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    Subdivision 1. Planning for enterprise activities. The commissioner of human services is
directed to study and make recommendations to the legislature on establishing enterprise activities
within state-operated services. Before implementing an enterprise activity, the commissioner must
obtain statutory authorization for its implementation, except that the commissioner has authority
to implement enterprise activities for adult mental health, adolescent services, and to establish
a public group practice without statutory authorization. Enterprise activities are defined as the
range of services, which are delivered by state employees, needed by people with disabilities
and are fully funded by public or private third-party health insurance or other revenue sources
available to clients that provide reimbursement for the services provided. Enterprise activities
within state-operated services shall specialize in caring for vulnerable people for whom no other
providers are available or for whom state-operated services may be the provider selected by the
payer. In subsequent biennia after an enterprise activity is established within a state-operated
service, the base state appropriation for that state-operated service shall be reduced proportionate
to the size of the enterprise activity.
    Subd. 2. Required components of any proposal; considerations. In any proposal
for an enterprise activity brought to the legislature by the commissioner, the commissioner
must demonstrate that there is public or private third-party health insurance or other revenue
available to the people served, that the anticipated revenues to be collected will fully fund the
services, that there will be sufficient funds for cash flow purposes, and that access to services by
vulnerable populations served by state-operated services will not be limited by implementation
of an enterprise activity. In studying the feasibility of establishing an enterprise activity, the
commissioner must consider:
(1) creating public or private partnerships to facilitate client access to needed services;
(2) administrative simplification and efficiencies throughout the state-operated services
(3) converting or disposing of buildings not utilized and surplus lands; and
(4) exploring the efficiencies and benefits of establishing state-operated services as an
independent state agency.
History: 1999 c 245 art 5 s 9; 1Sp2005 c 4 art 5 s 10

Official Publication of the State of Minnesota
Revisor of Statutes