FORTHE BASIC GRANTFAMILY 230.17 PRESERVATION.] Money appropriated for family preservation under 230.18 sections 256F.04 to 256F.07, together with an amount as 230.19 determined by the commissioner oftitle IV-Bfunds distributed 230.20 to Minnesota according tothe Social Security Act,United States 230.21 Code, title 42, chapter 7, subchapter IV, part B, section 621, 230.22 must be distributed to counties on a calendar year basis 230.23 according to the formula in subdivision 3. 230.24 Sec. 23. Minnesota Statutes 1996, section 256F.05, 230.25 subdivision 3, is amended to read: 230.26 Subd. 3. [BASICGRANT FORMULA.] (a) The amount of money 230.27 allocated to counties under subdivision 2 shall first be 230.28 allocated in amounts equal to each county's guaranteed floor 230.29 according to paragraph (b), and second, any remaining available 230.30 funds allocated as follows: 230.31 (1)9050 percent of the funds shall be allocated based on 230.32 the population of the county under age 19 years as compared to 230.33 the state as a whole as determined by the most recent data from 230.34 the state demographer's office;and230.35 (2)ten20 percent of funds shall be allocated based on the 230.36 county's percentage share of the unduplicated number of families 231.1 who received family preservation services under section 256F.03, 231.2 subdivision 5, paragraphs (a), (b), (c), and (e), in the most 231.3 recent calendar year available as determined by the 231.4 commissioner; 231.5 (3) ten percent of the funds shall be allocated based on 231.6 the county's percentage share of the unduplicated number of 231.7 children in substitute care in the most recent calendar year 231.8 available as determined by the commissioner; 231.9 (4) ten percent of the funds shall be allocated based on 231.10 the county's percentage share of the number of determined 231.11 maltreatment reports in the most recent calendar year available 231.12 as determined by the commissioner; 231.13 (5) five percent of the funds shall be allocated based on 231.14 the county's percentage share of the number of American Indian 231.15 children under age 18 residing in the county in the most recent 231.16 calendar year as determined by the commissioner; and 231.17 (6) five percent of the funds shall be allocated based on 231.18 the county's percentage share of the number ofminoritychildren 231.19 of color receiving children's case management services as 231.20 defined by the commissioner based on the most recent data as 231.21 determined by the commissioner. 231.22 (b) Each county'sbasicgrant guaranteed floor shall be 231.23 calculated as follows: 231.24 (1) 90 percent of the county's allocation received in the 231.25 preceding calendar year. For calendar year 1996 only, the231.26allocation received in the preceding calendar year shall be231.27determined by the commissioner based on the funding previously231.28distributed as separate grants under sections 256F.04 to 256F.07231.29 or $25,000, whichever is greater; and 231.30 (2) when the amounts of funds available for allocation is 231.31 less than the amount available in the previous year, each 231.32 county's previous year allocation shall be reduced in proportion 231.33 to the reduction in the statewide funding, for the purpose of 231.34 establishing the guaranteed floor. 231.35 (c) The commissioner shall regularly review the use of 231.36 family preservation fund allocations by county. The 232.1 commissioner may reallocate unexpended or unencumbered money at 232.2 any time among those counties that have expended or are 232.3 projected to expend their full allocation. 232.4 (d) For the period of July 1, 1997, to December 31, 1998, 232.5 only, each county shall receive an 18-month allocation. For the 232.6 purposes of determining the guaranteed floor for this 18-month 232.7 allocation, the allocation received in the preceding calendar 232.8 year shall be determined by the commissioner based on the 232.9 funding previously distributed separately under sections 232.10 256.8711 and 256F.04. 232.11 Sec. 24. Minnesota Statutes 1996, section 256F.05, 232.12 subdivision 4, is amended to read: 232.13 Subd. 4. [PAYMENTS.] The commissioner shall make grant 232.14 payments to each county whose biennial community social services 232.15 plan has been approved under section 256F.04, subdivision 2. 232.16 Thebasicgrantunder subdivisions 2 and 3 and the development232.17grant under section 256.8711, subdivision 6a,shall be paid to 232.18 counties in four installments per year. The commissioner may 232.19 certify the payments for the first three months of a calendar 232.20 year. Subsequent payments shall be based on reported 232.21 expenditures and may be adjusted for anticipated spending 232.22 patterns.The placement earnings grant under section 256.8711,232.23subdivision 6b, paragraph (a), shall be based on earnings and232.24coordinated with the other payments. In calendar years 1996 and232.251997, the placement earnings grant and the development grant232.26shall be distributed separately from the basic grant, except as232.27provided in subdivision 7, paragraph (a). Beginning with232.28calendar year 1998, after each annual or quarterly calculation,232.29these three component grants shall be added together into a232.30single family preservation fund grant and treated as a single232.31grant.232.32 Sec. 25. Minnesota Statutes 1996, section 256F.05, 232.33 subdivision 8, is amended to read: 232.34 Subd. 8. [USES OF FAMILY PRESERVATION FUND GRANTS.]For232.35both basic grants and single family preservation fund grants:232.36 (a) A county which has not demonstrated that year that its 233.1 family preservation core services are developed as provided in 233.2 subdivision 1a, must use its family preservation fund grant 233.3 exclusively for family preservation services defined in section 233.4 256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 233.5 (b) A county which has demonstrated that year that its 233.6 family preservation core services are developed becomes eligible 233.7 either to continue using its family preservation fund grant as 233.8 provided in paragraph (a), or to exercise the expanded service 233.9 option under paragraph (c). 233.10 (c) The expanded service option permits an eligible county 233.11 to use its family preservation fund grant for child welfare 233.12preventativepreventive servicesas defined in section 256F.10,233.13subdivision 7, paragraph (d). For purposes of this section, 233.14 child welfare preventive services are those services directed 233.15 toward a specific child or family that further the goals of 233.16 section 256F.01 and include assessments, family preservation 233.17 services, service coordination, community-based treatment, 233.18 crisis nursery services when the parents retain custody and 233.19 there is no voluntary placement agreement with a child-placing 233.20 agency, respite care except when it is provided under a medical 233.21 assistance waiver, home-based services, and other related 233.22 services. For purposes of this section, child welfare 233.23 preventive services shall not include shelter care or other 233.24 placement services under the authority of the court or public 233.25 agency to address an emergency. To exercise this option, an 233.26 eligible county must notify the commissioner in writing of its 233.27 intention to do so no later than 30 days into the quarter during 233.28 which it intends to begin or in its county plan, as provided in 233.29 section 256F.04, subdivision 2. Effective with the first day of 233.30 that quarter, the county must maintain its base level of 233.31 expenditures for child welfarepreventativepreventive services 233.32 and use the family preservation fund to expand them. The base 233.33 level of expenditures for a county shall be that established 233.34 under section 256F.10, subdivision 7. For counties which have 233.35 no such base established, a comparable base shall be established 233.36 with the base year being the calendar year ending at least two 234.1 calendar quarters before the first calendar quarter in which the 234.2 county exercises its expanded service option. The commissioner 234.3 shall, at the request of the counties, reduce, suspend, or 234.4 eliminate either or both of a county's obligations to continue 234.5 the base level of expenditures and to expand child welfare 234.6preventativepreventive servicesbased on conditions described234.7in section 256F.10, subdivision 7, paragraph (b) or (c)under 234.8 extraordinary circumstances. 234.9(d) Each county's placement earnings and development grant234.10shall be determined under section 256.8711, but after each234.11annual or quarterly calculation, if added to that county's basic234.12grant, the three component grants shall be treated as a single234.13family preservation fund grant.234.14 Sec. 26. Minnesota Statutes 1996, section 256F.06, 234.15 subdivision 1, is amended to read: 234.16 Subdivision 1. [RESPONSIBILITIES.] A county board may, 234.17 alone or in combination with other county boards, apply for a 234.18 family preservation fund grant as provided in section 256F.04, 234.19 subdivision 2. Upon approval of the grant, the county board may 234.20 contract for or directly provide family-based and other eligible 234.21 services. A county board may contract with or directly provide 234.22 eligible services to children and families through a local 234.23 collaborative. 234.24 Sec. 27. Minnesota Statutes 1996, section 256F.06, 234.25 subdivision 2, is amended to read: 234.26 Subd. 2. [DEVELOPING FAMILY PRESERVATION CORE SERVICES.]A234.27county board shall endeavor to develop and expand its family234.28preservation core services.When a county can demonstrate that 234.29 its family preservation core services are developed as provided 234.30 in section 256F.05, subdivision 1a, a county board becomes 234.31 eligible to exercise the expanded service option under section 234.32 256F.05, subdivision 8, paragraph (c).For calendar years 1996234.33and 1997, the county board also becomes eligible to request that234.34its basic, placement earnings, and development grants be added234.35into a single grant under section 256F.05, subdivision 7,234.36paragraph (a).235.1 Sec. 28. Minnesota Statutes 1996, section 257.62, 235.2 subdivision 1, is amended to read: 235.3 Subdivision 1. [BLOOD OR GENETIC TESTS REQUIRED.] (a) The 235.4 court or public authority may, and upon request of a party 235.5 shall, require the child, mother, or alleged father to submit to 235.6 blood or genetic tests. A mother or alleged father requesting 235.7 the tests shall file with the court an affidavit either alleging 235.8 or denying paternity and setting forth facts that establish the 235.9 reasonable possibility that there was, or was not, the requisite 235.10 sexual contact between the parties. 235.11 (b) A copy of the test results must be served onthe235.12parties as provided in section 543.20each party by first class 235.13 mail to the party's last known address. Any objection to the 235.14 results of blood or genetic tests must be made in writing no 235.15 later than15 days prior to a hearing at which time those test235.16results may be introduced into evidence30 days after service of 235.17 the results. Test results served upon a party must include 235.18 notice of this right to object. 235.19 (c) If the alleged father is dead, the court may, and upon 235.20 request of a party shall, require the decedent's parents or 235.21 brothers and sisters or both to submit to blood or genetic 235.22 tests. However, in a case involving these relatives of an 235.23 alleged father, who is deceased, the court may refuse to order 235.24 blood or genetic tests if the court makes an express finding 235.25 that submitting to the tests presents a danger to the health of 235.26 one or more of these relatives that outweighs the child's 235.27 interest in having the tests performed. Unless the person gives 235.28 consent to the use, the results of any blood or genetic tests of 235.29 the decedent's parents, brothers, or sisters may be used only to 235.30 establish the right of the child to public assistance including 235.31 but not limited to social security and veterans' benefits. The 235.32 tests shall be performed by a qualified expert appointed by the 235.33 court. 235.34 Sec. 29. Minnesota Statutes 1996, section 257.62, 235.35 subdivision 2, is amended to read: 235.36 Subd. 2.The court, upon reasonable request by a party,236.1shall order that independent tests be performed by other236.2qualified experts.Unless otherwise agreed by the parties, a 236.3 party wanting additional testing must first contest the original 236.4 tests in subdivision 1, paragraph (b), and must pay in advance 236.5 for the additional testing. The additional testing shall be 236.6 performed by another qualified expert. 236.7 Sec. 30. Minnesota Statutes 1996, section 257.66, 236.8 subdivision 3, is amended to read: 236.9 Subd. 3. [JUDGMENT; ORDER.] The judgment or order shall 236.10 contain provisions concerning the duty of support, the custody 236.11 of the child, the name of the child, the social security number 236.12 of the mother, father, and child, if known at the time of 236.13 adjudication, visitation privileges with the child, the 236.14 furnishing of bond or other security for the payment of the 236.15 judgment, or any other matter in the best interest of the 236.16 child. Custody and visitation and all subsequent motions 236.17 related to them shall proceed and be determined under section 236.18 257.541. The remaining matters and all subsequent motions 236.19 related to them shall proceed and be determined in accordance 236.20 with chapter 518. The judgment or order may direct the 236.21 appropriate party to pay all or a proportion of the reasonable 236.22 expenses of the mother's pregnancy and confinement, after 236.23 consideration of the relevant facts, including the relative 236.24 financial means of the parents; the earning ability of each 236.25 parent; and any health insurance policies held by either parent, 236.26 or by a spouse or parent of the parent, which would provide 236.27 benefits for the expenses incurred by the mother during her 236.28 pregnancy and confinement. Pregnancy and confinement expenses 236.29 and genetic testing costs, submitted by the public authority, 236.30 are admissible as evidence without third-party foundation 236.31 testimony and shall constitute prima facie evidence of the 236.32 amounts incurred for such services or for the genetic testing. 236.33 Remedies available for the collection and enforcement of child 236.34 support apply to confinement costs and are considered additional 236.35 child support. 236.36 Sec. 31. Minnesota Statutes 1996, section 257.66, is 237.1 amended by adding a subdivision to read: 237.2 Subd. 6. [REQUIRED INFORMATION.] Upon entry of judgment or 237.3 order, each parent who is a party in a paternity proceeding 237.4 shall: 237.5 (1) file with the public authority responsible for child 237.6 support enforcement the party's social security number, 237.7 residential and mailing address, telephone number, driver's 237.8 license number, and name, address, and telephone number of any 237.9 employer if the party is receiving services from the public 237.10 authority or begins receiving services from the public 237.11 authority; 237.12 (2) file the information in clause (1) with the district 237.13 court; and 237.14 (3) notify the court and, if applicable, the public 237.15 authority responsible for child support enforcement of any 237.16 change in the information required under this section within ten 237.17 days of the change. 237.18 Sec. 32. Minnesota Statutes 1996, section 257.70, is 237.19 amended to read: 237.20 257.70 [HEARINGS AND RECORDS; CONFIDENTIALITY.] 237.21 (a) Notwithstanding any other law concerning public 237.22 hearings and records, any hearing or trial held under sections 237.23 257.51 to 257.74 shall be held in closed court without 237.24 admittance of any person other than those necessary to the 237.25 action or proceeding. All papers and records, other than the 237.26 final judgment, pertaining to the action or proceeding, whether 237.27 part of the permanent record of the court or of a file in the 237.28 state department of human services or elsewhere, are subject to 237.29 inspection only upon consent of the court and all interested 237.30 persons, or in exceptional cases only upon an order of the court 237.31 for good cause shown. 237.32 (b) In all actions under this chapter in which public 237.33 assistance is assigned under section 256.741 or the public 237.34 authority provides services to a party or parties to the action, 237.35 notwithstanding statutory or other authorization for the public 237.36 authority to release private data on the location of a party to 238.1 the action, information on the location of one party may not be 238.2 released by the public authority to the other party if: 238.3 (1) the public authority has knowledge that a protective 238.4 order with respect to the other party has been entered; or 238.5 (2) the public authority has reason to believe that the 238.6 release of the information may result in physical or emotional 238.7 harm to the other party. 238.8 Sec. 33. Minnesota Statutes 1996, section 257.75, 238.9 subdivision 2, is amended to read: 238.10 Subd. 2. [REVOCATION OF RECOGNITION.] A recognition may be 238.11 revoked in a writing signed by the mother or father before a 238.12 notary public and filed with the state registrar of vital 238.13 statistics within the earlier of 30 days after the recognition 238.14 is executed.or the date of an administrative or judicial 238.15 hearing relating to the child in which the revoking party is a 238.16 party to the related action. A joinder in a recognition may be 238.17 revoked in a writing signed by the man who executed the joinder 238.18 and filed with the state registrar of vital statistics within 30 238.19 days after the joinder is executed. Upon receipt of a 238.20 revocation of the recognition of parentage or joinder in a 238.21 recognition, the state registrar of vital statistics shall 238.22 forward a copy of the revocation to the nonrevoking parent, or, 238.23 in the case of a joinder in a recognition, to the mother and 238.24 father who executed the recognition. 238.25 Sec. 34. Minnesota Statutes 1996, section 257.75, 238.26 subdivision 3, is amended to read: 238.27 Subd. 3. [EFFECT OF RECOGNITION.] Subject to subdivision 2 238.28 and section 257.55, subdivision 1, paragraph (g) or (h), the 238.29 recognition has the force and effect of a judgment or order 238.30 determining the existence of the parent and child relationship 238.31 under section 257.66. If the conditions in section 257.55, 238.32 subdivision 1, paragraph (g) or (h), exist, the recognition 238.33 creates only a presumption of paternity for purposes of sections 238.34 257.51 to 257.74. Once a recognition has been properly executed 238.35 and filed with the state registrar of vital statistics, if there 238.36 are no competing presumptions of paternity, a judicial or 239.1 administrative court shall not allow further action to determine 239.2 parentage regarding the signator of recognition. Until an order 239.3 is entered granting custody to another, the mother has sole 239.4 custody. The recognition is: 239.5 (1) a basis for bringing an action to award custody or 239.6 visitation rights to either parent, establishing a child support 239.7 obligation which may include up to the two years immediately 239.8 preceding the commencement of the action, ordering a 239.9 contribution by a parent under section 256.87, or ordering a 239.10 contribution to the reasonable expenses of the mother's 239.11 pregnancy and confinement, as provided under section 257.66, 239.12 subdivision 3, or ordering reimbursement for the costs of blood 239.13 or genetic testing, as provided under section 257.69, 239.14 subdivision 2; 239.15 (2) determinative for all other purposes related to the 239.16 existence of the parent and child relationship; and 239.17 (3) entitled to full faith and credit in other 239.18 jurisdictions. 239.19 Sec. 35. Minnesota Statutes 1996, section 257.75, 239.20 subdivision 4, is amended to read: 239.21 Subd. 4. [ACTION TO VACATE RECOGNITION.] (a) An action to 239.22 vacate a recognition of paternity may be brought by the mother, 239.23 father, husband or former husband who executed a joinder, or the 239.24 child. A mother, father, or husband or former husband who 239.25 executed a joinder must bring the action within one year of the 239.26 execution of the recognition or within six months after the 239.27 person bringing the action obtains the results of blood or 239.28 genetic tests that indicate that the man who executed the 239.29 recognition is not the father of the child. A child must bring 239.30 an action to vacate within six months after the child obtains 239.31 the result of blood or genetic tests that indicate that the man 239.32 who executed the recognition is not the father of the child, or 239.33 within one year of reaching the age of majority, whichever is 239.34 later. If the court finds a prima facie basis for vacating the 239.35 recognition, the court shall order the child, mother, father, 239.36 and husband or former husband who executed a joinder to submit 240.1 to blood tests. If the court issues an order for the taking of 240.2 blood tests, the court shall require the party seeking to vacate 240.3 the recognition to make advance payment for the costs of the 240.4 blood tests. If the party fails to pay for the costs of the 240.5 blood tests, the court shall dismiss the action to vacate with 240.6 prejudice. The court may also order the party seeking to vacate 240.7 the recognition to pay the other party's reasonable attorney 240.8 fees, costs, and disbursements. If the results of the blood 240.9 tests establish that the man who executed the recognition is not 240.10 the father, the court shall vacate the recognition. If a 240.11 recognition is vacated, any joinder in the recognition under 240.12 subdivision 1a is also vacated. The court shall terminate the 240.13 obligation of a party to pay ongoing child support based on the 240.14 recognition. A modification of child support based on a 240.15 recognition may be made retroactive with respect to any period 240.16 during which the moving party has pending a motion to vacate the 240.17 recognition but only from the date of service of notice of the 240.18 motion on the responding party. 240.19 (b) The burden of proof in an action to vacate the 240.20 recognition is on the moving party. The moving party must 240.21 request the vacation on the basis of fraud, duress, or material 240.22 mistake of fact. The legal responsibilities in existence at the 240.23 time of an action to vacate, including child support 240.24 obligations, may not be suspended during the proceeding, except 240.25 for good cause shown. 240.26 Sec. 36. Minnesota Statutes 1996, section 257.75, 240.27 subdivision 5, is amended to read: 240.28 Subd. 5. [RECOGNITION FORM.] The commissioner of human 240.29 services shall prepare a form for the recognition of parentage 240.30 under this section. In preparing the form, the commissioner 240.31 shall consult with the individuals specified in subdivision 6. 240.32 The recognition form must be drafted so that the force and 240.33 effect of the recognition, the alternatives to executing a 240.34 recognition, and the benefits and responsibilities of 240.35 establishing paternity are clear and understandable. The form 240.36 must include a notice regarding the finality of a recognition 241.1 and the revocation procedure under subdivision 2. The form must 241.2 include a provision for each parent to verify that the parent 241.3 has read or viewed the educational materials prepared by the 241.4 commissioner of human services describing the recognition of 241.5 paternity. If feasible, the individual providing the form to 241.6 the parents for execution shall provide oral notice of the 241.7 rights, responsibilities, and alternatives to executing the 241.8 recognition. Notice may be provided by audio tape, videotape, 241.9 or similar means. Each parent must receive a copy of the 241.10 recognition. 241.11 Sec. 37. Minnesota Statutes 1996, section 257.75, 241.12 subdivision 7, is amended to read: 241.13 Subd. 7. [HOSPITAL AND DEPARTMENT OF HEALTH DISTRIBUTION 241.14 OF EDUCATIONAL MATERIALS; RECOGNITION FORM.] Hospitals that 241.15 provide obstetric services and the state registrar of vital 241.16 statistics shall distribute the educational materials and 241.17 recognition of parentage forms prepared by the commissioner of 241.18 human services to new parents and shall assist parents in 241.19 understanding the recognition of parentage form., including 241.20 following the provisions for notice under subdivision 5. On and 241.21 after January 1, 1994, hospitals may not distribute the 241.22 declaration of parentage forms. 241.23 Sec. 38. Minnesota Statutes 1996, section 299C.46, 241.24 subdivision 3, is amended to read: 241.25 Subd. 3. [AUTHORIZED USE, FEE.] (a) The data 241.26 communications network shall be used exclusively by: 241.27 (1) criminal justice agencies in connection with the 241.28 performance of duties required by law; 241.29 (2) agencies investigating federal security clearances of 241.30 individuals for assignment or retention in federal employment 241.31 with duties related to national security, as required by Public 241.32 Law Number 99-1691;and241.33 (3) other agencies to the extent necessary to provide for 241.34 protection of the public or property in an emergency or disaster 241.35 situation.; and 241.36 (4) the public authority responsible for child support 242.1 enforcement in connection with the performance of its duties. 242.2 (b) The commissioner of public safety shall establish a 242.3 monthly network access charge to be paid by each participating 242.4 criminal justice agency. The network access charge shall be a 242.5 standard fee established for each terminal, computer, or other 242.6 equipment directly addressable by the criminal justice data 242.7 communications network, as follows: January 1, 1984 to December 242.8 31, 1984, $40 connect fee per month; January 1, 1985 and 242.9 thereafter, $50 connect fee per month. 242.10 (c) The commissioner of public safety is authorized to 242.11 arrange for the connection of the data communications network 242.12 with the criminal justice information system of the federal 242.13 government, any adjacent state, or Canada. 242.14 Sec. 39. Minnesota Statutes 1996, section 508.63, is 242.15 amended to read: 242.16 508.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 242.17 JUDGMENTS.] 242.18 No judgment requiring the payment of money shall be a lien 242.19 upon registered land, except as herein provided. Any person 242.20 claiming such lien shall file with the registrar a certified 242.21 copy of the judgment, together with a written statement 242.22 containing a description of each parcel of land in which the 242.23 judgment debtor has a registered interest and upon which the 242.24 lien is claimed, and a proper reference to the certificate or 242.25 certificates of title to such land. Upon filing such copy and 242.26 statement, the registrar shall enter a memorial of such judgment 242.27 upon each certificate designated in such statement, and the 242.28 judgment shall thereupon be and become a lien upon the judgment 242.29 debtor's interest in the land described in such certificate or 242.30 certificates. At any time after filing the certified copy of 242.31 such judgment, any person claiming the lien may, by filing a 242.32 written statement, as herein provided, cause a memorial of such 242.33 judgment to be entered upon any certificate of title to land in 242.34 which the judgment debtor has a registered interest and not 242.35 described in any previous statement and the judgment shall 242.36 thereupon be and become a lien upon the judgment debtor's 243.1 interest in such land. The public authority for child support 243.2 enforcement may present for filing a notice of judgment lien 243.3 under section 548.091 with identifying information for a parcel 243.4 of real property. Upon receipt of the notice of judgment lien, 243.5 the registrar shall enter a memorial of it upon each certificate 243.6 which can reasonably be identified as owned by the judgment 243.7 debtor on the basis of the information provided. The judgment 243.8 shall survive and the lien thereof shall continue for a period 243.9 of ten years from the date of the judgment and no longer, and 243.10 the registrar of titles shall not carry forward to a new 243.11 certificate of title the memorial of the judgment after that 243.12 period. In every case where an instrument of any description, 243.13 or a copy of any writ, order, or decree, is required by law to 243.14 be filed or recorded in order to create or preserve any lien, 243.15 writ, or attachment upon unregistered land, such instrument or 243.16 copy, if intended to affect registered land, shall, in lieu of 243.17 recording, be filed and registered with the registrar. In 243.18 addition to any facts required by law to be stated in such 243.19 instruments to entitle them to be filed or recorded, they shall 243.20 also contain a reference to the number of the certificate of 243.21 title of the land to be affected, and, if the attachment, 243.22 charge, or lien is not claimed on all the land described in any 243.23 certificate of title, such instrument shall contain a 243.24 description sufficient to identify the land. 243.25 Sec. 40. Minnesota Statutes 1996, section 508A.63, is 243.26 amended to read: 243.27 508A.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 243.28 JUDGMENTS.] 243.29 No judgment requiring the payment of money shall be a lien 243.30 upon land registered under sections 508A.01 to 508A.85, except 243.31 as herein provided. Any person claiming a lien shall file with 243.32 the registrar a certified copy of the judgment, together with a 243.33 written statement containing a description of each parcel of 243.34 land in which the judgment debtor has a registered interest and 243.35 upon which the lien is claimed, and a proper reference to the 243.36 CPT or CPTs to the land. Upon filing the copy and statement, 244.1 the registrar shall enter a memorial of the judgment upon each 244.2 CPT designated in the statement, and the judgment shall then be 244.3 and become a lien upon the judgment debtor's interest in the 244.4 land described in CPT or CPTs. At any time after filing the 244.5 certified copy of the judgment, any person claiming the lien 244.6 may, by filing a written statement, as herein provided, cause a 244.7 memorial of the judgment to be entered upon any CPT to land in 244.8 which the judgment debtor has a registered interest and not 244.9 described in any previous statement and the judgment shall then 244.10 be and become a lien upon the judgment debtor's interest in the 244.11 land. The public authority for child support enforcement may 244.12 present for filing a notice of judgment lien under section 244.13 548.091 with identifying information for a parcel of real 244.14 property. Upon receipt of the notice of judgment lien, the 244.15 registrar shall enter a memorial of it upon each certificate of 244.16 possessory title which reasonably can be identified as owned by 244.17 the judgment debtor on the basis of the information provided. 244.18 The judgment shall survive and the lien thereof shall continue 244.19 for a period of ten years from the date of the judgment and no 244.20 longer; and the registrar shall not carry forward to a new 244.21 certificate of title the memorial of the judgment after that 244.22 period. In every case where an instrument of any description, 244.23 or a copy of any writ, order, or decree, is required by law to 244.24 be filed or recorded in order to create or preserve any lien, 244.25 writ, or attachment upon unregistered land, the instrument or 244.26 copy, if intended to affect registered land, shall, in lieu of 244.27 recording, be filed and registered with the registrar. In 244.28 addition to any facts required by law to be stated in the 244.29 instruments to entitle them to be filed or recorded, they shall 244.30 also contain a reference to the number of the CPT of the land to 244.31 be affected. If the attachment, charge, or lien is not claimed 244.32 on all the land described in any CPT, the instrument shall 244.33 contain a description sufficient to identify the land. 244.34 Sec. 41. Minnesota Statutes 1996, section 518.005, is 244.35 amended by adding a subdivision to read: 244.36 Subd. 5. [PROHIBITED DISCLOSURE.] In all proceedings under 245.1 this chapter in which public assistance is assigned under 245.2 section 256.741 or the public authority provides services to a 245.3 party or parties to the proceedings, notwithstanding statutory 245.4 or other authorization for the public authority to release 245.5 private data on the location of a party to the action, 245.6 information on the location of one party may not be released by 245.7 the public authority to the other party if: 245.8 (1) the public authority has knowledge that a protective 245.9 order with respect to the other party has been entered; or 245.10 (2) the public authority has reason to believe that the 245.11 release of the information may result in physical or emotional 245.12 harm to the other party. 245.13 Sec. 42. Minnesota Statutes 1996, section 518.10, is 245.14 amended to read: 245.15 518.10 [REQUISITES OF PETITION.] 245.16 The petition for dissolution of marriage or legal 245.17 separation shall state and allege: 245.18 (a) The nameand, address, and, in circumstances in which 245.19 child support or spousal maintenance will be addressed, social 245.20 security number of the petitioner and any prior or other name 245.21 used by the petitioner; 245.22 (b) The name and, if known, the address and, in 245.23 circumstances in which child support or spousal maintenance will 245.24 be addressed, social security number of the respondent and any 245.25 prior or other name used by the respondent and known to the 245.26 petitioner; 245.27 (c) The place and date of the marriage of the parties; 245.28 (d) In the case of a petition for dissolution, that either 245.29 the petitioner or the respondent or both: 245.30 (1) Has resided in this state for not less than 180 days 245.31 immediately preceding the commencement of the proceeding, or 245.32 (2) Has been a member of the armed services and has been 245.33 stationed in this state for not less than 180 days immediately 245.34 preceding the commencement of the proceeding, or 245.35 (3) Has been a domiciliary of this state for not less than 245.36 180 days immediately preceding the commencement of the 246.1 proceeding; 246.2 (e) The name at the time of the petition and any prior or 246.3 other name, age and date of birth of each living minor or 246.4 dependent child of the parties born before the marriage or born 246.5 or adopted during the marriage and a reference to, and the 246.6 expected date of birth of, a child of the parties conceived 246.7 during the marriage but not born; 246.8 (f) Whether or not a separate proceeding for dissolution, 246.9 legal separation, or custody is pending in a court in this state 246.10 or elsewhere; 246.11 (g) In the case of a petition for dissolution, that there 246.12 has been an irretrievable breakdown of the marriage 246.13 relationship; 246.14 (h) In the case of a petition for legal separation, that 246.15 there is a need for a decree of legal separation; and 246.16 (i) Any temporary or permanent maintenance, child support, 246.17 child custody, disposition of property, attorneys' fees, costs 246.18 and disbursements applied for without setting forth the amounts. 246.19 The petition shall be verified by the petitioner or 246.20 petitioners, and its allegations established by competent 246.21 evidence. 246.22 Sec. 43. Minnesota Statutes 1996, section 518.148, 246.23 subdivision 2, is amended to read: 246.24 Subd. 2. [REQUIRED INFORMATION.] The certificate shall 246.25 include the following information: 246.26 (1) the full caption and file number of the case and the 246.27 title "Certificate of Dissolution"; 246.28 (2) the names and any prior or other names of the parties 246.29 to the dissolution; 246.30 (3) the names of any living minor or dependent children as 246.31 identified in the judgment and decree; 246.32 (4) that the marriage of the parties is dissolved;and246.33 (5) the date of the judgment and decree.; and 246.34 (6) the social security number of the parties to the 246.35 dissolution and the social security number of any living minor 246.36 or dependent children identified in the judgment and decree. 247.1 Sec. 44. Minnesota Statutes 1996, section 518.171, 247.2 subdivision 1, is amended to read: 247.3 Subdivision 1. [ORDER.] Compliance with this section 247.4 constitutes compliance with a qualified medical child support 247.5 order as described in the federal Employee Retirement Income 247.6 Security Act of 1974 (ERISA) as amended by the federal Omnibus 247.7 Budget Reconciliation Act of 1993 (OBRA). 247.8 (a) Every child support order must: 247.9 (1) expressly assign or reserve the responsibility for 247.10 maintaining medical insurance for the minor children and the 247.11 division of uninsured medical and dental costs; and 247.12 (2) contain the namesand, last known addresses,if anyand 247.13 social security number of the custodial parent and noncustodial 247.14 parent, of the dependents unless the court prohibits the 247.15 inclusion of an address or social security number and orders the 247.16 custodial parent to provide the address and social security 247.17 number to the administrator of the health plan. The court shall 247.18 order the party with the better group dependent health and 247.19 dental insurance coverage or health insurance plan to name the 247.20 minor child as beneficiary on any health and dental insurance 247.21 plan that is available to the party on: 247.22 (i) a group basis; 247.23 (ii) through an employer or union; or 247.24 (iii) through a group health plan governed under the ERISA 247.25 and included within the definitions relating to health plans 247.26 found in section 62A.011, 62A.048, or 62E.06, subdivision 2. 247.27 "Health insurance" or "health insurance coverage" as used in 247.28 this section means coverage that is comparable to or better than 247.29 a number two qualified plan as defined in section 62E.06, 247.30 subdivision 2. "Health insurance" or "health insurance 247.31 coverage" as used in this section does not include medical 247.32 assistance provided under chapter 256, 256B, or 256D. 247.33 (b) If the court finds that dependent health or dental 247.34 insurance is not available to the obligor or obligee on a group 247.35 basis or through an employer or union, or that group insurance 247.36 is not accessible to the obligee, the court may require the 248.1 obligor (1) to obtain other dependent health or dental 248.2 insurance, (2) to be liable for reasonable and necessary medical 248.3 or dental expenses of the child, or (3) to pay no less than $50 248.4 per month to be applied to the medical and dental expenses of 248.5 the children or to the cost of health insurance dependent 248.6 coverage. 248.7 (c) If the court finds that the available dependent health 248.8 or dental insurance does not pay all the reasonable and 248.9 necessary medical or dental expenses of the child, including any 248.10 existing or anticipated extraordinary medical expenses, and the 248.11 court finds that the obligor has the financial ability to 248.12 contribute to the payment of these medical or dental expenses, 248.13 the court shall require the obligor to be liable for all or a 248.14 portion of the medical or dental expenses of the child not 248.15 covered by the required health or dental plan. Medical and 248.16 dental expenses include, but are not limited to, necessary 248.17 orthodontia and eye care, including prescription lenses. 248.18 (d) Unless otherwise agreed by the parties and approved by 248.19 the court, if the court finds that the obligee is not receiving 248.20 public assistance for the child and has the financial ability to 248.21 contribute to the cost of medical and dental expenses for the 248.22 child, including the cost of insurance, the court shall order 248.23 the obligee and obligor to each assume a portion of these 248.24 expenses based on their proportionate share of their total net 248.25 income as defined in section 518.54, subdivision 6. 