Minnesota Legislature
HF 74
2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - 2nd Engrossment
1.1 A bill for an act 1.2 relating to state government; appropriating money and 1.3 reducing appropriations for educational, health, human 1.4 services, corrections, economic development, 1.5 transportation, public safety, environmental, natural 1.6 resources, agricultural, and state government 1.7 purposes; establishing and modifying certain programs; 1.8 providing for regulation of certain activities and 1.9 practices; providing for accounts, assessments, and 1.10 fees; providing for the payment of certain refunds; 1.11 amending Minnesota Statutes 2002, sections 16A.17, by 1.12 adding a subdivision; 16B.47; 16B.48, subdivision 2; 1.13 16B.49; 16C.08, subdivisions 2, 3; 16C.09; 16E.07, 1.14 subdivision 9; 115A.908, subdivision 2; 116P.05, 1.15 subdivision 2; 119B.011, by adding a subdivision; 1.16 119B.09, subdivisions 1, 2; 119B.12, subdivision 2; 1.17 124D.135, subdivision 8; 124D.16, subdivision 6; 1.18 124D.20, by adding subdivisions; 124D.52, subdivision 1.19 1; 124D.531, subdivisions 1, 5; 136F.77, subdivision 1.20 3; 252.27, subdivision 2a; 256.9657, subdivision 1; 1.21 256.969, subdivision 3a; 256B.056, subdivisions 1a, 4; 1.22 256B.057, subdivision 2; 256B.06, subdivisions 4, 5; 1.23 256B.0625, subdivision 13, by adding a subdivision; 1.24 256B.0635, subdivisions 1, 2; 256B.19, subdivision 1d; 1.25 256B.195, subdivision 4; 256B.32, subdivision 1; 1.26 256B.431, subdivision 23, by adding a subdivision; 1.27 256B.75; 256J.08, subdivision 85; 256J.11, subdivision 1.28 1; 256J.48, subdivision 1; 256J.52, subdivision 2; 1.29 256J.53, subdivision 1; 256L.07, subdivision 1; 1.30 256L.17, subdivision 2; 268.186; 289A.56, subdivision 1.31 4; 297A.75, subdivision 4; 297F.10, subdivision 1; 1.32 299A.42; 299A.44, subdivision 1; 299A.465, 1.33 subdivisions 1, 4; Laws 1997, chapter 203, article 9, 1.34 section 21, as amended; Laws 2001, First Special 1.35 Session chapter 3, article 1, section 17, subdivision 1.36 11, as amended; Laws 2001, First Special Session 1.37 chapter 8, article 4, section 11, as amended; Laws 1.38 2001, First Special Session chapter 9, article 2, 1.39 section 31; Laws 2002, chapter 220, article 13, 1.40 section 9, subdivision 2, as amended; repealing 1.41 Minnesota Statutes 2002, sections 16B.50; 16C.07; 1.42 43A.047; 241.41; 241.42; 241.43; 241.44; 241.441; 1.43 241.45; 256.973; 256B.056, subdivisions 1c, 3c; 1.44 256B.195, subdivision 5; 256D.053; 256J.11, 1.45 subdivisions 2, 3; Laws 1999, chapter 205, article 1, 1.46 section 63. 2.1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.2 ARTICLE 1 2.3 EDUCATION FINANCE 2.4 Section 1. [EDUCATION APPROPRIATIONS AND REDUCTIONS.] 2.5 The dollar amounts in the columns under "APPROPRIATION 2.6 CHANGE" are added to or, if shown in parentheses, are subtracted 2.7 from the appropriations in Laws 2001, First Special Session 2.8 chapter 3 or 6, as amended, by Laws 2002, chapter 220 or 374, as 2.9 amended, or other law to the specified agencies. The 2.10 appropriations are from the general fund or other named fund and 2.11 are available for the fiscal years indicated for each purpose. 2.12 The figure "2003" means that the addition to or subtraction from 2.13 the appropriations listed under the figure is for the fiscal 2.14 year ending June 30, 2003. 2.15 2003 2.16 APPROPRIATION REDUCTIONS $ (7,500,000) 2.17 APPROPRIATION CHANGE 2.18 Sec. 2. APPROPRIATIONS; DEPARTMENT OF 2.19 CHILDREN, FAMILIES, AND LEARNING 2.20 Subdivision 1. Department Operating Budget (1,044,000) 2.21 The sums in this subdivision are 2.22 subtracted from the general fund 2.23 appropriations to the department of 2.24 children, families, and learning for 2.25 operating purposes. 2.26 Subd. 2. Department Aid and Grants (223,000) 2.27 The sums in this subdivision are 2.28 subtracted from the general fund 2.29 appropriation to the department of 2.30 children, families, and learning for 2.31 aids and grants. 2.32 Subd. 3. School Readiness (791,000) 2.33 Subd. 4. Early Childhood 2.34 Family Education (769,000) 2.35 Subd. 5. Community Education (1,807,000) 2.36 Subd. 6. Adult Basic Education Aid (1,622,000) 2.37 Subd. 7. State Revenue for American Indian 2.38 Tribal Contract or Grant Schools (825,000) 2.39 If the appropriation for this program 2.40 is insufficient, state aid must be 2.41 proportionately reduced. 2.42 Subd. 8. Best Practice Grants (363,000) 3.1 Subd. 9. Magnet School Start-Up Grants (50,000) 3.2 If the appropriation for this program 3.3 is insufficient, state aid must be 3.4 proportionately reduced. 3.5 Sec. 3. APPROPRIATIONS; PERPICH CENTER 3.6 FOR ARTS EDUCATION (331,000) 3.7 Sec. 4. Minnesota Statutes 2002, section 124D.135, 3.8 subdivision 8, is amended to read: 3.9 Subd. 8. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 3.10 the average balance, during the most recent three-year period in 3.11 a district's early childhood family education reserve account on 3.12 June 30 of each year, adjusted for any prior reductions under 3.13 this subdivision, must not be greater than 25 percent of the sum 3.14 of the district's maximum early childhood family education 3.15 annual revenue under subdivision 1, excluding adjustments under 3.16 this subdivision, plus any fees, grants, or other revenue 3.17 received by the district for early childhood family education 3.18 programs for the prior year. 3.19 (b) If a district's adjusted average early childhood family 3.20 education reserve over the three-year period is in excess of253.21percent of the prior year annual revenuethe limit under 3.22 paragraph (a), the district's early childhood family education 3.23 state aid and levy authority for the current school year must be 3.24 reduced by the lesser of the current year revenue under 3.25 subdivision 1 or the excess reserve amount. The aid reduction 3.26 equals the product of the lesser of the excess reserve amount or 3.27 the current year revenue under subdivision 1 times the ratio of 3.28 the district's aid for thepriorcurrent year under subdivision 3.29 4 to the district's revenue for thepriorcurrent year under 3.30 subdivision 1. The levy reduction equals the excess reserve 3.31 amount minus the aid reduction.The commissioner must3.32reallocate aid and levy reduced under this subdivision to other3.33eligible early childhood family education programs in proportion3.34to each district's revenue for the prior year under subdivision3.351.For purposes of this paragraph, if a district does not levy 3.36 the entire amount permitted under subdivision 3, the revenue 3.37 under subdivision 1 must be reduced in proportion to the actual 4.1 amount levied. 4.2(b)(c) Notwithstanding paragraph (a), for fiscal year 4.3 2003, the excess reserve amount shall be computed using the 4.4 balance in a district's early childhood family education reserve 4.5 account on June 30, 2002. For fiscal year 2004, the excess 4.6 reserve amount shall be computed using the adjusted average 4.7 balance in a district's early childhood family education reserve 4.8 account on June 30, 2002, and June 30, 2003. 4.9 [EFFECTIVE DATE.] This section is effective for revenue for 4.10 fiscal year 2003. 4.11 Sec. 5. Minnesota Statutes 2002, section 124D.16, 4.12 subdivision 6, is amended to read: 4.13 Subd. 6. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 4.14 the average balance, during the most recent three-year period, 4.15 in a district's school readiness reserve account on June 30 of 4.16 each year, adjusted for any prior reductions under this 4.17 subdivision, must not be greater than 25 percent of the 4.18 district's school readiness annual revenue for the prior year, 4.19 excluding adjustments under this subdivision. 4.20 (b) If a district's adjusted average school readiness 4.21 reserve over the three-year period is in excess of25 percent of4.22the prior year annual revenuethe limit under paragraph (a), the 4.23 district's current year school readiness state aid must be 4.24 reduced by the lesser of the excess reserve amount or the 4.25 current year aid.The commissioner must reallocate aid reduced4.26under this subdivision to other eligible school readiness4.27programs in proportion to each district's aid for the prior year4.28under subdivision 2.4.29(b)(c) Notwithstanding paragraph (a), for fiscal year 4.30 2003, the excess reserve amount shall be computed using the 4.31 balance in a district's school readiness reserve account on June 4.32 30, 2002. For fiscal year 2004, the excess reserve amount shall 4.33 be computed using the adjusted average balance in a district's 4.34 school readiness reserve account on June 30, 2002, and June 30, 4.35 2003. 4.36 [EFFECTIVE DATE.] This section is effective for revenue for 5.1 fiscal year 2003. 5.2 Sec. 6. Minnesota Statutes 2002, section 124D.20, is 5.3 amended by adding a subdivision to read: 5.4 Subd. 11. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 5.5 the sum of the average balances during the most recent 5.6 three-year period in a district's community education reserve 5.7 account and unreserved/undesignated community service fund 5.8 account on June 30 of each year, adjusted for any prior 5.9 reductions under this subdivision, must not be greater than 25 5.10 percent of the sum of the district's maximum total community 5.11 education revenue under subdivision 1, excluding adjustments 5.12 under this subdivision, plus the district's additional community 5.13 education levy under section 124D.21, plus any fees, grants, or 5.14 other revenue received by the district for community education 5.15 programs for the prior year. For purposes of this paragraph, 5.16 "community education programs" means programs according to 5.17 subdivisions 8, paragraph (a), and 9, and section 124D.19, 5.18 subdivision 12, excluding early childhood family education 5.19 programs under section 124D.13, school readiness programs under 5.20 sections 124D.15 and 124D.17, and adult basic education programs 5.21 under section 124D.52. 5.22 (b) If the sum of the average balances during the most 5.23 recent three-year period in a district's community education 5.24 reserve account and unreserved/undesignated community service 5.25 fund account on June 30 of each year, adjusted for any prior 5.26 reductions under this subdivision, is in excess of the limit 5.27 under paragraph (a), the district's community education state 5.28 aid and levy authority for the current school year must be 5.29 reduced by the lesser of the current year revenue under 5.30 subdivision 1 or the excess reserve amount. The aid reduction 5.31 equals the product of the lesser of the excess reserve amount or 5.32 the current year revenue under subdivision 1 times the ratio of 5.33 the district's aid for the current year under subdivision 7 to 5.34 the district's revenue for the current year under subdivision 5.35 1. The levy reduction equals the excess reserve amount minus 5.36 the aid reduction. For purposes of this paragraph, if a 6.1 district does not levy the entire amount permitted under 6.2 subdivision 5 or 6, the revenue under subdivision 1 must be 6.3 reduced in proportion to the actual amount levied. 6.4 (c) Notwithstanding paragraph (a), for fiscal year 2003, 6.5 the excess reserve amount shall be computed using the balances 6.6 in a district's community education reserve account and 6.7 unreserved/undesignated community service fund account on June 6.8 30, 2002. For fiscal year 2004, the excess reserve amount shall 6.9 be computed using the adjusted average balances in a district's 6.10 community education reserve account and unreserved/undesignated 6.11 community service fund account on June 30, 2002, and June 30, 6.12 2003. 6.13 [EFFECTIVE DATE.] This section is effective for revenue for 6.14 fiscal year 2003. 6.15 Sec. 7. Minnesota Statutes 2002, section 124D.20, is 6.16 amended by adding a subdivision to read: 6.17 Subd. 12. [WAIVER.] (a) If a district anticipates that the 6.18 reserve account may exceed the 25 percent limit established 6.19 under subdivision 11 because of extenuating circumstances, prior 6.20 approval to exceed the limit must be obtained in writing from 6.21 the commissioner. 6.22 (b) Notwithstanding paragraph (a), for fiscal year 2003, a 6.23 district may submit a waiver request within 30 days of the date 6.24 of final enactment. 6.25 Sec. 8. Minnesota Statutes 2002, section 124D.52, 6.26 subdivision 1, is amended to read: 6.27 Subdivision 1. [PROGRAM REQUIREMENTS.] (a) An adult basic 6.28 education program is a day or evening program offered by a 6.29 district that is for people over 16 years of age who do not 6.30 attend an elementary or secondary school. The program offers 6.31 academic instruction necessary to earn a high school diploma or 6.32 equivalency certificate.Tuition and fees may not be charged to6.33a learner for instruction paid under this section, except for6.34 (b) Notwithstanding any law to the contrary, a school board 6.35 or the governing body of a consortium offering an adult basic 6.36 education program may adopt a sliding fee schedule based on a 7.1 family's income, but must waive the fee for participants who are 7.2 under the age of 21 or unable to pay. The fees charged must be 7.3 designed to enable individuals of all socioeconomic levels to 7.4 participate in the program. A program may charge a security 7.5 deposit to assure return of materials, supplies, and equipment. 7.6 (c) Each approved adult basic education program must 7.7 develop a memorandum of understanding with the local workforce 7.8 development centers located in the approved program's service 7.9 delivery area. The memorandum of understanding must describe 7.10 how the adult basic education program and the workforce 7.11 development centers will cooperate and coordinate services to 7.12 provide unduplicated, efficient, and effective services to 7.13 clients. 7.14 (d) Adult basic education aid must be spent for adult basic 7.15 education purposes as specified in sections 124D.518 to 124D.531. 7.16 Sec. 9. Minnesota Statutes 2002, section 124D.531, 7.17 subdivision 1, is amended to read: 7.18 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 7.19 (a) The state total adult basic education aid for fiscal year 7.2020012002 equals$30,157,000$32,570,000. The state total adult 7.21 basic education aid for later years equals: 7.22 (1) the state total adult basic education aid for the 7.23 preceding fiscal year; times 7.24 (2) the lesser of: 7.25 (i)1.081.02, or 7.26 (ii) the greater of 1.00 or the ratio of the state total 7.27 contact hours in the first prior program year to the state total 7.28 contact hours in the second prior program year. 7.29 (b) Beginning in fiscal year 2002, two percent of the state 7.30 total adult basic education aid must be set aside for adult 7.31 basic education supplemental service grants under section 7.32 124D.522. 7.33(b)(c) The state total adult basic education aid, 7.34 excluding basic population aid, equals the difference between 7.35 the amount computed in paragraph (a), and the state total basic 7.36 population aid under subdivision 2. 8.1 [EFFECTIVE DATE.] This section is effective the day 8.2 following final enactment and applies to revenue for fiscal year 8.3 2003 and later. 8.4 Sec. 10. Minnesota Statutes 2002, section 124D.531, 8.5 subdivision 5, is amended to read: 8.6 Subd. 5. [AID GUARANTEE.] Notwithstanding subdivisions 8.7 1, 2, 3, and 4, for fiscalyear 2001, anyyears 2004 and 2005 8.8 only, adult basic education aid for an adult basic education 8.9 program qualifying for aid under this section, that receives8.10less state aid than in fiscal year 2000 must receive additional8.11aid equal to the difference between its fiscal year 2000 aid and8.12its fiscal year 2001 aidmust equal at least its aid amount for 8.13 fiscal year 2003. 8.14 Sec. 11. [LEVY REDUCTION; DISTRICTS IN STATUTORY OPERATING 8.15 DEBT.] 8.16 For fiscal years 2003 and 2004 only, a school district that 8.17 is in statutory operating debt as defined in Minnesota Statutes, 8.18 section 123B.81, as of June 30 of the previous year is not 8.19 subject to a levy reduction under Minnesota Statutes, section 8.20 124D.20, subdivision 11. 8.21 Sec. 12. [EFFECTIVE DATE.] 8.22 Sections 1 to 11 are effective the day following final 8.23 enactment unless otherwise specified. 8.24 ARTICLE 2 8.25 HIGHER EDUCATION 8.26 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 8.27 The dollar amounts in the columns marked "APPROPRIATIONS" 8.28 are added to or, if shown in parentheses, are subtracted from 8.29 the appropriations in Laws 2001, First Special Session chapter 8.30 1, as amended by Laws 2001, First Special Session chapter 220 or 8.31 374, or other law to the specified agencies. The appropriations 8.32 are from the general fund or any other named fund and are 8.33 available for the fiscal years indicated for each purpose. The 8.34 figure 2003 means that the addition to or subtraction from the 8.35 appropriations listed under the figure are for the fiscal year 8.36 ending June 30, 2003. 9.1 SUMMARY BY FUND 9.2 2003 9.3 General $ (51,500,000) 9.4 SUMMARY BY AGENCY - ALL FUNDS 9.5 2003 TOTAL 9.6 Higher Education 9.7 Services Office $ ( 1,500,000) 9.8 Board of Trustees of 9.9 the Minnesota State Colleges 9.10 and Universities $ (25,000,000) 9.11 Board of Regents of the 9.12 University of Minnesota $ (25,000,000) 9.13 APPROPRIATIONS 9.14 Available for the Year 9.15 Ending June 30 9.16 2003 9.17 Sec. 2. HIGHER EDUCATION 9.18 SERVICES OFFICE 9.19 Subdivision 1. Total 9.20 Appropriation Changes ( 1,500,000) 9.21 The base appropriation for fiscal years 9.22 2004 and 2005 is reduced by this amount. 9.23 The higher education services office 9.24 shall not reduce grant awards of the 9.25 state grant program under Minnesota 9.26 Statutes, section 136A.121, to meet the 9.27 reductions under this section. 9.28 Subd. 2. State Grants, Fiscal Year 2003 9.29 Notwithstanding Minnesota Statutes, 9.30 section 136A.121, subdivision 9a, the 9.31 higher education services office may 9.32 eliminate state grant funding for 9.33 summer school programs and may 9.34 establish a closing date for grant 9.35 funding for grants in fiscal year 2003. 