Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

254B.02 CHEMICAL DEPENDENCY ALLOCATION PROCESS.
    Subdivision 1. Chemical dependency treatment allocation. The chemical dependency
funds appropriated for allocation shall be placed in a special revenue account. The commissioner
shall annually transfer funds from the chemical dependency fund to pay for operation of the
drug and alcohol abuse normative evaluation system and to pay for all costs incurred by adding
two positions for licensing of chemical dependency treatment and rehabilitation programs
located in hospitals for which funds are not otherwise appropriated. Six percent of the remaining
money must be reserved for tribal allocation under section 254B.09, subdivisions 4 and 5. The
commissioner shall annually divide the money available in the chemical dependency fund that is
not held in reserve by counties from a previous allocation, or allocated to the American Indian
chemical dependency tribal account. Six percent of the remaining money must be reserved for
the nonreservation American Indian chemical dependency allocation for treatment of American
Indians by eligible vendors under section 254B.05, subdivision 1. The remainder of the money
must be allocated among the counties according to the following formula, using state demographer
data and other data sources determined by the commissioner:
    (a) For purposes of this formula, American Indians and children under age 14 are subtracted
from the population of each county to determine the restricted population.
    (b) The amount of chemical dependency fund expenditures for entitled persons for services
not covered by prepaid plans governed by section 256B.69 in the previous year is divided by
the amount of chemical dependency fund expenditures for entitled persons for all services to
determine the proportion of exempt service expenditures for each county.
    (c) The prepaid plan months of eligibility is multiplied by the proportion of exempt service
expenditures to determine the adjusted prepaid plan months of eligibility for each county.
    (d) The adjusted prepaid plan months of eligibility is added to the number of restricted
population fee for service months of eligibility for the Minnesota family investment program,
general assistance, and medical assistance and divided by the county restricted population to
determine county per capita months of covered service eligibility.
    (e) The number of adjusted prepaid plan months of eligibility for the state is added to the
number of fee for service months of eligibility for the Minnesota family investment program,
general assistance, and medical assistance for the state restricted population and divided by the
state restricted population to determine state per capita months of covered service eligibility.
    (f) The county per capita months of covered service eligibility is divided by the state per
capita months of covered service eligibility to determine the county welfare caseload factor.
    (g) The median married couple income for the most recent three-year period available for
the state is divided by the median married couple income for the same period for each county to
determine the income factor for each county.
    (h) The county restricted population is multiplied by the sum of the county welfare caseload
factor and the county income factor to determine the adjusted population.
    (i) $15,000 shall be allocated to each county.
    (j) The remaining funds shall be allocated proportional to the county adjusted population.
    Subd. 2. County adjustment; maximum allocation. The commissioner shall determine
the state money used by each county in fiscal year 1986, using all state data sources. If available
records do not provide specific chemical dependency expenditures for every county, the
commissioner shall determine the amount of state money using estimates based on available data.
In state fiscal year 1988, a county must not be allocated more than 150 percent of the state money
spent by or on behalf of the county in fiscal year 1986 for chemical dependency treatment services
eligible for payment under section 254B.05 but not including expenditures made for persons
eligible for placement under section 254B.09, subdivision 6. The allocation maximums must be
increased by 25 percent each year. After fiscal year 1992, there must be no allocation maximum.
The commissioner shall reallocate the excess over the maximum to counties allocated less than
the fiscal year 1986 state money, using the following process:
(a) The allocation is divided by 1986 state expenditures to determine percentage of prior
expenditure, and counties are ranked by percentage of prior expenditure less expenditures for
persons eligible for placement under section 254B.09, subdivision 6.
(b) The allocation of the lowest ranked county is raised to the same percentage of prior
expenditure as the second lowest ranked county. The allocation of these two counties is then
raised to the percentage of prior expenditures of the third lowest ranked county.
(c) The operations under paragraph (b) are repeated with each county by ranking until the
money in excess of the allocation maximum has been allocated.
    Subd. 3. Reserve account. The commissioner shall allocate money from the reserve account
to counties that, during the current fiscal year, have met or exceeded the base level of expenditures
for eligible chemical dependency services from local money. The commissioner shall establish
the base level for fiscal year 1988 as the amount of local money used for eligible services in
calendar year 1986. In later years, the base level must be increased in the same proportion as
state appropriations to implement Laws 1986, chapter 394, sections 8 to 20, are increased. The
base level must be decreased if the fund balance from which allocations are made under section
254B.02, subdivision 1, is decreased in later years. The local match rate for the reserve account is
the same rate as applied to the initial allocation. Reserve account payments must not be included
when calculating the county adjustments made according to subdivision 2. For counties providing
medical assistance or general assistance medical care through managed care plans on January 1,
1996, the base year is fiscal year 1995. For counties beginning provision of managed care after
January 1, 1996, the base year is the most recent fiscal year before enrollment in managed care
begins. For counties providing managed care, the base level will be increased or decreased in
proportion to changes in the fund balance from which allocations are made under subdivision 2,
but will be additionally increased or decreased in proportion to the change in county adjusted
population made in subdivision 1, paragraphs (b) and (c). Effective July 1, 2001, at the end of
each biennium, any funds deposited in the reserve account funds in excess of those needed to
meet obligations incurred under this section and sections 254B.06 and 254B.09 shall cancel
to the general fund.
    Subd. 4. Allocation spending limits. Money allocated according to subdivision 1 and section
254B.09, subdivision 4, is available for payments for up to two years. The commissioner shall
deduct payments from the most recent year allocation in which money is available. Allocations
under this section that are not used within two years must be reallocated to the reserve account for
payments under subdivision 3. Allocations under section 254B.09, subdivision 4, that are not used
within two years must be reallocated for payments under section 254B.09, subdivision 5.
    Subd. 5. Administrative adjustment. The commissioner may make payments to local
agencies from money allocated under this section to support administrative activities under
sections 254B.03 and 254B.04. The administrative payment must not exceed five percent of the
first $50,000, four percent of the next $50,000, and three percent of the remaining payments for
services from the allocation.
History: 1986 c 394 s 9; 1987 c 299 s 4-7; 1989 c 282 art 2 s 103; 1995 c 207 art 3 s 13;
1997 c 85 art 4 s 7; 1997 c 203 art 4 s 6; art 7 s 16; 1999 c 159 s 32; 1Sp2001 c 9 art 3 s 4; 2002
c 379 art 1 s 113; 2007 c 147 art 11 s 12,13