248.26 (e) Payments ordered under this section are subject to 248.27 section 518.611. An obligee who fails to apply payments 248.28 received to the medical expenses of the dependents may be found 248.29 in contempt of this order. 248.30 Sec. 45. Minnesota Statutes 1996, section 518.171, 248.31 subdivision 4, is amended to read: 248.32 Subd. 4. [EFFECT OF ORDER.] (a) The order is binding on 248.33 the employer or union and the health and dental insurance plan 248.34 when service under subdivision 3 has been made. In the case of 248.35 an obligor who changes employment and is required to provide 248.36 health coverage for the child, a new employer that provides 249.1 health care coverage shall enroll the child in the obligor's 249.2 health plan upon receipt of an order or notice for health 249.3 insurance, unless the obligor contests the enrollment. The 249.4 obligor may contest the enrollment on the limited grounds that 249.5 the enrollment is improper due to mistake of fact or that the 249.6 enrollment meets the requirements of section 518.64, subdivision 249.7 2. If the obligor chooses to contest the enrollment, the 249.8 obligor must do so no later than 15 days after the employer 249.9 notifies the obligor of the enrollment, by doing all of the 249.10 following: 249.11 (i) filing a request for contested hearing according to 249.12 section 518.5511, subdivision 3a; 249.13 (ii) serving a copy of the request for contested hearing 249.14 upon the public authority and the obligee; and 249.15 (iii) securing a date for the contested hearing no later 249.16 than 45 days after the notice of enrollment. 249.17 (b) The enrollment must remain in place during the time 249.18 period in which the obligor contests the withholding. 249.19 (c) If the court finds that an arrearage of at least 30 249.20 days existed as of the date of the notice of withholding, the 249.21 court shall order income withholding to continue. If the court 249.22 finds a mistake in the amount of the arrearage to be withheld, 249.23 the court shall continue the income withholding, but it shall 249.24 correct the amount of the arrearage to be withheld. An employer 249.25 or union that is included under ERISA may not deny enrollment 249.26 based on exclusionary clauses described in section 62A.048. 249.27 Uponreceipt of the order, or uponapplication of the 249.28 obligorpursuantaccording to the order or notice, the employer 249.29 or union and its health and dental insurance plan shall enroll 249.30 the minor child as a beneficiary in the group insurance plan and 249.31 withhold any required premium from the obligor's income or 249.32 wages. If more than one plan is offered by the employer or 249.33 union, the child shall be enrolled in the least costly health 249.34 insurance plan otherwise available to the obligor that is 249.35 comparable to a number two qualified plan. If the obligor is 249.36 not enrolled in a health insurance plan, the employer or union 250.1 shall also enroll the obligor in the chosen plan if enrollment 250.2 of the obligor is necessary in order to obtain dependent 250.3 coverage under the plan. Enrollment of dependents and the 250.4 obligor shall be immediate and not dependent upon open 250.5 enrollment periods. Enrollment is not subject to the 250.6 underwriting policies described in section 62A.048. 250.7 (b) An employer or union that willfully fails to comply 250.8 with the order is liable for any health or dental expenses 250.9 incurred by the dependents during the period of time the 250.10 dependents were eligible to be enrolled in the insurance 250.11 program, and for any other premium costs incurred because the 250.12 employer or union willfully failed to comply with the order. An 250.13 employer or union that fails to comply with the order is subject 250.14 to contempt under section 518.615 and is also subject to a fine 250.15 of $500 to be paid to the obligee or public authority. Fines 250.16 paid to the public authority are designated for child support 250.17 enforcement services. 250.18 (c) Failure of the obligor to execute any documents 250.19 necessary to enroll the dependent in the group health and dental 250.20 insurance plan will not affect the obligation of the employer or 250.21 union and group health and dental insurance plan to enroll the 250.22 dependent in a plan. Information and authorization provided by 250.23 the public authority responsible for child support enforcement, 250.24 or by the custodial parent or guardian, is valid for the 250.25 purposes of meeting enrollment requirements of the health plan. 250.26 The insurance coverage for a child eligible under subdivision 5 250.27 shall not be terminated except as authorized in subdivision 5. 250.28 Sec. 46. Minnesota Statutes 1996, section 518.54, is 250.29 amended by adding a subdivision to read: 250.30 Subd. 4a. [SUPPORT ORDER.] "Support order" means a 250.31 judgment, decree, or order, whether temporary, final, or subject 250.32 to modification, issued by a court or administrative agency of 250.33 competent jurisdiction, for the support and maintenance of a 250.34 child, including a child who has attained the age of majority 250.35 under the law of the issuing state, or a child and the parent 250.36 with whom the child is living, that provides for monetary 251.1 support, child care, medical support including expenses for 251.2 confinement and pregnancy, arrearages, or reimbursement, and 251.3 which may include related costs and fees, interest and 251.4 penalties, income withholding, and other relief. This definition 251.5 applies to orders issued under this chapter and chapters 256, 251.6 257, and 518C. 251.7 Sec. 47. Minnesota Statutes 1996, section 518.54, 251.8 subdivision 6, is amended to read: 251.9 Subd. 6. [INCOME.] "Income" means any form of periodic 251.10 payment to an individual including, but not limited to, wages, 251.11 salaries, payments to an independent contractor, workers' 251.12 compensation, reemployment insurance, annuity, military and 251.13 naval retirement, pension and disability payments. Benefits 251.14 received undersections 256.72 to 256.87 and chapter 256DTitle 251.15 IV-A of the Social Security Act are not income under this 251.16 section. 251.17 Sec. 48. Minnesota Statutes 1996, section 518.551, 251.18 subdivision 12, is amended to read: 251.19 Subd. 12. [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon 251.20 motion of an obligee, if the court finds that the obligor is or 251.21 may be licensed by a licensing board listed in section 214.01 or 251.22 other state, county, or municipal agency or board that issues an 251.23 occupational license and the obligor is in arrears in 251.24 court-ordered child support or maintenance payments or both in 251.25 an amount equal to or greater than three times the obligor's 251.26 total monthly support and maintenance payments and is not in 251.27 compliance with a written payment agreement regarding both 251.28 current support and arrearages approved by the court, an 251.29 administrative law judge, or the public authority, the 251.30 administrative law judge, or the court shall direct the 251.31 licensing board or other licensing agency to suspend the license 251.32 under section 214.101. The court's order must be stayed for 90 251.33 days in order to allow the obligor to execute a written payment 251.34 agreement regarding both current support and arrearages. The 251.35 payment agreement must be approved by either the court or the 251.36 public authority responsible for child support enforcement. If 252.1 the obligor has not executed or is not in compliance with a 252.2 written payment agreement regarding both current support and 252.3 arrearages after the 90 days expires, the court's order becomes 252.4 effective. If the obligor is a licensed attorney, the court 252.5 shall report the matter to the lawyers professional 252.6 responsibility board for appropriate action in accordance with 252.7 the rules of professional conduct. The remedy under this 252.8 subdivision is in addition to any other enforcement remedy 252.9 available to the court. 252.10 (b) If a public authority responsible for child support 252.11 enforcement finds that the obligor is or may be licensed by a 252.12 licensing board listed in section 214.01 or other state, county, 252.13 or municipal agency or board that issues an occupational license 252.14 and the obligor is in arrears in court-ordered child support or 252.15 maintenance payments or both in an amount equal to or greater 252.16 than three times the obligor's total monthly support and 252.17 maintenance payments and is not in compliance with a written 252.18 payment agreement regarding both current support and arrearages 252.19 approved by the court, an administrative law judge, or the 252.20 public authority, the court, an administrative law judge, or the 252.21 public authority shall direct the licensing board or other 252.22 licensing agency to suspend the license under section 214.101. 252.23 If the obligor is a licensed attorney, the public authority may 252.24 report the matter to the lawyers professional responsibility 252.25 board for appropriate action in accordance with the rules of 252.26 professional conduct. The remedy under this subdivision is in 252.27 addition to any other enforcement remedy available to the public 252.28 authority. 252.29 (c) At least 90 days before notifying a licensing authority 252.30 or the lawyers professional responsibility board under paragraph 252.31 (b), the public authority shall mail a written notice to the 252.32 license holder addressed to the license holder's last known 252.33 address that the public authority intends to seek license 252.34 suspension under this subdivision and that the license holder 252.35 must request a hearing within 30 days in order to contest the 252.36 suspension. If the license holder makes a written request for a 253.1 hearing within 30 days of the date of the notice, either a court 253.2 hearing or a contested administrative proceeding must be held 253.3 under section 518.5511, subdivision 4. Notwithstanding any law 253.4 to the contrary, the license holder must be served with 14 days' 253.5 notice in writing specifying the time and place of the hearing 253.6 and the allegations against the license holder. The notice may 253.7 be served personally or by mail. If the public authority does 253.8 not receive a request for a hearing within 30 days of the date 253.9 of the notice, and the obligor does not execute a written 253.10 payment agreement regarding both current support and arrearages 253.11 approved by thecourt, an administrative law judge or thepublic 253.12 authority within 90 days of the date of the notice, the public 253.13 authority shall direct the licensing board or other licensing 253.14 agency to suspend the obligor's license under paragraph (b), or 253.15 shall report the matter to the lawyers professional 253.16 responsibility board. 253.17 (d) The administrative law judge, on behalf of the public 253.18 authority, or the court shall notify the lawyers professional 253.19 responsibility board for appropriate action in accordance with 253.20 the rules of professional responsibility conduct or order the 253.21 licensing board or licensing agency to suspend the license if 253.22 the judge finds that: 253.23 (1) the person is licensed by a licensing board or other 253.24 state agency that issues an occupational license; 253.25 (2) the person has not made full payment of arrearages 253.26 found to be due by the public authority; and 253.27 (3) the person has not executed or is not in compliance 253.28 with a payment plan approved by the court, an administrative law 253.29 judge, or the public authority. 253.30 (e) Within 15 days of the date on which the obligor either 253.31 makes full payment of arrearages found to be due by the court or 253.32 public authority or executes and initiates good faith compliance 253.33 with a written payment plan approved by the court, an 253.34 administrative law judge, or the public authority, the court, an 253.35 administrative law judge, or the public authority responsible 253.36 for child support enforcement shall notify the licensing board 254.1 or licensing agency or the lawyers professional responsibility 254.2 board that the obligor is no longer ineligible for license 254.3 issuance, reinstatement, or renewal under this subdivision. 254.4 (f) In addition to the criteria established under this 254.5 section for the suspension of an obligor's occupational license, 254.6 a court, an administrative law judge, or the public authority 254.7 may direct the licensing board or other licensing agency to 254.8 suspend the license of an obligor who has failed, after 254.9 receiving notice, to comply with a subpoena or warrant relating 254.10 to a paternity or child support proceeding. 254.11 Sec. 49. Minnesota Statutes 1996, section 518.551, 254.12 subdivision 13, is amended to read: 254.13 Subd. 13. [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 254.14 of an obligee, which has been properly served on the obligor and 254.15 upon which there has been an opportunity for hearing, if a court 254.16 finds that the obligor has been or may be issued a driver's 254.17 license by the commissioner of public safety and the obligor is 254.18 in arrears in court-ordered child support or maintenance 254.19 payments, or both, in an amount equal to or greater than three 254.20 times the obligor's total monthly support and maintenance 254.21 payments and is not in compliance with a written payment 254.22 agreement regarding both current support and arrearages approved 254.23 by the court, an administrative law judge, or the public 254.24 authority, the court shall order the commissioner of public 254.25 safety to suspend the obligor's driver's license. The court's 254.26 order must be stayed for 90 days in order to allow the obligor 254.27 to execute a written payment agreement regarding both current 254.28 support and arrearages, which payment agreement must be approved 254.29 by either the court or the public authority responsible for 254.30 child support enforcement. If the obligor has not executed or 254.31 is not in compliance with a written payment agreement regarding 254.32 both current support and arrearages after the 90 days expires, 254.33 the court's order becomes effective and the commissioner of 254.34 public safety shall suspend the obligor's driver's license. The 254.35 remedy under this subdivision is in addition to any other 254.36 enforcement remedy available to the court. An obligee may not 255.1 bring a motion under this paragraph within 12 months of a denial 255.2 of a previous motion under this paragraph. 255.3 (b) If a public authority responsible for child support 255.4 enforcement determines that the obligor has been or may be 255.5 issued a driver's license by the commissioner of public safety 255.6 and the obligor is in arrears in court-ordered child support or 255.7 maintenance payments or both in an amount equal to or greater 255.8 than three times the obligor's total monthly support and 255.9 maintenance payments and not in compliance with a written 255.10 payment agreement regarding both current support and arrearages 255.11 approved by the court, an administrative law judge, or the 255.12 public authority, the public authority shall direct the 255.13 commissioner of public safety to suspend the obligor's driver's 255.14 license. The remedy under this subdivision is in addition to 255.15 any other enforcement remedy available to the public authority. 255.16 (c) At least 90 days prior to notifying the commissioner of 255.17 public safetypursuantaccording to paragraph (b), the public 255.18 authority must mail a written notice to the obligor at the 255.19 obligor's last known address, that it intends to seek suspension 255.20 of the obligor's driver's license and that the obligor must 255.21 request a hearing within 30 days in order to contest the 255.22 suspension. If the obligor makes a written request for a 255.23 hearing within 30 days of the date of the notice, either a court 255.24 hearing or a contested administrative proceeding must be held 255.25 under section 518.5511, subdivision 4. Notwithstanding any law 255.26 to the contrary, the obligor must be served with 14 days' notice 255.27 in writing specifying the time and place of the hearing and the 255.28 allegations against the obligor. The notice may be served 255.29 personally or by mail. If the public authority does not receive 255.30 a request for a hearing within 30 days of the date of the 255.31 notice, and the obligor does not execute a written payment 255.32 agreement regarding both current support and arrearages approved 255.33 bythe court, an administrative law judge, orthe public 255.34 authority within 90 days of the date of the notice, the public 255.35 authority shall direct the commissioner of public safety to 255.36 suspend the obligor's driver's license under paragraph (b). 256.1 (d) At a hearing requested by the obligor under paragraph 256.2 (c), and on finding that the obligor is in arrears in 256.3 court-ordered child support or maintenance payments or both in 256.4 an amount equal to or greater than three times the obligor's 256.5 total monthly support and maintenance payments, the district 256.6 court or the administrative law judge shall order the 256.7 commissioner of public safety to suspend the obligor's driver's 256.8 license or operating privileges unless the court or 256.9 administrative law judge determines that the obligor has 256.10 executed and is in compliance with a written payment agreement 256.11 regarding both current support and arrearages approved by the 256.12 court, an administrative law judge, or the public authority. 256.13 (e) An obligor whose driver's license or operating 256.14 privileges are suspended may provide proof to the court or the 256.15 public authority responsible for child support enforcement that 256.16 the obligor is in compliance with all written payment agreements 256.17 regarding both current support and arrearages. Within 15 days 256.18 of the receipt of that proof, the court or public authority 256.19 shall inform the commissioner of public safety that the 256.20 obligor's driver's license or operating privileges should no 256.21 longer be suspended. 256.22 (f) On January 15, 1997, and every two years after that, 256.23 the commissioner of human services shall submit a report to the 256.24 legislature that identifies the following information relevant 256.25 to the implementation of this section: 256.26 (1) the number of child support obligors notified of an 256.27 intent to suspend a driver's license; 256.28 (2) the amount collected in payments from the child support 256.29 obligors notified of an intent to suspend a driver's license; 256.30 (3) the number of cases paid in full and payment agreements 256.31 executed in response to notification of an intent to suspend a 256.32 driver's license; 256.33 (4) the number of cases in which there has been 256.34 notification and no payments or payment agreements; 256.35 (5) the number of driver's licenses suspended; and 256.36 (6) the cost of implementation and operation of the 257.1 requirements of this section. 257.2 (g) In addition to the criteria established under this 257.3 section for the suspension of an obligor's driver's license, a 257.4 court, an administrative law judge, or the public authority may 257.5 direct the commissioner of public safety to suspend the license 257.6 of an obligor who has failed, after receiving notice, to comply 257.7 with a subpoena or warrant relating to a paternity or child 257.8 support proceeding. 257.9 Sec. 50. Minnesota Statutes 1996, section 518.5512, is 257.10 amended by adding a subdivision to read: 257.11 Subd. 6. [ADMINISTRATIVE AUTHORITY.] (a) In each case in 257.12 which support rights are assigned under section 256.741, 257.13 subdivision 1, or where the public authority is providing 257.14 services under an application for child support services, a 257.15 nonattorney employee of the public authority may, without 257.16 requirement of a court order: 257.17 (1) recognize and enforce orders of child support agencies 257.18 of other states; 257.19 (2) compel by subpoena the production of all papers, books, 257.20 records, documents, or other evidentiary material needed to 257.21 establish a parentage or child support order or to modify or 257.22 enforce a child support order; 257.23 (3) change the payee to the appropriate person, 257.24 organization, or agency authorized to receive or collect child 257.25 support or any other person or agency designated as the 257.26 caretaker of the child by agreement of the legal custodian or by 257.27 court order; 257.28 (4) order income withholding of child support under section 257.29 518.611; 257.30 (5) secure assets to satisfy the debt or arrearage in cases 257.31 in which there is a support debt or arrearage by: 257.32 (i) intercepting or seizing periodic or lump-sum payments 257.33 from state or local agencies, including reemployment insurance, 257.34 workers' compensation payments, judgments, settlements, and 257.35 lotteries; 257.36 (ii) attaching and seizing assets of the obligor held in 258.1 financial institutions or public or private retirement funds; 258.2 and 258.3 (iii) imposing liens and, in appropriate cases, forcing the 258.4 sale of property and the distribution of proceeds; and 258.5 (6) increase the amount of the monthly support payments to 258.6 include amounts for debts or arrearages for the purpose of 258.7 securing overdue support. 258.8 (b) Subpoenas may be served anywhere within the state and 258.9 served outside the state in the same manner as prescribed by law 258.10 for service of process of subpoenas issued by the district court 258.11 of this state. When a subpoena under this subdivision is served 258.12 on a third-party recordkeeper, written notice of the subpoena 258.13 shall be mailed to the person who is the subject of the 258.14 subpoenaed material at the person's last known address within 258.15 three days of the day the subpoena is served. This notice 258.16 provision does not apply if there is reasonable cause to believe 258.17 the giving of the notice may lead to interference with the 258.18 production of the subpoenaed documents. 258.19 (c) A person served with a subpoena may make a written 258.20 objection to the public authority or court before the time 258.21 specified in the subpoena for compliance. The public authority 258.22 or the court shall cancel or modify the subpoena, if 258.23 appropriate. The public authority shall pay the reasonable 258.24 costs of producing the documents, if requested. 258.25 (d) Subpoenas shall be enforceable in the same manner as 258.26 subpoenas of the district court, in proceedings initiated by 258.27 complaint of the public authority in the district court. 258.28 Sec. 51. Minnesota Statutes 1996, section 518.5512, is 258.29 amended by adding a subdivision to read: 258.30 Subd. 7. [CONTROLLING ORDER DETERMINATION.] The public 258.31 authority or a party may request the office of administrative 258.32 hearings to determine a controlling order according to section 258.33 518C.207, paragraph (c). 258.34 Sec. 52. [518.6111] [INCOME WITHHOLDING.] 258.35 Subdivision 1. [DEFINITIONS.] (a) For the purpose of this 258.36 section, the following terms have the meanings provided in this 259.1 subdivision unless otherwise stated. 259.2 (b) "Payor of funds" means any person or entity that 259.3 provides funds to an obligor, including an employer as defined 259.4 under chapter 24 of the Internal Revenue Code, section 3401(d), 259.5 an independent contractor, payor of workers' compensation 259.6 benefits or reemployment insurance, or a financial institution 259.7 as defined in section 256.978, subdivision 2, paragraph (b). 259.8 (c) "Business day" means a day on which state offices are 259.9 open for regular business. 259.10 (d) "Arrears" means amounts owed under a support order that 259.11 are past due. 259.12 Subd. 2. [APPLICATION.] This section applies to all 259.13 support orders issued by a court or an administrative tribunal 259.14 and orders for or notices of withholding issued by the public 259.15 authority according to section 518.5512, subdivision 6, 259.16 paragraph (a), clause (4). 259.17 Subd. 3. [ORDER.] Every support order must address income 259.18 withholding. Whenever a support order is initially entered or 259.19 modified, the full amount of the support order must be withheld 259.20 from the income of the obligor and forwarded to the public 259.21 authority. Every order for support or maintenance shall provide 259.22 for a conspicuous notice of the provisions of this section that 259.23 complies with section 518.68, subdivision 2. An order without 259.24 this notice remains subject to this section. This section 259.25 applies regardless of the source of income of the person 259.26 obligated to pay the support or maintenance. 259.27 A payor of funds shall implement income withholding 259.28 according to this section upon receipt of an order for or notice 259.29 of withholding. The notice of withholding shall be on a form 259.30 provided by the commissioner of human services. 259.31 Subd. 4. [COLLECTION SERVICES.] The commissioner of human 259.32 services shall prepare and make available to the courts a notice 259.33 of services that explains child support and maintenance 259.34 collection services available through the public authority, 259.35 including income withholding. Upon receiving a petition for 259.36 dissolution of marriage or legal separation, the court 260.1 administrator shall promptly send the notice of services to the 260.2 petitioner and respondent at the addresses stated in the 260.3 petition. 260.4 Upon receipt of a support order requiring income 260.5 withholding, a petitioner or respondent, who is not a recipient 260.6 of public assistance and does not receive child support services 260.7 from the public authority, shall apply to the public authority 260.8 for either full child support collection services or for income 260.9 withholding only services. 260.10 For those persons applying for income withholding only 260.11 services, a monthly service fee of $15 must be charged to the 260.12 obligor. This fee is in addition to the amount of the support 260.13 order and shall be withheld through income withholding. The 260.14 public authority shall explain the service options in this 260.15 section to the affected parties and encourage the application 260.16 for full child support collection services. 260.17 Subd. 5. [PAYOR OF FUNDS RESPONSIBILITIES.] (a) An order 260.18 for or notice of withholding is binding on a payor of funds upon 260.19 receipt. Withholding must begin no later than the first pay 260.20 period that occurs after 14 days following the date of receipt 260.21 of the order for or notice of withholding. In the case of a 260.22 financial institution, preauthorized transfers must occur in 260.23 accordance with a court-ordered payment schedule. 260.24 (b) A payor of funds shall withhold from the income payable 260.25 to the obligor the amount specified in the order or notice of 260.26 withholding and amounts specified under subdivisions 6 and 9 and 260.27 shall remit the amounts withheld to the public authority within 260.28 seven business days of the date the obligor is paid the 260.29 remainder of the income. The payor of funds shall include with 260.30 the remittance the social security number of the obligor, the 260.31 case type indicator, and the date the obligor is paid the 260.32 remainder of the income. The obligor is considered to have paid 260.33 the amount withheld as of the date the obligor received the 260.34 remainder of the income. A payor of funds may combine all 260.35 amounts withheld from one pay period into one payment to each 260.36 public authority, but shall separately identify each obligor 261.1 making payment. 261.2 (c) A payor of funds shall not discharge, or refuse to 261.3 hire, or otherwise discipline an employee as a result of wage or 261.4 salary withholding authorized by this section. A payor of funds 261.5 shall be liable to the obligee for any amounts required to be 261.6 withheld. A payor of funds that fails to withhold or transfer 261.7 funds in accordance with this section is also liable to the 261.8 obligee for interest on the funds at the rate applicable to 261.9 judgments under section 549.09 computed from the date the funds 261.10 were required to be withheld or transferred. A payor of funds 261.11 is liable for reasonable attorney fees of the obligee or public 261.12 authority incurred in enforcing the liability under this 261.13 paragraph. A payor of funds that has failed to comply with the 261.14 requirements of this section is subject to contempt sanctions 261.15 under section 518.615. If the payor of funds is an employer or 261.16 independent contractor and violates this subdivision, a court 261.17 may award the obligor twice the wages lost as a result of this 261.18 violation. If a court finds a payor of funds violated this 261.19 subdivision, the court shall impose a civil fine of not less 261.20 than $500. 261.21 (d) If a single employee is subject to multiple withholding 261.22 orders or multiple notices of withholding for the support of 261.23 more than one child, the payor of funds shall comply with all of 261.24 the orders or notices to the extent that the total amount 261.25 withheld from the obligor's income does not exceed the limits 261.26 imposed under the Consumer Credit Protection Act, United States 261.27 Code, title 15, section 1637(b), giving priority to amounts 261.28 designated in each order or notice as current support as follows: 261.29 (1) if the total of the amounts designated in the orders 261.30 for or notices of withholding as current support exceeds the 261.31 amount available for income withholding, the payor of funds 261.32 shall allocate to each order or notice an amount for current 261.33 support equal to the amount designated in that order or notice 261.34 as current support, divided by the total of the amounts 261.35 designated in the orders or notices as current support, 261.36 multiplied by the amount of the income available for income 262.1 withholding; and 262.2 (2) if the total of the amounts designated in the orders 262.3 for or notices of withholding as current support does not exceed 262.4 the amount available for income withholding, the payor of funds 262.5 shall pay the amounts designated as current support, and shall 262.6 allocate to each order or notice an amount for past due support, 262.7 equal to the amount designated in that order or notice as past 262.8 due support, divided by the total of the amounts designated in 262.9 the orders or notices as past due support, multiplied by the 262.10 amount of income remaining available for income withholding 262.11 after the payment of current support. 262.12 (e) When an order for or notice of withholding is in effect 262.13 and the obligor's employment is terminated, the obligor and the 262.14 payor of funds shall notify the public authority of the 262.15 termination within ten days of the termination date. The 262.16 termination notice shall include the obligor's home address and 262.17 the name and address of the obligor's new payor of funds, if 262.18 known. 262.19 (f) A payor of funds may deduct one dollar from the 262.20 obligor's remaining salary for each payment made pursuant to an 262.21 order for or notice of withholding under this section to cover 262.22 the expenses of withholding. 262.23 Subd. 6. [FINANCIAL INSTITUTIONS.] (a) If income 262.24 withholding is ineffective due to the obligor's method of 262.25 obtaining income, the court shall order the obligor to identify 262.26 a child support deposit account owned solely by the obligor, or 262.27 to establish an account, in a financial institution located in 262.28 this state for the purpose of depositing court-ordered child 262.29 support payments. The court shall order the obligor to execute 262.30 an agreement with the appropriate public authority for 262.31 preauthorized transfers from the obligor's child support account 262.32 payable to an account of the public authority. The court shall 262.33 order the obligor to disclose to the court all deposit accounts 262.34 owned by the obligor in whole or in part in any financial 262.35 institution. The court may order the obligor to disclose to the 262.36 court the opening or closing of any deposit account owned in 263.1 whole or in part by the obligor within 30 days of the opening or 263.2 closing. The court may order the obligor to execute an 263.3 agreement with the appropriate public authority for 263.4 preauthorized transfers from any deposit account owned in whole 263.5 or in part by the obligor to the obligor's child support deposit 263.6 account if necessary to satisfy court-ordered child support 263.7 payments. The court may order a financial institution to 263.8 disclose to the court the account number and any other 263.9 information regarding accounts owned in whole or in part by the 263.10 obligor. An obligor who fails to comply with this subdivision, 263.11 fails to deposit funds in at least one deposit account 263.12 sufficient to pay court-ordered child support, or stops payment 263.13 or revokes authorization of any preauthorized transfer is 263.14 subject to contempt of court procedures under chapter 588. 263.15 (b) A financial institution shall execute preauthorized 263.16 transfers for the deposit accounts of the obligor in the amount 263.17 specified in the order and amounts required under this section 263.18 as directed by the public authority. A financial institution is 263.19 liable to the obligee if funds in any of the obligor's deposit 263.20 accounts identified in the court order equal the amount stated 263.21 in the preauthorization agreement but are not transferred by the 263.22 financial institution in accordance with the agreement. 263.23 Subd. 7. [SUBSEQUENT INCOME WITHHOLDING.] (a) This 263.24 subdivision applies to support orders that do not contain 263.25 provisions for income withholding. 263.26 (b) For cases in which the public authority is providing 263.27 child support enforcement services to the parties, the income 263.28 withholding under this subdivision shall take effect without 263.29 prior judicial notice to the obligor and without the need for 263.30 judicial or administrative hearing. Withholding shall result 263.31 when: 263.32 (1) the obligor requests it in writing to the public 263.33 authority; 263.34 (2) the obligor fails to make the payments as required in 263.35 the support order and is at least 30 days in arrears; 263.36 (3) the obligee or obligor serves on the public authority a 264.1 copy of the notice of income withholding, a copy of the court's 264.2 order, an application, and the fee to use the public authority's 264.3 collection services; or 264.4 (4) the public authority commences withholding according to 264.5 section 518.5512, subdivision 6, paragraph (a), clause (4). 264.6 (c) For cases in which the public authority is not 264.7 providing child support services to the parties, income 264.8 withholding under this subdivision shall take effect when an 264.9 obligee requests it by making a written motion to the court and 264.10 the court finds that previous support has not been paid on a 264.11 timely consistent basis or that the obligor has threatened 264.12 expressly or otherwise to stop or reduce payments. 264.13 (d) Within two days after the public authority commences 264.14 withholding under this subdivision, the public authority shall 264.15 send to the obligor at the obligor's last known address, notice 264.16 that withholding has commenced. The notice shall include the 264.17 information provided to the payor of funds in the notice of 264.18 withholding. 264.19 Subd. 8. [CONTEST.] (a) The obligor may contest 264.20 withholding under subdivision 7 on the limited grounds that the 264.21 withholding or the amount withheld is improper due to mistake of 264.22 fact. If the obligor chooses to contest the withholding, the 264.23 obligor must do so no later than 15 days after the employer 264.24 commences withholding, by doing all of the following: 264.25 (1) file a request for contested hearing according to 264.26 section 518.5511, subdivision 4, and include in the request the 264.27 alleged mistake of fact; 264.28 (2) serve a copy of the request for contested hearing upon 264.29 the public authority and the obligee; and 264.30 (3) secure a date for the contested hearing no later than 264.31 45 days after receiving notice that withholding has commenced. 264.32 (b) The income withholding must remain in place while the 264.33 obligor contests the withholding. 264.34 (c) If the court finds that an arrearage of at least 30 264.35 days existed as of the date of the notice of withholding, the 264.36 court shall order income withholding to continue. If the court 265.1 finds a mistake in the amount of the arrearage to be withheld, 265.2 the court shall continue the income withholding, but it shall 265.3 correct the amount of the arrearage to be withheld. 265.4 Subd. 9. [PRIORITY.] (a) An order for or notice of 265.5 withholding under this section or execution or garnishment upon 265.6 a judgment for child support arrearage or preadjudicated 265.7 expenses shall have priority over an attachment, execution, 265.8 garnishment, or wage assignment and shall not be subject to the 265.9 statutory limitations on amounts levied against the income of 265.10 the obligor. Amounts withheld from an employee's income must 265.11 not exceed the maximum permitted under the Consumer Credit 265.12 Protection Act, United States Code, title 15, section 1673(b). 265.13 (b) If more than one order for or notice of withholding 265.14 exists involving the same obligor and child, the public 265.15 authority shall enforce the most current order or notice. An 265.16 order for or notice of withholding that was previously 265.17 implemented according to this section shall end as of the date 265.18 of the most current order. The public authority shall notify 265.19 the payor of funds to withhold under the most current 265.20 withholding order or notice. 265.21 Subd. 10. [ARREARAGE ORDER.] (a) This section does not 265.22 prevent the court from ordering the payor of funds to withhold 265.23 amounts to satisfy the obligor's previous arrearage in support 265.24 order payments. This remedy shall not operate to exclude 265.25 availability of other remedies to enforce judgments. The 265.26 employer or payor of funds shall withhold from the obligor's 265.27 income an additional amount equal to 20 percent of the monthly 265.28 child support or maintenance obligation until the arrearage is 265.29 paid. 265.30 (b) Notwithstanding any law to the contrary, funds from 265.31 income sources included in section 518.54, subdivision 6, 265.32 whether periodic or lump sum, are not exempt from attachment or 265.33 execution upon a judgment for child support arrearage. 265.34 (c) Absent an order to the contrary, if an arrearage exists 265.35 at the time a support order would otherwise terminate, income 265.36 withholding shall continue in effect or may be implemented in an 266.1 amount equal to the support order plus an additional 20 percent 266.2 of the monthly child support obligation, until all arrears have 266.3 been paid in full. 266.4 Subd. 11. [LUMP-SUM PAYMENTS.] Before transmittal to the 266.5 obligor of a lump-sum payment of $500 or more including, but not 266.6 limited to, severance pay, accumulated sick pay, vacation pay, 266.7 bonuses, commissions, or other pay or benefits, a payor of funds: 266.8 (1) who has been served with an order for or notice of 266.9 income withholding under this section shall: 266.10 (i) notify the public authority of the lump-sum payment 266.11 that is to be paid to the obligor; 266.12 (ii) hold the lump sum payment for 30 days after the date 266.13 on which the lump sum payment would otherwise have been paid to 266.14 the obligor, notwithstanding sections 181.08, 181.101, 181.11, 266.15 181.13, and 181.145; and 266.16 (iii) upon order of the court, and after a showing of past 266.17 willful nonpayment of support, pay any specified amount of the 266.18 lump-sum payment to the public authority for future support; or 266.19 (2) shall pay the lessor of the amount of the lump-sum 266.20 payment or the total amount of the judgment and arrearages upon 266.21 service by United States mail of a sworn affidavit from the 266.22 public authority or a court order that includes the following 266.23 information: 266.24 (i) that a judgment entered pursuant to section 548.091, 266.25 subdivision 1a, exists against the obligor, or that other 266.26 support arrearages exist; 266.27 (ii) the current balance of the judgment or arrearage; and 266.28 (iii) that a portion of the judgment or arrearage remains 266.29 unpaid. 