9.36 Sec. 3. BOARD OF TRUSTEES OF THE 9.37 MINNESOTA STATE COLLEGES AND UNIVERSITIES 9.38 Total Appropriation Changes (25,000,000) 9.39 This amount is added to the base 9.40 appropriation reductions for fiscal 9.41 years 2004 and 2005 in Laws 2002, 9.42 chapter 220, article 5, section 3. 9.43 Sec. 4. BOARD OF REGENTS OF 9.44 THE UNIVERSITY OF MINNESOTA 9.45 Total Appropriation Changes (25,000,000) 9.46 This amount is added to the base 9.47 appropriation reductions for fiscal 9.48 years 2004 and 2005 in Laws 2002, 9.49 chapter 220, article 5, section 4. 9.50 Reductions under this section may be 9.51 made to general fund appropriations in 10.1 Laws 2001, First Special Session 10.2 chapter 1, article 1, section 4, except 10.3 for appropriations to the agricultural 10.4 and extension service under Laws 2001, 10.5 First Special Session chapter 1, 10.6 article 1, section 4, subdivision 4, 10.7 paragraph (a). 10.8 Sec. 5. [SELF LOAN RESERVE FUND TRANSFER.] 10.9 By June 30, 2003, notwithstanding Minnesota Statutes, 10.10 section 136A.171, or any other law to the contrary, the higher 10.11 education services office shall transfer $30,000,000 of 10.12 unrestricted balances in the SELF loan reserve fund to the 10.13 general fund. 10.14 Sec. 6. [EFFECTIVE DATE.] 10.15 Sections 1 to 5 are effective the day following final 10.16 enactment, unless otherwise specified. 10.17 ARTICLE 3 10.18 HEALTH AND HUMAN SERVICES 10.19 Section 1. [HEALTH AND HUMAN SERVICES REDUCTIONS.] 10.20 The dollar amounts in the columns under "APPROPRIATION 10.21 CHANGE" are added to or, if shown in parentheses, are subtracted 10.22 from the appropriations in Laws 2001, First Special Session 10.23 chapter 9, as amended by Laws 2002, chapter 220 or 374, as 10.24 amended, or other law to the specified agencies. The 10.25 appropriations are from the general fund or other named fund and 10.26 are available for the fiscal years indicated for each purpose. 10.27 The figure "2003" means that the addition to or subtraction from 10.28 the appropriations listed under the figure is for the fiscal 10.29 year ending June 30, 2003. 10.30 2003 10.31 APPROPRIATION CHANGE 10.32 Sec. 2. COMMISSIONER OF HUMAN SERVICES 10.33 Subdivision 1. Total 10.34 Appropriation Reductions (8,088,000) 10.35 Summary by Fund 10.36 General (8,088,000) 10.37 Subd. 2. Agency Management 10.38 General (3,333,000) 10.39 [ADMINISTRATION REDUCTION.] The 10.40 department's general fund fiscal year 11.1 2003 administrative appropriation is 11.2 reduced by $3,333,000. 11.3 [SPECIAL REVENUE FUND TRANSFER.] 11.4 Notwithstanding any law to the 11.5 contrary, excluding accounts authorized 11.6 under Minnesota Statutes, section 11.7 16A.1286, and chapter 254B, the 11.8 commissioner shall transfer $1,200,000 11.9 of uncommitted special revenue fund 11.10 balances to the general fund upon final 11.11 enactment. The actual transfers shall 11.12 be identified within the standard 11.13 information provided to the chairs of 11.14 the house health and human services 11.15 finance committee and the senate 11.16 health, human services, and corrections 11.17 budget division in December 2003. 11.18 [STATE-OPERATED SERVICES TRANSFER.] The 11.19 commissioner shall transfer $3,200,000 11.20 from the Traumatic Brain Injury 11.21 Enterprise, $1,000,000 from lease 11.22 income, and $500,000 from the ICF/MR 11.23 depreciation accounts to the general 11.24 fund upon final enactment. 11.25 Subd. 3. Administrative 11.26 Reimbursement/Pass-through 11.27 Federal TANF 1,022,000 11.28 [TANF INDIRECT COSTS.] The fiscal year 11.29 2003 federal TANF appropriation for 11.30 TANF indirect costs is increased by 11.31 $1,022,000. Notwithstanding Minnesota 11.32 Statutes, section 256J.02, subdivision 11.33 5, the limit on TANF indirect cost 11.34 liability for fiscal year 2003 shall be 11.35 $3,951,000. For the calendar quarter 11.36 starting October 1, 2002, and until the 11.37 indirect cost liability limit is 11.38 reached, the commissioner shall 11.39 reimburse the general fund a rate of 11.40 100 percent of TANF-allowable indirect 11.41 costs. 11.42 Subd. 4. Children's Services Grants 11.43 General (750,000) 11.44 [CRIMINAL JUSTICE TRAINING GRANT.] The 11.45 fiscal year 2003 appropriation for the 11.46 criminal justice training grant is 11.47 reduced by $5,000. 11.48 [FETAL ALCOHOL SYNDROME GRANT.] The 11.49 fiscal year 2003 appropriation for the 11.50 fetal alcohol syndrome grant is reduced 11.51 by $106,000. 11.52 [FOSTER AND ADOPT RECRUITMENT GRANT.] 11.53 The fiscal year 2003 appropriation for 11.54 the foster and adopt recruitment grant 11.55 is reduced by $55,000. 11.56 [ADOPTION ASSISTANCE AND RELATIVE 11.57 CUSTODY ASSISTANCE GRANTS.] The fiscal 11.58 year 2003 appropriation for the 11.59 adoption assistance and relative 11.60 custody assistance grants is reduced by 12.1 $584,000. 12.2 Subd. 5. MA Basic Health Care Grants - 12.3 Families and Children 12.4 General (5,734,000) 12.5 Subd. 6. MA Basic Health Care Grants - 12.6 Elderly and Disabled 12.7 General (1,409,000) 12.8 Subd. 7. General Assistance Medical 12.9 Care Grants 12.10 General (417,000) 12.11 Subd. 8. Health Care Policy Administration 12.12 General (5,000) 12.13 Subd. 9. Prescription Drug Program 12.14 General (247,000) 12.15 Subd. 10. Aging and Adult Service Grants 12.16 General (776,000) 12.17 [HOME SHARE GRANT.] The fiscal year 12.18 2003 appropriation for the home share 12.19 grant is reduced by $156,000. 12.20 [COMMUNITY SERVICE GRANT.] The fiscal 12.21 year 2003 appropriation for the 12.22 community service grant is reduced by 12.23 $515,000. 12.24 [SAIL GRANTS.] The fiscal year 2003 12.25 appropriation for SAIL grants under 12.26 Minnesota Statutes, section 256B.0917, 12.27 is reduced by $28,000. This is a 12.28 onetime reduction and does not affect 12.29 base funding for the program. 12.30 [COMMUNITY SERVICES DEVELOPMENT 12.31 GRANTS.] The fiscal year 2003 12.32 appropriation for community services 12.33 development grants under Minnesota 12.34 Statutes, section 256.9754, is reduced 12.35 by $39,000. This is a onetime 12.36 reduction and does not affect base 12.37 funding for the program. 12.38 [HEALTH CARE CONSUMER ASSISTANCE 12.39 GRANTS.] The fiscal year 2003 12.40 appropriation for health care consumer 12.41 assistance grants under Minnesota 12.42 Statutes, section 256.9772, is reduced 12.43 by $38,000. This is a onetime 12.44 reduction and does not affect base 12.45 funding for the program. 12.46 Subd. 11. Medical Assistance Long-term Care 12.47 Waivers and Home Care Grants 12.48 General 66,000 12.49 [TARGETED CASE MANAGEMENT FOR HOME CARE 12.50 RECIPIENTS.] Implementation of the 12.51 targeted case management benefit for 13.1 home care recipients, pursuant to Laws 13.2 2001, First Special Session chapter 9, 13.3 article 3, sections 20, 21, 23 to 25, 13.4 27, and 28 (Minnesota Statutes, section 13.5 256B.0621, subdivisions 2, 3, 5 to 7, 13.6 9, and 10) will be delayed until July 13.7 1, 2005. 13.8 [COMMON SERVICE MENU.] Implementation 13.9 of the common service menu option 13.10 within the home- and community-based 13.11 waivers, pursuant to Laws 2001, First 13.12 Special Session chapter 9, article 3, 13.13 section 63 (Minnesota Statutes, section 13.14 256B.49, subdivision 16) will be 13.15 delayed until July 1, 2005. 13.16 Subd. 12. Medical Assistance Long-term 13.17 Care Facilities Grants 13.18 General 7,659,000 13.19 [ICF/MR SPECIAL RATE PROVISIONS FOR 13.20 OCCUPANCY.] Notwithstanding Minnesota 13.21 Statutes, section 256B.5013, 13.22 subdivision 4, the commissioner shall 13.23 suspend new authorizations of rate 13.24 adjustments to ICF/MR facilities with 13.25 seven or more beds for the purposes of 13.26 addressing occupancy. This suspension 13.27 shall take effect as of April 1, 2003, 13.28 and shall sunset on July 1, 2003. 13.29 Notwithstanding Minnesota Statutes, 13.30 section 256B.5013, subdivision 4, the 13.31 commissioner, for the period April 1, 13.32 2003, through June 30, 2003, shall 13.33 adjust the total payment rate for up to 13.34 30 days for the remaining recipients in 13.35 facilities with six or fewer beds in 13.36 which the monthly occupancy rate of 13.37 licensed beds is 75 percent or higher. 13.38 Subd. 13. Community Support Grants 13.39 General (250,000) 13.40 [PUBLIC GUARDIANSHIP GRANTS.] The 13.41 fiscal year 2003 appropriation for 13.42 public guardianship grants is reduced 13.43 by $250,000. This is a onetime 13.44 reduction and does not affect base 13.45 funding for the program. 13.46 Subd. 14. Alternative Care Grants 13.47 General (1,700,000) 13.48 [ALTERNATIVE CARE TARGETED FUNDS 13.49 REDUCTION.] The commissioner shall 13.50 adjust the allocation of targeted 13.51 alternative care funds to reduce net 13.52 general fund expenditures by $1,000,000 13.53 in fiscal year 2003. The reduction 13.54 shall be achieved by delaying 13.55 implementation of common service menu 13.56 provisions and by working with counties 13.57 to create efficiencies, including 13.58 moving medical assistance eligible 13.59 persons from alternative care to the 13.60 elderly waiver more quickly. 14.1 Subd. 15. Chemical Dependency 14.2 Nonentitlement Grants 14.3 General (268,000) 14.4 [CHEMICAL DEPENDENCY NONENTITLEMENT 14.5 GRANTS.] The fiscal year 2003 14.6 appropriation for chemical health 14.7 nonentitlement grants shall be reduced 14.8 by $268,000. This reduction affects 14.9 only the chemical use assessment of 14.10 minors authorized under Minnesota 14.11 Statutes, section 260B.157, subdivision 14.12 1, and the statewide detoxification 14.13 transportation program authorized under 14.14 Minnesota Statutes, section 254A.17, 14.15 subdivision 3. 14.16 Subd. 16. Minnesota Family 14.17 Investment Program (860,000) 14.18 [MFIP EMPLOYMENT AND TRAINING PROGRAM.] 14.19 The fiscal year 2003 appropriation for 14.20 MFIP employment and training shall be 14.21 reduced by $103,000 to reflect the 14.22 sunset on the 24-month education 14.23 program. 14.24 [MFIP NONCITIZEN FOOD ASSISTANCE.] The 14.25 fiscal year 2003 appropriation for MFIP 14.26 food assistance program administration 14.27 is increased by $7,000. 14.28 [MFIP FOOD AND CASH ASSISTANCE.] The 14.29 fiscal year 2003 appropriation for MFIP 14.30 food and cash assistance serving 14.31 noncitizens is reduced by $763,000. 14.32 [EMERGENCY ASSISTANCE.] The fiscal year 14.33 2003 appropriation for emergency 14.34 assistance is reduced by $1,000. 14.35 [FEDERAL TANF EMERGENCY ASSISTANCE.] 14.36 The fiscal year 2003 federal TANF 14.37 appropriation for emergency assistance 14.38 is reduced by $128,000. 14.39 Subd. 17. Work Grants 14.40 Federal TANF (894,000) 14.41 [SUPPORTIVE WORK GRANTS.] The fiscal 14.42 year 2003 federal TANF appropriation 14.43 for supportive work grants is reduced 14.44 by $894,000. 14.45 Subd. 18. Economic Support Grants - 14.46 Other Assistance 14.47 General (64,000) 14.48 [FRAUD PREVENTION INVESTIGATION 14.49 GRANTS.] The fiscal year 2003 general 14.50 fund appropriation for fraud prevention 14.51 investigation grants is reduced by 14.52 $64,000. 14.53 Sec. 3. COMMISSIONER OF HEALTH 14.54 Subdivision 1. Total General Fund 14.55 Appropriation Reductions (5,948,000) 15.1 Summary by Fund 15.2 General (5,948,000) 15.3 Transfers from 15.4 Other Funds (4,000,000) 15.5 $500,000 of the appropriation reduction 15.6 is from long-term care quality 15.7 demonstration grants authorized in Laws 15.8 2001, First Special Session chapter 9, 15.9 article 17, section 3. 15.10 $500,000 of the appropriation reduction 15.11 is from long-term care transition 15.12 planning grants authorized in Laws 15.13 2001, First Special Session chapter 9, 15.14 article 17, section 3. 15.15 $3,557,000 of the appropriation 15.16 reduction is from WIC grants 15.17 administration authorized in Laws 2001, 15.18 First Special Session chapter 9, 15.19 article 17, section 3. 15.20 [HEALTH DISPARITIES; IMMUNIZATIONS.] 15.21 The fiscal year 2003 appropriation for 15.22 grants under Minnesota Statutes, 15.23 section 145.928, subdivision 7, to 15.24 reduce health disparities in infant 15.25 mortality and immunization rates, is 15.26 reduced by $314,000. This is a onetime 15.27 reduction and does not affect base 15.28 funding. 15.29 [HEALTH DISPARITIES; GRANTS.] The 15.30 fiscal year 2003 appropriation for 15.31 grants under Minnesota Statutes, 15.32 section 145.928, subdivision 8, to 15.33 reduce health disparities in certain 15.34 priority areas, is reduced by 15.35 $108,000. This is a onetime reduction 15.36 and does not affect base funding. 15.37 [LEAD GRANTS.] The fiscal year 2003 15.38 appropriation for grants under 15.39 Minnesota Statutes, section 144.9507, 15.40 subdivision 3, to meet relocation 15.41 requirements during lead-hazard 15.42 reduction work, is reduced by $25,000. 15.43 This is a onetime reduction and does 15.44 not affect base funding. 15.45 [FAMILY PLANNING GRANTS.] The fiscal 15.46 year 2003 appropriation for family 15.47 planning grants under Minnesota 15.48 Statutes, section 145.925, is reduced 15.49 by $56,000. This is a onetime 15.50 reduction and does not affect base 15.51 funding. 15.52 [TANF WIC CLIENT SERVICES ALLOWANCE.] 15.53 Of the TANF funds appropriated to the 15.54 commissioner of health for the home 15.55 visiting program in Laws 2001, First 15.56 Special Session chapter 9, article 17, 15.57 section 3, subdivision 2, and Laws 15.58 2000, chapter 488, article 8, section 15.59 2, subdivision 6, clause (3), and 15.60 allocated to community health boards 16.1 and tribal governments under Minnesota 16.2 Statutes, section 145A.17, up to 16.3 $3,500,000 may be spent for WIC client 16.4 services under Minnesota Statutes, 16.5 section 145.894, clause (c). The 16.6 commissioner of health shall determine 16.7 a method for apportioning this 16.8 allowance between family home visiting 16.9 and WIC client services within the 16.10 allocations provided to the community 16.11 health boards and tribal governments 16.12 for the remainder of fiscal year 2003. 16.13 $4,000,000 of the appropriation for 16.14 tobacco use and prevention activities 16.15 under Minnesota Statutes, section 16.16 144.395, subdivision 2, is transferred 16.17 to the commissioner of finance for 16.18 cancellation to the general fund. 16.19 Sec. 4. EMERGENCY MEDICAL SERVICES BOARD (45,000) 16.20 Sec. 5. COUNCIL ON DISABILITY (29,000) 16.21 Sec. 6. OMBUDSMAN FOR MENTAL HEALTH 16.22 AND MENTAL RETARDATION (73,000) 16.23 [CANCELLATION.] $14,500 of the amount 16.24 for crime victims oversight is canceled 16.25 to the general fund. 16.26 Sec. 7. OMBUDSMAN FOR FAMILIES (9,000) 16.27 Sec. 8. VETERANS HOMES BOARD (124,000) 16.28 Sec. 9. CHILDREN, FAMILIES, AND LEARNING 16.29 General (680,000) 16.30 [CHILD CARE DEVELOPMENT GRANTS.] The 16.31 fiscal year 2003 general fund 16.32 appropriation for child care 16.33 development grants is reduced by 16.34 $25,000. 16.35 [BASIC SLIDING FEE CHILD CARE.] The 16.36 fiscal year 2003 general fund 16.37 appropriation for basic sliding fee 16.38 child care is reduced by $602,000. 16.39 [MFIP CHILD CARE.] The fiscal year 2003 16.40 general fund appropriation for MFIP 16.41 child care is reduced by $53,000. 16.42 Sec. 10. Minnesota Statutes 2002, section 119B.011, is 16.43 amended by adding a subdivision to read: 16.44 Subd. 23. [FEDERAL POVERTY GUIDELINES.] "Federal poverty 16.45 guidelines" means the annual poverty guidelines for a family of 16.46 four, adjusted for family size, published annually by the United 16.47 States Department of Health and Human Services in the Federal 16.48 Register. 16.49 Sec. 11. Minnesota Statutes 2002, section 119B.09, 16.50 subdivision 1, is amended to read: 17.1 Subdivision 1. [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 17.2 APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 17.3 must be available to families who need child care to find or 17.4 keep employment or to obtain the training or education necessary 17.5 to find employment and who: 17.6 (1) meet the requirements of section 119B.05; receive MFIP 17.7 assistance; and are participating in employment and training 17.8 services under chapter 256J or 256K; 17.9 (2) have household income below the eligibility levels for 17.10 MFIP; or 17.11 (3) have household incomewithin a range established by the17.12commissionerno greater than 250 percent of the federal poverty 17.13 guidelines, adjusted for family size. 17.14 (b) Child care services must be made available as in-kind 17.15 services. 17.16 (c) All applicants for child care assistance and families 17.17 currently receiving child care assistance must be assisted and 17.18 required to cooperate in establishment of paternity and 17.19 enforcement of child support obligations for all children in the 17.20 family as a condition of program eligibility. For purposes of 17.21 this section, a family is considered to meet the requirement for 17.22 cooperation when the family complies with the requirements of 17.23 section 256.741. 17.24 [EFFECTIVE DATE.] This section is effective April 1, 2003. 17.25 Sec. 12. Minnesota Statutes 2002, section 119B.09, 17.26 subdivision 2, is amended to read: 17.27 Subd. 2. [SLIDING FEE.] Child care services to 17.28 familieswith incomes in the commissioner's established range17.29 must be made available on a sliding fee basis.The upper limit17.30of the range must be neither less than 70 percent nor more than17.3190 percent of the state median income for a family of four,17.32adjusted for family size.17.33 [EFFECTIVE DATE.] This section is effective April 1, 2003. 17.34 Sec. 13. Minnesota Statutes 2002, section 119B.12, 17.35 subdivision 2, is amended to read: 17.36 Subd. 2. [PARENT FEE.] A family's monthly parent fee must 18.1 be a fixed percentage of its annual gross income. Parent fees 18.2 must apply to families eligible for child care assistance under 18.3 sections 119B.03 and 119B.05. Income must be as defined in 18.4 section 119B.011, subdivision 15. The fixed percent is based on 18.5 the relationship of the family's annual gross income to100250 18.6 percent ofstate median incomethe federal poverty guidelines. 