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    Subdivision 1. Authorization for pilot projects. The commissioner of human services
may approve pilot projects to provide alternatives to or enhance coordination of the delivery of
mental health services required under the Minnesota Comprehensive Adult Mental Health Act,
Minnesota Statutes, sections 245.461 to 245.486.
    Subd. 2. Program design and implementation. (a) The pilot projects shall be established to
design, plan, and improve the mental health service delivery system for adults with serious and
persistent mental illness that would:
(1) provide an expanded array of services from which clients can choose services appropriate
to their needs;
(2) be based on purchasing strategies that improve access and coordinate services without
cost shifting;
(3) incorporate existing state facilities and resources into the community mental health
infrastructure through creative partnerships with local vendors; and
(4) utilize existing categorical funding streams and reimbursement sources in combined and
creative ways, except appropriations to regional treatment centers and all funds that are attributable
to the operation of state-operated services are excluded unless appropriated specifically by the
legislature for a purpose consistent with this section or section 246.0136, subdivision 1.
(b) All projects funded by January 1, 1997, must complete the planning phase and be
operational by June 30, 1997; all projects funded by January 1, 1998, must be operational by
June 30, 1998.
    Subd. 3. Program evaluation. Evaluation of each project will be based on outcome
evaluation criteria negotiated with each project prior to implementation.
    Subd. 4. Notice of project discontinuation. Each project may be discontinued for any
reason by the project's managing entity or the commissioner of human services, after 90 days'
written notice to the other party.
    Subd. 5. Planning for pilot projects. Each local plan for a pilot project must be developed
under the direction of the county board, or multiple county boards acting jointly, as the local
mental health authority. The planning process for each pilot shall include, but not be limited to,
mental health consumers, families, advocates, local mental health advisory councils, local and
state providers, representatives of state and local public employee bargaining units, and the
department of human services. As part of the planning process, the county board or boards shall
designate a managing entity responsible for receipt of funds and management of the pilot project.
    Subd. 6. Duties of commissioner. (a) For purposes of the pilot projects, the commissioner
shall facilitate integration of funds or other resources as needed and requested by each project.
These resources may include:
(1) residential services funds administered under Minnesota Rules, parts 9535.2000 to
9535.3000, in an amount to be determined by mutual agreement between the project's managing
entity and the commissioner of human services after an examination of the county's historical
utilization of facilities located both within and outside of the county and licensed under Minnesota
Rules, parts 9520.0500 to 9520.0690;
(2) community support services funds administered under Minnesota Rules, parts 9535.1700
to 9535.1760;
(3) other mental health special project funds;
(4) medical assistance, general assistance medical care, MinnesotaCare and group residential
housing if requested by the project's managing entity, and if the commissioner determines this
would be consistent with the state's overall health care reform efforts; and
(5) regional treatment center resources consistent with section 246.0136, subdivision 1.
(b) The commissioner shall consider the following criteria in awarding start-up and
implementation grants for the pilot projects:
(1) the ability of the proposed projects to accomplish the objectives described in subdivision
(2) the size of the target population to be served; and
(3) geographical distribution.
(c) The commissioner shall review overall status of the projects initiatives at least every two
years and recommend any legislative changes needed by January 15 of each odd-numbered year.
(d) The commissioner may waive administrative rule requirements which are incompatible
with the implementation of the pilot project.
(e) The commissioner may exempt the participating counties from fiscal sanctions
for noncompliance with requirements in laws and rules which are incompatible with the
implementation of the pilot project.
(f) The commissioner may award grants to an entity designated by a county board or group
of county boards to pay for start-up and implementation costs of the pilot project.
    Subd. 7. Duties of county board. The county board, or other entity which is approved
to administer a pilot project, shall:
(1) administer the project in a manner which is consistent with the objectives described in
subdivision 2 and the planning process described in subdivision 5;
(2) assure that no one is denied services for which they would otherwise be eligible; and
(3) provide the commissioner of human services with timely and pertinent information
through the following methods:
(i) submission of mental health plans and plan amendments which are based on a format and
timetable determined by the commissioner;
(ii) submission of social services expenditure and grant reconciliation reports, based on a
coding format to be determined by mutual agreement between the project's managing entity
and the commissioner; and
(iii) submission of data and participation in an evaluation of the pilot projects, to be designed
cooperatively by the commissioner and the projects.
    Subd. 8. Budget flexibility. The commissioner may make budget transfers that do not
increase the state share of costs to effectively implement the restructuring of adult mental health
History: 1999 c 245 art 5 s 21; 2005 c 98 art 3 s 6; 1Sp2005 c 4 art 2 s 2; art 5 s 4,5

Official Publication of the State of Minnesota
Revisor of Statutes