266.30 The Consumer Credit Protection Act, United States Code, 266.31 title 15, section 1673(b), does not apply to lump-sum payments. 266.32 Subd. 12. [INTERSTATE INCOME WITHHOLDING.] (a) Upon 266.33 receipt of an order for support entered in another state and the 266.34 specified documentation from an authorized agency, the public 266.35 authority shall implement income withholding. A payor of funds 266.36 in this state shall withhold income under court orders for 267.1 withholding issued by other states or territories. 267.2 (b) An employer receiving an income withholding notice from 267.3 another state shall withhold and distribute the funds as 267.4 directed in the withholding notice and shall apply the law of 267.5 the obligor's principal place of employment when determining: 267.6 (1) the employer's fee for processing an income withholding 267.7 notice; 267.8 (2) the maximum amount permitted to be withheld from the 267.9 obligor's income; and 267.10 (3) deadlines for implementing and forwarding the child 267.11 support payment. 267.12 (c) An obligor may contest withholding under this 267.13 subdivision pursuant to section 518C.506. 267.14 Subd. 13. [ORDER TERMINATING INCOME WITHHOLDING.] An order 267.15 terminating income withholding must specify the effective date 267.16 of the order and reference the initial order or decree that 267.17 establishes the support obligation and shall be entered once the 267.18 following conditions have been met: 267.19 (1) the obligor serves written notice of the application 267.20 for termination of income withholding by mail upon the obligee 267.21 at the obligee's last known mailing address, and a duplicate 267.22 copy of the application is served on the public authority; 267.23 (2) the application for termination of income withholding 267.24 specifies the event that terminates the support obligation, the 267.25 effective date of the termination of the support obligation, and 267.26 the applicable provisions of the order or decree that 267.27 established the support obligation; 267.28 (3) the application includes the complete name of the 267.29 obligor's payor of funds, the business mailing address, the 267.30 court action and court file number, and the support and 267.31 collections file number, if known; and 267.32 (4) after receipt of the application for termination of 267.33 income withholding, the obligee or the public authority fails 267.34 within 20 days to request a contested hearing on the issue of 267.35 whether income withholding of support should continue clearly 267.36 specifying the basis for the continued support obligation and, 268.1 ex parte, to stay the service of the order terminating income 268.2 withholding upon the obligor's payor of funds, pending the 268.3 outcome of the contest hearing. 268.4 Subd. 14. [TERMINATION BY PUBLIC AUTHORITY.] If the public 268.5 authority determines that income withholding is no longer 268.6 applicable, the public authority shall notify the obligee and 268.7 the obligor of intent to terminate income withholding. 268.8 Five days following notification to the obligee and 268.9 obligor, the public authority shall issue a notice to the payor 268.10 of funds terminating income withholding, without a requirement 268.11 for a court order unless the obligee has requested a contested 268.12 hearing under section 518.5511, subdivision 4. 268.13 Subd. 15. [CONTRACT FOR SERVICE.] To carry out the 268.14 provisions of this section, the public authority responsible for 268.15 child support enforcement may contract for services, including 268.16 the use of electronic funds transfer. 268.17 Subd. 16. [WAIVER.] (a) If child support or maintenance is 268.18 not assigned under section 256.741, the court may waive the 268.19 requirements of this section if the court finds there is no 268.20 arrearage in child support and maintenance as of the date of the 268.21 hearing and: 268.22 (1) one party demonstrates and the court finds there is 268.23 good cause to waive the requirements of this section or to 268.24 terminate an order for or notice of income withholding 268.25 previously entered under this section; or 268.26 (2) all parties reach an agreement and the agreement is 268.27 approved by the court after a finding that the agreement is 268.28 likely to result in regular and timely payments. The court's 268.29 findings waiving the requirements of this paragraph shall 268.30 include a written explanation of the reasons why income 268.31 withholding would not be in the best interests of the child. 268.32 In addition to the other requirements in this subdivision, 268.33 if the case involves a modification of support, the court shall 268.34 make a finding that support has been timely made. 268.35 (b) If the court waives income withholding, the obligee or 268.36 obligor may at any time request income withholding under 269.1 subdivision 7. 269.2 Subd. 17. [NONLIABILITY; PAYOR OF FUNDS.] A payor of funds 269.3 who complies with an income withholding order or notice of 269.4 withholding according to this chapter or chapter 518C that 269.5 appears regular on its face shall not be subject to civil 269.6 liability to any individual or agency for taking action in 269.7 compliance with the order or notice. 269.8 Subd. 18. [ELECTRONIC TRANSMISSION.] Orders or notices for 269.9 withholding under this section may be transmitted for 269.10 enforcement purposes by electronic means. 269.11 Sec. 53. Minnesota Statutes 1996, section 518.616, is 269.12 amended by adding a subdivision to read: 269.13 Subd. 1a. [COURT ORDERS FOR CHILDREN RECEIVING PUBLIC 269.14 ASSISTANCE.] For any order enforced by the public authority for 269.15 children receiving assistance under any of the programs referred 269.16 to in section 256.741, subdivision 8, the public authority may 269.17 seek a court order requiring the obligor to participate in work 269.18 activities if the obligor is in arrears in child support. Work 269.19 activities include the following: 269.20 (1) unsubsidized employment; 269.21 (2) subsidized private sector employment; 269.22 (3) subsidized public sector employment or work experience 269.23 only if sufficient private sector employment is unavailable; 269.24 (4) on-the-job training; 269.25 (5) job search and job readiness; 269.26 (6) education directly related to employment, in the case 269.27 of an obligor who: 269.28 (i) has not attained 20 years of age; and 269.29 (ii) has not received a high school diploma or certificate 269.30 of high school equivalency; 269.31 (7) job skills training directly related to employment; and 269.32 (8) satisfactory attendance at a secondary school in the 269.33 case of an obligor who: 269.34 (i) has not completed secondary school; and 269.35 (ii) is a dependent child, or a head of a household and who 269.36 has not attained 20 years of age; and 270.1 (9) vocational educational training, not to exceed 12 270.2 months with respect to any individual. 270.3 Sec. 54. Minnesota Statutes 1996, section 518.68, 270.4 subdivision 2, is amended to read: 270.5 Subd. 2. [CONTENTS.] The required notices must be 270.6 substantially as follows: 270.7 IMPORTANT NOTICE 270.8 1. PAYMENTS TO PUBLIC AGENCY 270.9PursuantAccording to Minnesota Statutes, section 518.551, 270.10 subdivision 1, payments ordered for maintenance and support 270.11 must be paid to the public agency responsible for child 270.12 support enforcement as long as the person entitled to 270.13 receive the payments is receiving or has applied for public 270.14 assistance or has applied for support and maintenance 270.15 collection services. MAIL PAYMENTS TO: 270.16 2. DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A 270.17 FELONY 270.18 A person may be charged with a felony who conceals a minor 270.19 child or takes, obtains, retains, or fails to return a 270.20 minor child from or to the child's parent (or person with 270.21 custodial or visitation rights),pursuantaccording to 270.22 Minnesota Statutes, section 609.26. A copy of that section 270.23 is available from any district court clerk. 270.24 3. RULES OF SUPPORT, MAINTENANCE, VISITATION 270.25 (a) Payment of support or spousal maintenance is to be as 270.26 ordered, and the giving of gifts or making purchases of 270.27 food, clothing, and the like will not fulfill the 270.28 obligation. 270.29 (b) Payment of support must be made as it becomes due, and 270.30 failure to secure or denial of rights of visitation is NOT 270.31 an excuse for nonpayment, but the aggrieved party must seek 270.32 relief through a proper motion filed with the court. 270.33 (c) Nonpayment of support is not grounds to deny 270.34 visitation. The party entitled to receive support may 270.35 apply for support and collection services, file a contempt 270.36 motion, or obtain a judgment as provided in Minnesota 271.1 Statutes, section 548.091. 271.2 (d) The payment of support or spousal maintenance takes 271.3 priority over payment of debts and other obligations. 271.4 (e) A party who accepts additional obligations of support 271.5 does so with the full knowledge of the party's prior 271.6 obligation under this proceeding. 271.7 (f) Child support or maintenance is based on annual income, 271.8 and it is the responsibility of a person with seasonal 271.9 employment to budget income so that payments are made 271.10 throughout the year as ordered. 271.11 (g) If there is a layoff or a pay reduction, support may be 271.12 reduced as of the time of the layoff or pay reduction if a 271.13 motion to reduce the support is served and filed with the 271.14 court at that time, but any such reduction must be ordered 271.15 by the court. The court is not permitted to reduce support 271.16 retroactively, except as provided in Minnesota Statutes, 271.17 section 518.64, subdivision 2, paragraph (c). 271.18 4. PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, 271.19 SUBDIVISION 3 271.20 Unless otherwise provided by the Court: 271.21 (a) Each party has the right of access to, and to receive 271.22 copies of, school, medical, dental, religious training, and 271.23 other important records and information about the minor 271.24 children. Each party has the right of access to 271.25 information regarding health or dental insurance available 271.26 to the minor children. Presentation of a copy of this 271.27 order to the custodian of a record or other information 271.28 about the minor children constitutes sufficient 271.29 authorization for the release of the record or information 271.30 to the requesting party. 271.31 (b) Each party shall keep the other informed as to the name 271.32 and address of the school of attendance of the minor 271.33 children. Each party has the right to be informed by 271.34 school officials about the children's welfare, educational 271.35 progress and status, and to attend school and parent 271.36 teacher conferences. The school is not required to hold a 272.1 separate conference for each party. 272.2 (c) In case of an accident or serious illness of a minor 272.3 child, each party shall notify the other party of the 272.4 accident or illness, and the name of the health care 272.5 provider and the place of treatment. 272.6 (d) Each party has the right of reasonable access and 272.7 telephone contact with the minor children. 272.8 5. WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE 272.9 Child support and/or spousal maintenance may be withheld 272.10 from income, with or without notice to the person obligated 272.11 to pay, when the conditions of Minnesota Statutes, sections 272.12 518.611 and 518.613, have been met. A copy of those 272.13 sections is available from any district court clerk. 272.14 6. CHANGE OF ADDRESS OR RESIDENCE 272.15 Unless otherwise ordered,the person responsible to make272.16support or maintenance paymentseach party shall notify the 272.17person entitled to receive the paymentother party, the 272.18 court, and the public authority responsible for collection, 272.19 if applicable, ofa change of address or residencethe 272.20 following information within60ten days ofthe address or272.21residence changeany change: the residential and mailing 272.22 address, telephone number, driver's license number, social 272.23 security number, and name, address, and telephone number of 272.24 the employer. 272.25 7. COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE 272.26 Child support and/or spousal maintenance may be adjusted 272.27 every two years based upon a change in the cost of living 272.28 (using Department of Labor Consumer Price Index .........., 272.29 unless otherwise specified in this order) when the 272.30 conditions of Minnesota Statutes, section 518.641, are met. 272.31 Cost of living increases are compounded. A copy of 272.32 Minnesota Statutes, section 518.641, and forms necessary to 272.33 request or contest a cost of living increase are available 272.34 from any district court clerk. 272.35 8. JUDGMENTS FOR UNPAID SUPPORT 272.36 If a person fails to make a child support payment, the 273.1 payment owed becomes a judgment against the person 273.2 responsible to make the payment by operation of law on or 273.3 after the date the payment is due, and the person entitled 273.4 to receive the payment or the public agency may obtain 273.5 entry and docketing of the judgment WITHOUT NOTICE to the 273.6 person responsible to make the payment under Minnesota 273.7 Statutes, section 548.091. Interest begins to accrue on a 273.8 payment or installment of child support whenever the unpaid 273.9 amount due is greater than the current support due, 273.10pursuantaccording to Minnesota Statutes, section 548.091, 273.11 subdivision 1a. 273.12 9. JUDGMENTS FOR UNPAID MAINTENANCE 273.13 A judgment for unpaid spousal maintenance may be entered 273.14 when the conditions of Minnesota Statutes, section 548.091, 273.15 are met. A copy of that section is available from any 273.16 district court clerk. 273.17 10. ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD 273.18 SUPPORT 273.19 A judgment for attorney fees and other collection costs 273.20 incurred in enforcing a child support order will be entered 273.21 against the person responsible to pay support when the 273.22 conditions of section 518.14, subdivision 2, are met. A 273.23 copy of section 518.14 and forms necessary to request or 273.24 contest these attorney fees and collection costs are 273.25 available from any district court clerk. 273.26 11. VISITATION EXPEDITOR PROCESS 273.27 On request of either party or on its own motion, the court 273.28 may appoint a visitation expeditor to resolve visitation 273.29 disputes under Minnesota Statutes, section 518.1751. A 273.30 copy of that section and a description of the expeditor 273.31 process is available from any district court clerk. 273.32 12. VISITATION REMEDIES AND PENALTIES 273.33 Remedies and penalties for the wrongful denial of 273.34 visitation rights are available under Minnesota Statutes, 273.35 section 518.175, subdivision 6. These include compensatory 273.36 visitation; civil penalties; bond requirements; contempt; 274.1 and reversal of custody. A copy of that subdivision and 274.2 forms for requesting relief are available from any district 274.3 court clerk. 274.4 Sec. 55. Minnesota Statutes 1996, section 518C.101, is 274.5 amended to read: 274.6 518C.101 [DEFINITIONS.] 274.7 In this chapter: 274.8 (a) "Child" means an individual, whether over or under the 274.9 age of majority, who is or is alleged to be owed a duty of 274.10 support by the individual's parent or who is or is alleged to be 274.11 the beneficiary of a support order directed to the parent. 274.12 (b) "Child support order" means a support order for a 274.13 child, including a child who has attained the age of majority 274.14 under the law of the issuing state. 274.15 (c) "Duty of support" means an obligation imposed or 274.16 imposable by law to provide support for a child, spouse, or 274.17 former spouse, including an unsatisfied obligation to provide 274.18 support. 274.19 (d) "Home state" means the state in which a child lived 274.20 with a parent or a person acting as parent for at least six 274.21 consecutive months immediately preceding the time of filing of a 274.22 petition or comparable pleading for support and, if a child is 274.23 less than six months old, the state in which the child lived 274.24 from birth with any of them. A period of temporary absence of 274.25 any of them is counted as part of the six-month or other period. 274.26 (e) "Income" includes earnings or other periodic 274.27 entitlements to money from any source and any other property 274.28 subject to withholding for support under the law of this state. 274.29 (f) "Income-withholding order" means an order or other 274.30 legal process directed to an obligor's employer or other debtor 274.31 under section 518.611or 518.613, to withhold support from the 274.32 income of the obligor. 274.33 (g) "Initiating state" means a stateinfrom which a 274.34 proceeding is forwarded or in which a proceeding is filed for 274.35 forwarding to a responding state under this chapter or a law or 274.36 procedure substantially similar to this chapter, the uniform 275.1 reciprocal enforcement of support act, or the revised uniform275.2reciprocal enforcement of support act is filed for forwarding to275.3a responding state. 275.4 (h) "Initiating tribunal" means the authorized tribunal in 275.5 an initiating state. 275.6 (i) "Issuing state" means the state in which a tribunal 275.7 issues a support order or renders a judgment determining 275.8 parentage. 275.9 (j) "Issuing tribunal" means the tribunal that issues a 275.10 support order or renders a judgment determining parentage. 275.11 (k) "Law" includes decisional and statutory law and rules 275.12 and regulations having the force of law. 275.13 (l) "Obligee" means: 275.14 (1) an individual to whom a duty of support is or is 275.15 alleged to be owed or in whose favor a support order has been 275.16 issued or a judgment determining parentage has been rendered; 275.17 (2) a state or political subdivision to which the rights 275.18 under a duty of support or support order have been assigned or 275.19 which has independent claims based on financial assistance 275.20 provided to an individual obligee; or 275.21 (3) an individual seeking a judgment determining parentage 275.22 of the individual's child. 275.23 (m) "Obligor" means an individual, or the estate of a 275.24 decedent: 275.25 (1) who owes or is alleged to owe a duty of support; 275.26 (2) who is alleged but has not been adjudicated to be a 275.27 parent of a child; or 275.28 (3) who is liable under a support order. 275.29 (n)"Petition" means a petition or comparable pleading used275.30pursuant to section 518.5511.275.31(o)"Register" means to file a support order or judgment 275.32 determining parentage in the office of the court administrator. 275.33(p)(o) "Registering tribunal" means a tribunal in which a 275.34 support order is registered. 275.35(q)(p) "Responding state" means a statetoin which a 275.36 proceeding is filed or to which a proceeding is forwarded for 276.1 filing from an initiating state under this chapter or a law or 276.2 procedure substantially similar to this chapter, the uniform 276.3 reciprocal enforcement of support act, or the revised uniform 276.4 reciprocal enforcement of support act. 276.5(r)(q) "Responding tribunal" means the authorized tribunal 276.6 in a responding state. 276.7(s)(r) "Spousal support order" means a support order for a 276.8 spouse or former spouse of the obligor. 276.9(t)(s) "State" means a state of the United States, the 276.10 District of Columbia,the Commonwealth ofPuerto Rico, the 276.11 United States Virgin Islands, or any territory or insular 276.12 possession subject to the jurisdiction of the United 276.13 States."State"This term also includes: 276.14 (1) an Indian tribe; and 276.15 (2) a foreign jurisdiction that has enacted a law or 276.16 established procedures for issuance and enforcement of support 276.17 ordersthatwhich are substantially similar to the procedures 276.18 under this chapter, the Uniform Reciprocal Enforcement of 276.19 Support Act, or the Revised Uniform Reciprocal Enforcement of 276.20 Support Act. 276.21(u)(t) "Support enforcement agency" means a public 276.22 official or agency authorized to seek: 276.23 (1)seekenforcement of support orders or laws relating to 276.24 the duty of support; 276.25 (2)seekestablishment or modification of child support; 276.26 (3)seekdetermination of parentage; or 276.27 (4) to locate obligors or their assets. 276.28(v)(u) "Support order" means a judgment, decree, or order, 276.29 whether temporary, final, or subject to modification, for the 276.30 benefit of a child, a spouse, or a former spouse, which provides 276.31 for monetary support, health care, arrearages, or reimbursement, 276.32 and may include related costs and fees, interest, income 276.33 withholding, attorney's fees, and other relief. 276.34(w)(v) "Tribunal" means a court, administrative agency, or 276.35 quasi-judicial entity authorized to establish, enforce, or 276.36 modify support orders or to determine parentage. 277.1 Sec. 56. Minnesota Statutes 1996, section 518C.204, is 277.2 amended to read: 277.3 518C.204 [SIMULTANEOUS PROCEEDINGS IN ANOTHER STATE.] 277.4 (a) A tribunal of this state may exercise jurisdiction to 277.5 establish a support order if the petition or comparable pleading 277.6 is filed after apetition or comparablepleading is filed in 277.7 another state only if: 277.8 (1) the petition or comparable pleading in this state is 277.9 filed before the expiration of the time allowed in the other 277.10 state for filing a responsive pleading challenging the exercise 277.11 of jurisdiction by the other state; 277.12 (2) the contesting party timely challenges the exercise of 277.13 jurisdiction in the other state; and 277.14 (3) if relevant, this state is the home state of the child. 277.15 (b) A tribunal of this state may not exercise jurisdiction 277.16 to establish a support order if the petition or comparable 277.17 pleading is filed before a petition or comparable pleading is 277.18 filed in another state if: 277.19 (1) the petition or comparable pleading in the other state 277.20 is filed before the expiration of the time allowed in this state 277.21 for filing a responsive pleading challenging the exercise of 277.22 jurisdiction by this state; 277.23 (2) the contesting party timely challenges the exercise of 277.24 jurisdiction in this state; and 277.25 (3) if relevant, the other state is the home state of the 277.26 child. 277.27 Sec. 57. Minnesota Statutes 1996, section 518C.205, is 277.28 amended to read: 277.29 518C.205 [CONTINUING, EXCLUSIVE JURISDICTION.] 277.30 (a) A tribunal of this state issuing a support order 277.31 consistent with the law of this state has continuing, exclusive 277.32 jurisdiction over a child support order: 277.33 (1) as long as this state remains the residence of the 277.34 obligor, the individual obligee, or the child for whose benefit 277.35 the support order is issued; or 277.36 (2) untileach individual party hasall of the parties who 278.1 are individuals have filed writtenconsentconsents with the 278.2 tribunal of this state for a tribunal of another state to modify 278.3 the order and assume continuing, exclusive jurisdiction. 278.4 (b) A tribunal of this state issuing a child support order 278.5 consistent with the law of this state may not exercise its 278.6 continuing jurisdiction to modify the order if the order has 278.7 been modified by a tribunal of another statepursuantaccording 278.8 to this section or a law substantially similar to this chapter. 278.9 (c) If a child support order of this state is modified by a 278.10 tribunal of another statepursuantaccording to this section or 278.11 a law substantially similar to this chapter, a tribunal of this 278.12 state loses its continuing, exclusive jurisdiction with regard 278.13 to prospective enforcement of the order issued in this state, 278.14 and may only: 278.15 (1) enforce the order that was modified as to amounts 278.16 accruing before the modification; 278.17 (2) enforce nonmodifiable aspects of that order; and 278.18 (3) provide other appropriate relief for violations of that 278.19 order which occurred before the effective date of the 278.20 modification. 278.21 (d) A tribunal of this state shall recognize the 278.22 continuing, exclusive jurisdiction of a tribunal of another 278.23 state which has issued a child support orderpursuantaccording 278.24 to this section or a law substantially similar to this chapter. 278.25 (e) A temporary support order issued ex parte or pending 278.26 resolution of a jurisdictional conflict does not create 278.27 continuing, exclusive jurisdiction in the issuing tribunal. 278.28 (f) A tribunal of this state issuing a support order 278.29 consistent with the law of this state has continuing, exclusive 278.30 jurisdiction over a spousal support order throughout the 278.31 existence of the support obligation. A tribunal of this state 278.32 may not modify a spousal support order issued by a tribunal of 278.33 another state having continuing, exclusive jurisdiction over 278.34 that order under the law of that state. 278.35 Sec. 58. Minnesota Statutes 1996, section 518C.207, is 278.36 amended to read: 279.1 518C.207 [RECOGNITION OF CONTROLLING CHILD SUPPORT 279.2ORDERSORDER.] 279.3 (a)If a proceeding is brought under this chapter, and one279.4or more child support orders have been issued in this or another279.5state with regard to an obligor and a child, a tribunal of this279.6state shall apply the following rules in determining which order279.7to recognize for purposes of continuing, exclusive jurisdiction:279.8(1)If a proceeding is brought under this chapter and only 279.9 one tribunal has issued a child support order, the order of that 279.10 tribunal is controlling and must be recognized. 279.11 (b) If a proceeding is brought under this chapter, and two 279.12 or more child support orders have been issued by tribunals of 279.13 this state or another state with regard to the same obligor and 279.14 child, a tribunal of this state shall apply the rules in clauses 279.15 (1) to (3) determining which order to recognize for purposes of 279.16 continuing, exclusive jurisdiction. 279.17 (1) If only one of the tribunals would have continuing, 279.18 exclusive jurisdiction under this chapter, the order of that 279.19 tribunal is controlling and must be recognized. 279.20 (2) Iftwo ormore than one of the tribunals would have 279.21issued child support orders for the same obligor and child, and279.22only one of the tribunals would have continuing, exclusive279.23jurisdiction under this chapter, the order of that tribunal must279.24be recognizedcontinuing, exclusive jurisdiction under this 279.25 chapter, an order issued by a tribunal in the current home state 279.26 of the child is controlling and must be recognized, but if an 279.27 order has not been issued in the current home state of the 279.28 child, the most recently issued order controls and must be 279.29 recognized. 279.30 (3) Iftwo or morenone of the tribunals would haveissued279.31child support orders for the same obligor and child, and more279.32than one of the tribunals would havecontinuing, exclusive 279.33 jurisdiction under this chapter,an order issued by a tribunal279.34in the current home state of the child must be recognized, but279.35if an order has not been issued in the current home state of the279.36child, the order most recently issued must be recognizedthe 280.1 tribunal of this state having jurisdiction over the parties 280.2 shall issue a child support order, which controls and must be 280.3 recognized. 280.4(4)(c) If two or moretribunals have issuedchild support 280.5 orders have been issued for the same obligor and child, and none280.6of the tribunals would have continuing, exclusive jurisdiction280.7under this chapter, the tribunal of this state may issue a child280.8support order, which must be recognizedand if the obligor or 280.9 the individual obligee resides in this state, a party may 280.10 request a tribunal of this state to determine which order is 280.11 controlling and must be recognized under paragraph (b). The 280.12 request must be accompanied by a certified copy of every support 280.13 order in effect. The requesting party shall give notice of the 280.14 request to each party whose rights may be affected by the 280.15 determination. 280.16(b)(d) The tribunal thathasissuedanthe controlling 280.17 orderrecognizedunder paragraph (a), (b), or (c) is the 280.18 tribunalhavingthat has continuing, exclusive 280.19 jurisdiction under section 518C.205. 280.20 (e) A tribunal of this state which determines by order the 280.21 identity of the controlling order under paragraph (b), clause 280.22 (1) or (2), or which issues a new controlling order under 280.23 paragraph (b), clause (3), shall state in that order the basis 280.24 upon which the tribunal made its determination. 280.25 (f) Within 30 days after issuance of an order determining 280.26 the identity of the controlling order, the party obtaining the 280.27 order shall file a certified copy of the order with each 280.28 tribunal that issued or registered an earlier order of child 280.29 support. A party who obtains the order and fails to file a 280.30 certified copy is subject to appropriate sanctions by a tribunal 280.31 in which the issue of failure to file arises. The failure to 280.32 file does not affect the validity or enforceability of the 280.33 controlling order. 280.34 Sec. 59. Minnesota Statutes 1996, section 518C.301, is 280.35 amended to read: 280.36 518C.301 [PROCEEDINGS UNDER THIS CHAPTER.] 281.1 (a) Except as otherwise provided in this chapter, sections 281.2 518C.301 to 518C.319 apply to all proceedings under this chapter. 281.3 (b) This chapter provides for the following proceedings: 281.4 (1) establishment of an order for spousal support or child 281.5 supportpursuantaccording to section 518C.401; 281.6 (2) enforcement of a support order and income-withholding 281.7 order of another state without registrationpursuantaccording 281.8 tosectionssection 518C.501and 518C.502; 281.9 (3) registration of an order for spousal support or child 281.10 support of another state for enforcementpursuantaccording to 281.11 sections 518C.601 to 518C.612; 281.12 (4) modification of an order for child support or spousal 281.13 support issued by a tribunal of this statepursuantaccording to 281.14 sections 518C.203 to 518C.206; 281.15 (5) registration of an order for child support of another 281.16 state for modificationpursuantaccording to sections 518C.601 281.17 to 518C.612; 281.18 (6) determination of parentagepursuantaccording to 281.19 section 518C.701; and 281.20 (7) assertion of jurisdiction over nonresidentspursuant281.21 according to sections 518C.201 and 518C.202. 281.22 (c) An individual petitioner or a support enforcement 281.23 agency may commence a proceeding authorized under this chapter 281.24 by filing a petition in an initiating tribunal for forwarding to 281.25 a responding tribunal or by filing a petition or a comparable 281.26 pleading directly in a tribunal of another state which has or 281.27 can obtain personal jurisdiction over the respondent. 281.28 Sec. 60. Minnesota Statutes 1996, section 518C.304, is 281.29 amended to read: 281.30 518C.304 [DUTIES OF INITIATING TRIBUNAL.] 281.31 (a) Upon the filing of a petition authorized by this 281.32 chapter, an initiating tribunal of this state shall forward 281.33 three copies of the petition and its accompanying documents: 281.34 (1) to the responding tribunal or appropriate support 281.35 enforcement agency in the responding state; or 281.36 (2) if the identity of the responding tribunal is unknown, 282.1 to the state information agency of the responding state with a 282.2 request that they be forwarded to the appropriate tribunal and 282.3 that receipt be acknowledged. 282.4 (b) If a responding state has not enacted the language in 282.5 this chapter or a law or procedure substantially similar to this 282.6 chapter, a tribunal of this state may issue a certificate or 282.7 other document and make a finding required by the law of the 282.8 responding state. If the responding state is a foreign 282.9 jurisdiction, the tribunal may specify the amount of support 282.10 sought and provide other documents necessary to satisfy the 282.11 requirements of the responding state. 282.12 Sec. 61. Minnesota Statutes 1996, section 518C.305, is 282.13 amended to read: 282.14 518C.305 [DUTIES AND POWERS OF RESPONDING TRIBUNAL.] 282.15 (a) When a responding tribunal of this state receives a 282.16 petition or comparable pleading from an initiating tribunal or 282.17 directlypursuantaccording to section 518C.301, paragraph (c), 282.18 it shall cause the petition or pleading to be filed and notify 282.19 the petitioner by first class mail where and when it was filed. 282.20 (b) A responding tribunal of this state, to the extent 282.21 otherwise authorized by law, may do one or more of the following: 282.22 (1) issue or enforce a support order, modify a child 282.23 support order, or render a judgment to determine parentage; 282.24 (2) order an obligor to comply with a support order, 282.25 specifying the amount and the manner of compliance; 282.26 (3) order income withholding; 282.27 (4) determine the amount of any arrearages, and specify a 282.28 method of payment; 282.29 (5) enforce orders by civil or criminal contempt, or both; 282.30 (6) set aside property for satisfaction of the support 282.31 order; 282.32 (7) place liens and order execution on the obligor's 282.33 property; 282.34 (8) order an obligor to keep the tribunal informed of the 282.35 obligor's current residential address, telephone number, 282.36 employer, address of employment, and telephone number at the 283.1 place of employment; 283.2 (9) issue a bench warrant for an obligor who has failed 283.3 after proper notice to appear at a hearing ordered by the 283.4 tribunal and enter the bench warrant in any local and state 283.5 computer systems for criminal warrants; 283.6 (10) order the obligor to seek appropriate employment by 283.7 specified methods; 283.8 (11) award reasonable attorney's fees and other fees and 283.9 costs; and 283.10 (12) grant any other available remedy. 283.11 (c) A responding tribunal of this state shall include in a 283.12 support order issued under this chapter, or in the documents 283.13 accompanying the order, the calculations on which the support 283.14 order is based. 283.15 (d) A responding tribunal of this state may not condition 283.16 the payment of a support order issued under this chapter upon 283.17 compliance by a party with provisions for visitation. 283.18 (e) If a responding tribunal of this state issues an order 283.19 under this chapter, the tribunal shall send a copy of the order 283.20 by first class mail to the petitioner and the respondent and to 283.21 the initiating tribunal, if any. 283.22 Sec. 62. Minnesota Statutes 1996, section 518C.310, is 283.23 amended to read: 283.24 518C.310 [DUTIES OF STATE INFORMATION AGENCY.] 283.25 (a) The unit within the department of human services that 283.26 receives and disseminates incoming interstate actions under 283.27 title IV-D of the Social Security Act from section 518C.02, 283.28 subdivision 1a, is the state information agency under this 283.29 chapter. 283.30 (b) The state information agency shall: 283.31 (1) compile and maintain a current list, including 283.32 addresses, of the tribunals in this state which have 283.33 jurisdiction under this chapter and any support enforcement 283.34 agencies in this state and transmit a copy to the state 283.35 information agency of every other state; 283.36 (2) maintain a register of tribunals and support 284.1 enforcement agencies received from other states; 284.2 (3) forward to the appropriate tribunal in the place in 284.3 this state in which the individual obligee or the obligor 284.4 resides, or in which the obligor's property is believed to be 284.5 located, all documents concerning a proceeding under this 284.6 chapter received from an initiating tribunal or the state 284.7 information agency of the initiating state; and 284.8 (4) obtain information concerning the location of the 284.9 obligor and the obligor's property within this state not exempt 284.10 from execution, by such means as postal verification and federal 284.11 or state locator services, examination of telephone directories, 284.12 requests for the obligor's address from employers, and 284.13 examination of governmental records, including, to the extent 284.14 not prohibited by other law, those relating to real property, 284.15 vital statistics, law enforcement, taxation, motor vehicles, 284.16 driver's licenses, and social security; and284.17(5) determine which foreign jurisdictions and Indian tribes284.18have substantially similar procedures for issuance and284.19enforcement of support orders. The state information agency284.20shall compile and maintain a list, including addresses, of all284.21these foreign jurisdictions and Indian tribes. The state284.22information agency shall make this list available to all state284.23tribunals and all support enforcement agencies. 284.24 Sec. 63. Minnesota Statutes 1996, section 518C.401, is 284.25 amended to read: 284.26 518C.401 [PETITION TO ESTABLISH SUPPORT ORDER.] 284.27 (a) If a support order entitled to recognition under this 284.28 chapter has not been issued, a responding tribunal of this state 284.29 may issue a support order if: 284.30 (1) the individual seeking the order resides in another 284.31 state; or 284.32 (2) the support enforcement agency seeking the order is 284.33 located in another state. 284.34 (b) The tribunal may issue a temporary child support order 284.35 if: 284.36 (1) the respondent has signed a verified statement 285.1 acknowledging parentage; 285.2 (2) the respondent has been determined byor pursuant to285.3 law to be the parent; or 285.4 (3) there is other clear and convincing evidence that the 285.5 respondent is the child's parent. 285.6 (c) Upon a finding, after notice and opportunity to be 285.7 heard, that an obligor owes a duty of support, the tribunal 285.8 shall issue a support order directed to the obligor and may 285.9 issue other orderspursuantaccording to section 518C.305. 285.10 Sec. 64. Minnesota Statutes 1996, section 518C.501, is 285.11 amended to read: 285.12 518C.501 [RECOGNITIONEMPLOYER'S RECEIPT OF 285.13 INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 285.14(a)An income-withholding order issued in another state may 285.15 be sentby first class mailto the person or entity defined as 285.16 the obligor's employer under section 518.611or 518.613without 285.17 first filing a petition or comparable pleading or registering 285.18 the order with a tribunal of this state.Upon receipt of the285.19order, the employer shall:285.20(1) treat an income-withholding order issued in another285.21state which appears regular on its face as if it had been issued285.22by a tribunal of this state;285.23(2) immediately provide a copy of the order to the obligor;285.24and285.25(3) distribute the funds as directed in the withholding285.26order.285.27(b) An obligor may contest the validity or enforcement of285.28an income-withholding order issued in another state in the same285.29manner as if the order had been issued by a tribunal of this285.30state. Section 518C.604 applies to the contest. The obligor285.31shall give notice of the contest to any support enforcement285.32agency providing services to the obligee and to:285.33(1) the person or agency designated to receive payments in285.34the income-withholding order; or285.35(2) if no person or agency is designated, the obligee.285.36 Sec. 65. [518C.503] [EMPLOYER'S COMPLIANCE WITH 286.1 INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 286.2 (a) Upon receipt of an income-withholding order, the 286.3 obligor's employer shall immediately provide a copy of the order 286.4 to the obligor. 