18.7 Beginning January 1, 1998, parent fees must begin at 75 percent 18.8 of the poverty level. The minimum parent fees for families 18.9 between 75 percent and 100 percent of poverty level must 18.10 be$5$10 per month. Parent fees must be established in rule 18.11 and must provide for graduated movement to full payment. 18.12 [EFFECTIVE DATE.] This section is effective April 1, 2003. 18.13 Sec. 14. Minnesota Statutes 2002, section 252.27, 18.14 subdivision 2a, is amended to read: 18.15 Subd. 2a. [CONTRIBUTION AMOUNT.] (a) The natural or 18.16 adoptive parents of a minor child, including a child determined 18.17 eligible for medical assistance without consideration of 18.18 parental income, must contribute monthly to the cost of 18.19 services, unless the child is married or has been married, 18.20 parental rights have been terminated, or the child's adoption is 18.21 subsidized according to section 259.67 or through title IV-E of 18.22 the Social Security Act. 18.23 (b) The parental contribution shall be the greater of a 18.24 minimum monthly fee of $25 for households with adjusted gross 18.25 income of $30,000 and over, or an amount to be computed by 18.26 applying to the adjusted gross income of the natural or adoptive 18.27 parents that exceeds 150 percent of the federal poverty 18.28 guidelines for the applicable household size, the following 18.29 schedule of rates: 18.30 (1) on the amount of adjusted gross income over 150 percent 18.31 of poverty, but not over $50,000, ten percent; 18.32 (2) on the amount of adjusted gross income over 150 percent 18.33 of poverty and over $50,000 but not over $60,000, 12 percent; 18.34 (3) on the amount of adjusted gross income over 150 percent 18.35 of poverty, and over $60,000 but not over $75,000, 14 percent; 18.36 and 19.1 (4) on all adjusted gross income amounts over 150 percent 19.2 of poverty, and over $75,000, 15 percent. 19.3 If the child lives with the parent, the parental 19.4 contribution is reduced by $200, except that the parent must pay 19.5 the minimum monthly $25 fee under this paragraph. If the child 19.6 resides in an institution specified in section 256B.35, the 19.7 parent is responsible for the personal needs allowance specified 19.8 under that section in addition to the parental contribution 19.9 determined under this section. The parental contribution is 19.10 reduced by any amount required to be paid directly to the child 19.11 pursuant to a court order, but only if actually paid. 19.12 (c) The household size to be used in determining the amount 19.13 of contribution under paragraph (b) includes natural and 19.14 adoptive parents and their dependents under age 21, including 19.15 the child receiving services. Adjustments in the contribution 19.16 amount due to annual changes in the federal poverty guidelines 19.17 shall be implemented on the first day of July following 19.18 publication of the changes. 19.19 (d) For purposes of paragraph (b), "income" means the 19.20 adjusted gross income of the natural or adoptive parents 19.21 determined according to the previous year's federal tax form. 19.22 (e) The contribution shall be explained in writing to the 19.23 parents at the time eligibility for services is being 19.24 determined. The contribution shall be made on a monthly basis 19.25 effective with the first month in which the child receives 19.26 services. Annually upon redetermination or at termination of 19.27 eligibility, if the contribution exceeded the cost of services 19.28 provided, the local agency or the state shall reimburse that 19.29 excess amount to the parents, either by direct reimbursement if 19.30 the parent is no longer required to pay a contribution, or by a 19.31 reduction in or waiver of parental fees until the excess amount 19.32 is exhausted. 19.33 (f) The monthly contribution amount must be reviewed at 19.34 least every 12 months; when there is a change in household size; 19.35 and when there is a loss of or gain in income from one month to 19.36 another in excess of ten percent. The local agency shall mail a 20.1 written notice 30 days in advance of the effective date of a 20.2 change in the contribution amount. A decrease in the 20.3 contribution amount is effective in the month that the parent 20.4 verifies a reduction in income or change in household size. 20.5 (g) Parents of a minor child who do not live with each 20.6 other shall each pay the contribution required under paragraph 20.7 (a), except that a court-ordered child support payment actually 20.8 paid on behalf of the child receiving services shall be deducted 20.9 from the contribution of the parent making the payment. 20.10 (h) The contribution under paragraph (b) shall be increased 20.11 by an additional five percent if the local agency determines 20.12 that insurance coverage is available but not obtained for the 20.13 child. For purposes of this section, "available" means the 20.14 insurance is a benefit of employment for a family member at an 20.15 annual cost of no more than five percent of the family's annual 20.16 income. For purposes of this section, "insurance" means health 20.17 and accident insurance coverage, enrollment in a nonprofit 20.18 health service plan, health maintenance organization, 20.19 self-insured plan, or preferred provider organization. 20.20 Parents who have more than one child receiving services 20.21 shall not be required to pay more than the amount for the child 20.22 with the highest expenditures. There shall be no resource 20.23 contribution from the parents. The parent shall not be required 20.24 to pay a contribution in excess of the cost of the services 20.25 provided to the child, not counting payments made to school 20.26 districts for education-related services. Notice of an increase 20.27 in fee payment must be given at least 30 days before the 20.28 increased fee is due. 20.29 (i) The contribution under paragraph (b) shall be reduced 20.30 by $300 per fiscal year if, in the 12 months prior to July 1: 20.31 (1) the parent applied for insurance for the child; 20.32 (2) the insurer denied insurance; 20.33 (3) the parents submitted a complaint or appeal, in writing 20.34 to the insurer, submitted a complaint or appeal, in writing, to 20.35 the commissioner of health or the commissioner of commerce, or 20.36 litigated the complaint or appeal; and 21.1 (4) as a result of the dispute, the insurer reversed its 21.2 decision and granted insurance. 21.3 For purposes of this section, "insurance" has the meaning 21.4 given in paragraph (h). 21.5 A parent who has requested a reduction in the contribution 21.6 amount under this paragraph shall submit proof in the form and 21.7 manner prescribed by the commissioner or county agency, 21.8 including, but not limited to, the insurer's denial of 21.9 insurance, the written letter or complaint of the parents, court 21.10 documents, and the written response of the insurer approving 21.11 insurance. The determinations of the commissioner or county 21.12 agency under this paragraph are not rules subject to chapter 14. 21.13 (j) The contribution calculated under paragraph (b) shall 21.14 be increased by five percent. 21.15 [EFFECTIVE DATE.] This section is effective April 1, 2003. 21.16 Sec. 15. Minnesota Statutes 2002, section 256.9657, 21.17 subdivision 1, is amended to read: 21.18 Subdivision 1. [NURSING HOME LICENSE SURCHARGE.] (a) 21.19 Effective July 1, 1993, each non-state-operated nursing home 21.20 licensed under chapter 144A shall pay to the commissioner an 21.21 annual surcharge according to the schedule in subdivision 4. 21.22 The surcharge shall be calculated as $620 per licensed bed. If 21.23 the number of licensed beds is reduced, the surcharge shall be 21.24 based on the number of remaining licensed beds the second month 21.25 following the receipt of timely notice by the commissioner of 21.26 human services that beds have been delicensed. The nursing home 21.27 must notify the commissioner of health in writing when beds are 21.28 delicensed. The commissioner of health must notify the 21.29 commissioner of human services within ten working days after 21.30 receiving written notification. If the notification is received 21.31 by the commissioner of human services by the 15th of the month, 21.32 the invoice for the second following month must be reduced to 21.33 recognize the delicensing of beds. Beds on layaway status 21.34 continue to be subject to the surcharge. The commissioner of 21.35 human services must acknowledge a medical care surcharge appeal 21.36 within 30 days of receipt of the written appeal from the 22.1 provider. 22.2 (b) Effective July 1, 1994, the surcharge in paragraph (a) 22.3 shall be increased to $625. 22.4 (c) Effective August 15, 2002, the surcharge under 22.5 paragraph (b) shall be increased to $990. 22.6 (d) Effective April 15, 2003, the surcharge under paragraph 22.7 (c) shall be increased to $2,741. 22.8 (e) Between April 1, 2002, and August 15,20032004, a 22.9 facility governed by this subdivision may elect to assume full 22.10 participation in the medical assistance program by agreeing to 22.11 comply with all of the requirements of the medical assistance 22.12 program, including the rate equalization law in section 256B.48, 22.13 subdivision 1, paragraph (a), and all other requirements 22.14 established in law or rule, and to begin intake of new medical 22.15 assistance recipients. Rates will be determined under Minnesota 22.16 Rules, parts 9549.0010 to 9549.0080. Notwithstanding section 22.17 256B.431, subdivision 27, paragraph (i), rate calculations will 22.18 be subject to limits as prescribed in rule and law. Other than 22.19 the adjustments in sections 256B.431, subdivisions 30 and 32; 22.20 256B.437, subdivision 3, paragraph (b), Minnesota Rules, part 22.21 9549.0057, and any other applicable legislation enacted prior to 22.22 the finalization of rates, facilities assuming full 22.23 participation in medical assistance under this paragraph are not 22.24 eligible for any rate adjustments until the July 1 following 22.25 their settle-up period. 22.26 [EFFECTIVE DATE.] This section is effective February 28, 22.27 2003. 22.28 Sec. 16. Minnesota Statutes 2002, section 256.969, 22.29 subdivision 3a, is amended to read: 22.30 Subd. 3a. [PAYMENTS.] (a) Acute care hospital billings 22.31 under the medical assistance program must not be submitted until 22.32 the recipient is discharged. However, the commissioner shall 22.33 establish monthly interim payments for inpatient hospitals that 22.34 have individual patient lengths of stay over 30 days regardless 22.35 of diagnostic category. Except as provided in section 256.9693, 22.36 medical assistance reimbursement for treatment of mental illness 23.1 shall be reimbursed based on diagnostic classifications. 23.2 Individual hospital payments established under this section and 23.3 sections 256.9685, 256.9686, and 256.9695, in addition to third 23.4 party and recipient liability, for discharges occurring during 23.5 the rate year shall not exceed, in aggregate, the charges for 23.6 the medical assistance covered inpatient services paid for the 23.7 same period of time to the hospital. This payment limitation 23.8 shall be calculated separately for medical assistance and 23.9 general assistance medical care services. The limitation on 23.10 general assistance medical care shall be effective for 23.11 admissions occurring on or after July 1, 1991. Services that 23.12 have rates established under subdivision 11 or 12, must be 23.13 limited separately from other services. After consulting with 23.14 the affected hospitals, the commissioner may consider related 23.15 hospitals one entity and may merge the payment rates while 23.16 maintaining separate provider numbers. The operating and 23.17 property base rates per admission or per day shall be derived 23.18 from the best Medicare and claims data available when rates are 23.19 established. The commissioner shall determine the best Medicare 23.20 and claims data, taking into consideration variables of recency 23.21 of the data, audit disposition, settlement status, and the 23.22 ability to set rates in a timely manner. The commissioner shall 23.23 notify hospitals of payment rates by December 1 of the year 23.24 preceding the rate year. The rate setting data must reflect the 23.25 admissions data used to establish relative values. Base year 23.26 changes from 1981 to the base year established for the rate year 23.27 beginning January 1, 1991, and for subsequent rate years, shall 23.28 not be limited to the limits ending June 30, 1987, on the 23.29 maximum rate of increase under subdivision 1. The commissioner 23.30 may adjust base year cost, relative value, and case mix index 23.31 data to exclude the costs of services that have been 23.32 discontinued by the October 1 of the year preceding the rate 23.33 year or that are paid separately from inpatient services. 23.34 Inpatient stays that encompass portions of two or more rate 23.35 years shall have payments established based on payment rates in 23.36 effect at the time of admission unless the date of admission 24.1 preceded the rate year in effect by six months or more. In this 24.2 case, operating payment rates for services rendered during the 24.3 rate year in effect and established based on the date of 24.4 admission shall be adjusted to the rate year in effect by the 24.5 hospital cost index. 24.6 (b) For fee-for-service admissions occurring on or after 24.7 July 1, 2002, the total payment, before third-party liability 24.8 and spenddown, made to hospitals for inpatient services is 24.9 reduced by .5 percent from the current statutory rates. 24.10 (c) For fee-for-service admissions occurring on or after 24.11 March 1, 2003, the total payment, before third-party liability 24.12 and spenddown, made to hospitals for inpatient services is 24.13 reduced five percent from the current statutory rates. Mental 24.14 health services within diagnosis-related groups 424 to 432 and 24.15 facilities defined under subdivision 16 are excluded from this 24.16 paragraph. 24.17 Sec. 17. Minnesota Statutes 2002, section 256B.056, 24.18 subdivision 1a, is amended to read: 24.19 Subd. 1a. [INCOME AND ASSETS GENERALLY.] Unless 24.20 specifically required by state law or rule or federal law or 24.21 regulation, the methodologies used in counting income and assets 24.22 to determine eligibility for medical assistance for persons 24.23 whose eligibility category is based on blindness, disability, or 24.24 age of 65 or more years, the methodologies for the supplemental 24.25 security income program shall be used. Increases in benefits 24.26 under title II of the Social Security Act shall not be counted 24.27 as income for purposes of this subdivision until July 1 of each 24.28 year. Effective upon federal approval, for children eligible 24.29 under section 256B.055, subdivision 12, or for home and 24.30 community-based waiver services whose eligibility for medical 24.31 assistance is determined without regard to parental income, 24.32 child support payments, including any payments made by an 24.33 obligor in satisfaction of or in addition to a temporary or 24.34 permanent order for child support, and social security payments 24.35 are not counted as income. For families and children, which 24.36 includes all other eligibility categories, the methodologies 25.1 under the state's AFDC plan in effect as of July 16, 1996, as 25.2 required by the Personal Responsibility and Work Opportunity 25.3 Reconciliation Act of 1996 (PRWORA), Public LawNumber104-193, 25.4 shall be used, except that effective July 1, 2002, the $90 and25.5$30 and one-third earned income disregards shall not apply and25.6the disregard specified in subdivision 1c shall apply. For 25.7 these purposes, a "methodology" does not include an asset or 25.8 income standard, or accounting method, or method of determining 25.9 effective dates. 25.10 [EFFECTIVE DATE.] This section is effective April 1, 2003. 25.11 Sec. 18. Minnesota Statutes 2002, section 256B.056, 25.12 subdivision 4, is amended to read: 25.13 Subd. 4. [INCOME.] (a) To be eligible for medical 25.14 assistance, a person eligible under section 256B.055, 25.15 subdivisions 7, 7a, and 12, may have income up to 100 percent of 25.16 the federal poverty guidelines. Effective January 1, 2000, and 25.17 each successive January, recipients of supplemental security 25.18 income may have an income up to the supplemental security income 25.19 standard in effect on that date. 25.20 (b) To be eligible for medical assistance, families and 25.21 children may have an income up to 133-1/3 percent of the AFDC 25.22 income standard in effect under the July 16, 1996, AFDC state 25.23 plan. Effective July 1, 2000, the base AFDC standard in effect 25.24 on July 16, 1996, shall be increased by three percent. 25.25 (c)Effective July 1, 2002, to be eligible for medical25.26assistance, families and children may have an income up to 10025.27percent of the federal poverty guidelines for the family size.25.28(d)In computing income to determine eligibility of persons 25.29 under paragraphs (a)to (c)and (b) who are not residents of 25.30 long-term care facilities, the commissioner shall disregard 25.31 increases in income as required by PublicLaw NumbersLaws 25.32 94-566, section 503; 99-272; and 99-509. Veterans aid and 25.33 attendance benefits and Veterans Administration unusual medical 25.34 expense payments are considered income to the recipient. 25.35 [EFFECTIVE DATE.] This section is effective April 1, 2003. 25.36 Sec. 19. Minnesota Statutes 2002, section 256B.057, 26.1 subdivision 2, is amended to read: 26.2 Subd. 2. [CHILDREN.] Except as specified in subdivision 26.3 1b,effective July 1, 2002,a child one through18five years of 26.4 age in a family whose countable income is no greater than 26.5170133 percent of the federal poverty guidelines for the same 26.6 family size, is eligible for medical assistance. A child six 26.7 through 18 years of age, in a family whose countable income is 26.8 no greater than 100 percent of the federal poverty guidelines 26.9 for the same family size, is eligible for medical assistance. 