286.5 (b) The employer shall treat an income-withholding order 286.6 issued in another state which appears regular on its face as if 286.7 it had been issued by a tribunal of this state. 286.8 (c) Except as otherwise provided in paragraph (d) and 286.9 section 518C.505, the employer shall withhold and distribute the 286.10 funds specified in the withholding order by complying with the 286.11 terms of the order which specify: 286.12 (1) the duration and amount of periodic payments of current 286.13 child support, stated as a sum certain; 286.14 (2) the person or agency designated to receive payments and 286.15 the address to which the payments are to be forwarded; 286.16 (3) medical support, whether in the form of periodic cash 286.17 payment, stated as a sum certain, or ordering the obligor to 286.18 provide health insurance coverage for the child under a policy 286.19 available through the obligor's employment; 286.20 (4) the amount of periodic payments of fees and costs for a 286.21 support enforcement agency, the issuing tribunal, and the 286.22 obligee's attorney, stated as sums certain; and 286.23 (5) the amount of periodic payments of arrearages and 286.24 interest on arrearages, stated as sums certain. 286.25 (d) An employer shall comply with the laws of the state of 286.26 the obligor's principal place of employment for withholding from 286.27 income with respect to: 286.28 (1) the employer's fee for processing an income-withholding 286.29 order; 286.30 (2) the maximum amount permitted to be withheld from the 286.31 obligor's income; and 286.32 (3) the times within which the employer must implement the 286.33 withholding order and forward the child support payment. 286.34 Sec. 66. [518C.504] [COMPLIANCE WITH MULTIPLE 286.35 INCOME-WITHHOLDING ORDERS.] 286.36 If an obligor's employer receives multiple 287.1 income-withholding orders with respect to the earnings of the 287.2 same obligor, the employer satisfies the terms of the multiple 287.3 orders if the employer complies with the law of the state of the 287.4 obligor's principal place of employment to establish the 287.5 priorities for withholding and allocating income withheld for 287.6 multiple child support obligees. 287.7 Sec. 67. [518C.505] [IMMUNITY FROM CIVIL LIABILITY.] 287.8 An employer who complies with an income-withholding order 287.9 issued in another state according to this chapter is not subject 287.10 to civil liability to an individual or agency with regard to the 287.11 employer's withholding of child support from the obligor's 287.12 income. 287.13 Sec. 68. [518C.506] [PENALTIES FOR NONCOMPLIANCE.] 287.14 An employer who willfully fails to comply with an 287.15 income-withholding order issued by another state and received 287.16 for enforcement is subject to the same penalties that may be 287.17 imposed for noncompliance with an order issued by a tribunal of 287.18 this state. 287.19 Sec. 69. [518C.507] [CONTEST BY OBLIGOR.] 287.20 (a) An obligor may contest the validity or enforcement of 287.21 an income-withholding order issued in another state and received 287.22 directly by an employer in this state in the same manner as if 287.23 the order had been issued by a tribunal of this state. Section 287.24 518C.604 applies to the contested order. 287.25 (b) The obligor shall give notice of the contested order to: 287.26 (1) a support enforcement agency providing services to the 287.27 obligee; 287.28 (2) each employer that has directly received an 287.29 income-withholding order; and 287.30 (3) the person or agency designated to receive payments in 287.31 the income-withholding order or if no person or agency is 287.32 designated, to the obligee. 287.33 Sec. 70. [518C.508] [ADMINISTRATIVE ENFORCEMENT OF 287.34 ORDERS.] 287.35 (a) A party seeking to enforce a support order or an 287.36 income-withholding order, or both, issued by a tribunal of 288.1 another state may send the documents required for registering 288.2 the order to a support enforcement agency of this state. 288.3 (b) Upon receipt of the documents, the support enforcement 288.4 agency, without initially seeking to register the order, shall 288.5 consider and may use any administrative procedure authorized by 288.6 the laws of this state to enforce a support order or an 288.7 income-withholding order, or both. If the obligor does not 288.8 contest administrative enforcement, the order need not be 288.9 registered. If the obligor contests the validity or 288.10 administrative enforcement of the order, the support enforcement 288.11 agency shall register the order under this chapter. 288.12 Sec. 71. Minnesota Statutes 1996, section 518C.603, is 288.13 amended to read: 288.14 518C.603 [EFFECT OF REGISTRATION FOR ENFORCEMENT.] 288.15 (a) A support order or income-withholding order issued in 288.16 another state is registered when the order is filed in the 288.17 registering tribunal of this state. 288.18 (b) A registered order issued in another state is 288.19 enforceable in the same manner and is subject to the same 288.20 procedures as an order issued by a tribunal of this state. 288.21 (c) Except as otherwise provided insections 518C.601 to288.22518C.612this chapter, a tribunal of this state shall recognize 288.23 and enforce, but may not modify, a registered order if the 288.24 issuing tribunal had jurisdiction. 288.25 Sec. 72. Minnesota Statutes 1996, section 518C.605, is 288.26 amended to read: 288.27 518C.605 [NOTICE OF REGISTRATION OF ORDER.] 288.28 (a) When a support order or income-withholding order issued 288.29 in another state is registered, the registering tribunal shall 288.30 notify the nonregistering party. Notice must be given by 288.31 certified or registered mail or by any means of personal service 288.32 authorized by the law of this state. The notice must be 288.33 accompanied by a copy of the registered order and the documents 288.34 and relevant information accompanying the order. 288.35 (b) The notice must inform the nonregistering party: 288.36 (1) that a registered order is enforceable as of the date 289.1 of registration in the same manner as an order issued by a 289.2 tribunal of this state; 289.3 (2) that a hearing to contest the validity or enforcement 289.4 of the registered order must be requested within 20 days after 289.5 the date of mailing or personal service of the notice; 289.6 (3) that failure to contest the validity or enforcement of 289.7 the registered order in a timely manner will result in 289.8 confirmation of the order and enforcement of the order and the 289.9 alleged arrearages and precludes further contest of that order 289.10 with respect to any matter that could have been asserted; and 289.11 (4) of the amount of any alleged arrearages. 289.12 (c) Upon registration of an income-withholding order for 289.13 enforcement, the registering tribunal shall notify the obligor's 289.14 employerpursuantaccording to section 518.611or 518.613. 289.15 Sec. 73. Minnesota Statutes 1996, section 518C.608, is 289.16 amended to read: 289.17 518C.608 [CONFIRMED ORDER.] 289.18If a contesting party has received notice of registration289.19under section 518C.605,Confirmation of a registered order, 289.20 whether by operation of law or after notice and hearing, 289.21 precludes further contest of the orderbased upon facts that289.22were known by the contesting party at the time of registration289.23with respect to any matter that could have been asserted at the289.24time of registrationwith respect to any matter that could have 289.25 been asserted at the time of registration. 289.26 Sec. 74. Minnesota Statutes 1996, section 518C.611, is 289.27 amended to read: 289.28 518C.611 [MODIFICATION OF CHILD SUPPORT ORDER OF ANOTHER 289.29 STATE.] 289.30 (a) After a child support order issued in another state has 289.31 been registered in this state, the responding tribunal of this 289.32 state may modify that order only if,section 518C.613 does not 289.33 apply and after notice and hearing, it finds that: 289.34 (1) the following requirements are met: 289.35 (i) the child, the individual obligee, and the obligor do 289.36 not reside in the issuing state; 290.1 (ii) a petitioner who is a nonresident of this state seeks 290.2 modification; and 290.3 (iii) the respondent is subject to the personal 290.4 jurisdiction of the tribunal of this state; or 290.5 (2)an individual party orthe child, or a party who is an 290.6 individual, is subject to the personal jurisdiction of the 290.7 tribunal of this state and all of theindividualparties who are 290.8 individuals have filedawrittenconsentconsents in the issuing 290.9 tribunalproviding thatfor a tribunal of this statemayto 290.10 modify the support order and assume continuing, exclusive 290.11 jurisdiction over the order. However, if the issuing state is a 290.12 foreign jurisdiction that has not enacted a law or established 290.13 procedures substantially similar to the procedures in this 290.14 chapter, the consent otherwise required of an individual 290.15 residing in this state is not required for the tribunal to 290.16 assume jurisdiction to modify the child support order. 290.17 (b) Modification of a registered child support order is 290.18 subject to the same requirements, procedures, and defenses that 290.19 apply to the modification of an order issued by a tribunal of 290.20 this state and the order may be enforced and satisfied in the 290.21 same manner. 290.22 (c) A tribunal of this state may not modify any aspect of a 290.23 child support order that may not be modified under the law of 290.24 the issuing state. If two or more tribunals have issued child 290.25 support orders for the same obligor and child, the order that 290.26 controls and must be recognized under section 518C.207 290.27 establishes the aspects of the support order which are 290.28 nonmodifiable. 290.29 (d) On issuance of an order modifying a child support order 290.30 issued in another state, a tribunal of this state becomes the 290.31 tribunal of continuing, exclusive jurisdiction. 290.32(e) Within 30 days after issuance of a modified child290.33support order, the party obtaining the modification shall file a290.34certified copy of the order with the issuing tribunal which had290.35continuing, exclusive jurisdiction over the earlier order, and290.36in each tribunal in which the party knows that earlier order has291.1been registered.291.2 Sec. 75. Minnesota Statutes 1996, section 518C.612, is 291.3 amended to read: 291.4 518C.612 [RECOGNITION OF ORDER MODIFIED IN ANOTHER STATE.] 291.5 A tribunal of this state shall recognize a modification of 291.6 its earlier child support order by a tribunal of another state 291.7 which assumed jurisdictionpursuantaccording to this chapter or 291.8 a law substantially similar to this chapter and, upon request, 291.9 except as otherwise provided in this chapter, shall: 291.10 (1) enforce the order that was modified only as to amounts 291.11 accruing before the modification; 291.12 (2) enforce only nonmodifiable aspects of that order; 291.13 (3) provide other appropriate relief only for violations of 291.14 that order which occurred before the effective date of the 291.15 modification; and 291.16 (4) recognize the modifying order of the other state, upon 291.17 registration, for the purpose of enforcement. 291.18 Sec. 76. [518C.613] [JURISDICTION TO MODIFY CHILD SUPPORT 291.19 ORDER OF ANOTHER STATE WHEN INDIVIDUAL PARTIES RESIDE IN THIS 291.20 STATE.] 291.21 (a) If all of the parties who are individuals reside in 291.22 this state and the child does not reside in the issuing state, a 291.23 tribunal of this state has jurisdiction to enforce and to modify 291.24 the issuing state's child support order in a proceeding to 291.25 register that order. 291.26 (b) A tribunal of this state exercising jurisdiction under 291.27 this section shall apply the provisions of sections 518C.101 to 291.28 518C.209, and the procedural and substantive laws of this state 291.29 to the proceeding for enforcement or modification. Sections 291.30 518C.301 to 518C.508 and sections 518C.701 to 518C.802 do not 291.31 apply. 291.32 Sec. 77. [518C.614] [NOTICE TO ISSUING TRIBUNAL OF 291.33 MODIFICATION.] 291.34 Within 30 days after issuance of a modified child support 291.35 order, the party obtaining the modification shall file a 291.36 certified copy of the order with the issuing tribunal that had 292.1 continuing, exclusive jurisdiction over the earlier order, and 292.2 in each tribunal in which the party knows the earlier order has 292.3 been registered. A party who obtains the order and fails to 292.4 file a certified copy is subject to appropriate sanctions by a 292.5 tribunal in which the issue of failure to file arises. The 292.6 failure to file does not affect the validity or enforceability 292.7 of the modified order of the new tribunal having continuing, 292.8 exclusive jurisdiction. 292.9 Sec. 78. Minnesota Statutes 1996, section 518C.701, is 292.10 amended to read: 292.11 518C.701 [PROCEEDING TO DETERMINE PARENTAGE.] 292.12 (a) A tribunal of this state may serve as an initiating or 292.13 responding tribunal in a proceeding brought under this chapter 292.14 or a law or procedure substantially similar to this chapter, or 292.15 under a law or procedure substantially similar to the uniform 292.16 reciprocal enforcement of support act, or the revised uniform 292.17 reciprocal enforcement of support act to determine that the 292.18 petitioner is a parent of a particular child or to determine 292.19 that a respondent is a parent of that child. 292.20 (b) In a proceeding to determine parentage, a responding 292.21 tribunal of this state shall apply the parentage act, sections 292.22 257.51 to 257.74, and the rules of this state on choice of law. 292.23 Sec. 79. Minnesota Statutes 1996, section 548.091, 292.24 subdivision 1a, is amended to read: 292.25 Subd. 1a. [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 292.26 (a) Any payment or installment of support required by a judgment 292.27 or decree of dissolution or legal separation, determination of 292.28 parentage, an order under chapter 518C, an order under section 292.29 256.87, or an order under section 260.251, that is not paid or 292.30 withheld from the obligor's income as required under section 292.31 518.611 or 518.613, or which is ordered as child support by 292.32 judgment, decree, or order by a court in any other state, is a 292.33 judgment by operation of law on and after the date it is due and 292.34 is entitled to full faith and credit in this state and any other 292.35 state. Except as otherwise provided by paragraph (b), interest 292.36 accrues from the date the unpaid amount due is greater than the 293.1 current support due at the annual rate provided in section 293.2 549.09, subdivision 1, plus two percent, not to exceed an annual 293.3 rate of 18 percent. A payment or installment of support that 293.4 becomes a judgment by operation of law between the date on which 293.5 a party served notice of a motion for modification under section 293.6 518.64, subdivision 2, and the date of the court's order on 293.7 modification may be modified under that subdivision. 293.8 (b) Notwithstanding the provisions of section 549.09, upon 293.9 motion to the court and upon proof by the obligor of 36 293.10 consecutive months of complete and timely payments of both 293.11 current support and court-ordered paybacks of a child support 293.12 debt or arrearage, the court may order interest on the remaining 293.13 debt or arrearage to stop accruing. Timely payments are those 293.14 made in the month in which they are due. If, after that time, 293.15 the obligor fails to make complete and timely payments of both 293.16 current support and court-ordered paybacks of child support debt 293.17 or arrearage, the public authority or the obligee may move the 293.18 court for the reinstatement of interest as of the month in which 293.19 the obligor ceased making complete and timely payments. 293.20 The court shall provide copies of all orders issued under 293.21 this section to the public authority. The commissioner of human 293.22 services shall prepare and make available to the court and the 293.23 parties forms to be submitted by the parties in support of a 293.24 motion under this paragraph. 293.25 Sec. 80. Minnesota Statutes 1996, section 548.091, 293.26 subdivision 2a, is amended to read: 293.27 Subd. 2a. [DOCKETING OF CHILD SUPPORT JUDGMENT.] On or 293.28 after the date an unpaid amount becomes a judgment by operation 293.29 of law under subdivision 1a, the obligee or the public authority 293.30 may file with the court administrator, either electronically or 293.31 by other means: 293.32 (1) a statement identifying, or a copy of, the judgment or 293.33 decree of dissolution or legal separation, determination of 293.34 parentage, order under chapter 518C, an order under section 293.35 256.87,oran order under section 260.251, or judgment, decree, 293.36 or order for child support by a court in any other state, which 294.1 provides forinstallment orperiodicpaymentsinstallments of 294.2 child support, or a judgment or notice of attorney fees and 294.3 collection costs under section 518.14, subdivision 2; 294.4 (2) an affidavit of default. The affidavit of default must 294.5 state the full name, occupation, place of residence, and last 294.6 known post office address of the obligor, the name and post 294.7 office address of the obligee, the date or dates payment was due 294.8 and not received and judgment was obtained by operation of law, 294.9andthe total amount of the judgments to the date of filing, and 294.10 the amount and frequency of the periodic installments of child 294.11 support that will continue to become due and payable subsequent 294.12 to the date of filing; and 294.13 (3) an affidavit of service of a notice ofentry of294.14judgment or notice ofintent to docket judgment and to recover 294.15 attorney fees and collection costs on the obligor, in person or 294.16 by mail at the obligor's last known post office address. 294.17 Service is completed upon mailing in the manner designated. 294.18 Where applicable, a notice of interstate lien in the form 294.19 promulgated under United States Code, title 42, section 652(a), 294.20 is sufficient to satisfy the requirements of clauses (1) and (2). 294.21 Sec. 81. Minnesota Statutes 1996, section 548.091, 294.22 subdivision 3a, is amended to read: 294.23 Subd. 3a. [ENTRY, DOCKETING, AND SURVIVAL OF CHILD SUPPORT 294.24 JUDGMENT.] Upon receipt of the documents filed under subdivision 294.25 2a, the court administrator shall enter and docket the judgment 294.26 in the amount of thedefault specified in the affidavit of294.27defaultunpaid obligation identified in the affidavit of default 294.28 and note the amount and frequency of the periodic installments 294.29 of child support that will continue to become due and payable 294.30 after the date of docketing. From the time of docketing, the 294.31 judgment is a lien upon all the real property in the county 294.32 owned by the judgment debtor, but it is not a lien on registered 294.33 land unless the obligee or the public authority causes a notice 294.34 of judgment lien or certified copy of the judgment to be 294.35 memorialized on the certificate of title or certificate of 294.36 possessory title under section 508.63 or 508A.63. The judgment 295.1 survives and the lien continues for ten years after the date the 295.2 judgment was docketed. Child support judgments may be renewed 295.3 by service of notice upon the debtor. Service shall be by 295.4 certified mail at the last known address of the debtor or in the 295.5 manner provided for the service of civil process. Upon the 295.6 filing of the notice and proof of service the court 295.7 administrator shall renew the judgment for child support without 295.8 any additional filing fee. 295.9 Sec. 82. Minnesota Statutes 1996, section 548.091, is 295.10 amended by adding a subdivision to read: 295.11 Subd. 5. [AUTOMATIC INCREASES; SATISFACTION.] After 295.12 docketing and until satisfied by the obligee, public authority, 295.13 or the court administrator, the amount of the docketed judgment 295.14 automatically increases by the total amount of periodic 295.15 installments of child support that became due and payable 295.16 subsequent to the date of docketing, plus attorney's fees and 295.17 collection costs incurred by the public authority, and less any 295.18 payment made by the obligor to partially satisfy the docketed 295.19 judgment. The court administrator shall not satisfy any child 295.20 support judgment without first obtaining a written judgment 295.21 payoff statement from the public authority or obligee. If no 295.22 such statement can be obtained within two business days, the 295.23 court administrator shall only satisfy the judgment if the 295.24 amount paid to the court administrator equals the judgment 295.25 amount plus interest and costs, and the amount of the periodic 295.26 installment times the number of payments due since the date of 295.27 docketing of the judgment. 295.28 Sec. 83. Minnesota Statutes 1996, section 548.091, is 295.29 amended by adding a subdivision to read: 295.30 Subd. 6. [NOTE ON JUDGMENT ROLL.] The court administrator 295.31 shall note on the judgment roll which judgments are filed 295.32 pursuant to this section and the amount and frequency of the 295.33 periodic installment of child support that will continue to 295.34 become due and payable after the date of docketing. 295.35 Sec. 84. Minnesota Statutes 1996, section 548.091, is 295.36 amended by adding a subdivision to read: 296.1 Subd. 7. [FEES.] The public authority is exempt from 296.2 payment of fees when a judgment is docketed or a certified copy 296.3 of a judgment is issued by a court administrator, or a notice of 296.4 judgment lien or a certified copy of a judgment is presented to 296.5 a registrar of titles for recording. If a notice or certified 296.6 copy is recorded by the public authority under this subdivision, 296.7 the registrar of titles may collect from a party presenting for 296.8 recording a satisfaction or release of the notice or certified 296.9 copy, the fees for recording and memorializing both the notice 296.10 or certified copy and the satisfaction or release. 296.11 Sec. 85. Minnesota Statutes 1996, section 548.091, is 296.12 amended by adding a subdivision to read: 296.13 Subd. 8. [REGISTERED LAND.] If requested by the public 296.14 authority and upon the public authority's providing a notice of 296.15 judgment lien or a certified copy of a judgment for child 296.16 support debt, together with a street address, tax parcel 296.17 identifying number, or a legal description for a parcel of real 296.18 property, the county recorder shall search the registered land 296.19 records in that county and cause the notice of judgment lien or 296.20 certified copy of the judgment to be memorialized on every 296.21 certificate of title or certificate of possessory title of 296.22 registered land in that county that can be reasonably identified 296.23 as owned by the obligor who is named on a docketed judgment. 296.24 The fees for memorializing the lien or judgment must be paid in 296.25 the manner prescribed by subdivision 7. The county recorders 296.26 and their employees and agents are not liable for any loss or 296.27 damages arising from failure to identify a parcel of registered 296.28 land owned by the obligor who is named on the docketed judgment. 296.29 Sec. 86. Minnesota Statutes 1996, section 548.091, is 296.30 amended by adding a subdivision to read: 296.31 Subd. 9. [PAYOFF STATEMENT.] The public authority shall 296.32 issue to the obligor, attorneys, lenders, and closers, or their 296.33 agents, a payoff statement setting forth conclusively the amount 296.34 necessary to satisfy the lien. Payoff statements must be issued 296.35 within three business days after receipt of a request by mail, 296.36 personal delivery, telefacsimile, or e-mail transmission, and 297.1 must be delivered to the requester by telefacsimile or e-mail 297.2 transmission if requested and if appropriate technology is 297.3 available to the public authority. 297.4 Sec. 87. Minnesota Statutes 1996, section 548.091, is 297.5 amended by adding a subdivision to read: 297.6 Subd. 10. [RELEASE OF LIEN.] Upon payment of the amount 297.7 due under subdivision 5, the public authority shall execute and 297.8 deliver a satisfaction of the judgment lien within five business 297.9 days. 297.10 Sec. 88. Minnesota Statutes 1996, section 548.091, is 297.11 amended by adding a subdivision to read: 297.12 Subd. 11. [SPECIAL PROCEDURES.] The public authority shall 297.13 maintain sufficient staff available to negotiate a release of 297.14 lien on specific property for less than the full amount due 297.15 where the proceeds of a sale or financing, less reasonable and 297.16 necessary closing expenses, are not sufficient to satisfy all 297.17 encumbrances on the liened property. Partial releases do not 297.18 release the obligor's personal liability for the amount unpaid. 297.19 Sec. 89. Minnesota Statutes 1996, section 548.091, is 297.20 amended by adding a subdivision to read: 297.21 Subd. 12. [CORRECTING ERRORS.] The public authority shall 297.22 maintain a process to review the identity of the obligor and to 297.23 issue releases of lien in cases of misidentification. The 297.24 public authority shall maintain a process to review the amount 297.25 of child support determined to be delinquent and to issue 297.26 amended notices of judgment lien in cases of incorrectly 297.27 docketed judgments. 297.28 Sec. 90. Minnesota Statutes 1996, section 548.091, is 297.29 amended by adding a subdivision to read: 297.30 Subd. 13. [FORMS.] The department of human services, after 297.31 consultation with registrars of title, shall prescribe the 297.32 Notice of Judgment Lien. These forms are not subject to chapter 297.33 14. 297.34 Sec. 91. Minnesota Statutes 1996, section 550.37, 297.35 subdivision 24, is amended to read: 297.36 Subd. 24. [EMPLOYEE BENEFITS.] (a) The debtor's right to 298.1 receive present or future payments, or payments received by the 298.2 debtor, under a stock bonus, pension, profit sharing, annuity, 298.3 individual retirement account, individual retirement annuity, 298.4 simplified employee pension, or similar plan or contract on 298.5 account of illness, disability, death, age, or length of service: 298.6 (1) to the extent the plan or contract is described in 298.7 section 401(a), 403, 408, or 457 of the Internal Revenue Code of 298.8 1986, as amended, or payments under the plan or contract are or 298.9 will be rolled over as provided in section 402(a)(5), 403(b)(8), 298.10 or 408(d)(3) of the Internal Revenue Code of 1986, as amended; 298.11 or 298.12 (2) to the extent of the debtor's aggregate interest under 298.13 all plans and contracts up to a present value of $30,000 and 298.14 additional amounts under all the plans and contracts to the 298.15 extent reasonably necessary for the support of the debtor and 298.16 any spouse or dependent of the debtor. 298.17 (b) The exemptions in paragraph (a) do not apply when the 298.18 debt is owed under a support order as defined in section 518.54, 298.19 subdivision 4a. 298.20 Sec. 92. [552.01] [DEFINITIONS.] 298.21 Subdivision 1. [SCOPE.] The definitions in this section 298.22 apply to this chapter. 298.23 Subd. 2. [CLAIM.] "Claim" means the unpaid balance of the 298.24 public authority's judgment against the judgment debtor, 298.25 including all lawful interest and costs incurred. 298.26 Subd. 3. [FINANCIAL INSTITUTION.] "Financial institution" 298.27 means all entities identified in section 13B.06. 298.28 Subd. 4. [JUDGMENT DEBTOR.] "Judgment debtor" means a 298.29 party against whom the public authority has a judgment for the 298.30 recovery of money resulting from unpaid child support. 298.31 Subd. 5. [PUBLIC AUTHORITY.] "Public authority" means the 298.32 public authority responsible for child support enforcement. 298.33 Subd. 6. [THIRD PARTY.] "Third party" means the person or 298.34 entity upon whom the execution levy is served. 298.35 Sec. 93. [552.02] [PUBLIC AUTHORITY'S SUMMARY EXECUTION OF 298.36 CHILD SUPPORT JUDGMENT DEBTS; WHEN AUTHORIZED.] 299.1 The public authority may execute on a money judgment 299.2 resulting from unpaid child support by levying under this 299.3 chapter on indebtedness owed to the judgment debtor by a third 299.4 party. The public authority may execute under this chapter upon 299.5 service of a notice of child support judgment levy for which the 299.6 seal of the court is not required. 299.7 Sec. 94. [552.03] [SCOPE OF GENERAL AND SPECIFIC 299.8 PROVISIONS.] 299.9 General provisions relating to the public authority's 299.10 summary execution as authorized in this chapter are set forth in 299.11 section 552.04. Specific provisions relating to summary 299.12 execution on funds at a financial institution are set forth in 299.13 section 552.05. When the public authority levies against funds 299.14 at a financial institution, the specific provisions of section 299.15 552.05 must be complied with in addition to the general 299.16 provisions of section 552.04. Provisions contained in the 299.17 statutory forms are incorporated in this chapter and have the 299.18 same force of law as any other provisions in this chapter. 299.19 Sec. 95. [552.04] [GENERAL PROVISIONS.] 299.20 Subdivision 1. [RULES OF CIVIL PROCEDURE.] Unless this 299.21 chapter specifically provides otherwise, the Minnesota Rules of 299.22 Civil Procedure for the district courts apply in all proceedings 299.23 under this chapter. 299.24 Subd. 2. [PROPERTY ATTACHABLE BY SERVICE OF LIEN 299.25 NOTICE.] Subject to the exemptions provided by subdivision 3 and 299.26 section 550.37, and any other applicable statute, the service by 299.27 the public authority of a notice of child support judgment levy 299.28 under this chapter attaches all nonexempt indebtedness or money 299.29 due or belonging to the judgment debtor and owing by the third 299.30 party or in the possession or under the control of the third 299.31 party at the time of service of the notice of child support 299.32 judgment levy, whether or not the indebtedness or money has 299.33 become payable. The third party shall not be compelled to pay 299.34 or deliver the same before the time specified by any agreement 299.35 unless the agreement was fraudulently contracted to defeat an 299.36 execution levy or other collection remedy. 300.1 Subd. 3. [PROPERTY NOT ATTACHABLE.] The following property 300.2 is not subject to attachment by a notice of child support 300.3 judgment levy served under this chapter: 300.4 (1) any indebtedness or money due to the judgment debtor, 300.5 unless at the time of the service of the notice of child support 300.6 judgment levy the same is due absolutely or does not depend upon 300.7 any contingency; 300.8 (2) any judgment owing by the third party to the judgment 300.9 debtor, if the third party or the third party's property is 300.10 liable on an execution levy upon the judgment; 300.11 (3) any debt owing by the third party to the judgment 300.12 debtor for which any negotiable instrument has been issued or 300.13 endorsed by the third party; 300.14 (4) any indebtedness or money due to the judgment debtor 300.15 with a cumulative value of less than $10; and 300.16 (5) any disposable earnings, indebtedness, or money that is 300.17 exempt under state or federal law. 300.18 Subd. 4. [SERVICE OF THIRD-PARTY LEVY; NOTICE AND 300.19 DISCLOSURE FORMS.] When levying upon money owed to the judgment 300.20 debtor by a third party, the public authority shall serve a copy 300.21 of the notice of child support judgment levy upon the third 300.22 party either by registered or certified mail, or by personal 300.23 service. Along with a copy of the notice of child support 300.24 judgment levy, the public authority shall serve upon the third 300.25 party a notice of third-party levy and disclosure form that must 300.26 be substantially in the form set forth below. 300.27 OFFICE OF ADMINISTRATIVE HEARINGS 300.28 File No. ........... 300.29 ........ (Public Authority) 300.30 against NOTICE OF THIRD PARTY 300.31 ........ (Judgment Debtor) LEVY AND DISCLOSURE 300.32 and (OTHER THAN EARNINGS) 300.33 ........ (Third Party) 300.34 PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 300.35 chapter 552, the undersigned, as representative of the public 300.36 authority responsible for child support enforcement, makes 300.37 demand and levies execution upon all money due and owing by you 300.38 to the judgment debtor for the amount of the judgment specified 301.1 below. A copy of the notice of child support judgment levy is 301.2 enclosed. The unpaid judgment balance is $...... 301.3 In responding to this levy, you are to complete the 301.4 attached disclosure form and mail it to the public authority, 301.5 together with your check payable to the public authority, for 301.6 the nonexempt amount owed by you to the judgment debtor or for 301.7 which you are obligated to the judgment debtor, within the time 301.8 limits in chapter 552. 301.9 Two exemption notices are also enclosed according to 301.10 Minnesota Statutes, section 552.02. 301.11 Public Authority 301.12 Address 301.13 (........) 301.14 Telephone Number 301.15 301.16 DISCLOSURE 301.17 On the ... day of ......, 19.., the time of service of the 301.18 execution levy herein, there was due and owing the judgment 301.19 debtor from the third party the following: 301.20 (1) Money. Enter on the line below any amounts due and 301.21 owing the judgment debtor, except earnings, from the third party. 301.22 ......................... 301.23 (2) Setoff. Enter on the line below the amount of any 301.24 setoff, defense, lien, or claim which the third party claims 301.25 against the amount set forth on line (1). State the facts by 301.26 which the setoff, defense, lien, or claim is claimed. (Any 301.27 indebtedness to you incurred by the judgment debtor within ten 301.28 days prior to the receipt of the first execution levy on a debt 301.29 may not be claimed as a setoff, defense, lien, or claim against 301.30 the amount set forth on line (1).) 301.31 ......................... 301.32 (3) Exemption. Enter on the line below any amounts or 301.33 property claimed by the judgment debtor to be exempt from 301.34 execution. 301.35 ......................... 301.36 (4) Adverse Interest. Enter on the line below any amounts 301.37 claimed by other persons by reason of ownership or interest in 302.1 the judgment debtor's property. 302.2 ......................... 302.3 (5) Enter on the line below the total of lines (2), (3), 302.4 and (4). 302.5 ......................... 302.6 (6) Enter on the line below the difference obtained (never 302.7 less than zero when line (5) is subtracted from the amount on 302.8 line (1)). 302.9 ......................... 302.10 (7) Enter on the line below 100 percent of the amount of 302.11 the public authority's claim which remains unpaid. 302.12 ......................... 302.13 (8) Enter on the line below the lesser of line (6) and line 302.14 (7). You are instructed to remit this amount only if it is $10 302.15 or more. 302.16 ......................... 302.17 AFFIRMATION 302.18 I, .......... (person signing Affirmation), am the third 302.19 party or I am authorized by the third party to complete this 302.20 nonearnings disclosure, and have done so truthfully and to the 302.21 best of my knowledge. 302.22 Dated:.......... Signature 302.23 .......... 302.24 Title 302.25 .......... 302.26 Telephone Number 302.27 Subd. 5. [THIRD-PARTY DISCLOSURE AND REMITTANCE.] Within 302.28 15 days after receipt of the notice of child support judgment 302.29 levy, unless governed by section 552.05, the third party shall 302.30 disclose and remit to the public authority as much of the amount 302.31 due as the third party's own debt equals to the judgment debtor. 302.32 Subd. 6. [ORAL DISCLOSURE.] Before or after the service of 302.33 a written disclosure by a third party under subdivision 5, upon 302.34 a showing by affidavit upon information and belief that an oral 302.35 examination of the third party would provide a complete 302.36 disclosure of relevant facts, any party to the execution 302.37 proceedings may obtain an ex parte order requiring the third 302.38 party, or a representative of the third party designated by name 303.1 or by title, to appear for oral examination before the court or 303.2 a referee appointed by the court. Notice of the examination 303.3 must be given to all parties. 303.4 Subd. 7. [SUPPLEMENTAL COMPLAINT.] If a third party holds 303.5 property, money, earnings, or other indebtedness by a title that 303.6 is void as to the judgment debtor's creditors, the property may 303.7 be levied on although the judgment debtor would be barred from 303.8 maintaining an action to recover the property, money, earnings, 303.9 or other indebtedness. In this and all other cases where the 303.10 third party denies liability, the public authority may move the 303.11 court at any time before the third party is discharged, on 303.12 notice to both the judgment debtor and the third party for an 303.13 order making the third party a party to supplemental action and 303.14 granting the public authority leave to file a supplemental 303.15 complaint against the third party and the judgment debtor. The 303.16 supplemental complaint shall set forth the facts upon which the 303.17 public authority claims to charge the third party. If probable 303.18 cause is shown, the motion shall be granted. The supplemental 303.19 complaint shall be served upon the third party and the judgment 303.20 debtor and any other parties. The parties served shall answer 303.21 or respond pursuant to the Minnesota Rules of Civil Procedure 303.22 for the district courts, and if they fail to do so, judgment by 303.23 default may be entered against them. 303.24 Subd. 8. [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 303.25 DISCLOSE OR REMIT.] Judgment may be entered against a third 303.26 party who has been served with a notice of child support 303.27 judgment levy and fails to disclose or remit the levied funds as 303.28 required in this chapter. Upon order to show cause served on 303.29 the third party and notice of motion supported by affidavit of 303.30 facts and affidavit of service upon both the judgment debtor and 303.31 third party, the court may render judgment against the third 303.32 party for an amount not exceeding 100 percent of the amount 303.33 claimed in the execution. Judgment against the third party 303.34 under this section shall not bar the public authority from 303.35 further remedies under this chapter as a result of any 303.36 subsequent defaults by the third party. The court upon good 304.1 cause shown may remove the default and permit the third party to 304.2 disclose or remit on just terms. 304.3 Subd. 9. [SATISFACTION.] Upon expiration, the public 304.4 authority making the execution shall file a partial satisfaction 304.5 by amount or the total satisfaction with the court administrator 304.6 without charge. 304.7 Subd. 10. [THIRD-PARTY GOOD FAITH REQUIREMENT.] The third 304.8 party is not liable to the judgment debtor, public authority, or 304.9 other person for wrongful retention if the third party retains 304.10 or remits disposable earnings, indebtedness, or money of the 304.11 judgment debtor or any other person, pending the third party's 304.12 disclosure or consistent with the disclosure the third party 304.13 makes, if the third party has a good faith belief that the 304.14 property retained or remitted is subject to the execution. In 304.15 addition, the third party may, at any time before or after 304.16 disclosure, proceed under Rule 67 of the Minnesota Rules of 304.17 Civil Procedure to make deposit into court. No third party is 304.18 liable for damages if the third party complies with the 304.19 provisions of this chapter. 304.20 Subd. 11. [BAD FAITH CLAIM.] If, in a proceeding brought 304.21 under section 552.05, subdivision 9, or a similar proceeding 304.22 under this chapter to determine a claim of exemption, the claim 304.23 of exemption is not upheld, and the court finds that it was 304.24 asserted in bad faith, the public authority shall be awarded 304.25 actual damages, costs, reasonable attorney fees resulting from 304.26 the additional proceedings, and an amount not to exceed $100. 304.27 If the claim of exemption is upheld, and the court finds that 304.28 the public authority disregarded the claim of exemption in bad 304.29 faith, the judgment debtor shall be awarded actual damages, 304.30 costs, reasonable attorney fees resulting from the additional 304.31 proceedings, and an amount not to exceed $100. The underlying 304.32 judgment shall be modified to reflect assessment of damages, 304.33 costs, and attorney fees. However, if the party in whose favor 304.34 a penalty assessment is made is not actually indebted to that 304.35 party's attorney for fees, the attorney fee award shall be made 304.36 directly to the attorney, and if not paid, an appropriate 305.1 judgment in favor of the attorney shall be entered. Any action 305.2 by a public authority made in bad faith and in violation of this 305.3 chapter renders the execution levy void and the public authority 305.4 liable to the judgment debtor named in the execution levy in the 305.5 amount of $100, actual damages, and reasonable attorney fees and 305.6 costs. 305.7 Subd. 12. [DISCHARGE OF A THIRD PARTY.] Subject to 305.8 subdivisions 6 and 13, the third party, after disclosure, shall 305.9 be discharged of any further obligation to the public authority 305.10 when one of the conditions in paragraphs (a) to (c) are met. 305.11 (a) The third party discloses that the third party is not 305.12 indebted to the judgment debtor or does not possess any 305.13 earnings, property, money, or indebtedness belonging to the 305.14 judgment debtor that is attachable as defined in subdivision 2. 305.15 The disclosure is conclusive against the public authority and 305.16 discharges the third party from any further obligation to the 305.17 public authority other than to retain and remit all nonexempt 305.18 disposable earnings, property, indebtedness, or money of the 305.19 judgment debtor which was disclosed. 305.20 (b) The third party discloses that the third party is 305.21 indebted to the judgment debtor as indicated on the execution 305.22 disclosure form. The disclosure is conclusive against the 305.23 public authority and discharges the third party from any further 305.24 obligation to the public authority other than to retain and 305.25 remit all nonexempt disposable earnings, property, indebtedness, 305.26 or money of the judgment debtor that was disclosed. 305.27 (c) The court may, upon motion of an interested person, 305.28 discharge the third party as to any disposable earnings, money, 305.29 property, or indebtedness in excess of the amount that may be 305.30 required to satisfy the public authority's claim. 305.31 Subd. 13. [EXCEPTIONS TO DISCHARGE OF A THIRD PARTY.] The 305.32 third party is not discharged if: 305.33 (a) Within 20 days of the service of the third party's 305.34 disclosure, an interested person serves a motion relating to the 305.35 execution levy. The hearing on the motion must be scheduled to 305.36 be heard within 30 days of the service of the motion. 306.1 (b) The public authority moves the court for leave to file 306.2 a supplemental complaint against the third party, as provided 306.3 for in subdivision 7, and the court upon proper showing vacates 306.4 the discharge of the third party. 306.5 Subd. 14. [JOINDER AND INTERVENTION BY PERSONS IN 306.6 INTEREST.] If it appears that a person, who is not a party to 306.7 the action, has or claims an interest in any of the disposable 306.8 earnings, other indebtedness, or money, the court shall permit 306.9 that person to intervene or join in the execution proceeding 306.10 under this chapter. If that person does not appear, the court 306.11 may summon that person to appear or order the claim barred. The 306.12 person so appearing or summoned shall be joined as a party and 306.13 be bound by the judgment. 306.14 Subd. 15. [APPEAL.] A party to an execution proceeding 306.15 aggrieved by an order or final judgment may appeal as in other 306.16 civil cases. 306.17 Subd. 16. [PRIORITY OF LEVY.] Notwithstanding section 306.18 52.12, a levy by the public authority made under this section on 306.19 an obligor's funds on deposit in a financial institution located 306.20 in this state has priority over any unexercised right of setoff 306.21 of the financial institution to apply the levied funds toward 306.22 the balance of an outstanding loan or loans owed by the obligor 306.23 to the financial institution. A claim by the financial 306.24 institution that it exercised its right to setoff prior to the 306.25 levy by the public authority must be substantiated by evidence 306.26 of the date of the setoff and must be verified by the sworn 306.27 statement of a responsible corporate officer of the financial 306.28 institution. For purposes of determining the priority of a levy 306.29 made under this section, the levy must be treated as if it were 306.30 an execution made under chapter 550. 306.31 Sec. 96. [552.05] [SUMMARY EXECUTION UPON FUNDS AT 306.32 FINANCIAL INSTITUTION.] 306.33 Subdivision 1. [PROCEDURE.] In addition to the provisions 306.34 of section 552.04, when levying upon funds at a financial 306.35 institution, this section must be complied with. If the notice 306.36 of child support judgment levy is being used by the public 307.1 authority to levy funds of a judgment debtor who is a natural 307.2 person and if the funds to be levied are held on deposit at any 307.3 financial institution, the public authority shall serve with the 307.4 notice of child support judgment levy and summary execution two 307.5 copies of an exemption notice. The notice must be substantially 307.6 in the form determined by the public authority. Failure of the 307.7 public authority to send the exemption notice renders the 307.8 execution levy void, and the financial institution shall take no 307.9 action. Upon receipt of the notice of child support judgment 307.10 levy and exemption notices, the financial institution shall 307.11 retain as much of the amount due as the financial institution 307.12 has on deposit owing to the judgment debtor, but not more than 307.13 100 percent of the amount remaining due on the judgment. 307.14 The notice informing a judgment debtor that an execution 307.15 levy has been used by the public authority to attach funds of 307.16 the judgment debtor to satisfy a claim must be substantially in 307.17 the form determined by the public authority. 307.18 Subd. 2. [EFFECT OF EXEMPTION NOTICE.] Within two business 307.19 days after receipt of the execution levy and exemption notices, 307.20 the financial institution shall serve upon the judgment debtor 307.21 two copies of the exemption notice. The financial institution 307.22 shall serve the notice by first class mail to the last known 307.23 address of the judgment debtor. If no claim of exemption is 307.24 received by the financial institution within 14 days after the 307.25 exemption notices are mailed to the judgment debtor, the funds 307.26 remain subject to the execution levy and shall be remitted to 307.27 the public authority within seven days. If the judgment debtor 307.28 elects to claim an exemption, the judgment debtor shall complete 307.29 the exemption notice, sign it under penalty of perjury, and 307.30 deliver one copy to the financial institution and one copy to 307.31 the public authority within 14 days of the date postmarked on 307.32 the correspondence mailed to the judgment debtor containing the 307.33 exemption notices. Failure of the judgment debtor to deliver 307.34 the executed exemption notice does not constitute a waiver of 307.35 any claimed right to an exemption. Upon timely receipt of a 307.36 claim of exemption, funds not claimed to be exempt by the 308.1 judgment debtor remain subject to the execution levy. All money 308.2 claimed to be exempt shall be released to the judgment debtor 308.3 upon the expiration of seven days after the date postmarked on 308.4 the envelope containing the executed exemption notice mailed to 308.5 the financial institution, or the date of personal delivery of 308.6 the executed exemption notice to the financial institution, 308.7 unless within that time the public authority interposes an 308.8 objection to the exemption. 308.9 Subd. 3. [OBJECTION TO EXEMPTION CLAIM.] Objection shall 308.10 be interposed by mailing or delivering one copy of the written 308.11 objection to the financial institution and one copy of the 308.12 written objection to the judgment debtor along with a copy of 308.13 the judgment debtor's claimed exemption form. Both copies of an 308.14 objection to an exemption claim shall be mailed or delivered on 308.15 the same date. The financial institution may rely on the date 308.16 of mailing or delivery of a notice to it in computing any time 308.17 periods in this section. The written objection must be 308.18 substantially in the form specified in subdivision 5. 308.19 Subd. 4. [DUTIES OF FINANCIAL INSTITUTION IF OBJECTION IS 308.20 MADE TO EXEMPTION CLAIM.] Upon receipt of a written objection 308.21 from the public authority within the specified seven-day period, 308.22 the financial institution shall retain the funds claimed to be 308.23 exempt. Unless the financial institution receives a request for 308.24 hearing and notice of hearing from the judgment debtor asserting 308.25 exemption rights within ten days after receipt of a written 308.26 objection to the exemption, the funds remain subject to the 308.27 execution levy as if no claim of exemption had been made and 308.28 shall be remitted to the public authority within seven days. If 308.29 a request for hearing and notice of hearing to determine the 308.30 validity of a claim of exemption is received by the financial 308.31 institution within the period provided, it shall retain the 308.32 funds claimed to be exempt until otherwise ordered by the court. 308.33 Subd. 5. [NOTICE OF OBJECTION.] (a) The written objection 308.34 to the judgment debtor's claim of exemption must be in 308.35 substantially the following form: 308.36 OFFICE OF ADMINISTRATIVE HEARINGS 309.1 ....... (Public Authority) OBJECTION TO 309.2 ....... (Judgment Debtor) EXEMPTION CLAIM 309.3 ....... (Garnishee)(Third Party) 309.4 The public authority objects to your claim for exemption 309.5 from levy of execution for the following reason(s): 309.6 .................... 309.7 .................... 309.8 .................... 309.9 Because of this objection, your financial institution will 309.10 retain the funds you claimed to be exempt for an additional ten 309.11 days. If you wish to request a hearing on your exemption claim, 309.12 you should do so within ten days of your receipt of this 309.13 objection. You may request a hearing by completing the attached 309.14 form and filing it with the office of administrative hearings. 309.15 (1) The office of administrative hearings shall provide 309.16 clerical assistance to help with the writing and filing of a 309.17 Request for Hearing by any person not represented by counsel. 309.18 The office of administrative hearings may charge a fee of $1 for 309.19 the filing of a Request for Hearing. 309.20 (2) Upon the filing of a Request for Hearing, the office of 309.21 administrative hearings shall schedule the matter for a hearing 309.22 no later than five business days from the date of filing. The 309.23 office of administrative hearings shall promptly send a 309.24 completed copy of the request, including the hearing date, time, 309.25 and place to the adverse party and to the financial institution 309.26 by first class mail. 309.27 (3) If it is possible that the financial institution might 309.28 not receive the requested mailed form mailed from the court 309.29 administrator within ten days, then you may want to personally 309.30 deliver a copy of the request to the financial institution after 309.31 you have filed your request with the office of administrative 309.32 hearings. 309.33 (4) An order stating whether your funds are exempt shall be 309.34 issued by the office of administrative hearings within three 309.35 days of the date of the hearing. 309.36 If you do not file a Request for Hearing within ten days of 309.37 the date you receive this objection, your financial institution 310.1 may turn your funds over to the public authority. 310.2 If you file a Request for Hearing and your financial 310.3 institution receives it within ten days of the date it received 310.4 this objection, your financial institution will retain your 310.5 funds claimed to be exempt until otherwise ordered by the office 310.6 of administrative hearings. 310.7 ........... 310.8 Attorney for Public Authority 310.9 Subd. 6. [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The 310.10 request for hearing accompanying the objection notice must be in 310.11 substantially the following form: 310.12 OFFICE OF ADMINISTRATIVE HEARINGS 310.13 ........(Public Authority) REQUEST FOR HEARING 310.14 .....(Judgment Debtor) AND NOTICE FOR HEARING 310.15 .....(Garnishee)(Third Party) 310.16 I hereby request a hearing to resolve the exemption claim 310.17 which has been made in this case regarding funds in the account 310.18 of ..... (Judgment Debtor) at the ..... (Financial Institution.) 310.19 I believe the property being held is exempt because 310.20 ................................................ 310.21 Dated: ............. .............. 310.22 (JUDGMENT DEBTOR) 310.23 ................. 310.24 (ADDRESS) 310.25 ................. 310.26 HEARING DATE: ............ 310.27 HEARING PLACE: ........... 310.28 (Note to both parties: Bring with you to the hearing all 310.29 documents and materials relevant to the exemption claim and 310.30 objection. Failure to do so could delay the court's decision.) 310.31 Subd. 7. [RIGHT TO REQUEST REVIEW.] (a) To request 310.32 administrative review of an action taken by the public authority 310.33 under this section, the obligor must make a request in writing 310.34 directed to the public authority or file a motion with the court 310.35 within 20 days of the date the notice of a child support 310.36 judgment levy was served on the obligor. 310.37 (b) The public authority's receipt of a written request for 310.38 administrative review starts the administrative process. At a 310.39 hearing conducted under section 518.5511, the only issues to be 310.40 determined are whether: 311.1 (1) the public authority complied with the process required 311.2 by this section; 311.3 (2) the amount stated in the notice of child support 311.4 judgment levy is owed by the obligor; and 311.5 (3) the amount stated in the notice of child support 311.6 judgment levy is correct. 311.7 (c) The obligor's filing of a motion requesting a court 311.8 hearing under the Rules of Civil Procedure serves to stay the 311.9 levy on the obligor's property, but the lien remains in force 311.10 and effect until the court has issued a final ruling on the 311.11 matter and all periods for appeal have expired. At a court 311.12 hearing requested by the obligor, the only issues to be 311.13 determined are whether: 311.14 (1) the public authority complied with the process required 311.15 by this section; 311.16 (2) the amount stated in the notice of child support 311.17 judgment levy is owed by the obligor; and 311.18 (3) the amount stated in the notice of child support 311.19 judgment levy is correct. 311.20 (d) The court may review the proceeding taken by the public 311.21 authority under this section and may correct any mistakes of 311.22 fact but shall not reduce or retroactively modify child support 311.23 arrears. 311.24 Subd. 8. [RELEASE OF FUNDS.] At any time during the 311.25 procedure specified in this section, the judgment debtor or the 311.26 attorney for the public authority or the public authority may, 311.27 by a writing dated after the service of the writ of execution, 311.28 direct the financial institution to release the funds in 311.29 question to the other party. Upon receipt of a release, the 311.30 financial institution shall release the funds as directed. 311.31 Subd. 9. [SUBSEQUENT PROCEEDINGS; BAD FAITH CLAIM.] If in 311.32 subsequent proceedings brought by the judgment debtor or the 311.33 public authority, the claim of exemption is not upheld, and the 311.34 office of administrative hearings finds that it was asserted in 311.35 bad faith, the public authority shall be awarded actual damages, 311.36 costs, and reasonable attorney fees resulting from the 312.1 additional proceedings, and an amount not to exceed $100. The 312.2 underlying judgment must be modified to reflect assessment of 312.3 damages, costs, and attorney fees. However, if the party in 312.4 whose favor a penalty assessment is made is not actually 312.5 indebted to the party's attorney for fees, the attorney's fee 312.6 award shall be made directly to the attorney and if not paid, an 312.7 appropriate judgment in favor of the attorney shall be entered. 312.8 Upon motion of any party in interest, on notice, the office of 312.9 administrative hearings shall determine the validity of any 312.10 claim of exemption, and may make any order necessary to protect 312.11 the rights of those interested. No financial institution is 312.12 liable for damages for complying with this section. Both copies 312.13 of an exemption claim or an objection to an exemption claim must 312.14 be mailed or delivered on the same date. The financial 312.15 institution may rely on the date of mailing or delivery of a 312.16 notice to it in computing any time periods in this section. 312.17 Subd. 10. [FORMS.] The public authority shall develop 312.18 statutory forms for use as required under this section. 312.19 Sec. 97. [CHILD SUPPORT ENFORCEMENT PROGRAM; SERVICES 312.20 DELIVERY STUDY.] 312.21 The commissioner of human services shall conduct a study of 312.22 the overall state child support enforcement delivery system in 312.23 order to appropriately meet the performance requirements of new 312.24 federal law. 312.25 Sec. 98. [AGENCY CONSULTATION ON SUSPENDING RECREATIONAL 312.26 LICENSES.] 312.27 The commissioner shall consult with other state agencies to 312.28 establish procedures to meet federal requirements to suspend 312.29 recreational licenses of child support obligors who fail to pay 312.30 child support. 312.31 Sec. 99. [TRANSFER TO COMMISSIONER OF CHILDREN, FAMILIES, 312.32 AND LEARNING; REVISOR INSTRUCTION.] 312.33 Effective July 1, 1997, all duties and funding related to 312.34 family visitation centers under Minnesota Statutes, section 312.35 256F.09, are transferred to the commissioner of children, 312.36 families, and learning. In the next edition of Minnesota 313.1 Statutes, the revisor of statutes shall renumber Minnesota 313.2 Statutes, section 256F.09, in Minnesota Statutes, chapter 119A. 313.3 Sec. 100. [INSTRUCTION TO REVISOR.] 313.4 The revisor shall delete the references to sections 518.611 313.5 and 518.613 and insert a reference to section 518.6111 wherever 313.6 the occur in Minnesota Statutes and Minnesota Rules. 313.7 Sec. 101. [REPEALER.] 313.8 (a) Minnesota Statutes 1996, sections 518C.9011; and 313.9 609.375, subdivisions 3, 4, and 6, are repealed. 313.10 (b) Minnesota Statutes 1996, sections 256.74; 256.979, 313.11 subdivision 9; 256F.05, subdivisions 5 and 7; 518.5511, 313.12 subdivisions 5, 6, 7, 8, and 9; 518.611; 518.613; 518.645; and 313.13 518C.502, are repealed effective July 1, 1997. 313.14 Sec. 102. [EFFECTIVE DATE.] 313.15 Section 1 is effective the day following final enactment. 313.16 Sections 3, and 79 to 89 are effective July 1, 1998. 313.17 Section 82 applies only to judgments first docketed on or after 313.18 July 1, 1998. 313.19 Sections 20 to 27, amending the family preservation fund 313.20 provisions, are effective July 1, 1997. 313.21 ARTICLE 7 313.22 CONTINUING CARE FOR DISABLED PERSONS 313.23 Section 1. Minnesota Statutes 1996, section 62E.14, is 313.24 amended by adding a subdivision to read: 313.25 Subd. 4e. [WAIVER OF PREEXISTING CONDITIONS; PERSONS 313.26 COVERED BY PUBLICLY FUNDED HEALTH PROGRAMS.] A person may enroll 313.27 in the comprehensive plan with a waiver of the preexisting 313.28 condition limitation in subdivision 3, provided that: 313.29 (1) the person was formerly enrolled in the medical 313.30 assistance, general assistance medical care, or MinnesotaCare 313.31 program; 313.32 (2) the person is a Minnesota resident; and 313.33 (3) the person applies within 90 days of termination from 313.34 medical assistance, general assistance medical care, or 313.35 MinnesotaCare program. 313.36 Sec. 2. Minnesota Statutes 1996, section 245.652, 314.1 subdivision 1, is amended to read: 314.2 Subdivision 1. [PURPOSE.] The regional treatment centers 314.3 shall provide services designed to end a person's reliance on 314.4 chemical use or a person's chemical abuse and increase effective 314.5 and chemical-free functioning. Clinically effective programs 314.6 must be provided in accordance with section 246.64. Services 314.7 may be offered on the regional center campus or at sites 314.8 elsewhere in thecatchmentarea served by the regional treatment 314.9 center. 314.10 Sec. 3. Minnesota Statutes 1996, section 245.652, 314.11 subdivision 2, is amended to read: 314.12 Subd. 2. [SERVICES OFFERED.] Services providedmustmay 314.13 include, but are not limited to, the following: 314.14 (1) primary and extended residential care, including 314.15 residential treatment programs of varied duration intended to 314.16 deal with a person's chemical dependency or chemical abuse 314.17 problems; 314.18 (2) follow-up care to persons discharged from regional 314.19 treatment center programs or other chemical dependency programs; 314.20 (3) outpatient treatment programs; and 314.21 (4) other treatment services, as appropriate and as 314.22 provided under contract or shared service agreements. 314.23 Sec. 4. Minnesota Statutes 1996, section 245.652, 314.24 subdivision 4, is amended to read: 314.25 Subd. 4. [SYSTEM LOCATIONS.]Programs shall be located in314.26Anoka, Brainerd, Fergus Falls, St. Peter, and Willmar and may be314.27offered at other selected sites.Programs are currently located 314.28 in Walker, Anoka, Brainerd, Fergus Falls, St. Peter, Willmar, 314.29 and in the Moose Lake area, Cloquet, and Cambridge. Locations 314.30 of state-operated chemical dependency programs shall be 314.31 determined by needs of Minnesota counties and consumers. The 314.32 commissioner of human services shall have the authority to 314.33 consolidate or close any state-operated chemical dependency 314.34 programs that are not able to generate sufficient revenues to 314.35 cover their expenses, after reasonable attempts to generate 314.36 additional revenues have failed. Before the closure or 315.1 consolidation of any state-operated chemical dependency program, 315.2 the commissioner shall notify the chairs of the senate health 315.3 and family security budget division and the house of 315.4 representatives health and human services finance division. 315.5 Sec. 5. Minnesota Statutes 1996, section 246.0135, is 315.6 amended to read: 315.7 246.0135 [OPERATION OF REGIONAL TREATMENT CENTERS.] 315.8 (a) The commissioner of human services is prohibited from 315.9 closing any regional treatment center or state-operated nursing 315.10 homeorand, except for chemical dependency programs as provided 315.11 in section 245.652, any program at any of the regional treatment 315.12 centers or state-operated nursing homes, without specific 315.13 legislative authorization. For persons with mental retardation 315.14 or related conditions who move from one regional treatment 315.15 center to another regional treatment center, the provisions of 315.16 section 256B.092, subdivision 10, must be followed for both the 315.17 discharge from one regional treatment center and admission to 315.18 another regional treatment center, except that the move is not 315.19 subject to the consensus requirement of section 256B.092, 315.20 subdivision 10, paragraph (b). 315.21 (b) Prior to closing or downsizing a regional treatment 315.22 center, the commissioner of human services shall be responsible 315.23 for assuring that community-based alternatives developed in 315.24 response are adequate to meet the program needs identified by 315.25 each county within the catchment area and do not require 315.26 additional local county property tax expenditures. 315.27 (c) The nonfederal share of the cost of alternative 315.28 treatment or care developed as the result of the closure of a 315.29 regional treatment center, including costs associated with 315.30 fulfillment of responsibilities under chapter 253B shall be paid 315.31 from state funds appropriated for purposes specified in section 315.32 246.013. 315.33 (d) Counties in the catchment area of a regional treatment 315.34 center which has been closed or downsized may not at any time be 315.35 required to pay a greater cost of care for alternative care and 315.36 treatment than the county share set by the commissioner for the 316.1 cost of care provided by regional treatment centers. 316.2 (e) The commissioner may not divert state funds used for 316.3 providing for care or treatment of persons residing in a 316.4 regional treatment center for purposes unrelated to the care and 316.5 treatment of such persons. 316.6 Sec. 6. Minnesota Statutes 1996, section 246.02, 316.7 subdivision 2, is amended to read: 316.8 Subd. 2. The commissioner of human services shall act with 316.9 the advice of the medical policy directional committee on mental 316.10 health in the appointment and removal of the chief executive 316.11 officers of the following institutions: Anoka-Metro Regional 316.12 Treatment Center, Ah-Gwah-Ching Center, Fergus Falls Regional 316.13 Treatment Center, St. Peter Regional Treatment Center and 316.14 Minnesota Security Hospital, Willmar Regional Treatment Center, 316.15Faribault Regional Center,Cambridge Regional Human Services 316.16 Center, Brainerd Regional Human Services Center,and until June316.1730, 1995, Moose Lake Regional Treatment Center, and after June316.1830, 1995,Minnesota Sexual Psychopathic Personality Treatment 316.19 Center and until June 30, 1998, Faribault Regional Center. 316.20 Sec. 7. Minnesota Statutes 1996, section 252.025, 316.21 subdivision 1, is amended to read: 316.22 Subdivision 1. [REGIONAL TREATMENT CENTERS.] State 316.23 hospitals for persons with mental retardation shall be 316.24 established and maintained at Faribault until June 30, 1998, 316.25 Cambridge and Brainerd, and notwithstanding any provision to the 316.26 contrary they shall be respectively known as the Faribault 316.27 regional center, the Cambridge regional human services center, 316.28 and the Brainerd regional human services center. Each of the 316.29 foregoing state hospitals shall also be known by the name of 316.30 regional center at the discretion of the commissioner of human 316.31 services. The terms "human services" or "treatment" may be 316.32 included in the designation. 316.33 Sec. 8. Minnesota Statutes 1996, section 252.025, 316.34 subdivision 4, is amended to read: 316.35 Subd. 4. [STATE-PROVIDED SERVICES.] (a) It is the policy 316.36 of the state to capitalize and recapitalize the regional 317.1 treatment centers as necessary to prevent depreciation and 317.2 obsolescence of physical facilities and to ensure they retain 317.3 the physical capability to provide residential programs. 317.4 Consistent with that policy and with section 252.50, and within 317.5 the limits of appropriations made available for this purpose, 317.6 the commissioner may establish, by June 30, 1991, the following 317.7 state-operated, community-based programs for the least 317.8 vulnerable regional treatment center residents: at Brainerd 317.9 regional services center, two residential programs and two day 317.10 programs; at Cambridge regional treatment center, four 317.11 residential programs and two day programs; at Faribault regional 317.12 treatment center, ten residential programs and six day programs; 317.13 at Fergus Falls regional treatment center, two residential 317.14 programs and one day program; at Moose Lake regional treatment 317.15 center, four residential programs and two day programs; and at 317.16 Willmar regional treatment center, two residential programs and 317.17 one day program. 317.18 (b) By January 15, 1991, the commissioner shall report to 317.19 the legislature a plan to provide continued regional treatment 317.20 center capacity and state-operated, community-based residential 317.21 and day programs for persons with developmental disabilities at 317.22 Brainerd, Cambridge,Faribault,Fergus Falls, St. Peter, and 317.23 Willmar, as follows: 317.24 (1) by July 1, 1998, continued regional treatment center 317.25 capacity to serve 350 persons with developmental disabilities as 317.26 follows: at Brainerd, 80 persons; at Cambridge, 12 persons;at317.27Faribault, 110 persons;at Fergus Falls, 60 persons; at St. 317.28 Peter, 35 persons; at Willmar, 25 persons; and up to 16 crisis 317.29 beds in the Twin Cities metropolitan area; and 317.30 (2) by July 1, 1999, continued regional treatment center 317.31 capacity to serve 254 persons with developmental disabilities as 317.32 follows: at Brainerd, 57 persons; at Cambridge, 12 persons;at317.33Faribault, 80 persons;at Fergus Falls, 35 persons; at St. 317.34 Peter, 30 persons; at Willmar, 12 persons, and up to 16 crisis 317.35 beds in the Twin Cities metropolitan area. In addition, the 317.36 plan shall provide for the capacity to provide residential 318.1 services to 570 persons with developmental disabilities in 95 318.2 state-operated, community-based residential programs. 318.3 The commissioner is subject to a mandamus action under 318.4 chapter 586 for any failure to comply with the provisions of 318.5 this subdivision. 318.6 Sec. 9. Minnesota Statutes 1996, section 252.025, is 318.7 amended by adding a subdivision to read: 318.8 Subd. 7. [MINNESOTA EXTENDED TREATMENT OPTIONS.] The 318.9 commissioner shall develop by July 1, 1997, the Minnesota 318.10 extended treatment options to serve Minnesotans who have mental 318.11 retardation and exhibit severe behaviors which present a risk to 318.12 public safety. This program will provide specialized 318.13 residential services on the Cambridge campus and an array of 318.14 community support services statewide. 318.15 Sec. 10. Minnesota Statutes 1996, section 252.32, 318.16 subdivision 1a, is amended to read: 318.17 Subd. 1a. [SUPPORT GRANTS.] (a) Provision of support 318.18 grants must be limited to families who require support and whose 318.19 dependents are under the age of 22 and who have mental 318.20 retardation or who have a related condition and who have been 318.21 determined by a screening team established under section 318.22 256B.092 to be at risk of institutionalization. Families who 318.23 are receiving home and community-based waivered services for 318.24 persons with mental retardation or related conditions are not 318.25 eligible for support grants. Families whose annual adjusted 318.26 gross income is $60,000 or more are not eligible for support 318.27 grants except in cases where extreme hardship is demonstrated. 318.28 Beginning in state fiscal year 1994, the commissioner shall 318.29 adjust the income ceiling annually to reflect the projected 318.30 change in the average value in the United States Department of 318.31 Labor Bureau of Labor Statistics consumer price index (all 318.32 urban) for that year. 318.33 (b) Support grants may be made available as monthly subsidy 318.34 grants and lump sum grants. 318.35 (c) Support grants may be issued in the form of cash, 318.36 voucher, and direct county payment to a vendor. 319.1 (d) Applications for the support grant shall be made by the 319.2 legal guardian to the county social service agencyto the319.3department of human services. The application shall specify the 319.4 needs of the families, the form of the grant requested by the 319.5 families, and that the families have agreed to use the support 319.6 grant for items and services within the designated reimbursable 319.7 expense categories and recommendations of the county. 319.8 (e) Families who were receiving subsidies on the date of 319.9 implementation of the $60,000 income limit in paragraph (a) 319.10 continue to be eligible for a family support grant until 319.11 December 31, 1991, if all other eligibility criteria are met. 319.12 After December 31, 1991, these families are eligible for a grant 319.13 in the amount of one-half the grant they would otherwise 319.14 receive, for as long as they remain eligible under other 319.15 eligibility criteria. 319.16 Sec. 11. Minnesota Statutes 1996, section 252.32, 319.17 subdivision 3, is amended to read: 319.18 Subd. 3. [AMOUNT OF SUPPORT GRANT; USE.] Support grant 319.19 amounts shall be determined by thecommissioner of human319.20servicescounty social service agency. Each service and item 319.21 purchased with a support grant must: 319.22 (1) be over and above the normal costs of caring for the 319.23 dependent if the dependent did not have a disability; 319.24 (2) be directly attributable to the dependent's disabling 319.25 condition; and 319.26 (3) enable the family to delay or prevent the out-of-home 319.27 placement of the dependent. 319.28 The design and delivery of services and items purchased 319.29 under this section must suit the dependent's chronological age 319.30 and be provided in the least restrictive environment possible, 319.31 consistent with the needs identified in the individual service 319.32 plan. 319.33 Items and services purchased with support grants must be 319.34 those for which there are no other public or private funds 319.35 available to the family. Fees assessed to parents for health or 319.36 human services that are funded by federal, state, or county 320.1 dollars are not reimbursable through this program. 320.2 The maximum monthly amount shall be $250 per eligible 320.3 dependent, or $3,000 per eligible dependent per state fiscal 320.4 year, within the limits of available funds.During fiscal year320.51992 and 1993, the maximum monthly grant awarded to families who320.6are eligible for medical assistance shall be $200, except in320.7cases where extreme hardship is demonstrated.Thecommissioner320.8 county social service agency may consider the dependent's 320.9 supplemental security income in determining the amount of the 320.10 support grant.A varianceThe county social service agency may 320.11be granted by the commissioner toexceed $3,000 per state fiscal 320.12 year per eligible dependent for emergency circumstances in cases 320.13 where exceptional resources of the family are required to meet 320.14 the health, welfare-safety needs of the child. Thecommissioner320.15 county social service agency may set aside up to five percent of 320.16the appropriationits allocation to fund emergency situations. 320.17 Effective July 1, 1997, county social service agencies 320.18 shall continue to provide funds to families receiving state 320.19 grants on June 30, 1997, if eligibility criteria continue to be 320.20 met. Any adjustments to their monthly grant amount must be 320.21 based on the needs of the family and funding availability. 320.22 Sec. 12. Minnesota Statutes 1996, section 252.32, 320.23 subdivision 3a, is amended to read: 320.24 Subd. 3a. [REPORTS ANDREIMBURSEMENTALLOCATIONS.] (a) The 320.25 commissioner shall specify requirements for quarterly fiscal and 320.26 annual program reports according to section 256.01, subdivision 320.27 2, paragraph (17). Program reports shall include data which 320.28 will enable the commissioner to evaluate program effectiveness 320.29 and to audit compliance. The commissioner shall reimburse 320.30 county costs on a quarterly basis. 320.31 (b) Beginning January 1, 1998, the commissioner shall 320.32 allocate state funds made available under this section to county 320.33 social service agencies on a calendar year basis. The 320.34 commissioner shall allocate to each county first in amounts 320.35 equal to each county's guaranteed floor as described in clause 320.36 (1), and second, any remaining funds, after the allocation of 321.1 funds to the newly participating counties as provided for in 321.2 clause (3), shall be allocated in proportion to each county's 321.3 total number of families receiving a grant on July 1 of the most 321.4 recent calendar year. 321.5 (1) Each county's guaranteed floor shall be calculated as 321.6 follows: 321.7 (i) 95 percent of the county's allocation received in the 321.8 preceding calendar year. For the calendar year 1998 allocation, 321.9 the preceding calendar year shall be considered to be double the 321.10 six-month allocation as provided in clause (2); 321.11 (ii) when the amount of funds available for allocation is 321.12 less than the amount available in the preceding year, each 321.13 county's previous year allocation shall be reduced in proportion 321.14 to the reduction in statewide funding, for the purpose of 321.15 establishing the guaranteed floor. 321.16 (2) For the period July 1, 1997, to December 31, 1997, the 321.17 commissioner shall allocate to each county an amount equal to 321.18 the actual, state approved, grants issued to the families for 321.19 the month of January 1997, multiplied by six. This six-month 321.20 allocation shall be combined with the calendar year 1998 321.21 allocation and be administered as an 18-month allocation. 321.22 (3) At the commissioner's discretion, funds may be 321.23 allocated to any nonparticipating county that requests an 321.24 allocation under this section. Allocations to newly 321.25 participating counties are dependent upon the availability of 321.26 funds, as determined by the actual expenditure amount of the 321.27 participating counties for the most recently completed calendar 321.28 year. 321.29 (4) The commissioner shall regularly review the use of 321.30 family support fund allocations by county. The commissioner may 321.31 reallocate unexpended or unencumbered money at any time to those 321.32 counties that have a demonstrated need for additional funding. 321.33 (c) County allocations under this section will be adjusted 321.34 for transfers that occur pursuant to section 256.476. 321.35 Sec. 13. Minnesota Statutes 1996, section 252.32, 321.36 subdivision 3c, is amended to read: 322.1 Subd. 3c. [COUNTY BOARD RESPONSIBILITIES.] County boards 322.2 receiving funds under this section shall: 322.3 (1) determine the needs of families for services in 322.4 accordance with section 256B.092 or 256E.08 and any rules 322.5 adopted under those sections; 322.6 (2) determine the eligibility of all persons proposed for 322.7 program participation; 322.8 (3)recommend for approval allapprove a plan for items and 322.9 services to be reimbursed and inform families of 322.10 thecommissioner'scounty's approval decision; 322.11 (4) issue support grants directly to, or on behalf of, 322.12 eligible families; 322.13 (5) inform recipients of their right to appeal under 322.14 subdivision 3e; 322.15 (6) submit quarterly financial reports under subdivision 3b 322.16 and indicate on the screening documents the annual grant level 322.17 for the recipients; and 322.18 (7) coordinate services with other programs offered by the 322.19 county. 322.20 Sec. 14. Minnesota Statutes 1996, section 252.32, 322.21 subdivision 5, is amended to read: 322.22 Subd. 5. [COMPLIANCE.] If a county board or grantee does 322.23 not comply with this sectionand the rules adopted by the322.24commissioner of human services, the commissioner may recover, 322.25 suspend, or withhold payments. 322.26 Sec. 15. Minnesota Statutes 1996, section 254.04, is 322.27 amended to read: 322.28 254.04 [TREATMENT OF CHEMICALLY DEPENDENT PERSONS.] 