26.10 [EFFECTIVE DATE.] This section is effective April 1, 2003. 26.11 Sec. 20. Minnesota Statutes 2002, section 256B.06, 26.12 subdivision 4, is amended to read: 26.13 Subd. 4. [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 26.14 medical assistance is limited to citizens of the United States, 26.15 qualified noncitizens as defined in this subdivision, and other 26.16 persons residing lawfully in the United States. 26.17 (b) "Qualified noncitizen" means a person who meets one of 26.18 the following immigration criteria: 26.19 (1) admitted for lawful permanent residence according to 26.20 United States Code, title 8; 26.21 (2) admitted to the United States as a refugee according to 26.22 United States Code, title 8, section 1157; 26.23 (3) granted asylum according to United States Code, title 26.24 8, section 1158; 26.25 (4) granted withholding of deportation according to United 26.26 States Code, title 8, section 1253(h); 26.27 (5) paroled for a period of at least one year according to 26.28 United States Code, title 8, section 1182(d)(5); 26.29 (6) granted conditional entrant status according to United 26.30 States Code, title 8, section 1153(a)(7); 26.31 (7) determined to be a battered noncitizen by the United 26.32 States Attorney General according to the Illegal Immigration 26.33 Reform and Immigrant Responsibility Act of 1996, title V of the 26.34 Omnibus Consolidated Appropriations Bill, Public LawNumber26.35 104-200; 26.36 (8) is a child of a noncitizen determined to be a battered 27.1 noncitizen by the United States Attorney General according to 27.2 the Illegal Immigration Reform and Immigrant Responsibility Act 27.3 of 1996, title V, of the Omnibus Consolidated Appropriations 27.4 Bill, Public LawNumber104-200;or27.5 (9) determined to be a Cuban or Haitian entrant as defined 27.6 in section 501(e) of Public LawNumber96-422, the Refugee 27.7 Education Assistance Act of 1980; 27.8 (10) determined to be an Amerasian immigrant; 27.9 (11) determined to be an American Indian born outside of 27.10 the United States who is a member of a federally recognized 27.11 tribe; 27.12 (12) determined to be a Canadian with 50 percent or more 27.13 American Indian blood; 27.14 (13) is a noncitizen veteran of the United States Armed 27.15 Forces with an honorable discharge for a reason other than 27.16 noncitizen status, the person's spouse and unmarried minor 27.17 dependent children; or 27.18 (14) is a noncitizen on active duty in the United States 27.19 Armed Forces, other than for training, the person's spouse and 27.20 unmarried minor dependent children. 27.21 (c) All qualified noncitizens who were residing in the 27.22 United States before August 22, 1996, who otherwise meet the 27.23 eligibility requirements of chapter 256B, are eligible for 27.24 medical assistance with federal financial participation. 27.25 (d)AllQualified noncitizens described in paragraph (b), 27.26 clauses (1) and (5) through (8), who entered the United States 27.27 on or after August 22, 1996, and who otherwise meet the 27.28 eligibility requirements of chapter 256B, are eligible for 27.29 medical assistance with federal financial participationthrough27.30November 30, 1996after five years from date of entry. 27.31 Beginning December 1, 1996, qualified noncitizens who 27.32 entered the United States on or after August 22, 1996, and who 27.33 otherwise meet the eligibility requirements of chapter 256B are 27.34 eligible for medical assistance with federal participationfor27.35five yearsif they meet one of the following criteria: 27.36 (i) refugees admitted to the United States according to 28.1 United States Code, title 8, section 1157; 28.2 (ii) persons granted asylum according to United States 28.3 Code, title 8, section 1158; 28.4 (iii) persons granted withholding of deportation according 28.5 to United States Code, title 8, section 1253(h); 28.6 (iv) noncitizen veterans of the United States Armed Forces 28.7 with an honorable discharge for a reason other than noncitizen 28.8 status, their spouses and unmarried minor dependent children;or28.9 (v) noncitizen persons on active duty in the United States 28.10 Armed Forces, other than for training, their spouses and 28.11 unmarried minor dependent children; 28.12 (vi) Amerasian immigrants; 28.13 (vii) Cuban or Haitian entrants as defined in section 28.14 501(e) of Public Law 96-422, the Refugee Education Assistance 28.15 Act of 1980; 28.16 (viii) American Indians born outside of the United States 28.17 who are members of federally recognized tribes; or 28.18 (ix) Canadians with 50 percent or more American Indian 28.19 blood. 28.20Beginning December 1, 1996, qualified noncitizens who do28.21not meet one of the criteria in items (i) to (v) are eligible28.22for medical assistance without federal financial participation28.23as described in paragraph (j).28.24(e) Noncitizens who are not qualified noncitizens as28.25defined in paragraph (b), who are lawfully residing in the28.26United States and who otherwise meet the eligibility28.27requirements of chapter 256B, are eligible for medical28.28assistance under clauses (1) to (3). These individuals must28.29cooperate with the Immigration and Naturalization Service to28.30pursue any applicable immigration status, including citizenship,28.31that would qualify them for medical assistance with federal28.32financial participation.28.33(1) Persons who were medical assistance recipients on28.34August 22, 1996, are eligible for medical assistance with28.35federal financial participation through December 31, 1996.28.36(2) Beginning January 1, 1997, persons described in clause29.1(1) are eligible for medical assistance without federal29.2financial participation as described in paragraph (j).29.3(3) Beginning December 1, 1996, persons residing in the29.4United States prior to August 22, 1996, who were not receiving29.5medical assistance and persons who arrived on or after August29.622, 1996, are eligible for medical assistance without federal29.7financial participation as described in paragraph (j).29.8(f) Nonimmigrants who otherwise meet the eligibility29.9requirements of chapter 256B are eligible for the benefits as29.10provided in paragraphs (g) to (i). For purposes of this29.11subdivision, a "nonimmigrant" is a person in one of the classes29.12listed in United States Code, title 8, section 1101(a)(15).29.13(g)(e) Payment shall also be made for care and services 29.14 that are furnished to noncitizens, regardless of immigration 29.15 status, who otherwise meet the eligibility requirements of 29.16 chapter 256B, if such care and services are necessary for the 29.17 treatment of an emergency medical condition, except for organ 29.18 transplants and related care and services and routine prenatal 29.19 care. 29.20(h)(f) For purposes of this subdivision, the term 29.21 "emergency medical condition" means a medical condition that 29.22 meets the requirements of United States Code, title 42, section 29.23 1396b(v). 29.24(i) Pregnant noncitizens who are undocumented or29.25nonimmigrants, who otherwise meet the eligibility requirements29.26of chapter 256B, are eligible for medical assistance payment29.27without federal financial participation for care and services29.28through the period of pregnancy, and 60 days postpartum, except29.29for labor and delivery.29.30(j) Qualified noncitizens as described in paragraph (d),29.31and all other noncitizens lawfully residing in the United States29.32as described in paragraph (e), who are ineligible for medical29.33assistance with federal financial participation and who29.34otherwise meet the eligibility requirements of chapter 256B and29.35of this paragraph, are eligible for medical assistance without29.36federal financial participation. Qualified noncitizens as30.1described in paragraph (d) are only eligible for medical30.2assistance without federal financial participation for five30.3years from their date of entry into the United States.30.4(k) The commissioner shall submit to the legislature by30.5December 31, 1998, a report on the number of recipients and cost30.6of coverage of care and services made according to paragraphs30.7(i) and (j).30.8 [EFFECTIVE DATE.] This section is effective April 1, 2003. 30.9 Sec. 21. Minnesota Statutes 2002, section 256B.06, 30.10 subdivision 5, is amended to read: 30.11 Subd. 5. [DEEMING OF SPONSOR INCOME AND RESOURCES.] When 30.12 determining eligibility for anyfederal or state fundedmedical 30.13 assistance under this section, the income and resources of all 30.14 noncitizens shall be deemed to include their sponsors' income 30.15 and resources as required under the Personal Responsibility and 30.16 Work Opportunity Reconciliation Act of 1996, title IV, Public 30.17 LawNumber104-193, sections 421 and 422, and subsequently set 30.18 out in federal rules. This section is effective May 1, 1997. 30.19 [EFFECTIVE DATE.] This section is effective April 1, 2003. 30.20 Sec. 22. Minnesota Statutes 2002, section 256B.0625, 30.21 subdivision 13, is amended to read: 30.22 Subd. 13. [DRUGS.] (a) Medical assistance covers drugs, 30.23 except for fertility drugs when specifically used to enhance 30.24 fertility, if prescribed by a licensed practitioner and 30.25 dispensed by a licensed pharmacist, by a physician enrolled in 30.26 the medical assistance program as a dispensing physician, or by 30.27 a physician or a nurse practitioner employed by or under 30.28 contract with a community health board as defined in section 30.29 145A.02, subdivision 5, for the purposes of communicable disease 30.30 control. The commissioner, after receiving recommendations from 30.31 professional medical associations and professional pharmacist 30.32 associations, shall designate a formulary committee to advise 30.33 the commissioner on the names of drugs for which payment is 30.34 made, recommend a system for reimbursing providers on a set fee 30.35 or charge basis rather than the present system, and develop 30.36 methods encouraging use of generic drugs when they are less 31.1 expensive and equally effective as trademark drugs. The 31.2 formulary committee shall consist of nine members, four of whom 31.3 shall be physicians who are not employed by the department of 31.4 human services, and a majority of whose practice is for persons 31.5 paying privately or through health insurance, three of whom 31.6 shall be pharmacists who are not employed by the department of 31.7 human services, and a majority of whose practice is for persons 31.8 paying privately or through health insurance, a consumer 31.9 representative, and a nursing home representative. Committee 31.10 members shall serve three-year terms and shall serve without 31.11 compensation. Members may be reappointed once. 31.12 (b) The commissioner shall establish a drug formulary. Its 31.13 establishment and publication shall not be subject to the 31.14 requirements of the Administrative Procedure Act, but the 31.15 formulary committee shall review and comment on the formulary 31.16 contents. 31.17 The formulary shall not include: 31.18 (i) drugs or products for which there is no federal 31.19 funding; 31.20 (ii) over-the-counter drugs, except for antacids, 31.21 acetaminophen, family planning products, aspirin, insulin, 31.22 products for the treatment of lice, vitamins for adults with 31.23 documented vitamin deficiencies, vitamins for children under the 31.24 age of seven and pregnant or nursing women, and any other 31.25 over-the-counter drug identified by the commissioner, in 31.26 consultation with the drug formulary committee, as necessary, 31.27 appropriate, and cost-effective for the treatment of certain 31.28 specified chronic diseases, conditions or disorders, and this 31.29 determination shall not be subject to the requirements of 31.30 chapter 14; 31.31 (iii) anorectics, except that medically necessary 31.32 anorectics shall be covered for a recipient previously diagnosed 31.33 as having pickwickian syndrome and currently diagnosed as having 31.34 diabetes and being morbidly obese; 31.35 (iv) drugs for which medical value has not been 31.36 established; and 32.1 (v) drugs from manufacturers who have not signed a rebate 32.2 agreement with the Department of Health and Human Services 32.3 pursuant to section 1927 of title XIX of the Social Security Act. 32.4 The commissioner shall publish conditions for prohibiting 32.5 payment for specific drugs after considering the formulary 32.6 committee's recommendations. An honorarium of $100 per meeting 32.7 and reimbursement for mileage shall be paid to each committee 32.8 member in attendance. 32.9 (c) The basis for determining the amount of payment shall 32.10 be the lower of the actual acquisition costs of the drugs plus a 32.11 fixed dispensing fee; the maximum allowable cost set by the 32.12 federal government or by the commissioner plus the fixed 32.13 dispensing fee; or the usual and customary price charged to the 32.14 public. The amount of payment basis must be reduced to reflect 32.15 all discount amounts applied to the charge by any 32.16 provider/insurer agreement or contract for submitted charges to 32.17 medical assistance programs. The net submitted charge may not 32.18 be greater than the patient liability for the service. The 32.19 pharmacy dispensing fee shall be $3.65, except that the 32.20 dispensing fee for intravenous solutions which must be 32.21 compounded by the pharmacist shall be $8 per bag, $14 per bag 32.22 for cancer chemotherapy products, and $30 per bag for total 32.23 parenteral nutritional products dispensed in one liter 32.24 quantities, or $44 per bag for total parenteral nutritional 32.25 products dispensed in quantities greater than one liter. Actual 32.26 acquisition cost includes quantity and other special discounts 32.27 except time and cash discounts. The actual acquisition cost of 32.28 a drug shall be estimated by the commissioner, at average 32.29 wholesale price minus nine percent, except that where a drug has 32.30 had its wholesale price reduced as a result of the actions of 32.31 the National Association of Medicaid Fraud Control Units, the 32.32 estimated actual acquisition cost shall be the reduced average 32.33 wholesale price, without the nine percent deduction. For the 32.34 period March 1, 2003, through June 30, 2003, the commissioner 32.35 shall estimate the actual acquisition cost of a drug at average 32.36 wholesale price minus 12.6 percent, except that where a drug has 33.1 had its wholesale price reduced as a result of the actions of 33.2 the National Association of Medicaid Fraud Control Units, the 33.3 estimated actual acquisition cost shall be the reduced average 33.4 wholesale price, without the 12.6 percent deduction. The 33.5 maximum allowable cost of a multisource drug may be set by the 33.6 commissioner and it shall be comparable to, but no higher than, 33.7 the maximum amount paid by other third-party payors in this 33.8 state who have maximum allowable cost programs.The33.9commissioner shall set maximum allowable costs for multisource33.10drugs that are not on the federal upper limit list as described33.11in United States Code, title 42, chapter 7, section 1396r-8(e),33.12the Social Security Act, and Code of Federal Regulations, title33.1342, part 447, section 447.332.Establishment of the amount of 33.14 payment for drugs shall not be subject to the requirements of 33.15 the Administrative Procedure Act. An additional dispensing fee 33.16 of $.30 may be added to the dispensing fee paid to pharmacists 33.17 for legend drug prescriptions dispensed to residents of 33.18 long-term care facilities when a unit dose blister card system, 33.19 approved by the department, is used. Under this type of 33.20 dispensing system, the pharmacist must dispense a 30-day supply 33.21 of drug. The National Drug Code (NDC) from the drug container 33.22 used to fill the blister card must be identified on the claim to 33.23 the department. The unit dose blister card containing the drug 33.24 must meet the packaging standards set forth in Minnesota Rules, 33.25 part 6800.2700, that govern the return of unused drugs to the 33.26 pharmacy for reuse. The pharmacy provider will be required to 33.27 credit the department for the actual acquisition cost of all 33.28 unused drugs that are eligible for reuse. Over-the-counter 33.29 medications must be dispensed in the manufacturer's unopened 33.30 package. The commissioner may permit the drug clozapine to be 33.31 dispensed in a quantity that is less than a 30-day supply. 33.32 Whenever a generically equivalent product is available, payment 33.33 shall be on the basis of the actual acquisition cost of the 33.34 generic drug, unless the prescriber specifically indicates 33.35 "dispense as written - brand necessary" on the prescription as 33.36 required by section 151.21, subdivision 2. 34.1 (d)For purposes of this subdivision, "multisource drugs"34.2means covered outpatient drugs, excluding innovator multisource34.3drugs for which there are two or more drug products, which:34.4(1) are related as therapeutically equivalent under the34.5Food and Drug Administration's most recent publication of34.6"Approved Drug Products with Therapeutic Equivalence34.7Evaluations";34.8(2) are pharmaceutically equivalent and bioequivalent as34.9determined by the Food and Drug Administration; and34.10(3) are sold or marketed in Minnesota.34.11"Innovator multisource drug" means a multisource drug that was34.12originally marketed under an original new drug application34.13approved by the Food and Drug Administration.34.14(e)The formulary committee shall review and recommend 34.15 drugs which require prior authorization. The formulary 34.16 committee may recommend drugs for prior authorization directly 34.17 to the commissioner, as long as opportunity for public input is 34.18 provided. Prior authorization may be requested by the 34.19 commissioner based on medical and clinical criteria and on cost 34.20 before certain drugs are eligible for payment. Before a drug 34.21 may be considered for prior authorization at the request of the 34.22 commissioner: 34.23 (1) the drug formulary committee must develop criteria to 34.24 be used for identifying drugs; the development of these criteria 34.25 is not subject to the requirements of chapter 14, but the 34.26 formulary committee shall provide opportunity for public input 34.27 in developing criteria; 34.28 (2) the drug formulary committee must hold a public forum 34.29 and receive public comment for an additional 15 days; 34.30 (3) the drug formulary committee must consider data from 34.31 the state Medicaid program if such data is available; and 34.32 (4) the commissioner must provide information to the 34.33 formulary committee on the impact that placing the drug on prior 34.34 authorization will have on the quality of patient care and on 34.35 program costs, and information regarding whether the drug is 34.36 subject to clinical abuse or misuse. 