322.29 The commissioner of human services is hereby authorized to 322.30 continue the treatment of chemically dependent persons at 322.31 Ah-Gwah-Ching and Moose Lake area programs as well as at the 322.32 regional treatment centers located at Anoka, Brainerd, Fergus 322.33 Falls,Moose Lake,St. Peter, and Willmar as specified in 322.34 section 245.652.During the year ending June 30, 1994, the322.35commissioner shall relocate, in the catchment area served by the322.36Moose Lake regional treatment center, two state-operated323.1off-campus programs designed to serve patients who are relocated323.2from the Moose Lake regional treatment center. One program323.3shall be a 35-bed program for women who are chemically323.4dependent; the other shall be a 25-bed program for men who are323.5chemically dependent. The facility space housing the Liberalis323.6chemical dependency program (building C-35) and the men's323.7chemical dependency program (4th floor main) may not be vacated323.8until suitable off-campus space for the women's chemical323.9dependency program of 35 beds and the men's chemical dependency323.10program of 25 beds is located and clients and staff are323.11relocated.323.12 Sec. 16. Minnesota Statutes 1996, section 254B.02, 323.13 subdivision 3, is amended to read: 323.14 Subd. 3. [RESERVE ACCOUNT.] The commissioner shall 323.15 allocate money from the reserve account to counties that, during 323.16 the current fiscal year, have met or exceeded the base level of 323.17 expenditures for eligible chemical dependency services from 323.18 local money. The commissioner shall establish the base level 323.19 for fiscal year 1988 as the amount of local money used for 323.20 eligible services in calendar year 1986. In later years, the 323.21 base level must be increased in the same proportion as state 323.22 appropriations to implement Laws 1986, chapter 394, sections 8 323.23 to 20, are increased. The base level must be decreased if the 323.24 fund balance from which allocations are made under section 323.25 254B.02, subdivision 1, is decreased in later years. The local 323.26 match rate for the reserve account is the same rate as applied 323.27 to the initial allocation. Reserve account payments must not be 323.28 included when calculating the county adjustments made according 323.29 to subdivision 2. For counties providing medical assistance or 323.30 general assistance medical care through managed care plans on 323.31 January 1, 1996, the base year is fiscal year 1995. For 323.32 counties beginning provision of managed care after January 1, 323.33 1996, the base year is the most recent fiscal year before 323.34 enrollment in managed care begins. For counties providing 323.35 managed care, the base level will be increased or decreased in 323.36 proportion to changes in the fund balance from which allocations 324.1 are made under subdivision 2, but will be additionally increased 324.2 or decreased in proportion to the change in county adjusted 324.3 population made in subdivision 1, paragraphs (b) and (c). 324.4 Sec. 17. Minnesota Statutes 1996, section 254B.03, 324.5 subdivision 1, is amended to read: 324.6 Subdivision 1. [LOCAL AGENCY DUTIES.] (a) Every local 324.7 agency shall provide chemical dependency services to persons 324.8 residing within its jurisdiction who meet criteria established 324.9 by the commissioner for placement in a chemical dependency 324.10 residential or nonresidential treatment service. Chemical 324.11 dependency money must be administered by the local agencies 324.12 according to law and rules adopted by the commissioner under 324.13 sections 14.001 to 14.69. 324.14 (b) In order to contain costs, the county board shall, with 324.15 the approval of the commissioner of human services, select 324.16 eligible vendors of chemical dependency services who can provide 324.17 economical and appropriate treatment. Unless the local agency 324.18 is a social services department directly administered by a 324.19 county or human services board, the local agency shall not be an 324.20 eligible vendor under section 254B.05. The commissioner may 324.21 approve proposals from county boards to provide services in an 324.22 economical manner or to control utilization, with safeguards to 324.23 ensure that necessary services are provided. If a county 324.24 implements a demonstration or experimental medical services 324.25 funding plan, the commissioner shall transfer the money as 324.26 appropriate. If a county selects a vendor located in another 324.27 state, the county shall ensure that the vendor is in compliance 324.28 with the rules governing licensure of programs located in the 324.29 state. 324.30 (c) For the biennium ending June 30, 1999, the rate for 324.31 vendors may not increase more than three percent above the rate 324.32 approved on January 1, 1997. Residential vendors may not 324.33 receive a rate increase in the biennium ending June 30, 1999, if 324.34 the rate charged on January 1, 1997, exceeds the statewide 324.35 median rate for that level of care. Rates for residential 324.36 levels of care for vendors who are enrolled after January 1, 325.1 1997, may not exceed the median rate for each level of care 325.2 provided. 325.3(c)(d) A culturally specific vendor that provides 325.4 assessments under a variance under Minnesota Rules, part 325.5 9530.6610, shall be allowed to provide assessment services to 325.6 persons not covered by the variance. 325.7 Sec. 18. Minnesota Statutes 1996, section 256B.0625, 325.8 subdivision 15, is amended to read: 325.9 Subd. 15. [HEALTH PLAN PREMIUMS AND COPAYMENTS.] Medical 325.10 assistance covers health care prepayment plan premiums, 325.11 insurance premiums, and copayments if determined to be 325.12 cost-effective by the commissioner. Effective for all premium 325.13 payments due on or after January 1, 1998, medical assistance 325.14 does not cover premiums for health insurance policies offered by 325.15 the Minnesota comprehensive health association under chapter 62E. 325.16 For purposes of obtaining Medicare part A and part B, and 325.17 copayments, expenditures may be made even if federal funding is 325.18 not available. 325.19 Sec. 19. [256B.095] [THREE-YEAR QUALITY ASSURANCE PILOT 325.20 PROJECT ESTABLISHED.] 325.21 Effective July 1, 1998, an alternative quality assurance 325.22 licensing system pilot project for programs for persons with 325.23 developmental disabilities is established in Dodge, Fillmore, 325.24 Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, 325.25 Wabasha, and Winona counties for the purpose of improving the 325.26 quality of services provided to persons with developmental 325.27 disabilities. A county, at its option, may choose to have all 325.28 programs for persons with developmental disabilities located 325.29 within the county licensed under chapter 245A using standards 325.30 determined under the alternative quality assurance licensing 325.31 system pilot project or may continue regulation of these 325.32 programs under the licensing system operated by the 325.33 commissioner. The pilot project expires on June 30, 2001. 325.34 Sec. 20. [256B.0951] [QUALITY ASSURANCE COMMISSION.] 325.35 Subdivision 1. [MEMBERSHIP.] The region 10 quality 325.36 assurance commission is established. The commission consists of 326.1 at least 13 but not more than 20 members as follows: at least 326.2 three but not more than five members representing advocacy 326.3 organizations; at least three but not more than five members 326.4 representing consumers, families, and their legal 326.5 representatives; at least three but not more than five members 326.6 representing service providers; and at least three but not more 326.7 than five members representing counties. Initial membership of 326.8 the commission shall be recruited and approved by the region 10 326.9 stakeholders group. Prior to approving the commission's 326.10 membership, the stakeholders group shall provide to the 326.11 commissioner a list of the membership in the stakeholders group, 326.12 as of February 1, 1997, a brief summary of meetings held by the 326.13 group since July 1, 1996, and copies of any materials prepared 326.14 by the group for public distribution. The first commission 326.15 shall establish membership guidelines for the transition and 326.16 recruitment of membership for the commission's ongoing 326.17 existence. Members of the commission who do not receive a 326.18 salary or wages from an employer for time spent on commission 326.19 duties may receive a per diem payment when performing commission 326.20 duties and functions. All members may be reimbursed for 326.21 expenses related to commission activities. Notwithstanding the 326.22 provisions of section 15.059, subdivision 5, the commission 326.23 expires on June 30, 2001. 326.24 Subd. 2. [AUTHORITY TO HIRE STAFF.] The commission may 326.25 hire staff to perform the duties assigned in this section. 326.26 Subd. 3. [COMMISSION DUTIES.] (a) By October 1, 1997, the 326.27 commission, in cooperation with the commissioners of human 326.28 services and health, shall do the following: (1) approve an 326.29 alternative quality assurance licensing system based on the 326.30 evaluation of outcomes; (2) approve measurable outcomes in the 326.31 areas of health and safety, consumer evaluation, education and 326.32 training, providers, and systems that shall be evaluated during 326.33 the alternative licensing process; and (3) establish variable 326.34 licensure periods not to exceed three years based on outcomes 326.35 achieved. For purposes of this subdivision, "outcome" means the 326.36 behavior, action, or status of a person that can be observed or 327.1 measured and can be reliably and validly determined. 327.2 (b) By January 15, 1998, the commission shall approve, in 327.3 cooperation with the commissioner of human services, a training 327.4 program for members of the quality assurance teams established 327.5 under section 256B.0952. 327.6 Subd. 4. [COMMISSION'S AUTHORITY TO RECOMMEND VARIANCES OF 327.7 LICENSING STANDARDS.] The commission may recommend to the 327.8 commissioners of human services and health variances from the 327.9 standards governing licensure of programs for persons with 327.10 developmental disabilities in order to improve the quality of 327.11 services by implementing an alternative developmental 327.12 disabilities licensing system if the commission determines that 327.13 the alternative licensing system does not affect the health or 327.14 safety of persons being served by the licensed program nor 327.15 compromise the qualifications of staff to provide services. 327.16 Subd. 5. [VARIANCE OF CERTAIN STANDARDS PROHIBITED.] The 327.17 safety standards, rights, or procedural protections under 327.18 sections 245.825; 245.91 to 245.97; 245A.04, subdivisions 3, 3a, 327.19 3b, and 3c; 245A.09, subdivision 2, paragraph (c), clauses (2) 327.20 and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, 327.21 subdivisions 1b, clause (7), and 10; 626.556; 626.557, and 327.22 procedures for the monitoring of psychotropic medications shall 327.23 not be varied under the alternative licensing system pilot 327.24 project. The commission may make recommendations to the 327.25 commissioners of human services and health or to the legislature 327.26 regarding alternatives to or modifications of the rules 327.27 referenced in this subdivision. 327.28 Subd. 6. [PROGRESS REPORT.] The commission shall submit a 327.29 progress report to the legislature on pilot project development 327.30 by January 15, 1998. The report shall include recommendations 327.31 on any legislative changes necessary to improve cooperation 327.32 between the commission and the commissioners of human services 327.33 and health. 327.34 Sec. 21. [256B.0952] [COUNTY DUTIES; QUALITY ASSURANCE 327.35 TEAMS.] 327.36 Subdivision 1. [NOTIFICATION.] By January 15, 1998, each 328.1 affected county shall notify the commission and the 328.2 commissioners of human services and health as to whether it 328.3 chooses to implement on July 1, 1998, the alternative licensing 328.4 system for the pilot project. A county that does not implement 328.5 the alternative licensing system on July 1, 1998, may give 328.6 notice to the commission and the commissioners by January 15, 328.7 1999, or January 15, 2000, that it will implement the 328.8 alternative licensing system on the following July 1. A county 328.9 that implements the alternative licensing system commits to 328.10 participate until June 30, 2001. 328.11 Subd. 2. [APPOINTMENT OF REVIEW COUNCIL; DUTIES OF 328.12 COUNCIL.] A county or group of counties that chooses to 328.13 participate in the alternative licensing system shall appoint a 328.14 quality assurance review council comprised of advocates; 328.15 consumers, families, and their legal representatives; providers; 328.16 and county staff. The council shall: 328.17 (1) review summary reports from quality assurance team 328.18 reviews and make recommendations to counties regarding program 328.19 licensure; 328.20 (2) make recommendations to the commission regarding the 328.21 alternative licensing system and quality assurance process; and 328.22 (3) resolve complaints between the quality assurance teams, 328.23 counties, providers, and consumers, families, and their legal 328.24 representatives. 328.25 Subd. 3. [NOTICE TO COMMISSIONERS.] The county, based on 328.26 reports from quality assurance managers and recommendations from 328.27 the quality assurance review council regarding the findings of 328.28 quality assurance teams, shall notify the commissioners of human 328.29 services and health regarding whether facilities, programs, or 328.30 services have met the outcome standards for licensure and are 328.31 eligible for payment. 328.32 Subd. 4. [APPOINTMENT OF QUALITY ASSURANCE MANAGER.] (a) A 328.33 county or group of counties that chooses to participate in the 328.34 alternative licensing system shall designate a quality assurance 328.35 manager and shall establish quality assurance teams in 328.36 accordance with subdivision 5. The manager shall recruit, 329.1 train, and assign duties to the quality assurance team members. 329.2 In assigning team members to conduct the quality assurance 329.3 process at a facility, program, or service, the manager shall 329.4 take into account the size of the service provider, the number 329.5 of services to be reviewed, the skills necessary for team 329.6 members to complete the process, and other relevant factors. 329.7 The manager shall ensure that no team member has a financial, 329.8 personal, or family relationship with the facility, program, or 329.9 service being reviewed or with any clients of the facility, 329.10 program, or service. 329.11 (b) Quality assurance teams shall report the findings of 329.12 their quality assurance reviews to the quality assurance manager. 329.13 The quality assurance manager shall provide the report from the 329.14 quality assurance team to the county and commissioners of human 329.15 services and health and a summary of the report to the quality 329.16 assurance review council. 329.17 Subd. 5. [QUALITY ASSURANCE TEAMS.] Quality assurance 329.18 teams shall be comprised of county staff; providers; consumers, 329.19 families, and their legal representatives; members of advocacy 329.20 organizations; and other involved community members. Team 329.21 members must satisfactorily complete the training program 329.22 approved by the commission and must demonstrate 329.23 performance-based competency. Team members are not considered 329.24 to be county employees for purposes of workers' compensation, 329.25 unemployment compensation, or state retirement laws solely on 329.26 the basis of participation on a quality assurance team. The 329.27 county may pay a per diem to team members who do not receive a 329.28 salary or wages from an employer for time spent on alternative 329.29 quality assurance process matters. All team members may be 329.30 reimbursed for expenses related to their participation in the 329.31 alternative process. 329.32 Subd. 6. [LICENSING FUNCTIONS.] Participating counties 329.33 shall perform licensing functions and activities as delegated by 329.34 the commissioner of human services in accordance with section 329.35 245A.16. 329.36 Sec. 22. [256B.0953] [QUALITY ASSURANCE PROCESS.] 330.1 Subdivision 1. [PROCESS COMPONENTS.] (a) The quality 330.2 assurance licensing process consists of an evaluation by a 330.3 quality assurance team of the facility, program, or service 330.4 according to outcome-based measurements. The process must 330.5 include an evaluation of a random sample of program consumers. 330.6 The sample must be representative of each service provided. The 330.7 sample size must be at least five percent of consumers but not 330.8 less than three consumers. 330.9 (b) All consumers must be given the opportunity to be 330.10 included in the quality assurance process in addition to those 330.11 chosen for the random sample. 330.12 Subd. 2. [LICENSURE PERIODS.] (a) In order to be licensed 330.13 under the alternative quality assurance process, a facility, 330.14 program, or service must satisfy the health and safety outcomes 330.15 approved for the pilot project. 330.16 (b) Licensure shall be approved for periods of one to three 330.17 years for a facility, program, or service that satisfies the 330.18 requirements of paragraph (a) and achieves the outcome 330.19 measurements in the categories of consumer evaluation, education 330.20 and training, providers, and systems. 330.21 Subd. 3. [APPEALS PROCESS.] A facility, program, or 330.22 service may contest a licensing decision of the quality 330.23 assurance team as permitted under chapter 245A. 330.24 Sec. 23. [256B.0954] [CERTAIN PERSONS DEFINED AS MANDATED 330.25 REPORTERS.] 330.26 Members of the quality assurance commission established 330.27 under section 256B.0951, members of quality assurance review 330.28 councils established under section 256B.0952, quality assurance 330.29 managers appointed under section 256B.0952, and members of 330.30 quality assurance teams established under section 256B.0952 are 330.31 mandated reporters as that term is defined in sections 626.556, 330.32 subdivision 3, and 626.5572, subdivision 16. 330.33 Sec. 24. [256B.0955] [DUTIES OF THE COMMISSIONER OF HUMAN 330.34 SERVICES.] 330.35 (a) Effective July 1, 1998, the commissioner of human 330.36 services shall delegate authority to perform licensing functions 331.1 and activities, in accordance with section 245A.16, to counties 331.2 participating in the alternative licensing system. The 331.3 commissioner shall not license or reimburse a facility, program, 331.4 or service for persons with developmental disabilities in a 331.5 county that participates in the alternative licensing system if 331.6 the commissioner has received from the appropriate county 331.7 notification that the facility, program, or service has been 331.8 reviewed by a quality assurance team and has failed to qualify 331.9 for licensure. 331.10 (b) The commissioner may conduct random licensing 331.11 inspections based on outcomes adopted under section 256B.0951 at 331.12 facilities, programs, and services governed by the alternative 331.13 licensing system. The role of such random inspections shall be 331.14 to verify that the alternative licensing system protects the 331.15 safety and well-being of consumers and maintains the 331.16 availability of high-quality services for persons with 331.17 developmental disabilities. 331.18 (c) The commissioner shall provide technical assistance and 331.19 support or training to the alternative licensing system pilot 331.20 project. 331.21 (d) The commissioner and the commission shall establish an 331.22 ongoing evaluation process for the alternative licensing system. 331.23 (e) The commissioner shall contract with an independent 331.24 entity to conduct a financial review of the alternative 331.25 licensing system, including an evaluation of possible budgetary 331.26 savings within the department of human services and the 331.27 department of health as a result of implementation of the 331.28 alternative quality assurance licensing system. This review 331.29 must be completed by December 15, 2000. 331.30 (f) The commissioner and the commission shall submit a 331.31 report to the legislature by January 15, 2001, on the results of 331.32 the evaluation process of the alternative licensing system, a 331.33 summary of the results of the independent financial review, and 331.34 a recommendation on whether the pilot project should be extended 331.35 beyond June 30, 2001. 331.36 Sec. 25. Minnesota Statutes 1996, section 256B.49, 332.1 subdivision 1, is amended to read: 332.2 Subdivision 1. [STUDY; WAIVER APPLICATION.] The 332.3 commissioner shall authorize a study to assess the need for home 332.4 and community-based waivers for chronically ill children who 332.5 have been and will continue to be hospitalized without a waiver, 332.6 and for disabled individuals under the age of 65 who are likely 332.7 to reside in an acute care or nursing home facility in the 332.8 absence of a waiver. If a need for these waivers can be 332.9 demonstrated, the commissioner shall apply for federal waivers 332.10 necessary to secure, to the extent allowed by law, federal 332.11 participation under United States Code, title 42, sections 332.12 1396-1396p, as amended through December 31, 1982, for the 332.13 provision of home and community-based services to chronically 332.14 ill children who, in the absence of such a waiver, would remain 332.15 in an acute care setting, and to disabled individuals under the 332.16 age of 65 who, in the absence of a waiver, would reside in an 332.17 acute care or nursing home setting. If the need is 332.18 demonstrated, the commissioner shall request a waiver under 332.19 United States Code, title 42, sections 1396-1396p, to allow 332.20 medicaid eligibility for blind or disabled children with 332.21 ineligible parents where income deemed from the parents would 332.22 cause the applicant to be ineligible for supplemental security 332.23 income if the family shared a household and to furnish necessary 332.24 services in the home or community to disabled individuals under 332.25 the age of 65 who would be eligible for medicaid if 332.26 institutionalized in an acute care or nursing home setting. 332.27 These waivers are requested to furnish necessary services in the 332.28 home and community setting to children or disabled adults under 332.29 age 65 who are medicaid eligible when institutionalized in an 332.30 acute care or nursing home setting. The commissioner shall 332.31 assure that the cost of home and community-based care will not 332.32 be more than the cost of care if the eligible child or disabled 332.33 adult under age 65 were to remain institutionalized. The 332.34 average monthly limit for the cost of home and community-based 332.35 services to a community alternative care waiver client, 332.36 determined on a 12-month basis, shall not exceed the statewide 333.1 average medical assistance adjusted base year operating cost for 333.2 nursing and accommodation services under sections 256.9685 to 333.3 256.969 for the diagnostic category to which the waiver client 333.4 would be assigned except the admission and outlier rates shall 333.5 be converted to an overall per diem. The average monthly limit 333.6 for the cost of services to a traumatic brain injury 333.7 neurobehavioral hospital waiver client, determined on a 12-month 333.8 basis, shall not exceed the statewide average medical assistance 333.9 adjusted base-year operating cost for nursing and accommodation 333.10 services of neurobehavioral rehabilitation programs in Medicare 333.11 designated long-term hospitals under sections 256.9685 to 333.12 256.969. The following costs must be included in determining 333.13 the total average monthly costs for a waiver client: 333.14 (1) cost of all waivered services; and 333.15 (2) cost of skilled nursing, private duty nursing, home 333.16 health aide, and personal care services reimbursable by medical 333.17 assistance. 333.18 The commissioner of human services shall seek federal 333.19 waivers as necessary to implement the average monthly limit. 333.20 The commissioner shall seek to amend the federal waivers 333.21 obtained under this section to apply criteria to protect against 333.22 spousal impoverishment as authorized under United States Code, 333.23 title 42, section 1396r-5, and as implemented in sections 333.24 256B.0575, 256B.058, and 256B.059, except that the amendment 333.25 shall seek to add to the personal needs allowance permitted in 333.26 section 256B.0575, an amount equivalent to the group residential 333.27 housing rate as set by section 256I.03, subdivision 5. 333.28 Sec. 26. Minnesota Statutes 1996, section 256D.03, 333.29 subdivision 3b, is amended to read: 333.30 Subd. 3b. [COOPERATION.] General assistance or general 333.31 assistance medical care applicants and recipients must cooperate 333.32 with the state and local agency to identify potentially liable 333.33 third-party payors and assist the state in obtaining third-party 333.34 payments. Cooperation includes identifying any third party who 333.35 may be liable for care and services provided under this chapter 333.36 to the applicant, recipient, or any other family member for whom 334.1 application is made and providing relevant information to assist 334.2 the state in pursuing a potentially liable third party. General 334.3 assistance medical care applicants and recipients must cooperate 334.4 by providing information about any group health plan in which 334.5 they may be eligible to enroll. They must cooperate with the 334.6 state and local agency in determining if the plan is 334.7 cost-effective. If the plan is determined cost-effective and 334.8 the premium will be paid by the state or local agency or is 334.9 available at no cost to the person, they must enroll or remain 334.10 enrolled in the group health plan. Effective for all premium 334.11 payments due on or after January 1, 1998, general assistance 334.12 medical care does not pay for premiums for health insurance 334.13 offered by the Minnesota comprehensive health association under 334.14 chapter 62E. Cost-effective insurance premiums approved for 334.15 payment by the state agency and paid by the local agency are 334.16 eligible for reimbursement according to subdivision 6. 334.17 Sec. 27. Laws 1995, chapter 207, article 8, section 41, 334.18 subdivision 2, is amended to read: 334.19 Subd. 2. [PROGRAM DESIGN AND IMPLEMENTATION.] (a) The 334.20 pilot projects shall be established to design, plan, and improve 334.21 the mental health service delivery system for adults with 334.22 serious and persistent mental illness that would: 334.23 (1) provide an expanded array of services from which 334.24 clients can choose services appropriate to their needs; 334.25 (2) be based on purchasing strategies that improve access 334.26 and coordinate services without cost shifting; 334.27 (3) incorporate existing state facilities and resources 334.28 into the community mental health infrastructure through creative 334.29 partnerships with local vendors; and 334.30 (4) utilize existing categorical funding streams and 334.31 reimbursement sources in combined and creative ways, except 334.32 appropriations to regional treatment centers and all funds that 334.33 are attributable to the operation of state-operated services are 334.34 excluded unless appropriated specifically by the legislature for 334.35 a purpose consistent with this section. 334.36 (b) All projects funded by January 1, 1997, must complete 335.1theirthe planning phase and be operational by June 30, 1997; 335.2 all projects funded by January 1, 1998, must be operational by 335.3 June 30, 1998. 335.4 Sec. 28. [BRAINERD REGIONAL HUMAN SERVICES CENTER 335.5 GOVERNANCE DEMONSTRATION PROJECT.] 335.6 (a) The commissioner of human services is authorized to 335.7 establish a planning group comprised of representatives of the 335.8 Brainerd Regional Human Services Center and the 12 counties 335.9 within the catchment area of the Brainerd Regional Human 335.10 Services Center, to evaluate the feasibility of, and propose a 335.11 model for regional governance of the regional treatment center. 335.12 Establishment of a governance model that will enable further 335.13 integration of funding and service systems to ensure that 335.14 persons with mental illness or developmental disabilities in the 335.15 region are served according to law in a cost-efficient and 335.16 cost-effective manner shall be the focal point of this planning 335.17 effort. 335.18 (b) The counties of Aitkin, Beltrami, Benton, Cass, 335.19 Clearwater, Crow Wing, Hubbard, Lake of the Woods, Morrison, 335.20 Stearns, Todd, and Wadena and the Brainerd Regional Human 335.21 Services Center shall be represented on the planning group. The 335.22 chief executive officer of the Brainerd Regional Human Services 335.23 Center shall convene the initial meeting of the planning group 335.24 no later than July 1, 1997. The planning group shall select 335.25 from among its members a chairperson, identify other stakeholder 335.26 involvement in the planning process, and establish a project 335.27 work plan and meeting schedule. If the planning group 335.28 determines that it is feasible to proceed with regional 335.29 governance of the Brainerd Regional Human Services Center, it 335.30 shall formulate and make recommendations on the governance 335.31 structure and its operating principles to the commissioner of 335.32 human services no later than May 15, 1998, for review and 335.33 approval by the commissioner prior to implementation of the 335.34 governance structure on July 1, 1998. 335.35 (c) The design of the governance model must lead to a 335.36 mental health and developmental disabilities service system that 336.1 is regionally based and community-focused and includes the 336.2 long-term psychiatric hospital services of the regional 336.3 treatment center as a component part of this locally defined 336.4 system. The governing body will have decision-making authority 336.5 over the budget of the Brainerd Regional Human Services Center 336.6 and any related funds which county members agree to bring under 336.7 the auspices of the governance structure for purposes of this 336.8 demonstration project. The Brainerd Regional Human Services 336.9 Center portion of the regional treatment center biennial 336.10 appropriation for mental health and developmental disabilities 336.11 programs shall be placed under the management of the regional 336.12 governance body in accordance with the demonstration project's 336.13 agreed upon implementation schedule. Project planning should 336.14 reflect the commitment to partnership between the state and 336.15 counties in considering those aspects of the service delivery in 336.16 the region that might be brought to a broader governance 336.17 structure in order to maximize benefits to clients for dollars 336.18 expended in the system. Design of the project to enhance 336.19 regional flexibility and support the community-based system 336.20 infrastructure will improve the regional capacity to meet the 336.21 needs of persons with mental illness and developmental 336.22 disabilities and assure the availability of safety net services 336.23 within the regional service system. 336.24 (d) Implementation of the regional governance project will 336.25 not proceed without the affirmative recommendation of the 336.26 project planning group. The planning group may discontinue the 336.27 project at any point that it collectively determines development 336.28 of a regional governance model to be unworkable by providing the 336.29 commissioner of human services 30 days' written notice and an 336.30 explanation of the reasons that prevented the project from going 336.31 forward. 336.32 Sec. 29. [MCHA TERMINATION NOTICE.] 336.33 The Minnesota comprehensive health association, in 336.34 consultation with the commissioner of human services, shall 336.35 provide written notice to all persons whose coverage under the 336.36 comprehensive health insurance plan terminates due to the change 337.1 in policy described in sections 18 and 27 and shall assist these 337.2 individuals in securing health coverage in the private market. 337.3 The notice must include the following information: 337.4 (1) the reason for termination; 337.5 (2) a description of the eligibility requirements for the 337.6 comprehensive health insurance plan; 337.7 (3) a description of medical assistance and general 337.8 assistance medical care eligibility categories; 337.9 (4) a description of the participation requirements to the 337.10 prepaid medical assistance program, prepaid general assistance 337.11 medical care, and exemptions from participation due to 337.12 disability as determined by the social security administration; 337.13 and 337.14 (5) a telephone number for the department of human services 337.15 for specific questions regarding the medical assistance and 337.16 general assistance medical care program. 337.17 Notice must be given at least six months before coverage is 337.18 terminated. 337.19 The commissioner of human services shall release to the 337.20 association any data necessary to provide the notice required in 337.21 this section. 337.22 Sec. 30. [NAMES REQUIRED ON GRAVES.] 337.23 Unless the individual's family indicates otherwise to the 337.24 appropriate authority, the commissioner of human services with 337.25 assistance of the communities in which regional treatment 337.26 centers are located and in consultation with the state council 337.27 on disability shall replace numbers with the names of 337.28 individuals whose graves are located at regional treatment 337.29 centers operated by the commissioner or formerly operated by the 337.30 commissioner. The commissioner and the state council on 337.31 disability shall develop a plan to accomplish this 337.32 systematically over a five-year period. The individual names 337.33 may be placed on a central marker or memorial for a designated 337.34 cemetery. 337.35 Sec. 31. [WAIVER AMENDMENT.] 337.36 By July 15, 1997, the commissioner of human services shall 338.1 submit proposed amendments to the Health Care Financing 338.2 Administration for changes in the home and community-based 338.3 waiver for persons with mental retardation or a related 338.4 condition that maximize the number of persons served within the 338.5 limits of appropriations and divert persons from institutional 338.6 placement. The commissioner shall monitor county utilization of 338.7 allocated resources and, as appropriate, reassign resources not 338.8 utilized. Priority consideration for the reassignment of 338.9 resources shall be given to counties who enter into written 338.10 agreements with other counties to jointly plan, request 338.11 resources, and develop services for persons with mental 338.12 retardation or a related condition who are screened and waiting 338.13 for waivered services. In addition to the priorities listed in 338.14 Minnesota Rules, part 9525.1880, the commissioner shall also 338.15 give priority consideration to persons whose living situations 338.16 are unstable due to the age or incapacity of the primary 338.17 caregiver. The commissioner shall report to the chairs of the 338.18 senate health and family security budget division and the house 338.19 health and human services finance division by March 1, 1998, on 338.20 the results of the waiver amendment, the authorization and 338.21 utilization of waivered services for persons with mental 338.22 retardation or a related condition, including crisis respite 338.23 services, plans to increase the number of counties working 338.24 together, additional persons served by the reassignment of 338.25 resources, and options which would allow an increased number of 338.26 persons to be served within the existing appropriation. 338.27 Sec. 32. [REQUEST FOR WAIVER.] 338.28 By January 1, 1998, the commissioner of human services or 338.29 health shall request a waiver from the federal Department of 338.30 Health and Human Services to permit the use of the alternative 338.31 quality assurance system to license and certify intermediate 338.32 care facilities for persons with mental retardation. 338.33 Sec. 33. [REPEALER.] 338.34 Minnesota Statutes 1996, sections 252.32, subdivision 4; 338.35 and 256B.501, subdivision 5c, are repealed. 338.36 Sec. 34. [EFFECTIVE DATE.] 339.1 Sections 2 to 5 and 15 are effective the day following 339.2 final enactment. 339.3 ARTICLE 8 339.4 DEMONSTRATION PROJECT FOR PERSONS WITH DISABILITIES 339.5 Section 1. [256B.77] [COORDINATED SERVICE DELIVERY SYSTEM 339.6 FOR PEOPLE WITH DISABILITIES.] 339.7 Subdivision 1. [DEMONSTRATION PROJECT FOR PEOPLE WITH 339.8 DISABILITIES.] (a) The commissioner of human services, in 339.9 cooperation with county authorities, shall develop and implement 339.10 a demonstration project to create a coordinated service delivery 339.11 system in which the full medical assistance benefit set for 339.12 disabled persons eligible for medical assistance is provided and 339.13 funded on a capitated basis. The demonstration period shall be 339.14 a minimum of three years. 339.15 (b) Each demonstration site shall, under county authority, 339.16 establish a local group to assist the commissioner in planning, 339.17 designing, implementing, and evaluating the coordinated service 339.18 delivery system in their area. This local group shall include 339.19 county agencies, providers, consumers, family members, 339.20 advocates, tribal governments, a local representative of labor, 339.21 and advocacy organizations, and may include health plan 339.22 companies. Consumers, families, and consumer representatives 339.23 must be involved in the planning, implementation, and evaluation 339.24 processes for the demonstration project. 339.25 Subd. 2. [DEFINITIONS.] For the purposes of this section, 339.26 the following terms have the meanings given: 339.27 (a) "Acute care" means hospital, physician, and other 339.28 health and dental services covered in the medical assistance 339.29 benefit set that are not specified in the intergovernmental 339.30 contract or service delivery contract as continuing care 339.31 services. 339.32 (b) "Additional services" means services developed and 339.33 provided through the county administrative entity or service 339.34 delivery organization, which are in addition to the medical 339.35 assistance benefit set. 339.36 (c) "Advocate" means an individual who: 340.1 (1) has been authorized by the enrollee or the enrollee's 340.2 legal representative to help the enrollee understand information 340.3 presented and to speak on the enrollee's behalf, based on 340.4 directions and decisions by the enrollee or the enrollee's legal 340.5 representative; and 340.6 (2) represents only the enrollee and the enrollee's legal 340.7 representative. 340.8 (d) "Advocacy organization" means an organization whose 340.9 primary purpose is to advocate for the needs of persons with 340.10 disabilities. 340.11 (e) "Alternative services" means services developed and 340.12 provided through the county administrative entity or service 340.13 delivery organization that are not part of the medical 340.14 assistance benefit set. 340.15 (f) "Commissioner" means the commissioner of human services. 340.16 (g) "Continuing care" means any services, including 340.17 long-term support services, covered in the medical assistance 340.18 benefit set that are not specified in the intergovernmental 340.19 contract or service delivery contract as acute care. 340.20 (h) "County administrative entity" means the county 340.21 administrative structure defined and designated by the county 340.22 authority to implement the demonstration project under the 340.23 direction of the county authority. 340.24 (i) "County authority" means the board of county 340.25 commissioners or a single entity representing multiple boards of 340.26 county commissioners. 340.27 (j) "Demonstration period" means the period of time during 340.28 which county administrative entities or service delivery 340.29 organizations will provide services to enrollees. 340.30 (k) "Demonstration site" means the geographic area in which 340.31 eligible individuals may be included in the demonstration 340.32 project. 340.33 (l) "Department" means the department of human services. 340.34 (m) "Emergency" means a condition that if not immediately 340.35 treated could cause a person serious physical or mental 340.36 disability, continuation of severe pain, or death. Labor and 341.1 delivery is an emergency if it meets this definition. 341.2 (n) "Enrollee" means an eligible individual who is enrolled 341.3 in the demonstration project. 