35.1 Prior authorization may be required by the commissioner 35.2 before certain formulary drugs are eligible for payment. If 35.3 prior authorization of a drug is required by the commissioner, 35.4 the commissioner must provide a 30-day notice period before 35.5 implementing the prior authorization. If a prior authorization 35.6 request is denied by the department, the recipient may appeal 35.7 the denial in accordance with section 256.045. If an appeal is 35.8 filed, the drug must be provided without prior authorization 35.9 until a decision is made on the appeal. 35.10(f)(e) The basis for determining the amount of payment for 35.11 drugs administered in an outpatient setting shall be the lower 35.12 of the usual and customary cost submitted by the provider; the 35.13 average wholesale price minus five percent; or the maximum 35.14 allowable cost set by the federal government under United States 35.15 Code, title 42, chapter 7, section 1396r-8(e), and Code of 35.16 Federal Regulations, title 42, section 447.332, or by the 35.17 commissioner under paragraph (c). 35.18(g)(f) Prior authorization shall not be required or 35.19 utilized for any antipsychotic drug prescribed for the treatment 35.20 of mental illness where there is no generically equivalent drug 35.21 available unless the commissioner determines that prior 35.22 authorization is necessary for patient safety. This paragraph 35.23 applies to any supplemental drug rebate program established or 35.24 administered by the commissioner. 35.25(h)(g) Prior authorization shall not be required or 35.26 utilized for any antihemophilic factor drug prescribed for the 35.27 treatment of hemophilia and blood disorders where there is no 35.28 generically equivalent drug available unless the commissioner 35.29 determines that prior authorization is necessary for patient 35.30 safety. This paragraph applies to any supplemental drug rebate 35.31 program established or administered by the commissioner. This 35.32 paragraph expires July 1, 2003. 35.33 [EFFECTIVE DATE.] This section is effective March 1, 2003. 35.34 Sec. 23. Minnesota Statutes 2002, section 256B.0625, is 35.35 amended by adding a subdivision to read: 35.36 Subd. 13c. [CO-PAYMENT FOR PRESCRIPTION DRUGS.] (a) Except 36.1 as provided under paragraph (d), the commissioner shall require 36.2 a recipient to make a co-payment of $1 for each noninnovator 36.3 multiple source drug and $3 for each single source drug or 36.4 innovator multiple source drug dispensed on or after March 1, 36.5 2003. The total of co-payments for each enrollee shall not 36.6 exceed $20 per month. The commissioner shall reduce 36.7 reimbursement rates to pharmacies for each prescription by the 36.8 amount of the co-payment. A pharmacy shall not waive a 36.9 co-payment obligation and a pharmacy provider or supplier, 36.10 including a pharmaceutical manufacturer, or a representative, 36.11 employee, independent contractor, or agent of a pharmaceutical 36.12 manufacturer, shall not make a co-payment for a recipient. A 36.13 parent or guardian shall be responsible for a co-payment imposed 36.14 on a dependent child under the age of 21. 36.15 (b) A pharmacy shall not refuse to provide a prescription 36.16 drug to a recipient if the recipient is unable to provide the 36.17 required co-payment. This provision does not relieve a 36.18 recipient of an obligation to provide a co-payment and does not 36.19 prevent a pharmacy from attempting to collect a co-payment. 36.20 (c) If it is the routine business practice of a pharmacy to 36.21 refuse service to an individual with uncollected debt, the 36.22 pharmacy may include uncollected co-payments under this 36.23 practice. A pharmacy must give advanced notice to a recipient 36.24 with uncollected debt before services can be denied. 36.25 (d) Co-payments shall not be required for prescription 36.26 drugs provided to children under age 18; pregnant women; 36.27 individuals residing for more than 30 days in a medical 36.28 institution who contribute all of their income to the cost of 36.29 care, except for a personal needs allowance; and categorically 36.30 needy individuals receiving services through a prepaid health 36.31 plan. Co-payments shall not be required for prescriptions 36.32 provided as part of an emergency health care service or a family 36.33 planning service. 36.34 [EFFECTIVE DATE.] This section is effective March 1, 2003. 36.35 Sec. 24. Minnesota Statutes 2002, section 256B.0635, 36.36 subdivision 1, is amended to read: 37.1 Subdivision 1. [INCREASED EMPLOYMENT.] (a) Until June 30, 37.2 2002, medical assistance may be paid for persons who received 37.3 MFIP or medical assistance for families and children in at least 37.4 three of six months preceding the month in which the person 37.5 became ineligible for MFIP or medical assistance, if the 37.6 ineligibility was due to an increase in hours of employment or 37.7 employment income or due to the loss of an earned income 37.8 disregard. In addition, to receive continued assistance under 37.9 this section, persons who received medical assistance for 37.10 families and children but did not receive MFIP must have had 37.11 income less than or equal to the assistance standard for their 37.12 family size under the state's AFDC plan in effect as of July 16, 37.13 1996, increased by three percent effective July 1, 2000, at the 37.14 time medical assistance eligibility began. A person who is 37.15 eligible for extended medical assistance is entitled to six 37.16 months of assistance without reapplication, unless the 37.17 assistance unit ceases to include a dependent child. For a 37.18 person under 21 years of age, medical assistance may not be 37.19 discontinued within the six-month period of extended eligibility 37.20 until it has been determined that the person is not otherwise 37.21 eligible for medical assistance. Medical assistance may be 37.22 continued for an additional six months if the person meets all 37.23 requirements for the additional six months, according to title 37.24 XIX of the Social Security Act, as amended by section 303 of the 37.25 Family Support Act of 1988, Public LawNumber100-485. 37.26 (b) BeginningJuly 1, 2002April 1, 2003, medical 37.27 assistance for families and children may be paid for persons who 37.28 were eligible under section 256B.055, subdivision 3a, and had 37.29 income less than or equal to the assistance standard for their 37.30 family size under the state's AFDC plan in effect as of July 16, 37.31 1996, increased by three percent effective July 1, 2000, in at 37.32 least three of six months preceding the month in which the 37.33 person became ineligibleunder that sectionif the ineligibility 37.34 was due to an increase in hours of employment or employment 37.35 income or due to the loss of an earned income disregard. A 37.36 person who is eligible for extended medical assistance is 38.1 entitled to six months of assistance without reapplication, 38.2 unless the assistance unit ceases to include a dependent child, 38.3 except medical assistance may not be discontinued for that 38.4 dependent child under 21 years of age within the six-month 38.5 period of extended eligibility until it has been determined that 38.6 the person is not otherwise eligible for medical assistance. 38.7 Medical assistance may be continued for an additional six months 38.8 if the person meets all requirements for the additional six 38.9 months, according to title XIX of the Social Security Act, as 38.10 amended by section 303 of the Family Support Act of 1988, Public 38.11 LawNumber100-485. 38.12 [EFFECTIVE DATE.] This section is effective April 1, 2003, 38.13 and applies to persons whose eligibility for extended medical 38.14 assistance is established on or after that date. 38.15 Sec. 25. Minnesota Statutes 2002, section 256B.0635, 38.16 subdivision 2, is amended to read: 38.17 Subd. 2. [INCREASED CHILD OR SPOUSAL SUPPORT.] (a) Until 38.18 June 30, 2002, medical assistance may be paid for persons who 38.19 received MFIP or medical assistance for families and children in 38.20 at least three of the six months preceding the month in which 38.21 the person became ineligible for MFIP or medical assistance, if 38.22 the ineligibility was the result of the collection of child or 38.23 spousal support under part D of title IV of the Social Security 38.24 Act. In addition, to receive continued assistance under this 38.25 section, persons who received medical assistance for families 38.26 and children but did not receive MFIP must have had income less 38.27 than or equal to the assistance standard for their family size 38.28 under the state's AFDC plan in effect as of July 16, 1996, 38.29 increased by three percent effective July 1, 2000, at the time 38.30 medical assistance eligibility began. A person who is eligible 38.31 for extended medical assistance under this subdivision is 38.32 entitled to four months of assistance without reapplication, 38.33 unless the assistance unit ceases to include a dependent child, 38.34 except medical assistance may not be discontinued for that 38.35 dependent child under 21 years of age within the four-month 38.36 period of extended eligibility until it has been determined that 39.1 the person is not otherwise eligible for medical assistance. 39.2 (b) BeginningJuly 1, 2002April 1, 2003, medical 39.3 assistance for families and children may be paid for persons who 39.4 were eligible under section 256B.055, subdivision 3a, and had 39.5 income less than or equal to the assistance standard for their 39.6 family size under the state's AFDC plan in effect as of July 16, 39.7 1996, increased by three percent effective July 1, 2000, in at 39.8 least three of the six months preceding the month in which the 39.9 person became ineligibleunder that sectionif the ineligibility 39.10 was the result of the collection of child or spousal support 39.11 under part D of title IV of the Social Security Act. A person 39.12 who is eligible for extended medical assistance under this 39.13 subdivision is entitled to four months of assistance without 39.14 reapplication, unless the assistance unit ceases to include a 39.15 dependent child, except medical assistance may not be 39.16 discontinued for that dependent child under 21 years of age 39.17 within the four-month period of extended eligibility until it 39.18 has been determined that the person is not otherwise eligible 39.19 for medical assistance. 39.20 [EFFECTIVE DATE.] This section is effective April 1, 2003, 39.21 and applies to persons whose eligibility for extended medical 39.22 assistance is established on or after that date. 39.23 Sec. 26. Minnesota Statutes 2002, section 256B.19, 39.24 subdivision 1d, is amended to read: 39.25 Subd. 1d. [PORTION OF NONFEDERAL SHARE TO BE PAID BY 39.26 CERTAIN COUNTIES.] (a) In addition to the percentage 39.27 contribution paid by a county under subdivision 1, the 39.28 governmental units designated in this subdivision shall be 39.29 responsible for an additional portion of the nonfederal share of 39.30 medical assistance cost. For purposes of this subdivision, 39.31 "designated governmental unit" means the counties of Becker, 39.32 Beltrami, Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, 39.33 Pennington, Pipestone, Ramsey, St. Louis, Steele, Todd, 39.34 Traverse, and Wadena. 39.35 (b) Beginning in 1994, each of the governmental units 39.36 designated in this subdivision shall transfer before noon on May 40.1 31 to the state Medicaid agency an amount equal to the number of 40.2 licensed beds in any nursing home owned and operated by the 40.3 county on that date, with the county named as licensee, 40.4 multiplied by $5,723. If two or more counties own and operate a 40.5 nursing home, the payment shall be prorated. These sums shall 40.6 be part of the designated governmental unit's portion of the 40.7 nonfederal share of medical assistance costs. 40.8 (c) Beginning in 2002, in addition to any transfer under 40.9 paragraph (b), each of the governmental units designated in this 40.10 subdivision shall transfer before noon on May 31 to the state 40.11 Medicaid agency an amount equal to the number of licensed beds 40.12 in any nursing home owned and operated by the county on that 40.13 date, with the county named as licensee, multiplied by $10,784. 40.14 The provisions of paragraph (b) apply to transfers under this 40.15 paragraph. 40.16 (d) Beginning in 2003, in addition to any transfer under 40.17 paragraphs (b) and (c), each of the governmental units 40.18 designated in this subdivision shall transfer before noon on May 40.19 31 to the state Medicaid agency an amount equal to the number of 40.20 licensed beds in any nursing home owned and operated by the 40.21 county on that date, with the county named as licensee, 40.22 multiplied by $2,230. The provisions of paragraph (b) apply to 40.23 transfers under this paragraph. 40.24 (e) The commissioner may reduce the intergovernmental 40.25 transfers underparagraphparagraphs (c) and (d) based on the 40.26 commissioner's determination of the payment rate in section 40.27 256B.431, subdivision 23, paragraphs (c)and, (d), and (e). Any 40.28 adjustments must be made on a per-bed basis and must result in 40.29 an amount equivalent to the total amount resulting from the rate 40.30 adjustment in section 256B.431, subdivision 23, paragraphs (c) 40.31and, (d), and (e). 40.32 [EFFECTIVE DATE.] This section is effective February 28, 40.33 2003. 40.34 Sec. 27. Minnesota Statutes 2002, section 256B.195, 40.35 subdivision 4, is amended to read: 40.36 Subd. 4. [ADJUSTMENTS PERMITTED.] (a) The commissioner may 41.1 adjust the intergovernmental transfers under subdivision 2 and 41.2 the payments under subdivision 3,and payments and transfers41.3under subdivision 5,based on the commissioner's determination 41.4 of Medicare upper payment limits, hospital-specific charge 41.5 limits, and hospital-specific limitations on disproportionate 41.6 share payments. Any adjustments must be made on a proportional 41.7 basis. If participation by a particular hospital under this 41.8 section is limited, the commissioner shall adjust the payments 41.9 that relate to that hospital under subdivisions 2,and 3, and 541.10 on a proportional basis in order to allow the hospital to 41.11 participate under this section to the fullest extent possible 41.12 and shall increase other payments under subdivisions 2,and 3,41.13and 5to the extent allowable to maintain the overall level of 41.14 payments under this section. The commissioner may make 41.15 adjustments under this subdivision only after consultation with 41.16 the counties and hospitals identified in subdivisions 2 and 3,41.17and, if subdivision 5 receives federal approval, with the41.18hospital and educational institution identified in subdivision 5. 41.19 (b) The ratio of medical assistance payments specified in 41.20 subdivision 3 to the intergovernmental transfers specified in 41.21 subdivision 2 shall not be reduced except as provided under 41.22 paragraph (a). 41.23 (c) The increase in intergovernmental transfers and 41.24 payments that result from section 256.969, subdivision 3a, 41.25 paragraph (c), shall be paid to the general fund. 41.26 Sec. 28. Minnesota Statutes 2002, section 256B.32, 41.27 subdivision 1, is amended to read: 41.28 Subdivision 1. [FACILITY FEE PAYMENT.] (a) The 41.29 commissioner shall establish a facility fee payment mechanism 41.30 that will pay a facility fee to all enrolled outpatient 41.31 hospitals for each emergency room or outpatient clinic visit 41.32 provided on or after July 1, 1989. This payment mechanism may 41.33 not result in an overall increase in outpatient payment rates. 41.34 This section does not apply to federally mandated maximum 41.35 payment limits, department approved program packages, or 41.36 services billed using a nonoutpatient hospital provider number. 42.1 (b) For fee-for-service services provided on or after July 42.2 1, 2002, the total payment, before third-party liability and 42.3 spenddown, made to hospitals for outpatient hospital facility 42.4 services is reduced by .5 percent from the current statutory 42.5 rates. 42.6 (c) For fee-for-service services provided on or after March 42.7 1, 2003, the total payment before third-party liability and 42.8 spenddown, made to hospitals for outpatient hospital facility 42.9 services is reduced five percent from the current statutory 42.10 rates. Facilities defined under section 256.969, subdivision 42.11 16, are excluded from this paragraph. 42.12 Sec. 29. Minnesota Statutes 2002, section 256B.431, 42.13 subdivision 23, is amended to read: 42.14 Subd. 23. [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a) 42.15 Beginning in 1994, the commissioner shall pay a nursing home 42.16 payment adjustment on May 31 after noon to a county in which is 42.17 located a nursing home that, on that date, was county-owned and 42.18 operated, with the county named as licensee by the commissioner 42.19 of health, and had over 40 beds and medical assistance occupancy 42.20 in excess of 50 percent during the reporting year ending 42.21 September 30, 1991. The adjustment shall be an amount equal to 42.22 $16 per calendar day multiplied by the number of beds licensed 42.23 in the facilityas of September 30, 1991on that date. 42.24 (b) Payments under paragraph (a) are excluded from medical 42.25 assistance per diem rate calculations. These payments are 42.26 required notwithstanding any rule prohibiting medical assistance 42.27 payments from exceeding payments from private pay residents. A 42.28 facility receiving a payment under paragraph (a) may not 42.29 increase charges to private pay residents by an amount 42.30 equivalent to the per diem amount payments under paragraph (a) 42.31 would equal if converted to a per diem. 42.32 (c) Beginning in 2002, in addition to any payment under 42.33 paragraph (a), the commissioner shall pay to a nursing facility 42.34 described in paragraph (a) an adjustment in an amount equal to 42.35 $29.55 per calendar day multiplied by the number of beds 42.36 licensed in the facility on that date. The provisions of 43.1 paragraphs (a) and (b) apply to payments under this paragraph. 43.2 (d) Beginning in 2003, in addition to any payment under 43.3 paragraphs (a) and (c), the commissioner shall pay to a nursing 43.4 facility described in paragraph (a) an adjustment in an amount 43.5 equal to $6.11 per calendar day multiplied by the number of beds 43.6 licensed in the facility on that date. The provisions of 43.7 paragraphs (a) and (b) apply to payments under this paragraph. 43.8 (e) The commissioner may reduce payments under 43.9paragraphparagraphs (c) and (d) based on the commissioner's 43.10 determination of Medicare upper payment limits. Any adjustments 43.11 must be proportional to adjustments made under section 256B.19, 43.12 subdivision 1d, paragraph(d)(e). 43.13 [EFFECTIVE DATE.] This section is effective February 28, 43.14 2003. 43.15 Sec. 30. Minnesota Statutes 2002, section 256B.431, is 43.16 amended by adding a subdivision to read: 43.17 Subd. 38. [NURSING HOME RATE INCREASES EFFECTIVE IN FISCAL 43.18 YEAR 2003.] Effective the first day of the month after notice is 43.19 published in the State Register, the commissioner shall provide 43.20 to each nursing home reimbursed under this section or section 43.21 256B.434, an increase in each case mix payment rate equal to the 43.22 increase in the per-bed surcharge paid under section 256.9657, 43.23 subdivision 1, paragraph (d), divided by 365 and further divided 43.24 by .80. The increase shall not be subject to any annual 43.25 percentage increase. The 30-day advance notice requirement in 43.26 section 256B.47, subdivision 2, shall not apply to rate 43.27 increases resulting from this section. 43.28 [EFFECTIVE DATE.] This section is effective February 28, 43.29 2003. 43.30 Sec. 31. Minnesota Statutes 2002, section 256B.75, is 43.31 amended to read: 43.32 256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 43.33 (a) For outpatient hospital facility fee payments for 43.34 services rendered on or after October 1, 1992, the commissioner 43.35 of human services shall pay the lower of (1) submitted charge, 43.36 or (2) 32 percent above the rate in effect on June 30, 1992, 44.1 except for those services for which there is a federal maximum 44.2 allowable payment. Effective for services rendered on or after 44.3 January 1, 2000, payment rates for nonsurgical outpatient 44.4 hospital facility fees and emergency room facility fees shall be 44.5 increased by eight percent over the rates in effect on December 44.6 31, 1999, except for those services for which there is a federal 44.7 maximum allowable payment. Services for which there is a 44.8 federal maximum allowable payment shall be paid at the lower of 44.9 (1) submitted charge, or (2) the federal maximum allowable 44.10 payment. Total aggregate payment for outpatient hospital 44.11 facility fee services shall not exceed the Medicare upper 44.12 limit. If it is determined that a provision of this section 44.13 conflicts with existing or future requirements of the United 44.14 States government with respect to federal financial 44.15 participation in medical assistance, the federal requirements 44.16 prevail. The commissioner may, in the aggregate, prospectively 44.17 reduce payment rates to avoid reduced federal financial 44.18 participation resulting from rates that are in excess of the 44.19 Medicare upper limitations. 44.20 (b) Notwithstanding paragraph (a), payment for outpatient, 44.21 emergency, and ambulatory surgery hospital facility fee services 44.22 for critical access hospitals designated under section 144.1483, 44.23 clause (11), shall be paid on a cost-based payment system that 44.24 is based on the cost-finding methods and allowable costs of the 44.25 Medicare program. 44.26 (c) Effective for services provided on or after July 1, 44.27 2003, rates that are based on the Medicare outpatient 44.28 prospective payment system shall be replaced by a budget neutral 44.29 prospective payment system that is derived using medical 44.30 assistance data. The commissioner shall provide a proposal to 44.31 the 2003 legislature to define and implement this provision. 44.32 (d) For fee-for-service services provided on or after July 44.33 1, 2002, the total payment, before third-party liability and 44.34 spenddown, made to hospitals for outpatient hospital facility 44.35 services is reduced by .5 percent from the current statutory 44.36 rate. 45.1 (e) For fee-for-service services provided on or after March 45.2 1, 2003, the total payment before third-party liability and 45.3 spenddown, made to hospitals for outpatient hospital facility 45.4 services is reduced five percent from the current statutory 45.5 rates. Facilities defined under section 256.969, subdivision 45.6 16, are excluded from this paragraph. 45.7 Sec. 32. Minnesota Statutes 2002, section 256J.08, 45.8 subdivision 85, is amended to read: 45.9 Subd. 85. [TRANSITIONAL STANDARD.] "Transitional standard" 45.10 means the basic standard for a family with no other income or a 45.11 nonworking family and is a combination of the cash assistance 45.12 needs and food assistance needs for a family of that size. This 45.13 standard shall represent only the cash portion of MFIP when an 45.14 assistance unit member is ineligible for federal food benefits 45.15 due to citizenship status. 45.16 [EFFECTIVE DATE.] This section is effective April 1, 2003. 45.17 Sec. 33. Minnesota Statutes 2002, section 256J.11, 45.18 subdivision 1, is amended to read: 45.19 Subdivision 1. [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 45.20 be eligible for MFIP, a member of the assistance unit must be a 45.21 citizen of the United States,or a qualified noncitizen as 45.22 defined in section 256J.08, or a noncitizen who is otherwise45.23residing lawfully in the United States. 45.24 (b) A qualified noncitizen who entered the United States on 45.25 or after August 22, 1996, is eligible for MFIP. However, TANF45.26dollars cannot be used to fund the MFIP benefits for an45.27individual under this paragraph for a period of five years after45.28the date of entry unlessif the qualified noncitizen meets one 45.29 of the following criteria: 45.30 (1) was admitted to the United States as a refugee under 45.31 United States Code, title 8, section 1157; 45.32 (2) was granted asylum under United States Code, title 8, 45.33 section 1158; 45.34 (3) was granted withholding of deportation under the United 45.35 States Code, title 8, section 1253(h); 45.36 (4) is a veteran of the United States Armed Forces with an 46.1 honorable discharge for a reason other than noncitizen status, 46.2 or is a spouse or unmarried minor dependent child of the same; 46.3 or 46.4 (5) is an individual on active duty in the United States 46.5 Armed Forces, other than for training, or is a spouse or 46.6 unmarried minor dependent child of the same. 46.7 (c)A person who is not a qualified noncitizen but who is46.8otherwise residing lawfully in the United States is eligible for46.9MFIP. However, TANF dollars cannot be used to fund the MFIP46.10benefits for an individual under this paragraph.46.11(d)For purposes of this subdivision, a nonimmigrant in one 46.12 or more of the classes listed in United States Code, title 8, 46.13 section 1101(a)(15), or an undocumented immigrant who resides in 46.14 the United States without the approval or acquiescence of the 46.15 Immigration and Naturalization Service, is not eligible for MFIP. 46.16 [EFFECTIVE DATE.] This section is effective April 1, 2003. 46.17 Sec. 34. Minnesota Statutes 2002, section 256J.48, 46.18 subdivision 1, is amended to read: 46.19 Subdivision 1. [EMERGENCY FINANCIAL ASSISTANCE.] County 46.20 human service agencies shall grant emergency financial 46.21 assistance to any needy pregnant woman or needy family with a 46.22 child under the age of 21 who is or was within six months prior 46.23 to application living with an eligible caregiver relative 46.24 specified in section 256J.08. 46.25 Except for ongoing special diets, emergency assistance is 46.26 available to a family during one 30-day period in a consecutive 46.2712-month18-month period. A county shall issue assistance for 46.28 needs that accrue before that 30-day period only when it is 46.29 necessary to resolve emergencies arising or continuing during 46.30 the 30-day period of eligibility. When emergency needs 46.31 continue, a county may issue assistance for up to 30 days beyond 46.32 the initial 30-day period of eligibility, but only when 46.33 assistance is authorized during the initial period. 46.34 [EFFECTIVE DATE.] This section is effective April 1, 2003. 46.35 Sec. 35. Minnesota Statutes 2002, section 256J.52, 46.36 subdivision 2, is amended to read: 47.1 Subd. 2. [INITIAL ASSESSMENT.] (a) The job counselor must, 47.2 with the cooperation of the participant, assess the 47.3 participant's ability to obtain and retain employment. This 47.4 initial assessment must include a review of the participant's 47.5 education level, prior employment or work experience, 47.6 transferable work skills, and existing job markets. 47.7 (b) In assessing the participant, the job counselor must 47.8 determine if the participant needs refresher courses for 47.9 professional certification or licensure, in which case, the job 47.10 search plan under subdivision 3 must include the courses 47.11 necessary to obtain the certification or licensure, in addition 47.12 to other work activities, provided the combination of the 47.13 courses and other work activities are at least for 40 hours per 47.14 week. 47.15 (c) If a participant can demonstrate to the satisfaction of 47.16 the county agency that lack of proficiency in English is a 47.17 barrier to obtaining suitable employment, the job counselor must 47.18 include participation in an intensive English as a second 47.19 language program if available or otherwise a regular English as 47.20 a second language program in the individual's employment plan 47.21 under subdivision 5. Lack of proficiency in English is not 47.22 necessarily a barrier to employment. 47.23 (d) The job counselor may approve an education or training 47.24 plan, and postpone the job search requirement, if the 47.25 participant has a proposal for an education program which: 47.26 (1) can be completed within2412 months; and 47.27 (2) meets the criteria of section 256J.53, subdivisions 1, 47.28 2, 3, and 5. 47.29 (e) A participant who, at the time of the initial 47.30 assessment, presents a plan that includes farming as a 47.31 self-employed work activity must have an employment plan 47.32 developed under subdivision 5 that includes the farming as an 47.33 approved work activity. 47.34 [EFFECTIVE DATE.] This section is effective April 1, 2003. 47.35 Sec. 36. Minnesota Statutes 2002, section 256J.53, 47.36 subdivision 1, is amended to read: 48.1 Subdivision 1. [LENGTH OF PROGRAM.] In order for a 48.2 post-secondary education or training program to be approved work 48.3 activity as defined in section 256J.49, subdivision 13, clause 48.4 (18), it must be a program lasting2412 months or less, and the 48.5 participant must meet the requirements of subdivisions 2 and 3. 48.6 Participants who have an approved education plan in place as of 48.7 April 1, 2003, that allows 24 months of postsecondary education 48.8 or training shall be allowed to complete that plan provided that 48.9 the conditions specified in subdivisions 2 and 3 continue to be 48.10 met. 48.11 [EFFECTIVE DATE.] This section is effective April 1, 2003. 48.12 Sec. 37. Minnesota Statutes 2002, section 256L.07, 48.13 subdivision 1, is amended to read: 48.14 Subdivision 1. [GENERAL REQUIREMENTS.] (a) Children 48.15 enrolled in the original children's health plan as of September 48.16 30, 1992, children who enrolled in the MinnesotaCare program 48.17 after September 30, 1992, pursuant to Laws 1992, chapter 549, 48.18 article 4, section 17, and children who have family gross 48.19 incomes that are equal to or less than 175 percent of the 48.20 federal poverty guidelines are eligible without meeting the 48.21 requirements of subdivision 2, as long as they maintain 48.22 continuous coverage in the MinnesotaCare program or medical 48.23 assistance. Children who apply for MinnesotaCare on or after 48.24 the implementation date of the employer-subsidized health 48.25 coverage program as described in Laws 1998, chapter 407, article 48.26 5, section 45, who have family gross incomes that are equal to 48.27 or less than 175 percent of the federal poverty guidelines, must 48.28 meet the requirements of subdivision 2 to be eligible for 48.29 MinnesotaCare. 48.30 (b) Families enrolled in MinnesotaCare under section 48.31 256L.04, subdivision 1, whose income increases above 275 percent 48.32 of the federal poverty guidelines, are no longer eligible for 48.33 the program and shall be disenrolled by the commissioner. 48.34 Individuals enrolled in MinnesotaCare under section 256L.04, 48.35 subdivision 7, whose income increases above 175 percent of the 48.36 federal poverty guidelines are no longer eligible for the 49.1 program and shall be disenrolled by the commissioner. For 49.2 persons disenrolled under this subdivision, MinnesotaCare 49.3 coverage terminates the last day of the calendar month following 49.4 the month in which the commissioner determines that the income 49.5 of a family or individual exceeds program income limits. 49.6 (c)Notwithstanding paragraph (b), individuals and families49.7may remain enrolled in MinnesotaCare if ten percent of their49.8annual income is less than the annual premium for a policy with49.9a $500 deductible available through the Minnesota comprehensive49.10health association.Individuals and families who are no longer 49.11 eligible for MinnesotaCare under this subdivision shall be given 49.12an 18-montha six-month notice period from the date that 49.13 ineligibility is determined before disenrollment. 49.14 [EFFECTIVE DATE.] This section is effective April 1, 2003. 49.15 Sec. 38. Minnesota Statutes 2002, section 256L.17, 49.16 subdivision 2, is amended to read: 49.17 Subd. 2. [LIMIT ON TOTAL ASSETS.](a)Effective July 1, 49.18 2002, or upon federal approval, whichever is later, in order to 49.19 be eligible for the MinnesotaCare program, a household of two or 49.20 more persons must not own more than $30,000 in total net assets, 49.21 and a household of one person must not own more than $15,000 in 49.22 total net assets. 49.23(b) For purposes of this subdivision, assets are determined49.24according to section 256B.056, subdivision 3c.In addition to 49.25 these maximum amounts, an eligible individual or family may 49.26 accrue interest on these amounts, but they must be reduced to 49.27 the maximum at the time of an eligibility redetermination. The 49.28 value of assets that are not considered in determining 49.29 eligibility is the value of those assets excluded under the AFDC 49.30 state plan as of July 16, 1996, as required by the Personal 49.31 Responsibility and Work Opportunity Reconciliation Act of 1996 49.32 (PRWORA), Public Law 104-193, with the following exceptions: 49.33 (1) household goods and personal effects are not 49.34 considered; 49.35 (2) capital and operating assets of a trade or business up 49.36 to $200,000 are not considered; 50.1 (3) one motor vehicle is excluded for each person of legal 50.2 driving age who is employed or seeking employment; 50.3 (4) one burial plot and all other burial expenses equal to 50.4 the supplemental security income program asset limit are not 50.5 considered for each individual; 50.6 (5) court-ordered settlements up to $10,000 are not 50.7 considered; 50.8 (6) individual retirement accounts and funds are not 50.9 considered; and 50.10 (7) assets owned by children are not considered. 50.11 [EFFECTIVE DATE.] This section is effective April 1, 2003. 50.12 Sec. 39. Laws 1997, chapter 203, article 9, section 21, as 50.13 amended by Laws 1998, chapter 407, article 6, section 111, Laws 50.14 2000, chapter 488, article 10, section 28, and Laws 2001, First 50.15 Special Session chapter 9, article 10, section 62, is amended to 50.16 read: 50.17 Sec. 21. [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 50.18 (a) Effective on the date specified, the following persons 50.19 will be ineligible for general assistance and general assistance 50.20 medical care under Minnesota Statutes, chapter 256D, group 50.21 residential housing under Minnesota Statutes, chapter 256I, and 50.22 MFIP assistance under Minnesota Statutes, chapter 256J, funded 50.23 with state money: 50.24 (1) Beginning July 1, 2002, persons who are terminated from 50.25 or denied Supplemental Security Income due to the 1996 changes 50.26 in the federal law making persons whose alcohol or drug 50.27 addiction is a material factor contributing to the person's 50.28 disability ineligible for Supplemental Security Income, and are 50.29 eligible for general assistance under Minnesota Statutes, 50.30 section 256D.05, subdivision 1, paragraph (a), clause (15), 50.31 general assistance medical care under Minnesota Statutes, 50.32 chapter 256D, or group residential housing under Minnesota 50.33 Statutes, chapter 256I; and 50.34 (2) Beginning July 1, 2002, legal noncitizens who are 50.35 ineligible for Supplemental Security Income due to the 1996 50.36 changes in federal law making certain noncitizens ineligible for 51.1 these programs due to their noncitizen status; and51.2(3) Beginning July 1, 2003, legal noncitizens who are51.3eligible for MFIP assistance, either the cash assistance portion51.4or the food assistance portion, funded entirely with state money. 