341.4 (o) "Informed choice" means a voluntary decision made by 341.5 the enrollee or the enrollee's legal representative, after 341.6 becoming familiar with the alternatives, and having been 341.7 provided sufficient relevant written and oral information at an 341.8 appropriate comprehension level and in a manner consistent with 341.9 the enrollee's or the enrollee's legal representative's primary 341.10 mode of communication. 341.11 (p) "Informed consent" means the written agreement, or an 341.12 agreement as documented in the record, by a competent enrollee, 341.13 or an enrollee's legal representative, who: 341.14 (1) has the capacity to make reasoned decisions based on 341.15 relevant information; 341.16 (2) is making decisions voluntarily and without coercion; 341.17 and 341.18 (3) has knowledge to make informed choice. 341.19 (q) "Intergovernmental contract" means the agreement 341.20 between the commissioner and the county authority. 341.21 (r) "Legal representative" means an individual who is 341.22 legally authorized to provide informed consent or make informed 341.23 choices on a person's behalf. A legal representative may be one 341.24 of the following individuals: 341.25 (1) the parent of a minor who has not been emancipated; 341.26 (2) a court-appointed guardian or conservator of a person 341.27 who is 18 years of age or older, in areas where legally 341.28 authorized to make decisions; 341.29 (3) a guardian ad litem or special guardian or conservator, 341.30 in areas where legally authorized to make decisions; 341.31 (4) legal counsel if so specified by the person; or 341.32 (5) any other legally authorized individual. 341.33 The county authority is prohibited from acting as legal 341.34 representative for any enrollee, as long as the provisions of 341.35 subdivision 15 are funded. 341.36 (s) "Life domain areas" include, but are not limited to: 342.1 home, family, education, employment, social environment, 342.2 psychological and emotional health, self-care, independence, 342.3 physical health, need for legal representation and legal needs, 342.4 financial needs, safety, and cultural identification and 342.5 spiritual needs. 342.6 (t) "Medical assistance benefit set" means the services 342.7 covered under this chapter and accompanying rules which are 342.8 provided according to the definition of medical necessity in 342.9 Minnesota Rules, part 9505.0175, subpart 25. 342.10 (u) "Outcome" means the targeted behavior, action, or 342.11 status of the enrollee that can be observed and or measured. 342.12 (v) "Personal support plan" means a document agreed to and 342.13 signed by the enrollee and the enrollee's legal representative, 342.14 if any, which describes: 342.15 (1) the assessed needs and strengths of the enrollee; 342.16 (2) the outcomes chosen by the enrollee or their legal 342.17 representative; 342.18 (3) the amount, type, setting, start date, duration, and 342.19 frequency of services and supports authorized by the county 342.20 administrative entity or service delivery organization to 342.21 achieve the chosen outcomes; 342.22 (4) a description of needed services and supports that are 342.23 not the responsibility of the county administrative entity or 342.24 service delivery organization and plans for addressing those 342.25 needs; 342.26 (5) plans for referring to and coordinating between all 342.27 agencies or individuals providing needed services and supports; 342.28 (6) the use of regulated treatment; and 342.29 (7) the transition of a child to the adult service system. 342.30 (w) "Regulated treatment" means any behaviorally altering 342.31 medication of any classification or any aversive or deprivation 342.32 procedure as defined in rules or statutes applicable to eligible 342.33 individuals. 342.34 (x) "Service delivery contract" means the agreement between 342.35 the commissioner or the county authority and the service 342.36 delivery organization in those areas in which the county 343.1 authority has provided written approval. 343.2 (y) "Service delivery organization" means an entity that is 343.3 licensed as a health maintenance organization under chapter 62D 343.4 or a community integrated service network under chapter 62N and 343.5 is under contract with the commissioner or a county authority to 343.6 participate in the demonstration project. If authorized in 343.7 contract by the commissioner or the county authority, a service 343.8 delivery organization participating in the demonstration project 343.9 shall have the duties, responsibilities, and obligations defined 343.10 under subdivisions 8, 9, 18, and 19. 343.11 (z) "Urgent situation" means circumstances in which care is 343.12 needed as soon as possible, usually with 24 hours, to protect 343.13 the health of an enrollee. 343.14 Subd. 3. [ASSURANCES TO THE COMMISSIONER OF HEALTH.] A 343.15 county authority that elects to participate in a demonstration 343.16 project for people with disabilities under this section is not 343.17 required to obtain a certificate of authority under chapter 62D 343.18 or 62N. A county authority that elects to participate in a 343.19 demonstration project for people with disabilities under this 343.20 section must assure the commissioner of health that the 343.21 requirements of chapters 62D and 62N are met. All enforcement 343.22 and rulemaking powers available under chapters 62D and 62N are 343.23 granted to the commissioner of health with respect to the county 343.24 authorities that contract with the commissioner to purchase 343.25 services in a demonstration project for people with disabilities 343.26 under this section. 343.27 Subd. 4. [FEDERAL WAIVERS.] The commissioner, in 343.28 consultation with county authorities, shall request any 343.29 authority from the United States Department of Health and Human 343.30 Services that is necessary to implement the demonstration 343.31 project under the medical assistance program; and authority to 343.32 combine Medicaid and Medicare funding for service delivery to 343.33 eligible individuals who are also eligible for Medicare, only if 343.34 this authority does not preclude county authority participation 343.35 under the waiver. Implementation of these programs may begin 343.36 without authority to include medicare funding. The commissioner 344.1 may authorize county authorities to begin enrollment of eligible 344.2 individuals upon federal approval but no earlier than July 1, 344.3 1998. 344.4 Subd. 5. [DEMONSTRATION SITES.] The commissioner shall 344.5 designate up to five demonstration sites with the approval of 344.6 the county authority. Demonstration sites may include one 344.7 county or a multicounty group. At least one of five sites shall 344.8 implement a model specifically addressing the needs of eligible 344.9 individuals with physical disabilities. By February 1, 1998, 344.10 the commissioner and the county authorities shall submit to the 344.11 chairs of the senate committee on health and family security and 344.12 the house committee on health and human services a phased 344.13 enrollment plan to ensure an orderly transition which protects 344.14 the health and safety of enrollees and ensures continuity of 344.15 services. 344.16 Subd. 6. [RESPONSIBILITIES OF THE COUNTY AUTHORITY.] (a) 344.17 The commissioner may execute an intergovernmental contract with 344.18 any county authority that demonstrates the ability to arrange 344.19 for and coordinate services for enrollees covered under this 344.20 section according to the terms and conditions specified by the 344.21 commissioner. With the written consent of the county authority, 344.22 the commissioner may issue a request for proposals for service 344.23 delivery organizations to provide portions of the medical 344.24 assistance benefit set not contracted for by the county 344.25 authority. County authorities that do not contract for the full 344.26 medical assistance benefit set must ensure coordination with the 344.27 entities responsible for the remainder of the covered services. 344.28 (b) No less than 90 days before the intergovernmental 344.29 contract is executed, the county authority shall submit to the 344.30 commissioner an initial proposal on how it will address the 344.31 areas listed in this subdivision and subdivisions 1, 7, 8, 9, 344.32 12, 18, and 19. The county authority shall submit to the 344.33 commissioner annual reports describing its progress in 344.34 addressing these areas. 344.35 (c) Each county authority shall develop policies to address 344.36 conflicts of interest, including public guardianship and 345.1 representative payee issues. 345.2 (d) Each county authority shall annually evaluate the 345.3 effectiveness of the service coordination provided according to 345.4 subdivision 12 and shall take remedial or corrective action if 345.5 the service coordination does not fulfill the requirements of 345.6 that subdivision. 345.7 Subd. 7. [ELIGIBILITY AND ENROLLMENT.] The commissioner, 345.8 in consultation with the county authority, shall develop a 345.9 process for enrolling eligible individuals in the demonstration 345.10 project. Enrollment into county administrative entities and 345.11 service delivery organizations shall be conducted according to 345.12 the terms of the federal waiver. Enrollment of eligible 345.13 individuals under the demonstration project may be phased in 345.14 with approval of the commissioner. The commissioner shall 345.15 ensure that eligibility for medical assistance and enrollment 345.16 for the person are determined by individuals outside of the 345.17 county administrative entity. 345.18 Subd. 7a. [ELIGIBLE INDIVIDUALS.] (a) Persons are eligible 345.19 for the demonstration project as provided in this subdivision. 345.20 (b) "Eligible individuals" means those persons living in 345.21 the demonstration site who are eligible for medical assistance 345.22 and are disabled based on a disability determination under 345.23 section 256B.055, subdivisions 7 and 12, or who are eligible for 345.24 medical assistance and have been diagnosed as having: 345.25 (1) serious and persistent mental illness as defined in 345.26 section 245.462, subdivision 20; 345.27 (2) severe emotional disturbance as defined in section 345.28 245.487, subdivision 6; or 345.29 (3) mental retardation or a related condition as defined in 345.30 section 252.27, subdivision 1a. 345.31 Other individuals may be included at the option of the county 345.32 authority based on agreement with the commissioner. 345.33 (c) Eligible individuals residing on a federally recognized 345.34 Indian reservation may be excluded from participation in the 345.35 demonstration project at the discretion of the tribal government 345.36 based on agreement with the commissioner, in consultation with 346.1 the county authority. 346.2 (d) Eligible individuals include individuals in excluded 346.3 time status, as defined in chapter 256G. Enrollees in excluded 346.4 time at the time of enrollment shall remain in excluded time 346.5 status as long as they live in the demonstration site and shall 346.6 be eligible for 90 days after placement outside the 346.7 demonstration site if they move to excluded time status in a 346.8 county within Minnesota other than their county of financial 346.9 responsibility. 346.10 (e) A person who is a sexual psychopathic personality as 346.11 defined in section 253B.02, subdivision 18a, or a sexually 346.12 dangerous person as defined in section 253B.02, subdivision 18b, 346.13 is excluded from enrollment in the demonstration project. 346.14 Subd. 8. [RESPONSIBILITIES OF THE COUNTY ADMINISTRATIVE 346.15 ENTITY.] (a) The county administrative entity shall meet the 346.16 requirements of this subdivision, unless the county authority or 346.17 the commissioner, with written approval of the county authority, 346.18 enters into a service delivery contract with a service delivery 346.19 organization for any or all of the requirements contained in 346.20 this subdivision. 346.21 (b) The county administrative entity shall enroll eligible 346.22 individuals regardless of health or disability status. 346.23 (c) The county administrative entity shall provide all 346.24 enrollees timely access to the medical assistance benefit set. 346.25 Alternative services and additional services are available to 346.26 enrollees at the option of the county administrative entity and 346.27 may be provided if specified in the personal support plan. 346.28 County authorities are not required to seek prior authorization 346.29 from the department as required by the laws and rules governing 346.30 medical assistance. 346.31 (d) The county administrative entity shall cover necessary 346.32 services as a result of an emergency without prior 346.33 authorization, even if the services were rendered outside of the 346.34 provider network. 346.35 (e) The county administrative entity shall authorize 346.36 necessary and appropriate services when needed and requested by 347.1 the enrollee or the enrollee's legal representative in response 347.2 to an urgent situation. Enrollees shall have 24-hour access to 347.3 urgent care services coordinated by experienced disability 347.4 providers who have information about enrollees' needs and 347.5 conditions. 347.6 (f) The county administrative entity shall accept the 347.7 capitation payment from the commissioner in return for the 347.8 provision of services for enrollees. 347.9 (g) The county administrative entity shall maintain 347.10 internal grievance and complaint procedures, including an 347.11 expedited informal complaint process in which the county 347.12 administrative entity must respond to verbal complaints within 347.13 ten calendar days, and a formal grievance process, in which the 347.14 county administrative entity must respond to written complaints 347.15 within 30 calendar days. 347.16 (h) The county administrative entity shall provide a 347.17 certificate of coverage, upon enrollment, to each enrollee and 347.18 the enrollee's legal representative, if any, which describes the 347.19 benefits covered by the county administrative entity, any 347.20 limitations on those benefits, and information about providers 347.21 and the service delivery network. This information must also be 347.22 made available to prospective enrollees. This certificate must 347.23 be approved by the commissioner. 347.24 (i) The county administrative entity shall present evidence 347.25 of an expedited process to approve exceptions to benefits, 347.26 provider network restrictions, and other plan limitations under 347.27 appropriate circumstances. 347.28 (j) The county administrative entity shall provide 347.29 enrollees or their legal representatives with written notice of 347.30 their appeal rights under subdivision 16, and of ombudsman and 347.31 advocacy programs under subdivisions 13 and 14, at the following 347.32 times: upon enrollment, upon submission of a written complaint, 347.33 when a service is reduced, denied, or terminated, or when 347.34 renewal of authorization for ongoing service is refused. 347.35 (k) The county administrative entity shall determine 347.36 immediate needs, including services, support, and assessments, 348.1 within 30 calendar days of enrollment, or within a shorter time 348.2 frame if specified in the intergovernmental contract. 348.3 (l) The county administrative entity shall assess the need 348.4 for services of new enrollees within 60 calendar days of 348.5 enrollment, or within a shorter time frame if specified in the 348.6 intergovernmental contract, and periodically reassess the need 348.7 for services for all enrollees. 348.8 (m) The county administrative entity shall ensure the 348.9 development of a personal support plan for each person within 60 348.10 calendar days of enrollment, or within a shorter time frame if 348.11 specified in the intergovernmental contract, unless otherwise 348.12 agreed to by the enrollee and the enrollee's legal 348.13 representative, if any. Until a personal support plan is 348.14 developed and agreed to by the enrollee, enrollees must have 348.15 access to the same amount, type, setting, duration, and 348.16 frequency of covered services that they had at the time of 348.17 enrollment unless other covered services are needed. For an 348.18 enrollee who is not receiving covered services at the time of 348.19 enrollment and for enrollees whose personal support plan is 348.20 being revised, access to the medical assistance benefit set must 348.21 be assured until a personal support plan is developed or 348.22 revised. The personal support plan must be based on choices, 348.23 preferences, and assessed needs and strengths of the enrollee. 348.24 The service coordinator shall develop the personal support plan, 348.25 in consultation with the enrollee or the enrollee's legal 348.26 representative and other individuals requested by the enrollee. 348.27 The personal support plan must be updated as needed or as 348.28 requested by the enrollee. Enrollees may choose not to have a 348.29 personal support plan. 348.30 (n) The county administrative entity shall ensure timely 348.31 authorization, arrangement, and continuity of needed and covered 348.32 supports and services. 348.33 (o) The county administrative entity shall offer service 348.34 coordination that fulfills the responsibilities under 348.35 subdivision 12 and is appropriate to the enrollee's needs, 348.36 choices, and preferences, including a choice of service 349.1 coordinator. 349.2 (p) The county administrative entity shall contract with 349.3 schools and other agencies as appropriate to provide otherwise 349.4 covered medically necessary medical assistance services as 349.5 described in an enrollee's individual family support plan, as 349.6 described in section 120.1701, or individual education plan, as 349.7 described in chapter 120. 349.8 (q) The county administrative entity shall develop and 349.9 implement strategies, based on consultation with affected 349.10 groups, to respect diversity and ensure culturally competent 349.11 service delivery in a manner that promotes the physical, social, 349.12 psychological, and spiritual well-being of enrollees and 349.13 preserves the dignity of individuals, families, and their 349.14 communities. 349.15 (r) When an enrollee changes county authorities, county 349.16 administrative entities shall ensure coordination with the 349.17 entity that is assuming responsibility for administering the 349.18 medical assistance benefit set to ensure continuity of supports 349.19 and services for the enrollee. 349.20 (s) The county administrative entity shall comply with 349.21 additional requirements as specified in the intergovernmental 349.22 contract. 349.23 (t) To the extent that alternatives are approved under 349.24 subdivision 17, county administrative entities must provide for 349.25 the health and safety of enrollees and protect the rights to 349.26 privacy and to provide informed consent. 349.27 Subd. 9. [CONSUMER CHOICE AND SAFEGUARDS.] (a) The 349.28 commissioner may require all eligible individuals to obtain 349.29 services covered under this chapter through county authorities. 349.30 Enrollees shall be given choices among a range of available 349.31 providers with expertise in serving persons of their age and 349.32 with their category of disability. If the county authority is 349.33 also a provider of services covered under the demonstration 349.34 project, other than service coordination, the enrollee shall be 349.35 given the choice of at least one other provider of that 349.36 service. The commissioner shall ensure that all enrollees have 350.1 continued access to medically necessary covered services. 350.2 (b) The commissioner must ensure that a set of enrollee 350.3 safeguards in the categories of access, choice, comprehensive 350.4 benefits, access to specialist care, disclosure of financial 350.5 incentives to providers, prohibition of exclusive provider 350.6 contracting and gag clauses, legal representation, guardianship, 350.7 representative payee, quality, rights and appeals, privacy, data 350.8 collection, and confidentiality are in place prior to enrollment 350.9 of eligible individuals. 350.10 (c) If multiple service delivery organizations are offered 350.11 for acute or continuing care within a demonstration site, 350.12 enrollees shall be given a choice of these organizations. A 350.13 choice is required if the county authority operates its own 350.14 health maintenance organization, community integrated service 350.15 network, or similar plan. Enrollees shall be given 350.16 opportunities to change enrollment in these organizations within 350.17 12 months following initial enrollment into the demonstration 350.18 project and shall also be offered an annual open enrollment 350.19 period, during which they are permitted to change their service 350.20 delivery organization. 350.21 (d) Enrollees shall have the option to change their primary 350.22 care provider once per month. 350.23 (e) The commissioner may waive the choice of provider 350.24 requirements in paragraph (a) or the choice of service delivery 350.25 organization requirements in paragraph (c) if the county 350.26 authority can demonstrate that, despite reasonable efforts, no 350.27 other provider of the service or service delivery organization 350.28 can be made available within the cost and quality requirements 350.29 of the demonstration project. 350.30 Subd. 10. [CAPITATION PAYMENT.] The commissioner shall pay 350.31 a capitation payment to the county authority and, when 350.32 applicable under subdivision 6, paragraph (a), to the service 350.33 delivery organization for each medical assistance eligible 350.34 enrollee. The commissioner shall develop capitation payment 350.35 rates for the initial contract period for each demonstration 350.36 site in consultation with an independent actuary, to ensure that 351.1 the cost of services under the demonstration project does not 351.2 exceed the estimated cost for medical assistance services for 351.3 the covered population under the fee-for-service system for the 351.4 demonstration period. For each year of the demonstration 351.5 project, the capitation payment rate shall be based on 96 351.6 percent of the projected per person costs that would otherwise 351.7 have been paid under medical assistance fee-for-service during 351.8 each of those years. Rates shall be adjusted within the limits 351.9 of the available risk adjustment technology, as mandated by 351.10 section 62Q.03. In addition, the commissioner shall implement 351.11 appropriate risk and savings sharing provisions with county 351.12 administrative entities and, when applicable under subdivision 351.13 6, paragraph (a), service delivery organizations within the 351.14 projected budget limits. Any savings beyond those allowed for 351.15 the county authority, county administrative entity, or service 351.16 delivery organization shall be first used to meet the unmet 351.17 needs of eligible individuals. Payments to providers 351.18 participating in the project are exempt from the requirements of 351.19 sections 256.966 and 256B.03, subdivision 2. 351.20 Subd. 11. [INTEGRATION OF FUNDING SOURCES.] The county 351.21 authority may integrate other local, state, and federal funding 351.22 sources with medical assistance funding. The commissioner's 351.23 approval is required for integration of state and federal funds 351.24 but not for local funds. During the demonstration project 351.25 period, county authorities must maintain the level of local 351.26 funds expended during the previous calendar year for populations 351.27 covered in the demonstration project. Excluding the state share 351.28 of Medicaid payments, state appropriations for state-operated 351.29 services shall not be integrated unless specifically approved by 351.30 the legislature. The commissioner may approve integration of 351.31 other state and federal funding if the intergovernmental 351.32 contract includes assurances that the people who would have been 351.33 served by these funds will receive comparable or better 351.34 services. The commissioner may withdraw approval for 351.35 integration of state and federal funds if the county authority 351.36 does not comply with these assurances. If the county authority 352.1 chooses to integrate funding, it must comply with the reporting 352.2 requirements of the commissioner, as specified in the 352.3 intergovernmental contract, to account for federal and state 352.4 Medicaid expenditures and expenditures of local funds. The 352.5 commissioner, upon the request and concurrence of a county 352.6 authority, may transfer state grant funds that would otherwise 352.7 be made available to the county authority to provide continuing 352.8 care for enrollees to the medical assistance account and, within 352.9 the limits of federal authority and available federal funding, 352.10 the commissioner shall adjust the capitation based on the amount 352.11 of this transfer. 352.12 Subd. 12. [SERVICE COORDINATION.] (a) For purposes of this 352.13 section, "service coordinator" means an individual selected by 352.14 the enrollee or the enrollee's legal representative and 352.15 authorized by the county administrative entity or service 352.16 delivery organization to work in partnership with the enrollee 352.17 to develop, coordinate, and in some instances, provide supports 352.18 and services identified in the personal support plan. Service 352.19 coordinators may only provide services and supports if the 352.20 enrollee is informed of potential conflicts of interest, is 352.21 given alternatives, and gives informed consent. Eligible 352.22 service coordinators are individuals age 18 or older who meet 352.23 the qualifications as described in paragraph (b). Enrollees, 352.24 their legal representatives, or their advocates are eligible to 352.25 be service coordinators if they have the capabilities to perform 352.26 the activities and functions outlined in paragraph (b). 352.27 Providers licensed under chapter 245A to provide residential 352.28 services, or providers who are providing residential services 352.29 covered under the group residential housing program may not act 352.30 as service coordinator for enrollees for whom they provide 352.31 residential services. This does not apply to providers of 352.32 short-term detoxification services. Each county administrative 352.33 entity or service delivery organization may develop further 352.34 criteria for eligible vendors of service coordination during the 352.35 demonstration period and shall determine whom it contracts with 352.36 or employs to provide service coordination. County 353.1 administrative entities and service delivery organizations may 353.2 pay enrollees or their representatives for service coordination 353.3 activities. 353.4 (b) The service coordinator shall act as a facilitator, 353.5 working in partnership with the enrollee to ensure that their 353.6 needs are identified and addressed. The level of involvement of 353.7 the service coordinator shall depend on the needs and desires of 353.8 the enrollee. The service coordinator shall have the knowledge, 353.9 skills, and abilities to, and is responsible for: 353.10 (1) arranging for an initial assessment, and periodic 353.11 reassessment as necessary, of supports and services based on the 353.12 enrollee's strengths, needs, choices, and preferences in life 353.13 domain areas; 353.14 (2) developing and updating the personal support plan based 353.15 on relevant ongoing assessment; 353.16 (3) arranging for and coordinating the provisions of 353.17 supports and services, including knowlegeable and skills 353.18 specialty services and prevention and early intervention 353.19 services, within the limitations negotiated with the county 353.20 administrative entity or service delivery organization; 353.21 (4) assisting the enrollee and the enrollee's legal 353.22 representative, if any, to maximize informed choice of and 353.23 control over services and supports and to exercise the 353.24 enrollee's rights and advocate on behalf of the enrollee; 353.25 (5) monitoring the progress toward achieving the enrollee's 353.26 outcomes in order to evaluate and adjust the timeliness and 353.27 adequacy of the implementation of the personal support plan; 353.28 (6) facilitating meetings and effectively collaborating 353.29 with a variety of agencies and persons, including attending 353.30 individual family service plan and individual education plan 353.31 meetings when requested by the enrollee or the enrollee's legal 353.32 representative; 353.33 (7) soliciting and analyzing relevant information; 353.34 (8) communicating effectively with the enrollee and with 353.35 other individuals participating in the enrollee's plan; 353.36 (8) educating and communicating effectively with the 354.1 enrollee about good health care practices and risk to the 354.2 enrollee's health with certain behaviors; 354.3 (10) having knowledge of basic enrollee protection 354.4 requirements, including data privacy; 354.5 (11) informing, educating, and assisting the enrollee in 354.6 identifying available service providers and accessing needed 354.7 resources and services beyond the limitations of the medical 354.8 assistance benefit set covered services; and 354.9 (12) providing other services as identified in the person 354.10 support plan. 354.11 (c) For the demonstration project, the qualifications and 354.12 standards for service coordination in this section shall replace 354.13 comparable existing provisions of existing statutes and rules 354.14 governing case management for eligible individuals. 354.15 Subd. 13. [OMBUDSMAN.] Enrollees shall have access to 354.16 ombudsman services established in section 256B.031, subdivision 354.17 6, and advocacy services provided by the ombudsman for mental 354.18 health and mental retardation established in sections 245.91 to 354.19 245.97. The managed care ombudsman and the ombudsman for mental 354.20 health and mental retardation shall coordinate services provided 354.21 to avoid duplication of services. For purposes of the 354.22 demonstration project, the powers and responsibilities of the 354.23 office of the ombudsman for mental health and mental 354.24 retardation, as provided in sections 245.91 to 245.97 are 354.25 expanded to include all eligible individuals, health plan 354.26 companies, agencies, and providers participating in the 354.27 demonstration project. 354.28 Subd. 14. [EXTERNAL ADVOCACY.] In addition to ombudsman 354.29 services, enrollees shall have access to advocacy services on a 354.30 local or regional basis. The purpose of external advocacy 354.31 includes providing individual advocacy services for enrollees 354.32 who have complaints or grievances with the county administrative 354.33 entity, service delivery organization, or a service provider; 354.34 assisting enrollees to understand the service delivery system 354.35 and select providers and, if applicable, a service delivery 354.36 organization; and understand and exercise their rights as an 355.1 enrollee. External advocacy contractors must demonstrate that 355.2 they have the expertise to advocate on behalf of all categories 355.3 of eligible individuals and are independent of the commissioner, 355.4 county authority, county administrative entity, service delivery 355.5 organization, or any service provider within the demonstration 355.6 project. 355.7 These advocacy services shall be provided through the 355.8 ombudsman for mental health and mental retardation directly, or 355.9 under contract with private, nonprofit organizations, with 355.10 funding provided through the demonstration project. The funding 355.11 shall be provided annually to the ombudsman's office based on 355.12 0.1 percent of the projected per person costs that would 355.13 otherwise have been paid under medical assistance 355.14 fee-for-service during those years. Funding for external 355.15 advocacy shall be provided for each year of the demonstration 355.16 period. This funding is in addition to the capitation payment 355.17 available under subdivision 10. 355.18 Subd. 15. [PUBLIC GUARDIANSHIP ALTERNATIVES.] Each county 355.19 authority with enrollees under public guardianship shall develop 355.20 a plan to discharge all those public guardianships and establish 355.21 appropriate private alternatives during the demonstration period. 355.22 The commissioner shall provide county authorities with 355.23 funding for public guardianship alternatives during the first 355.24 year of the demonstration project based on a proposal to 355.25 establish private alternatives for a specific number of 355.26 enrollees under public guardianship. Funding in subsequent 355.27 years shall be based on the county authority's performance in 355.28 achieving discharges of public guardianship and establishing 355.29 appropriate alternatives. The commissioner may establish fiscal 355.30 incentives to encourage county activity in this area. For each 355.31 year of the demonstration period, an appropriation is available 355.32 to the commissioner based on 0.2 percent of the projected per 355.33 person costs that would otherwise have been paid under medical 355.34 assistance fee-for-service for that year. This funding is in 355.35 addition to the capitation payment available under subdivision 355.36 10. 356.1 Subd. 16. [APPEALS.] Enrollees have the appeal rights 356.2 specified in section 256.045. Enrollees may request the 356.3 conciliation process as outlined under section 256.045, 356.4 subdivision 4a. If an enrollee appeals in writing to the state 356.5 agency on or before the latter of the effective day of the 356.6 proposed action or the tenth day after they have received the 356.7 decision of the county administrative entity or service delivery 356.8 organization to reduce, suspend, terminate, or deny continued 356.9 authorization for ongoing services which the enrollee had been 356.10 receiving, the county administrative entity or service delivery 356.11 organization must continue to authorize services at a level 356.12 equal to the level it previously authorized until the state 356.13 agency renders its decision. 356.14 Subd. 17. [APPROVAL OF ALTERNATIVES.] The commissioner may 356.15 approve alternatives to administrative rules if the commissioner 356.16 determines that appropriate alternative measures are in place to 356.17 protect the health, safety, and rights of enrollees and to 356.18 assure that services are of sufficient quality to produce the 356.19 outcomes described in the personal support plans. Prior 356.20 approval waivers, if needed by the demonstration project, shall 356.21 be extended. The commissioner shall not waive the rights or 356.22 procedural protections under sections 245.825; 245.91 to 245.97; 356.23 252.41, subdivision 9; 256B.092, subdivision 10; 626.556; and 356.24 626.557; or procedures for the monitoring of psychotropic 356.25 medications. Prohibited practices as defined in statutes and 356.26 rules governing service delivery to eligible individuals are 356.27 applicable to services delivered under this demonstration 356.28 project. 356.29 Subd. 18. [REPORTING.] Each county authority and service 356.30 delivery organization, and their contracted providers, shall 356.31 submit information as required by the commissioner in the 356.32 intergovernmental contract or service delivery contract, 356.33 including information about complaints, appeals, outcomes, 356.34 costs, including spending on services, service utilization, 356.35 identified unmet needs, services provided, rates of out-of-home 356.36 placement of children, institutionalization, commitments, number 357.1 of public guardianships discharged and alternatives to public 357.2 guardianship established, the use of emergency services, and 357.3 enrollee satisfaction. This information must be made available 357.4 to enrollees and the public. A county authority under an 357.5 intergovernmental contract and a service delivery organization 357.6 under a service delivery contract to provide services must 357.7 provide the most current listing of the providers who are 357.8 participating in the plan. This listing must be provided to 357.9 enrollees and be made available to the public. The 357.10 commissioner, county authorities, and service delivery 357.11 organizations shall also made all contracts and subcontracts 357.12 related to the demonstration project available to the public. 357.13 Subd. 19. [QUALITY MANAGEMENT AND EVALUATION.] County 357.14 authorities and service delivery organizations participating in 357.15 this demonstration project shall provide information to the 357.16 department as specified in the intergovernmental contract or 357.17 service delivery contract for the purpose of project evaluation. 357.18 This information may include both process and outcome evaluation 357.19 measures across areas that shall include enrollee satisfaction, 357.20 service delivery, service coordination, individual outcomes, and 357.21 costs. An independent evaluation of each demonstration site 357.22 shall be conducted prior to expansion of the demonstration 357.23 project to other sites. 357.24 Subd. 20. [LIMITATION ON REIMBURSEMENT.] The county 357.25 administrative entity or service delivery organization may limit 357.26 any reimbursement to providers not employed by or under contract 357.27 with the county administrative entity or service delivery 357.28 organization to the medical assistance rates paid by the 357.29 commissioner of human services to providers for services to 357.30 recipients not participating in the demonstration project. 357.31 Subd. 21. [COUNTY SOCIAL SERVICES OBLIGATIONS.] For 357.32 services that are outside of the medical assistance benefit set 357.33 for enrollees in excluded time status, the county of financial 357.34 responsibility must negotiate the provisions and payment of 357.35 services with the county of service prior to the provision of 357.36 services. 358.1 Subd. 22. [MINNESOTA COMMITMENT ACT SERVICES.] The county 358.2 administrative entity or service delivery organization is 358.3 financially responsible for all services for enrollees covered 358.4 by the medical assistance benefit set and ordered by the court 358.5 under the Minnesota Commitment Act, chapter 253B. The county 358.6 authority shall seek input from the county administrative entity 358.7 or service delivery organization in giving the court information 358.8 about services the enrollee needs and least restrictive 358.9 alternatives. The court order for services is deemed to comply 358.10 with the definition of medical necessity in Minnesota Rules, 358.11 part 9505.0175. The financial responsibility of the county 358.12 administrative entity or service delivery organization for 358.13 regional treatment center services to an enrollee while 358.14 committed to the regional treatment center is limited to 45 days 358.15 following commitment. Voluntary hospitalization for enrollees 358.16 at regional treatment centers must be covered by the county 358.17 administrative entity or service delivery organization if deemed 358.18 medically necessary by the county administrative entity or 358.19 service delivery organization. The regional treatment center 358.20 shall not accept a voluntary admission of an enrollee without 358.21 the authorization of the county administrative entity or service 358.22 delivery organization. An enrollee will maintain enrollee 358.23 status while receiving treatment under the Minnesota Commitment 358.24 Act or voluntary services in a regional treatment center. For 358.25 enrollees committed to the regional treatment center longer than 358.26 45 days, the commissioner may adjust the aggregate capitation 358.27 payments, as specified in the intergovernmental contract or 358.28 service delivery contract. 358.29 Subd. 23. [STAKEHOLDER COMMITTEE.] The commissioner shall 358.30 appoint a stakeholder committee to review and provide 358.31 recommendations on specifications for demonstration projects; 358.32 intergovernmental contracts; service delivery contracts; 358.33 alternatives to administrative rules proposed under subdivision 358.34 17; specific recommendations for legislation required for the 358.35 implementation of this project, including changes to statutes; 358.36 waivers of choice granted under subdivision 9, paragraph (e); 359.1 and other demonstration project policies and procedures as 359.2 requested by the commissioner. The stakeholder committee shall 359.3 include representatives from the following stakeholders: 359.4 consumers and their family members, advocates, advocacy 359.5 organizations, service providers, state government, counties, 359.6 and health plan companies. This stakeholder committee shall be 359.7 in operation for the demonstration period. The county 359.8 authorities shall continue to meet with state government to 359.9 develop the intergovernmental partnership. 