51.5 (b) State money that remains unspent due to changes in 51.6 federal law enacted after May 12, 1997, that reduce state 51.7 spending for legal noncitizens or for persons whose alcohol or 51.8 drug addiction is a material factor contributing to the person's 51.9 disability, or enacted after February 1, 1998, that reduce state 51.10 spending for food benefits for legal noncitizens shall not 51.11 cancel and shall be deposited in the TANF reserve account. 51.12 [EFFECTIVE DATE.] This section is effective April 1, 2003. 51.13 Sec. 40. Laws 2001, First Special Session chapter 3, 51.14 article 1, section 17, subdivision 11, as amended by Laws 2002, 51.15 chapter 220, article 2, section 6, is amended to read: 51.16 Subd. 11. [CHILD CARE SERVICE GRANTS.] For child care 51.17 development activities under child care service grants according 51.18 to Minnesota Statutes, section 119B.21: 51.19 $1,865,000 ..... 2002 51.20$1,365,000$1,340,000 ..... 2003 51.21 Beginning in fiscal year 2004, the base is 51.22$1,365,000$1,340,000 from the general fund. 51.23 Any balance in the first year does not cancel but is 51.24 available in the second year. 51.25 Sec. 41. Laws 2001, First Special Session chapter 9, 51.26 article 2, section 31, the effective date, is amended to read: 51.27 [EFFECTIVE DATE.] This section is effectiveJanuaryJuly 1, 51.28 2003. 51.29 Sec. 42. [CHILD CARE ASSISTANCE PARENT FEE SCHEDULE.] 51.30 The commissioner shall amend the parent fee schedule in 51.31 Minnesota Rules, chapter 3400, to do the following: 51.32 (1) parent fees for families with incomes between 100.01 51.33 percent and 135 percent of the federal poverty guidelines must 51.34 equal 2.42 percent of adjusted gross income for families at 135 51.35 percent of the federal poverty guidelines; 51.36 (2) parent fees for families with incomes between 135.01 52.1 percent and 165 percent of the federal poverty guidelines must 52.2 equal three percent of adjusted gross income for families at 165 52.3 percent of the federal poverty guidelines; 52.4 (3) parent fees for families with incomes between 165.01 52.5 percent and 250 percent of the federal poverty guidelines must 52.6 begin at 4.15 percent of the adjusted gross income and provide 52.7 for graduated movement of fee increases; and 52.8 (4) parent fees for families at 250 percent of the federal 52.9 poverty guidelines must equal 15 percent of gross annual income. 52.10 [EFFECTIVE DATE.] This section is effective April 1, 2003. 52.11 Sec. 43. [DIRECTION TO THE COMMISSIONER.] 52.12 By April 1, 2003, the commissioner of human services shall 52.13 propose revisions to the standards listed under Minnesota 52.14 Statutes, section 256J.24, subdivision 5, with an additional 52.15 scale of standards for assistance units that contain one or more 52.16 persons ineligible for federal food benefits due to citizenship 52.17 status. 52.18 Sec. 44. [REPEALER.] 52.19 Subdivision 1. [HOME-SHARING GRANT PROGRAM; FAIRVIEW 52.20 UNIVERSITY MEDICAL CENTER.] Minnesota Statutes 2002, sections 52.21 256.973; and 256B.195, subdivision 5, are repealed effective 52.22 July 1, 2003. 52.23 Subd. 2. [MINNESOTA FOOD ASSISTANCE PROGRAM.] Minnesota 52.24 Statutes 2002, section 256D.053, is repealed effective April 1, 52.25 2003. 52.26 Subd. 3. [MFIP NONCITIZENS; FOOD PORTION; STATE 52.27 FUNDING.] Minnesota Statutes 2002, section 256J.11, subdivisions 52.28 2 and 3, are repealed effective April 1, 2003. 52.29 Subd. 4. [PARENT FEE SCHEDULE.] Laws 1999, chapter 205, 52.30 article 1, section 63, is repealed effective April 1, 2003. 52.31 Subd. 5. [MEDICAL ASSISTANCE INCOME DISREGARD FOR 52.32 FAMILIES.] Minnesota Statutes 2002, section 256B.056, 52.33 subdivision 1c, is repealed effective April 1, 2003. 52.34 Subd. 6. [MEDICAL ASSISTANCE ASSET LIMIT FOR 52.35 FAMILIES.] Minnesota Statutes 2002, section 256B.056, 52.36 subdivision 3c, is repealed effective April 1, 2003. 53.1 Sec. 45. [EFFECTIVE DATE.] 53.2 Sections 1 to 44 are effective the day following final 53.3 enactment unless otherwise specified. 53.4 ARTICLE 4 53.5 ENVIRONMENT AND AGRICULTURE 53.6 Section 1. [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS 53.7 AND REDUCTIONS.] 53.8 The dollar amounts in the columns under "APPROPRIATION 53.9 CHANGE" are added to or, if shown in parentheses, are subtracted 53.10 from the appropriations in Laws 2001, First Special Session 53.11 chapter 2, as amended, to the specified agencies. The 53.12 appropriations or reductions are from the general fund or other 53.13 named fund for the fiscal year ending June 30, 2003. 53.14 2003 53.15 SUMMARY BY FUND 53.16 General $ (7,151,000) 53.17 Solid Waste 750,000 53.18 TOTAL APPROPRIATION CHANGE $ (6,401,000) 53.19 APPROPRIATION CHANGE 53.20 Sec. 2. POLLUTION CONTROL AGENCY 53.21 Subdivision 1. Total Reduction (357,000) 53.22 Summary by Fund 53.23 General (1,107,000) 53.24 Solid Waste 750,000 53.25 The transfers and reductions from the 53.26 amounts appropriated in Laws 2001, 53.27 First Special Session chapter 2, 53.28 section 2, are specified in 53.29 subdivisions 2 to 4. 53.30 Subd. 2. Water Programs 53.31 (685,000) 53.32 $200,000 of this amount is from the 53.33 appropriation in Laws 2001, First 53.34 Special Session chapter 2, section 2, 53.35 subdivision 2, for individual sewage 53.36 treatment system grants. This is a 53.37 onetime only reduction. 53.38 $17,000 is from the amount appropriated 53.39 in Laws 2001, First Special Session 53.40 chapter 2, section 2, subdivision 2, 53.41 for individual sewage treatment system 53.42 administration that is transferred to 53.43 the board of water and soil resources. 54.1 $468,000 is from that portion of grants 54.2 appropriated in Laws 2001, First 54.3 Special Session chapter 2, section 2, 54.4 subdivision 2, for county 54.5 administration of the feedlot permit 54.6 program that is transferred to the 54.7 board of water and soil resources. 54.8 Subd. 3. Administrative Support 54.9 750,000 54.10 By June 30, 2003, the commissioner 54.11 shall transfer this amount from the 54.12 solid waste fund to the debt service 54.13 account in the general fund for the 54.14 payment of debt service on closed 54.15 landfill program bonds. This amount is 54.16 a base change for fiscal year 2004 and 54.17 each year thereafter. 54.18 Subd. 4. Agencywide Reductions 54.19 (422,000) 54.20 This amount is a base change for fiscal 54.21 year 2004 and each year thereafter. 54.22 Sec. 3. OFFICE OF ENVIRONMENTAL 54.23 ASSISTANCE (409,000) 54.24 This reduction is from the amount 54.25 appropriated in Laws 2001, First 54.26 Special Session chapter 2, section 3. 54.27 Of this amount, $210,000 is from the 54.28 competitive grant program, and $199,000 54.29 is from administration. 54.30 Of this amount, $199,000 is a base 54.31 change for fiscal year 2004 and each 54.32 year thereafter. 54.33 Sec. 4. ZOOLOGICAL BOARD (270,000) 54.34 This reduction is from the amount 54.35 appropriated in Laws 2001, First 54.36 Special Session chapter 2, section 4. 54.37 This reduction is a permanent base 54.38 change. 54.39 Sec. 5. NATURAL RESOURCES 54.40 Subdivision 1. Total Reduction (3,997,000) 54.41 This reduction is from the amounts 54.42 appropriated in Laws 2001, First 54.43 Special Session chapter 2, section 5. 54.44 Of this amount, $3,819,000 is a base 54.45 reduction for fiscal year 2004 and each 54.46 year thereafter. 54.47 Subd. 2. Land and Mineral 54.48 Resources Management 54.49 (257,000) 54.50 Subd. 3. Water Resources Management 54.51 (431,000) 55.1 Of this amount, $25,000 is from the 55.2 appropriation for activities associated 55.3 with the Red River mediation agreement. 55.4 Subd. 4. Forest Management 55.5 (1,337,000) 55.6 Subd. 5. Parks and Recreation 55.7 Management 55.8 (859,000) 55.9 The parks working capital account must 55.10 be used to maintain camping facilities 55.11 at the level currently planned for the 55.12 fiscal year ending June 30, 2003. 55.13 Subd. 6. Trails and Waterways 55.14 Management 55.15 (70,000) 55.16 Of this amount, $6,657 is from the 55.17 balance of the appropriation made in 55.18 Laws 1997, chapter 216, section 5, 55.19 subdivision 6, for the Taconite Harbor 55.20 safe harbor project. 55.21 Subd. 7. Fish Management 55.22 (1,000) 55.23 Subd. 8. Wildlife Management 55.24 (44,000) 55.25 Of this amount, $22,000 is a reduction 55.26 from the appropriation for prescribed 55.27 burning of grassland, wetland, and 55.28 forest habitats, and $22,000 is a 55.29 reduction from the appropriation for 55.30 the shearing and burning of brushland 55.31 habitat. 55.32 Subd. 9. Ecological Services 55.33 (137,000) 55.34 Subd. 10. Enforcement 55.35 (110,000) 55.36 Subd. 11. Operations Support 55.37 (751,000) 55.38 Of this amount, $171,000 is a reduction 55.39 in the appropriation for local 55.40 government units and organizations to 55.41 acquire and develop natural areas and 55.42 greenways. 55.43 Sec. 6. BOARD OF WATER AND 55.44 SOIL RESOURCES (1,368,000) 55.45 This reduction is from the amounts 55.46 appropriated in Laws 2001, First 55.47 Special Session chapter 2, section 6. 55.48 Of this amount, $250,000 is from grants 56.1 for the cost-share program, and 56.2 $300,000 is from the Red River 56.3 set-aside program. These reductions 56.4 are onetime only. 56.5 Of this amount, $688,000 is from the 56.6 appropriation made in Laws 2001, First 56.7 Special Session chapter 2, section 6, 56.8 for natural resources block grants to 56.9 local governments. This reduction is 56.10 onetime only. 56.11 Sec. 7. [TRANSFER AND APPROPRIATION REDUCTION.] 56.12 Subdivision 1. [TRANSFER.] The commissioner of the 56.13 pollution control agency shall transfer $11,000,000 from the 56.14 unreserved balance of the solid waste fund to the commissioner 56.15 of finance for cancellation to the general fund. 56.16 Subd. 2. [APPROPRIATION REDUCTION.] After consultation 56.17 with the chair of the legislative commission on Minnesota 56.18 resources, the commissioner of finance shall reduce $2,400,000 56.19 from appropriations in the future resources fund in accordance 56.20 with Minnesota Statutes, section 16A.152, subdivision 4, 56.21 paragraph (c). 56.22 Subd. 3. [AUTHORIZATION FOR TRUST FUND TRANSFER.] The 56.23 legislative commission on Minnesota resources may authorize up 56.24 to $2,400,000 from environment and natural resources trust fund 56.25 appropriations for the biennium ending June 30, 2003, to replace 56.26 future resources fund appropriation reductions for projects 56.27 under subdivision 2. If authorized by the commission, the chair 56.28 must notify the commissioner of finance with sufficient project 56.29 detail so that the commissioner can transfer the money from the 56.30 environment and natural resources trust fund. 56.31 Sec. 8. Minnesota Statutes 2002, section 115A.908, 56.32 subdivision 2, is amended to read: 56.33 Subd. 2. [DEPOSIT OF REVENUE.] (a) From March 1, 2003, 56.34 through June 30, 2007, revenue collected shall be credited to 56.35 the general fund. 56.36 (b) After June 30, 2007, revenue collected shall be 56.37 credited to the motor vehicle transfer account in the 56.38 environmental fund. As cash flow permits, the commissioner of 56.39 finance must transfer (1) $3,200,000 each fiscal year from the 56.40 motor vehicle transfer account to the environmental response, 57.1 compensation, and compliance account established in section 57.2 115B.20; and (2) $1,200,000 each fiscal year from the motor 57.3 vehicle transfer account to the general fund. 57.4 Sec. 9. Minnesota Statutes 2002, section 116P.05, 57.5 subdivision 2, is amended to read: 57.6 Subd. 2. [DUTIES.] (a) The commission shall recommend a 57.7 budget plan for expenditures from the environment and natural 57.8 resources trust fund and shall adopt a strategic plan as 57.9 provided in section 116P.08. 57.10 (b) After June 30, 2007, the commission shall recommend 57.11 expenditures to the legislature from the Minnesota future 57.12 resources fund under section 116P.13. 57.13 (c) It is a condition of acceptance of the appropriations 57.14 made from the Minnesota future resources fund, Minnesota 57.15 environment and natural resources trust fund, and oil overcharge 57.16 money under section 4.071, subdivision 2, that the agency or 57.17 entity receiving the appropriation must submit a work program 57.18 and semiannual progress reports in the form determined by the 57.19 legislative commission on Minnesota resources. None of the 57.20 money provided may be spent unless the commission has approved 57.21 the pertinent work program. 57.22 (d) The peer review panel created under section 116P.08 57.23 must also review, comment, and report to the commission on 57.24 research proposals applying for an appropriation from the 57.25 Minnesota resources fund and from oil overcharge money under 57.26 section 4.071, subdivision 2. 57.27 (e) The commission may adopt operating procedures to 57.28 fulfill its duties under sections 116P.01 to 116P.13. 57.29 Sec. 10. Minnesota Statutes 2002, section 297F.10, 57.30 subdivision 1, is amended to read: 57.31 Subdivision 1. [TAX AND USE TAX ON CIGARETTES.] Revenue 57.32 received from cigarette taxes, as well as related penalties, 57.33 interest, license fees, and miscellaneous sources of revenue 57.34 shall be deposited by the commissioner in the state treasury and 57.35 credited as follows: 57.36 (a) first to the general obligation special tax bond debt 58.1 service account in each fiscal year the amount required to 58.2 increase the balance on hand in the account on each December 1 58.3 to an amount equal to the full amount of principal and interest 58.4 to come due on all outstanding bonds whose debt service is 58.5 payable primarily from the proceeds of the tax to and including 58.6 the second following July 1; and 58.7 (b) after the requirements of paragraph (a) have been met: 58.8 (1) the revenue produced by one mill of the tax on 58.9 cigarettes weighing not more than three pounds a thousand and 58.10 two mills of the tax on cigarettes weighing more than three 58.11 pounds a thousand must be credited to the general fund from 58.12 March 1, 2003, through June 30, 2007, and credited to the 58.13 Minnesota future resources fund after June 30, 2007; and 58.14 (2) the balance of the revenues derived from taxes, 58.15 penalties, and interest (under this chapter) and from license 58.16 fees and miscellaneous sources of revenue shall be credited to 58.17 the general fund. 58.18 Sec. 11. [EFFECTIVE DATE.] 58.19 Sections 1 to 6 are effective the day following final 58.20 enactment. Sections 7 to 9 are effective March 1, 2003. 58.21 Section 10 is effective for all revenues received after February 58.22 28, 2003. 58.23 ARTICLE 5 58.24 ECONOMIC DEVELOPMENT 58.25 Section 1. [ECONOMIC DEVELOPMENT REDUCTIONS.] 58.26 The dollar amounts in the columns under "APPROPRIATION 58.27 CHANGE" are added to or, if shown in parentheses, are subtracted 58.28 from the appropriations in Laws 2001, First Special Session 58.29 chapter 4 or 10, as amended, by Laws 2002, chapter 220 or 374, 58.30 as amended, or other law to the specified agencies. The 58.31 appropriations are from the general fund or other named fund and 58.32 are available for the fiscal years indicated for each purpose. 58.33 The figure "2003" means that the addition to or subtraction from 58.34 the appropriations listed under the figure is for the fiscal 58.35 year ending June 30, 2003. The reductions are permanent 58.36 adjustments to the base funding of the affected agencies and 59.1 programs except as otherwise stated. 59.2 2003 59.3 TRANSFERS FROM OTHER FUNDS $ 64,000,000 59.4 APPROPRIATION REDUCTIONS (9,691,000) 59.5 APPROPRIATION CHANGE 59.6 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT (4,217,000) 59.7 Of this amount, $1,323,964 is from the 59.8 appropriation made in Laws 2001, First 59.9 Special Session chapter 4, article 1, 59.10 section 2, subdivision 2, for 59.11 contaminated site grants. 59.12 Of this amount, $35,000 is from the 59.13 appropriation made in Laws 2001, First 59.14 Special Session chapter 4, article 1, 59.15 section 2, subdivision 2, for a onetime 59.16 grant for a pilot project incubated by 59.17 Blue Earth county named the Rural 59.18 Advanced Business Facilitation 59.19 Program. This is a onetime reduction. 59.20 Of this amount, $700,000 is from the 59.21 appropriation made in Laws 2001, First 59.22 Special Session chapter 4, article 1, 59.23 section 2, subdivision 2, for Minnesota 59.24 investment fund grants. 59.25 Of this amount, $1,000,000 is from the 59.26 appropriation made in Laws 2001, First 59.27 Special Session chapter 4, article 1, 59.28 section 2, subdivision 4, for the job 59.29 skills partnership and pathways 59.30 programs. 59.31 Of this amount, $480,000 is from the 59.32 appropriation made in Laws 2001, First 59.33 Special Session chapter 4, article 1, 59.34 section 2, subdivision 5, for grants to 59.35 the Minnesota Film Board for a film 59.36 production jobs fund to stimulate film 59.37 production in Minnesota. 59.38 Sec. 3. MINNESOTA TECHNOLOGY, INC. (730,000) 59.39 Sec. 4. ECONOMIC SECURITY (65,000) 59.40 Of this amount, $189,000 is a reduction 59.41 to the agency's base funding. This 59.42 reduction must be taken from agency 59.43 operations other than the workforce 59.44 services for the blind division. 59.45 Of this amount, $124,000 is an increase 59.46 in the funding for the workforce 59.47 services for the blind division. None 59.48 of this increase may be used to resume 59.49 operations of the store previously 59.50 operated by the division. The base 59.51 funding for workforce services for the 59.52 blind in the 2004-2005 biennium shall 59.53 be $5,038,000 each year. 59.54 To the extent that any reductions 59.55 reflected in the department would 59.56 violate federal requirements regarding 60.1 maintenance of effort, the commissioner 60.2 is authorized to exempt from reduction 60.3 the affected programs to the extent 60.4 required to comply with federal 60.5 regulations. The commissioner shall 60.6 realize the reductions that would 60.7 otherwise apply from programs and 60.8 administrative costs funded with 60.9 general fund dollars that do not have 60.10 maintenance of effort requirements. 