359.10 Subd. 24. [REPORT TO THE LEGISLATURE.] By February 15 of 359.11 each year of the demonstration project, the commissioner shall 359.12 report to the legislature on the progress of the demonstration 359.13 project, including enrollee outcomes, enrollee satisfaction, 359.14 fiscal information, other information as described in 359.15 subdivision 18, recommendations from the stakeholder committee, 359.16 and descriptions of any rules or other administrative procedures 359.17 waived. 359.18 Subd. 25. [SEVERABILITY.] If any subdivision of this 359.19 section is not approved by the United States Department of 359.20 Health and Human Services, the commissioner, with the approval 359.21 of the county authority, retains the authority to implement the 359.22 remaining subdivisions. 359.23 Subd. 26. [SOUTHERN MINNESOTA HEALTH INITIATIVE PILOT 359.24 PROJECT.] When the commissioner contracts under subdivisions 1 359.25 and 6, paragraph (a), with the joint powers board for Blue 359.26 Earth, Freeborn, LeSueur, and Rice counties to participate in 359.27 the demonstration project for persons with disabilities under 359.28 subdivision 5, the commissioner shall also require health plans 359.29 participating in those counties under this section to contract 359.30 with the southern Minnesota health initiative (SMHI) joint 359.31 powers board to provide covered mental health and chemical 359.32 dependency services for the nonelderly/nondisabled persons who 359.33 reside in one of the four counties and who are required or elect 359.34 to participate in the prepaid medical assistance and general 359.35 assistance medical care programs. Enrollees may obtain covered 359.36 mental health and chemical dependency services through the SMHI 360.1 or through other health plan contractors. Participation of the 360.2 nonelderly/nondisabled with the SMHI is voluntary. The 360.3 commissioner shall identify a monthly per capita payment amount 360.4 that health plans are required to pay to the SMHI for all 360.5 nonelderly/nondisabled recipients who choose the SMHI for their 360.6 mental health and chemical dependency services. 360.7 ARTICLE 9 360.8 MISCELLANEOUS 360.9 Section 1. Minnesota Statutes 1996, section 16A.124, 360.10 subdivision 4b, is amended to read: 360.11 Subd. 4b. [HEALTH CARE PAYMENTS.] The commissioner of 360.12 human services must pay or deny a valid vendor obligation for 360.13 health services under the medical assistance, general assistance 360.14 medical care, or MinnesotaCare program within 30 days after 360.15 receipt. A "valid vendor obligation" means a clean claim 360.16 submitted directly to the commissioner by an eligible health 360.17 care provider for health services provided to an eligible 360.18 recipient. A "clean claim" means an original paper or 360.19 electronic claim with correct data elements, prepared in 360.20 accordance with the commissioner's published specifications for 360.21 claim preparation, that does not require an attachment or text 360.22 information to pay or deny the claim. Adjustment claims, claims 360.23 with attachments and text information, and claims submitted to 360.24 the commissioner as the secondary or tertiary payer, that have 360.25 been prepared in accordance with the commissioner's published 360.26 specifications, must be adjudicated within 90 days after receipt. 360.27 The agency is not required to make an interest penalty 360.28 payment on claims for which payment has been delayed for 360.29 purposes of reviewing potentially fraudulent or abusive billing 360.30 practices, if there is an eventual finding by the agency of 360.31 fraud or abuse. 360.32 Sec. 2. [181.301] [AFTER ACCIDENT COUNSELING.] 360.33 Subdivision 1. [COUNSELING AND LEAVE.] Every railroad 360.34 company shall make available to every affected member of an 360.35 operating crew involved in an accident on its railroad 360.36 right-of-way, which results in loss of life, counseling 361.1 services, or other critical incident stress debriefing services 361.2 within 48 hours of the accident. Upon request, the operating 361.3 crew members involved in the accident may be relieved from duty, 361.4 with compensation and applicable benefits, for up to three work 361.5 days following the accident. After returning to duty, a crew 361.6 member experiencing traumatic symptoms related to the accident 361.7 may be afforded additional time off upon recommendation by the 361.8 counseling service provider. 361.9 Subd. 2. [DATA PRIVACY.] No statements made in or 361.10 information derived from peer or professional counseling 361.11 performed under this section may be used in any disciplinary 361.12 proceedings against any employee or in any legal action 361.13 involving any party to the accident. 361.14 Subd. 3. [REQUEST FOR PLAN BY COMMISSIONER.] The 361.15 commissioner of health may request a copy of the railroad 361.16 company's plan which demonstrates evidence that the services 361.17 required in subdivision 1 are available to railroad employees. 361.18 Sec. 3. Minnesota Statutes 1996, section 245.03, 361.19 subdivision 2, is amended to read: 361.20 Subd. 2. [MISSION; EFFICIENCY.] It is part of the 361.21 department's mission that within the department's resources the 361.22 commissioner shall endeavor to: 361.23 (1) prevent the waste or unnecessary spending of public 361.24 money; 361.25 (2) use innovative fiscal and human resource practices to 361.26 manage the state's resources and operate the department as 361.27 efficiently as possible, including the authority to consolidate 361.28 different nonentitlement grant programs, having similar 361.29 functions or serving similar populations, as may be determined 361.30 by the commissioner, while protecting the original purposes of 361.31 the programs. Nonentitlement grant funds consolidated by the 361.32 commissioner shall be reflected in the department's biennial 361.33 budget. With approval of the commissioner, vendors who are 361.34 eligible for funding from any of the commissioner's granting 361.35 authority under section 256.01, subdivision 2, paragraph (1), 361.36 clause (f), may submit a single application for a grant 362.1 agreement including multiple awards; 362.2 (3) coordinate the department's activities wherever 362.3 appropriate with the activities of other governmental agencies; 362.4 (4) use technology where appropriate to increase agency 362.5 productivity, improve customer service, increase public access 362.6 to information about government, and increase public 362.7 participation in the business of government; 362.8 (5) utilize constructive and cooperative labor-management 362.9 practices to the extent otherwise required by chapters 43A and 362.10 179A; 362.11 (6) include specific objectives in the performance report 362.12 required under section 15.91 to increase the efficiency of 362.13 agency operations, when appropriate; and 362.14 (7) recommend to the legislature, in the performance report 362.15 of the department required under section 15.91, appropriate 362.16 changes in law necessary to carry out the mission of the 362.17 department. 362.18 Sec. 4. Minnesota Statutes 1996, section 256.025, 362.19 subdivision 1, is amended to read: 362.20 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 362.21 section, the following terms have the meanings given them. 362.22 (b) "Base amount" means the calendar year 1990 county share 362.23 of county agency expenditures for all of the programs specified 362.24 in subdivision 2, except for the programs in subdivision 2, 362.25 clauses (4), (7), and (13). The 1990 base amount for 362.26 subdivision 2, clause (4), shall be reduced by one-seventh for 362.27 each county, and the 1990 base amount for subdivision 2, clause 362.28 (7), shall be reduced by seven-tenths for each county, and those 362.29 amounts in total shall be the 1990 base amount for group 362.30 residential housing in subdivision 2, clause (13). Effective 362.31 January 1, 1998, the base amount for the programs in subdivision 362.32 2, clauses (1) and (6), shall be eliminated and shall be 362.33 considered the 1990 base amount for Minnesota family investment 362.34 program-statewide in subdivision 2, clause (14). 362.35 (c) "County agency expenditure" means the total expenditure 362.36 or cost incurred by the county of financial responsibility for 363.1 the benefits and services for each of the programs specified in 363.2 subdivision 2, excluding county optional costs which are not 363.3 reimbursable with state funds. The term includes the federal, 363.4 state, and county share of costs for programs in which there is 363.5 federal financial participation. For programs in which there is 363.6 no federal financial participation, the term includes the state 363.7 and county share of costs. The term excludes county 363.8 administrative costs, unless otherwise specified. 363.9 (d) "Nonfederal share" means the sum of state and county 363.10 shares of costs of the programs specified in subdivision 2. 363.11 (e) The "county share of county agency expenditures growth 363.12 amount" is the amount by which the county share of county agency 363.13 expenditures in calendar years 1991 to 2002 has increased over 363.14 the base amount. 363.15 Sec. 5. Minnesota Statutes 1996, section 256.025, 363.16 subdivision 2, is amended to read: 363.17 Subd. 2. [COVERED PROGRAMS AND SERVICES.] The procedures 363.18 in this section govern payment of county agency expenditures for 363.19 benefits and services distributed under the following programs: 363.20 (1) aid to families with dependent children under sections 363.21 256.82, subdivision 1, and 256.935, subdivision 1; 363.22 (2) medical assistance under sections 256B.041, subdivision 363.23 5, and 256B.19, subdivision 1; 363.24 (3) general assistance medical care under section 256D.03, 363.25 subdivision 6; 363.26 (4) general assistance under section 256D.03, subdivision 363.27 2; 363.28 (5) work readiness under section 256D.03, subdivision 2, 363.29 for assistance costs incurred prior to July 1, 1995; 363.30 (6) emergency assistance under section 256.871, subdivision 363.31 6; 363.32 (7) Minnesota supplemental aid under section 256D.36, 363.33 subdivision 1; 363.34 (8) preadmission screening and alternative care grants; 363.35 (9) work readiness services under section 256D.051 for 363.36 employment and training services costs incurred prior to July 1, 364.1 1995; 364.2 (10) case management services under section 256.736, 364.3 subdivision 13, for case management service costs incurred prior 364.4 to July 1, 1995; 364.5 (11) general assistance claims processing, medical 364.6 transportation and related costs; 364.7 (12) medical assistance, medical transportation and related 364.8 costs;and364.9 (13) group residential housing under section 256I.05, 364.10 subdivision 8, transferred from programs in clauses (4) and (7); 364.11 and 364.12 (14) Minnesota family investment program-statewide under 364.13 section 256J.02, subdivision 2, clauses (1), (3), and (4), 364.14 transferred from programs in clauses (1) and (6). 364.15 Sec. 6. Minnesota Statutes 1996, section 256.9742, is 364.16 amended to read: 364.17 256.9742 [DUTIES AND POWERS OF THE OFFICE.] 364.18 Subdivision 1. [DUTIES.] Theombudsmanombudsman's program 364.19 shall: 364.20 (1) gather information and evaluate any act, practice, 364.21 policy, procedure, or administrative action of a long-term care 364.22 facility, acute care facility, home care service provider, or 364.23 government agency that may adversely affect the health, safety, 364.24 welfare, or rights of any client; 364.25 (2) mediate or advocate on behalf of clients; 364.26 (3) monitor the development and implementation of federal, 364.27 state, or local laws, rules, regulations, and policies affecting 364.28 the rights and benefits of clients; 364.29 (4) comment on and recommend to the legislature and public 364.30 and private agencies regarding laws, rules, regulations, and 364.31 policies affecting clients; 364.32 (5) inform public agencies about the problems of clients; 364.33 (6) provide for training of volunteers and promote the 364.34 development of citizen participation in the work of the office; 364.35 (7) conduct public forums to obtain information about and 364.36 publicize issues affecting clients; 365.1 (8) provide public education regarding the health, safety, 365.2 welfare, and rights of clients; and 365.3 (9) collect and analyze data relating to complaints, 365.4 conditions, and services. 365.5 Subd. 1a. [DESIGNATION; LOCAL OMBUDSMANREPRESENTATIVES365.6 STAFF AND VOLUNTEERS.] (a) In designating an individual to 365.7 perform duties under this section, the ombudsman must determine 365.8 that the individual is qualified to perform the duties required 365.9 by this section. 365.10 (b) An individual designated as ombudsman staff under this 365.11 section must successfully complete an orientation training 365.12 conducted under the direction of the ombudsman or approved by 365.13 the ombudsman. Orientation training shall be at least 20 hours 365.14 and will consist of training in: investigation, dispute 365.15 resolution, health care regulation, confidentiality, resident 365.16 and patients' rights, and health care reimbursement. 365.17 (c) The ombudsman shall develop and implement a continuing 365.18 education program for individuals designated as ombudsman staff 365.19 under this section. The continuing education program shall be 365.20 at least 60 hours annually. 365.21 (d) An individual designated as an ombudsman volunteer 365.22 under this section must successfully complete an approved 365.23 orientation training course with a minimum curriculum including 365.24 federal and state bills of rights for long-term care residents, 365.25 acute hospital patients and home care clients, the Vulnerable 365.26 Adults Act, confidentiality, and the role of the ombudsman. 365.27 (e) The ombudsman shall develop and implement a continuing 365.28 education program for ombudsman volunteers which will provide a 365.29 minimum of 12 hours of continuing education per year. 365.30 (f) The ombudsman may withdraw an individual's designation 365.31 if the individual fails to perform duties of this section or 365.32 meet continuing education requirements. The individual may 365.33 request a reconsideration of such action by the board on aging 365.34 whose decision shall be final. 365.35 Subd. 2. [IMMUNITY FROM LIABILITY.] The ombudsman or 365.36 designee including staff and volunteers under this section is 366.1 immune from civil liability that otherwise might result from the 366.2 person's actions or omissions if the person's actions are in 366.3 good faith, are within the scope of the person's 366.4 responsibilities as an ombudsman or designee, and do not 366.5 constitute willful or reckless misconduct. 366.6 Subd. 3. [POSTING.] Every long-term care facility and 366.7 acute care facility shall post in a conspicuous place the 366.8 address and telephone number of the office. A home care service 366.9 provider shall provide all recipients, including those in 366.10 elderly housing with services under chapter 144D, with the 366.11 address and telephone number of the office. Counties shall 366.12 provide clients receiving a consumer support grant or a service 366.13 allowance with the name, address, and telephone number of the 366.14 office. The posting or notice is subject to approval by the 366.15 ombudsman. 366.16 Subd. 4. [ACCESS TO LONG-TERM CARE AND ACUTE CARE 366.17 FACILITIES AND CLIENTS.] The ombudsman or designee may: 366.18 (1) enter any long-term care facility without notice at any 366.19 time; 366.20 (2) enter any acute care facility without notice during 366.21 normal business hours; 366.22 (3) enter any acute care facility without notice at any 366.23 time to interview a patient or observe services being provided 366.24 to the patient as part of an investigation of a matter that is 366.25 within the scope of the ombudsman's authority, but only if the 366.26 ombudsman's or designee's presence does not intrude upon the 366.27 privacy of another patient or interfere with routine hospital 366.28 services provided to any patient in the facility; 366.29 (4) communicate privately and without restriction with any 366.30 client in accordance with section 144.651, as long as the 366.31 ombudsman has the client's consent for such communication; 366.32 (5) inspect records of a long-term care facility, home care 366.33 service provider, or acute care facility that pertain to the 366.34 care of the client according to sections 144.335 and 144.651; 366.35 and 366.36 (6) with the consent of a client or client's legal 367.1 guardian, the ombudsman or designated staff shall have access to 367.2 review records pertaining to the care of the client according to 367.3 sections 144.335 and 144.651. If a client cannot consent and 367.4 has no legal guardian, access to the records is authorized by 367.5 this section. 367.6 A person who denies access to the ombudsman or designee in 367.7 violation of this subdivision or aids, abets, invites, compels, 367.8 or coerces another to do so is guilty of a misdemeanor. 367.9 Subd. 5. [ACCESS TO STATE RECORDS.] The ombudsman or 367.10 designee, excluding volunteers, has access to data of a state 367.11 agency necessary for the discharge of the ombudsman's duties, 367.12 including records classified confidential or private under 367.13 chapter 13, or any other law. The data requested must be 367.14 related to a specific case and is subject to section 13.03, 367.15 subdivision 4. If the data concerns an individual, the 367.16 ombudsman or designee shall first obtain the individual's 367.17 consent. If the individual cannot consent and has no legal 367.18 guardian, then access to the data is authorized by this section. 367.19 Each state agency responsible for licensing, regulating, 367.20 and enforcing state and federal laws and regulations concerning 367.21 long-term care, home care service providers, and acute care 367.22 facilities shall forward to the ombudsman on a quarterly basis, 367.23 copies of all correction orders, penalty assessments, and 367.24 complaint investigation reports, for all long-term care 367.25 facilities, acute care facilities, and home care service 367.26 providers. 367.27 Subd. 6. [PROHIBITION AGAINST DISCRIMINATION OR 367.28 RETALIATION.] (a) No entity shall take discriminatory, 367.29 disciplinary, or retaliatory action against an employee or 367.30 volunteer, or a patient, resident, or guardian or family member 367.31 of a patient, resident, or guardian for filing in good faith a 367.32 complaint with or providing information to the ombudsman or 367.33 designee including volunteers. A person who violates this 367.34 subdivision or who aids, abets, invites, compels, or coerces 367.35 another to do so is guilty of a misdemeanor. 367.36 (b) There shall be a rebuttable presumption that any 368.1 adverse action, as defined below, within 90 days of report, is 368.2 discriminatory, disciplinary, or retaliatory. For the purpose 368.3 of this clause, the term "adverse action" refers to action taken 368.4 by the entity involved in a report against the person making the 368.5 report or the person with respect to whom the report was made 368.6 because of the report, and includes, but is not limited to: 368.7 (1) discharge or transfer from a facility; 368.8 (2) termination of service; 368.9 (3) restriction or prohibition of access to the facility or 368.10 its residents; 368.11 (4) discharge from or termination of employment; 368.12 (5) demotion or reduction in remuneration for services; and 368.13 (6) any restriction of rights set forth in section 144.651 368.14 or 144A.44. 368.15 Sec. 7. Minnesota Statutes 1996, section 256.9744, 368.16 subdivision 2, is amended to read: 368.17 Subd. 2. [RELEASE.] Data maintained by the office that 368.18 does not relate to the identity of a complainant, a client 368.19 receiving home-care services, or a resident of a long-term 368.20 facility may be released at the discretion of the ombudsman 368.21 responsible for maintaining the data. Data relating to the 368.22 identity of a complainant, a client receiving home-care 368.23 services, or a resident of a long-term facility may be released 368.24 only with the consent of the complainant, the client or resident 368.25 or by court order. 368.26 Sec. 8. Minnesota Statutes 1996, section 256E.06, is 368.27 amended by adding a subdivision to read: 368.28 Subd. 2b. [COUNTY SOCIAL SERVICE GRANTS FOR FORMER GRH 368.29 RECIPIENTS.] (a) Notwithstanding subdivisions 1 and 2, and 368.30 notwithstanding the provision in Laws 1995, chapter 207, article 368.31 1, section 2, subdivision 3, that authorized the commissioner to 368.32 transfer funds from the group residential housing account to 368.33 community social services aids to counties, beginning July 1, 368.34 1995, money used to provide continuous funding for assistance to 368.35 persons who are no longer eligible for assistance under the 368.36 group residential housing program under chapter 256I, as 369.1 specified in paragraph (b), is added to the community social 369.2 services aid amount for the county in which the group 369.3 residential housing setting for which the person is no longer 369.4 eligible is located. Notwithstanding the provision in Laws 369.5 1995, chapter 207, article 1, section 2, subdivision 3, that 369.6 required the increased community social services act 369.7 appropriations to be used to proportionately increase each 369.8 county's aid, this money must not be apportioned to any other 369.9 county or counties. 369.10 (b) Former group residential housing recipients for whom 369.11 money is added to a county's aid amount under paragraph (a) 369.12 include: 369.13 (1) persons receiving services in Hennepin county from a 369.14 provider that on August 1, 1984, was licensed under Minnesota 369.15 Rules, parts 9525.0520 to 9525.0660, but was funded as a group 369.16 residence under the general assistance or Minnesota supplemental 369.17 aid programs; 369.18 (2) persons residing in a setting with a semi-independent 369.19 living services license under Minnesota Rules, parts 9525.0900 369.20 to 9525.1020; or 369.21 (3) persons residing in family foster care settings who 369.22 have become ineligible for group residential housing assistance 369.23 because they receive services through the medical assistance 369.24 community-based waiver for persons with mental retardation or 369.25 related conditions under section 256B.0916. 369.26 Sec. 9. Section 256J.02, as proposed by S.F. No. 1, if 369.27 enacted, is amended by adding a subdivision to read: 369.28 Subd. 6. [COUNTY SHARE.] The county share of the MFIP-S 369.29 program shall be eight percent of the expenditures for the 369.30 purposes under subdivision 2, clauses (1), (3), and (4). The 369.31 state shall reimburse the counties according to the payment 369.32 schedule set forth in section 256.025. Payment under this 369.33 subdivision is subject to the provisions of section 256.017. 369.34 Sec. 10. [256J.03] [TANF RESERVE ACCOUNT.] 369.35 There shall be created in the federal fund in the state 369.36 treasury a temporary assistance for needy families (TANF) 370.1 reserve account. All unexpended federal TANF block grant funds 370.2 authorized under title I of Public Law Number 104-193 and 370.3 appropriated for the biennium do not cancel to the general fund 370.4 but shall be transferred to the TANF reserve account. Amounts 370.5 remaining in the TANF reserve account do not cancel, but remain 370.6 in the account until appropriated. 370.7 Sec. 11. [256J.80] [JOBS-PLUS PILOT PROJECT.] 370.8 Subdivision 1. [PROJECT AUTHORIZED.] A three-year 370.9 jobs-plus pilot project administered by the Manpower 370.10 Demonstration Research Corporation is authorized in Ramsey 370.11 county. The commissioner of human services shall cooperate with 370.12 the St. Paul public housing authority, Ramsey county, the St. 370.13 Paul workforce development center, and the Manpower 370.14 Demonstration Research Corporation to develop and implement the 370.15 project. 370.16 Subd. 2. [PROJECT DESCRIPTION.] (a) Jobs-plus shall offer 370.17 intensive employment-related services and activities to 370.18 working-age family residents of the Mt. Airy Homes public 370.19 housing development. McDonough Homes and Roosevelt Homes public 370.20 housing developments shall be used as comparison sites. The 370.21 project shall incorporate community support for work, work 370.22 incentives, and best practices in preparing people for sustained 370.23 employment and in linking residents with jobs. 370.24 (b) The Mt. Airy community center shall serve as a hub for 370.25 delivery of pilot project services, delivery of related 370.26 services, and promotion of community support for work. The 370.27 center shall provide space for economic development and 370.28 supportive services programming and for activities that best 370.29 respond to diverse resident needs, including expanded child 370.30 care, computer technology access, employment-related and 370.31 workforce literacy training, job clubs, job fairs, special 370.32 workshops, and life skills training. 370.33 (c) The pilot project shall promote the involvement of Mt. 370.34 Airy Homes residents in the development and implementation of 370.35 the pilot project through community meetings, celebrations and 370.36 recognition events, and the inclusion of resident 371.1 representatives in planning and implementation activities. 371.2 (d) The commissioner may authorize work incentives that 371.3 exceed the incentives provided to participants in the Minnesota 371.4 family investment program-statewide (MFIP-S). 371.5 (e) The commissioner of human services, the St. Paul public 371.6 housing authority, Ramsey county, the St. Paul workforce 371.7 development center, and the Manpower Development Research 371.8 Corporation may negotiate changes as necessary in the program 371.9 outlined in paragraphs (a) to (d) in order to develop an 371.10 effective jobs-plus project. 371.11 Subd. 3. [PROJECT FUNDING.] The commissioner of human 371.12 services may authorize work incentives that are different from 371.13 the incentives provided under the MFIP-S program only if 371.14 nonstate funding is available to defray the additional costs 371.15 associated with utilizing the different work incentives. 371.16 Subd. 4. [RELEASE OF DATA.] Notwithstanding the provisions 371.17 of chapter 13, Ramsey county and the relevant state agencies 371.18 shall, upon request, release to the Manpower Demonstration 371.19 Research Corporation data on public assistance benefits 371.20 received, wages earned, and unemployment insurance benefits 371.21 received by residents of the Mt. Airy Homes, McDonough Homes, 371.22 and Roosevelt Homes public housing developments in St. Paul 371.23 during the period from 1992 to 2002 for the purposes of 371.24 complying with the research and evaluation requirements of the 371.25 jobs-plus program. 371.26 Sec. 12. Minnesota Statutes 1996, section 518.17, 371.27 subdivision 1, is amended to read: 371.28 Subdivision 1. [THE BEST INTERESTS OF THE CHILD.] (a) "The 371.29 best interests of the child" means all relevant factors to be 371.30 considered and evaluated by the court including: 371.31 (1) the wishes of the child's parent or parents as to 371.32 custody; 371.33 (2) the reasonable preference of the child, if the court 371.34 deems the child to be of sufficient age to express preference; 371.35 (3) the child's primary caretaker; 371.36 (4) the intimacy of the relationship between each parent 372.1 and the child; 372.2 (5) the interaction and interrelationship of the child with 372.3 a parent or parents, siblings, and any other person who may 372.4 significantly affect the child's best interests; 372.5 (6) the child's adjustment to home, school, and community; 372.6 (7) the length of time the child has lived in a stable, 372.7 satisfactory environment and the desirability of maintaining 372.8 continuity; 372.9 (8) the permanence, as a family unit, of the existing or 372.10 proposed custodial home; 372.11 (9) the mental and physical health of all individuals 372.12 involved; except that a disability, as defined in section 372.13 363.01, of a proposed custodian or the child shall not be 372.14 determinative of the custody of the child, unless the proposed 372.15 custodial arrangement is not in the best interest of the child; 372.16 (10) the capacity and disposition of the parties to give 372.17 the child love, affection, and guidance, and to continue 372.18 educating and raising the child in the child's culture and 372.19 religion or creed, if any; 372.20 (11) the child's cultural background; 372.21 (12) the effect on the child of the actions of an abuser, 372.22 if related to domestic abuse, as defined in section 518B.01, 372.23 that has occurred between the parents or between a parent and 372.24 another individual, whether or not the individual alleged to 372.25 have committed domestic abuse is or ever was a family or 372.26 household member of the parent; and 372.27 (13) except in cases in which a finding of domestic abuse 372.28 as defined in section 518B.01 has been made, the disposition of 372.29 each parent to encourage and permit frequent and continuing 372.30 contact by the other parent with the child. 372.31 The court may not use one factor to the exclusion of all 372.32 others. The primary caretaker factor may not be used as a 372.33 presumption in determining the best interests of the child. The 372.34 court must make detailed findings on each of the factors and 372.35 explain how the factors led to its conclusions and to the 372.36 determination of the best interests of the child. 373.1 (b) The court shall not consider conduct of a proposed 373.2 custodian that does not affect the custodian's relationship to 373.3 the child. 373.4 Sec. 13. [STUDY ON OMBUDSMAN SERVICES.] 373.5 The senate health and family security budget division and 373.6 the house health and human services finance division shall (1) 373.7 study the regulatory effectiveness and efficiency of the current 373.8 ombudsman services to the elderly, developmentally disabled, 373.9 chemically dependent, and mentally ill; (2) study the 373.10 overlapping of services among all protective and advocacy 373.11 services currently funded by the state; and (3) make 373.12 recommendations on coordinating the current ombudsman services, 373.13 for the above described populations, in order to improve their 373.14 effectiveness and efficiency. The recommendations may include 373.15 proposed statute and rule changes relating to advocacy practices 373.16 and personal and professional conduct. 373.17 Sec. 14. [HEALTH CARE CONSUMER ASSISTANCE GRANTS; BOARD ON 373.18 AGING.] 373.19 The board on aging shall award a grant to each of the 14 373.20 area agencies on aging to develop projects to provide 373.21 information about health coverage and to provide assistance to 373.22 individuals in obtaining public and private health care benefits. 373.23 Projects must: 373.24 (1) train and support staff and volunteers to work in 373.25 partnership to provide one-on-one information and assistance 373.26 services; 373.27 (2) provide individual consumers with assistance in 373.28 understanding the terms of a certificate, contract, or policy of 373.29 health coverage, including but not limited to, terms relating to 373.30 covered services, limitations on services, limitations on access 373.31 to providers, and enrollee complaint and appeal procedures; 373.32 (3) assist individuals to understand medical bills and to 373.33 process health care claims and appeals to obtain health care 373.34 benefits; 373.35 (4) coordinate with existing health insurance counseling 373.36 programs serving Medicare eligible individuals or establish 374.1 programs to serve all consumers; 374.2 (5) target those individuals determined to be in greatest 374.3 social and economic need for counseling services; and 374.4 (6) operate according to United States Code, title 42, 374.5 section 1395b-4, if serving Medicare beneficiaries. 374.6 Sec. 15. [SERVICES PROVIDED TO DEAF-BLIND CHILDREN BY 374.7 LOCAL ORGANIZATIONS; PARENTAL CONTRIBUTION REQUIRED.] (a) An 374.8 organization that receives a grant from the commissioner of 374.9 human services to provide services to deaf-blind children and 374.10 their families must require the deaf-blind child's parents to be 374.11 responsible for the cost of services provided, based upon the 374.12 parents' ability to pay. In determining a parent's ability to 374.13 pay, the organization must utilize the contribution amount 374.14 sliding scale specified in Minnesota Statutes, section 252.27, 374.15 subdivision 2a. The commissioner must provide technical 374.16 assistance to the organization to assist the organization to 374.17 implement this sliding scale requirement. 374.18 (b) The commissioner and the organization must monitor the 374.19 implementation of the sliding scale requirement in paragraph 374.20 (a). If the commissioner and the organization develop 374.21 recommendations for an alternative method of implementing a 374.22 parental contribution sliding scale requirement that is easier 374.23 for the organization to administer, the commissioner must report 374.24 these recommendations to the chairs of the house health and 374.25 human services finance division and the senate health and family 374.26 security budget division by January 31, 1998. 374.27 Sec. 16. [VETERANS HOMES IMPROVEMENTS.] 374.28 The veterans homes board of directors may make and maintain 374.29 the following improvements to the indicated veterans homes using 374.30 money donated for those purposes: 374.31 (1) at the Hastings veterans home, an outdoor bus shelter 374.32 and smoking area for residents and a pole barn for storage of 374.33 residents' property; 374.34 (2) at the Luverne veterans home, a garage, picnic shelter, 374.35 and three-season porch; and 374.36 (3) at the Silver Bay veterans home, a garage, maintenance, 375.1 and storage building, a three-season porch at the east entrance, 375.2 and landscaping as follows: 375.3 (i) walking and wheelchair trails; 375.4 (ii) stationary benches along trails; 375.5 (iii) flag pole relocation; 375.6 (iv) a gazebo in the dementia wander area; and 375.7 (v) two patio areas. 375.8 Sec. 17. [REPEALER.] 375.9 Minnesota Statutes, section 256.026, is repealed effective 375.10 January 1, 1998. 375.11 Sec. 18. [EFFECTIVE DATE.] 375.12 Sections 2 and 8 are effective the day following final 375.13 enactment. 375.14 ARTICLE 10 375.15 MARRIAGE PROVISIONS 375.16 Section 1. Minnesota Statutes 1996, section 517.01, is 375.17 amended to read: 375.18 517.01 [MARRIAGE A CIVIL CONTRACT.] 375.19 Marriage, so far as its validity in law is concerned, is a 375.20 civil contract between a man and a woman, to which the consent 375.21 of the parties, capable in law of contracting, is essential. 375.22 Lawful marriage may be contracted only between persons of the 375.23 opposite sex and only when a license has been obtained as 375.24 provided by law and when the marriage is contracted in the 375.25 presence of two witnesses and solemnized by one authorized, or 375.26 whom one or both of the parties in good faith believe to be 375.27 authorized, so to do. Marriages subsequent to April 26, 1941, 375.28 not so contracted shall be null and void. 375.29 Sec. 2. Minnesota Statutes 1996, section 517.03, is 375.30 amended to read: 375.31 517.03 [PROHIBITED MARRIAGES.] 375.32 Subdivision 1. [GENERAL.] (a) The following marriages are 375.33 prohibited: 375.34(a)(1) a marriage entered into before the dissolution of 375.35 an earlier marriage of one of the parties becomes final, as 375.36 provided in section 518.145 or by the law of the jurisdiction 376.1 where the dissolution was granted; 376.2(b)(2) a marriage between an ancestor and a descendant, or 376.3 between a brother and a sister, whether the relationship is by 376.4 the half or the whole blood or by adoption; 376.5(c)(3) a marriage between an uncle and a niece, between an 376.6 aunt and a nephew, or between first cousins, whether the 376.7 relationship is by the half or the whole blood, except as to 376.8 marriages permitted by the established customs of aboriginal 376.9 cultures;provided, however, thatand 376.10 (4) a marriage between persons of the same sex. 376.11 (b) A marriage entered into by persons of the same sex, 376.12 either under common law or statute, that is recognized by 376.13 another state or foreign jurisdiction is void in this state and 376.14 contractual rights granted by virtue of the marriage or its 376.15 termination are unenforceable in this state. A same-sex 376.16 relationship may not be recognized by this state as being 376.17 entitled to the benefits of marriage. 376.18 Subd. 2. [MENTALLY RETARDED PERSONS; CONSENT BY 376.19 COMMISSIONER OF HUMAN SERVICES.] Mentally retarded persons 376.20 committed to the guardianship of the commissioner of human 376.21 services and mentally retarded persons committed to the 376.22 conservatorship of the commissioner of human services in which 376.23 the terms of the conservatorship limit the right to marry, may 376.24 marry on receipt of written consent of the commissioner. The 376.25 commissioner shall grant consent unless it appears from the 376.26 commissioner's investigation that the marriage is not in the 376.27 best interest of the ward or conservatee and the public. The 376.28 court administrator of the district court in the county where 376.29 the application for a license is made by the ward or conservatee 376.30 shall not issue the license unless the court administrator has 376.31 received a signed copy of the consent of the commissioner of 376.32 human services. 376.33 Sec. 3. Minnesota Statutes 1996, section 517.08, 376.34 subdivision 1a, is amended to read: 376.35 Subd. 1a. Application for a marriage license shall be made 376.36 upon a form provided for the purpose and shall contain the 377.1 following information: 377.2 (1) the full names of the parties,and the sex of each 377.3 party; 377.4 (2) their post office addresses and county and state of 377.5 residence,; 377.6 (3) their full ages,; 377.7 (4) if either party has previously been married, the 377.8 party's married name, and the date, place and court in which the 377.9 marriage was dissolved or annulled or the date and place of 377.10 death of the former spouse,; 377.11 (5) if either party is a minor, the name and address of the 377.12 minor's parents or guardian,; 377.13 (6) whether the parties are related to each other, and, if 377.14 so, their relationship,; 377.15 (7) the name and date of birth of any child of which both 377.16 parties are parents, born before the making of the application, 377.17 unless their parental rights and the parent and child 377.18 relationship with respect to the child have been terminated,; 377.19 (8) address of the bride and groom after the marriage to 377.20 which the court administrator shall send a certified copy of the 377.21 marriage certificate,; and 377.22 (9) the full names the parties will have after marriage. 377.23 Sec. 4. Minnesota Statutes 1996, section 517.20, is 377.24 amended to read: 377.25 517.20 [APPLICATION.] 377.26 Except as provided in section 517.03, subdivision 1, 377.27 paragraph (b), all marriages contracted within this state prior 377.28 to March 1, 1979 or outside this state that were valid at the 377.29 time of the contract or subsequently validated by the laws of 377.30 the place in which they were contracted or by the domicile of 377.31 the parties are valid in this state. 377.32 Sec. 5. [EFFECTIVE DATE.] 377.33 Sections 1, 2, and 4 are effective the day following final 377.34 enactment. Section 3 is effective July 1, 1997. Section 2, 377.35 subdivision 1, paragraph (b), and section 4 apply to all 377.36 marriages entered into in other jurisdictions before, on, or 378.1 after the effective date.