60.11 Sec. 5. HOUSING FINANCE AGENCY (2,205,000) 60.12 Sec. 6. COMMERCE (684,000) 60.13 Of this amount, $250,000 is from the 60.14 fiscal year 2003 appropriation made in 60.15 Laws 2002, chapter 378, section 3, for 60.16 a school employee insurance plan study. 60.17 The budget base for that study for 60.18 fiscal year 2004 is reduced by 60.19 $400,000. These reductions are for 60.20 fiscal years 2003 and 2004 only. 60.21 Sec. 7. LABOR AND INDUSTRY (118,000) 60.22 Sec. 8. BUREAU OF MEDIATION SERVICES (122,000) 60.23 Of this amount, $47,000 is from 60.24 labor-management cooperation grants 60.25 made to area labor-management 60.26 committees. 60.27 Sec. 9. MINNESOTA HISTORICAL SOCIETY (1,066,000) 60.28 Sec. 10. COUNCIL ON BLACK MINNESOTANS (13,000) 60.29 Sec. 11. COUNCIL ON CHICANO-LATINO AFFAIRS (13,000) 60.30 Sec. 12. COUNCIL ON ASIAN-PACIFIC MINNESOTANS (11,000) 60.31 Sec. 13. INDIAN AFFAIRS COUNCIL (23,000) 60.32 Sec. 14. BOARD OF THE ARTS (384,000) 60.33 Of this amount, $344,000 is from the 60.34 appropriation made in Laws 2001, First 60.35 Special Session chapter 10, article 1, 60.36 section 24, subdivision 3, for grants 60.37 programs. 60.38 Sec. 15. HUMANITIES COMMISSION (40,000) 60.39 Sec. 16. Laws 2002, chapter 220, article 13, section 9, 60.40 subdivision 2, as amended by Laws 2002, chapter 374, article 8, 60.41 section 6, is amended to read: 60.42 Subd. 2. [SPECIAL COMPENSATION FUND.] After June 1, 2003, 60.43 but no later than June 30, 2003, the commissioner of finance 60.44 shall transfer$250,000,000$265,000,000 in assets of the excess 60.45 surplus account of the special compensation fund created under 60.46 Minnesota Statutes, section 176.129, to the general fund. 60.47 Sec. 17. [MINNESOTA MINERALS 21ST CENTURY FUND.] 61.1 By June 30, 2003, the commissioner of finance shall 61.2 transfer $49,000,000 from the Minnesota minerals 21st century 61.3 fund established under Minnesota Statutes, section 116J.423, to 61.4 the commissioner of finance for cancellation to the general fund. 61.5 Sec. 18. [EFFECTIVE DATE.] 61.6 Sections 1 to 17 are effective the day following final 61.7 enactment, unless otherwise specified. 61.8 ARTICLE 6 61.9 TRANSPORTATION 61.10 Section 1. [TRANSPORTATION AND OTHER AGENCIES; APPROPRIATIONS.] 61.11 The dollar amounts in the columns marked "APPROPRIATION 61.12 CHANGE" are added to or, if shown in parentheses, are subtracted 61.13 from the appropriations for the fiscal year ending June 30, 61.14 2003, in Laws 2001, First Special Session chapter 8 or 9, or 61.15 other law, to the specified agencies. The figure "2003" means 61.16 that the addition to or subtraction from the appropriations 61.17 listed under the figure is for the fiscal year ending June 30, 61.18 2003. The appropriations are from the general fund or other 61.19 named fund and are available for the fiscal years indicated for 61.20 each purpose. 61.21 2003 61.22 APPROPRIATION REDUCTIONS - GENERAL FUND (2,615,000) 61.23 CANCELLATIONS - GENERAL FUND (130,000,000) 61.24 TRUNK HIGHWAY BOND PROCEEDS ACCOUNT - 61.25 TRUNK HIGHWAY FUND 130,130,000 61.26 TRANSFERS FROM OTHER FUNDS 15,000,000 61.27 APPROPRIATION CHANGE 61.28 Sec. 2. TRANSPORTATION 61.29 Subdivision 1. Total Appropriation Changes 61.30 Summary by Fund 61.31 General Fund - Cancellations (130,000,000) 61.32 Trunk Highway Fund 131,500,000 61.33 Transfers From Other Funds 15,000,000 61.34 Subd. 2. Aeronautics 61.35 By June 30, 2003, the commissioner of 61.36 finance shall transfer $15,000,000 of 61.37 the cash balance in the state airports 61.38 fund to the general fund. 62.1 Subd. 3. Transit Administration 62.2 The agency's trunk highway fund budget 62.3 base for this activity is reduced by 62.4 $50,000 for each year of the 2004-2005 62.5 fiscal biennium. 62.6 Subd. 4. Motor Carrier Regulation 62.7 The agency's trunk highway fund budget 62.8 base for this program is reduced by 62.9 $250,000 for each year of the 2004-2005 62.10 fiscal biennium. 62.11 Subd. 5. State Roads 62.12 (a) State Road Construction 130,000,000 62.13 This appropriation is from the trunk 62.14 highway bond proceeds account in the 62.15 trunk highway fund and is for the 62.16 purposes of Laws 2000, chapter 479, 62.17 article 1, section 2, subdivision 3. 62.18 This appropriation is available until 62.19 spent. 62.20 Of the general fund appropriation in 62.21 Laws 2000, chapter 479, article 1, 62.22 section 2, subdivision 3, $130,000,000 62.23 cancels to the general fund. 62.24 (b) Central Engineering Services 62.25 The agency's trunk highway fund budget 62.26 base for this program is reduced by 62.27 $1,200,000 for each year of the 62.28 2004-2005 fiscal biennium. 62.29 (c) Design and Construction Engineering 62.30 The agency's trunk highway fund budget 62.31 base for this program is reduced by 62.32 $600,000 for each year of the 2004-2005 62.33 fiscal biennium. 62.34 (d) State Road Operations 62.35 The agency's trunk highway fund budget 62.36 base for this program is reduced by 62.37 $3,500,000 for each year of the 62.38 2004-2005 fiscal biennium. 62.39 Of this reduction $1,000,000 each year 62.40 must come from reduction of the highway 62.41 helper program. 62.42 Of this reduction $500,000 each year 62.43 must come from reduction of the 62.44 transportation worker program. 62.45 Subd. 6. General Support 62.46 The agency's trunk highway fund budget 62.47 base for this program is reduced by 62.48 $4,000,000 for each year of the 62.49 2004-2005 fiscal biennium. 62.50 Of this reduction $2,000,000 each year 62.51 must come from information technology 62.52 expenditures. 63.1 Sec. 3. METROPOLITAN COUNCIL TRANSIT (2,615,000) 63.2 This reduction reduces the agency's 63.3 2004-2005 budget base by $2,615,000. 63.4 Sec. 4. PUBLIC SAFETY 63.5 Subdivision 1. Base Reductions 63.6 The reductions in this section are from 63.7 the trunk highway fund. 63.8 Subd. 2. Administration and Related Services 63.9 The agency's trunk highway fund budget 63.10 base for this program is reduced by 63.11 $500,000 for each year of the 2004-2005 63.12 fiscal biennium. 63.13 Subd. 3. Driver and Vehicle Services 63.14 The agency's trunk highway fund budget 63.15 base is reduced by $1,000,000 for each 63.16 year of the 2004-2005 fiscal biennium. 63.17 Sec. 5. BOND SALE EXPENSES 130,000 63.18 To the commissioner of finance for bond 63.19 sale expenses under Minnesota Statutes, 63.20 section 16A.641, subdivision 8. This 63.21 appropriation is from the trunk highway 63.22 bond proceeds account in the trunk 63.23 highway fund. This appropriation is 63.24 available until spent. 63.25 Sec. 6. [BOND SALE AUTHORIZATION.] 63.26 To provide the money appropriated in this act from the 63.27 trunk highway bond proceeds account, the commissioner of finance 63.28 shall sell and issue bonds of the state in an amount up to 63.29 $130,130,000 in the manner, upon the terms, and with the effect 63.30 prescribed by Minnesota Statutes, sections 167.50 to 167.52, and 63.31 by the Minnesota Constitution, article XIV, section 11, at the 63.32 times and in the amounts requested by the commissioner of 63.33 transportation. The proceeds of the bonds, except accrued 63.34 interest and any premium received on the sale of the bonds, must 63.35 be credited to the trunk highway bond proceeds account in the 63.36 trunk highway fund. 63.37 Sec. 7. [SALE OF STATE AIRPLANE.] 63.38 The commissioner of transportation shall take all necessary 63.39 steps to sell at the earliest feasible date the airplane 63.40 described in Laws 1997, chapter 159, article 1, section 2, 63.41 subdivision 2, paragraph (c). The proceeds from the sale of the 63.42 airplane must be deposited in the general fund. 64.1 Sec. 8. [DRIVER LICENSE STATION CLOSURES; MORATORIUM.] 64.2 Until June 30, 2005, the commissioner of public safety may 64.3 not close any driver license examination station. 64.4 Sec. 9. [EFFECTIVE DATE.] 64.5 Sections 1 to 8 are effective the day following final 64.6 enactment. 64.7 ARTICLE 7 64.8 CRIMINAL JUSTICE APPROPRIATIONS 64.9 Section 1. [APPROPRIATIONS/REDUCTIONS.] 64.10 The dollar amounts in the columns under "APPROPRIATION 64.11 CHANGE" are added to or, if shown in parentheses, are subtracted 64.12 from the appropriations in Laws 2001, First Special Session 64.13 chapter 8 or 9, or other law, as amended by Laws 2002, chapter 64.14 220 or 374, or other law to the specified agencies. The 64.15 appropriations are from the general fund or other named fund and 64.16 are available for the fiscal years indicated for each purpose. 64.17 The figure "2003" means that the addition to or subtraction from 64.18 the appropriations listed under the figure is for the fiscal 64.19 year ending June 30, 2003. 64.20 The appropriation reductions in this article also reduce 64.21 the corresponding budget base by the same amount in subsequent 64.22 years unless otherwise indicated. 64.23 APPROPRIATION CHANGE 64.24 2003 64.25 Sec. 2. SUPREME COURT (1,732,000) 64.26 No portion of this reduction may come 64.27 from a reduction in spending of funds 64.28 appropriated to the courts for the 64.29 Minnesota court information system. 64.30 Of this amount, $442,000 is a reduction 64.31 in funding for civil legal services. 64.32 Sec. 3. COURT OF APPEALS (321,000) 64.33 Sec. 4. DISTRICT COURTS (3,844,000) 64.34 Sec. 5. UNIFORM LAWS COMMISSION (1,000) 64.35 Sec. 6. HUMAN RIGHTS (146,000) 64.36 Sec. 7. BOARD OF PUBLIC 64.37 DEFENSE (1,537,000) 64.38 Sec. 8. CORRECTIONS (2,000,000) 64.39 To the extent possible, the 65.1 commissioner of corrections must aim 65.2 these reductions at juvenile services, 65.3 community services, and operations 65.4 support. However, the commissioner may 65.5 direct the reduction as appropriate to 65.6 achieve the greatest efficiencies, 65.7 considering the demands and resources 65.8 of the entire department. 65.9 No portion of this reduction may come 65.10 from a reduction in spending of funds 65.11 appropriated to the department for 65.12 CriMNet. 65.13 Sec. 9. PUBLIC SAFETY (3,425,000) 65.14 To the maximum extent possible, the 65.15 commissioner must make reductions that 65.16 do not adversely affect public safety 65.17 or the ability of the state of 65.18 Minnesota and local public safety 65.19 professionals to prepare for and 65.20 recover from acts of terrorism. 65.21 Of this amount, $2,500,000 is a 65.22 reduction to CriMNet local planning and 65.23 implementation grants under Minnesota 65.24 Statutes, section 299C.65, subdivisions 65.25 6 and 7. This is a onetime reduction. 65.26 Sec. 10. OMBUDSMAN FOR CORRECTIONS (33,000) 65.27 Sec. 11. SENTENCING GUIDELINES 65.28 COMMISSION (17,000) 65.29 Sec. 12. BOARD OF PRIVATE DETECTIVE 65.30 AND PROTECTIVE AGENT SERVICES (5,000) 65.31 Sec. 13. Minnesota Statutes 2002, section 299A.42, is 65.32 amended to read: 65.33 299A.42 [PUBLIC SAFETY OFFICER'S BENEFIT ACCOUNT.] 65.34 The public safety officer's benefit account is created in 65.35 the state treasury. Money in the account consists of money 65.36 transferred and appropriated to that account. Money in the 65.37 account that is not expended in the fiscal year in which it is 65.38 transferred or appropriated does not revert to the general fund 65.39 until claims for reimbursement under section 299A.465 that are 65.40 submitted in that fiscal year are either paid or denied. 65.41 [EFFECTIVE DATE.] This section is effective July 1, 2002. 65.42 Sec. 14. Minnesota Statutes 2002, section 299A.44, 65.43 subdivision 1, is amended to read: 65.44 Subdivision 1. [PAYMENT REQUIRED.] (a) On certification to 65.45 the governor by the commissioner of public safety that a public 65.46 safety officer employed within this state has been killed in the 65.47 line of duty,leaving a spouse or one or more eligible66.1dependents,the commissioner of finance shall pay $100,000 from 66.2 the public safety officer's benefit account, as follows: 66.3 (1) if there is no dependent child, to the spouse; 66.4 (2) if there is no spouse, to the dependent child or 66.5 children in equal shares; 66.6 (3) if there are both a spouse and one or more dependent 66.7 children, one-half to the spouse and one-half to the child or 66.8 children, in equal shares; 66.9 (4) if there is no surviving spouse or dependent child or 66.10 children, to the parent or parents dependent for support on the 66.11 decedent, in equal shares; or 66.12 (5) if there is no surviving spouse, dependent child, or 66.13 dependent parent,then no payment may be made from the public66.14safety officer's benefit fundto the public safety officer's 66.15 estate. 66.16 (b) If there are both a spouse and one or more dependent 66.17 children under age 18, the spouse, at the spouse's discretion, 66.18 may spend a maximum of one-third of a child's share on medical 66.19 or dental treatment for the child or the child's education. 66.20 Expenditures under this paragraph on behalf of a child do not 66.21 diminish the shares of any other children. In addition, a 66.22 spouse, at the spouse's discretion, may expend money from a 66.23 child's share to pay state and federal taxes on any interest 66.24 accrued on the share. 66.25 [EFFECTIVE DATE.] This section is effective July 1, 2002. 66.26 Sec. 15. Minnesota Statutes 2002, section 299A.465, 66.27 subdivision 1, is amended to read: 66.28 Subdivision 1. [OFFICER OR FIREFIGHTER DISABLED IN LINE OF 66.29 DUTY.] (a) This subdivision applies when a peace officer or 66.30 firefighter suffers a disabling injurythatunder the following 66.31 circumstances: 66.32 (1) the injury is physical in nature and results in the 66.33 officer's or firefighter's retirement or separation from 66.34 service; 66.35 (2) the injury occurs while the officer or firefighter is 66.36 acting in the course and scope of duties as a peace officer or 67.1 firefighter; and 67.2 (3) the officer or firefighter has been approved to receive 67.3 the officer's or firefighter's duty-related disability pension. 67.4 (b) The officer's or firefighter's employer shall continue 67.5 to provide health coverage for: 67.6 (1) the officer or firefighter; and 67.7 (2) the officer's or firefighter's dependents if the 67.8 officer or firefighter was receiving dependent coverage at the 67.9 time of the injury under the employer's group health plan. 67.10 (c) The employer is responsible for the continued payment 67.11 of the employer's contribution for coverage of the officer or 67.12 firefighter and, if applicable, the officer's or firefighter's 67.13 dependents. Coverage must continue for the officer or 67.14 firefighter and, if applicable, the officer's or firefighter's 67.15 dependents until the officer or firefighter reaches the age of 67.16 65. However, coverage for dependents does not have to be 67.17 continued after the person is no longer a dependent. 67.18 Sec. 16. Minnesota Statutes 2002, section 299A.465, 67.19 subdivision 4, is amended to read: 67.20 Subd. 4. [PUBLIC EMPLOYER REIMBURSEMENT.] The commissioner 67.21 of public safety must reimburse a public employer subject to 67.22 this sectionmay annually apply to the commissioner of public67.23safety for reimbursement offor its costs of complying with this 67.24 section. The commissioner shall provide reimbursement to the 67.25 public employer out of the public safety officer's benefit 67.26 account at the close of each fiscal year. If funds in the 67.27 account are insufficient to cover the total amount of approved 67.28 claims, the commissioner must prorate reimbursement to each 67.29 public employer. A public employer that makes a claim for 67.30 reimbursement under this subdivision must submit the claim to 67.31 the commissioner within 31 days of the end of the fiscal year in 67.32 which the expenditure was made. 67.33 [EFFECTIVE DATE.] This section is effective July 1, 2002. 67.34 Sec. 17. [PUBLIC EMPLOYER REIMBURSEMENT FOR OFFICER AND 67.35 FIREFIGHTER HEALTH INSURANCE COVERAGE UNDER MINNESOTA STATUTES, 67.36 SECTION 299A.465; FISCAL YEAR 2002.] 68.1 $301,000 is appropriated in fiscal year 2003 from the 68.2 general fund to the commissioner of public safety to reimburse 68.3 public employers that were denied reimbursement under Minnesota 68.4 Statutes, section 299A.465, subdivision 4, in fiscal year 2002. 68.5 [EFFECTIVE DATE.] This section is effective the day 68.6 following final enactment. 68.7 Sec. 18. Laws 2001, First Special Session chapter 8, 68.8 article 4, section 11, as amended by Laws 2002, chapter 220, 68.9 article 7, section 30, is amended to read: 68.10 Sec. 11. BOARD OF PEACE OFFICER 68.11 STANDARDS AND TRAINING 68.12 4,604,0004,633,00068.13 4,494,000 68.14 [PEACE OFFICER TRAINING ACCOUNT.] This 68.15 appropriation is from the peace officer 68.16 training account in the special revenue 68.17 fund. Any receipts credited to the 68.18 peace officer training account in the 68.19 special revenue fund in the first year 68.20 in excess of $4,604,000 must be 68.21 transferred and credited to the general 68.22 fund. Any receipts credited to the 68.23 peace officer training account in the 68.24 special revenue fund in the second year 68.25 in excess of$4,633,000$4,494,000 must 68.26 be transferred and credited to the 68.27 general fund. 68.28 A $139,000 reduction in funds available 68.29 to peace officer standards and training 68.30 board must be directed to the 68.31 educational opportunities program. 68.32 Sec. 19. [OFFICE ABOLISHED.] 68.33 The office of ombudsman for the Minnesota state department 68.34 of corrections is abolished. 68.35 Sec. 20. [FILE AND DATA TRANSFER.] 68.36 On June 30, 2003, the corrections ombudsman shall deliver 68.37 to the Minnesota historical society all files, records, and data 68.38 under the authority or control of the ombudsman relating to all 68.39 of the activities and investigations of the office of the 68.40 corrections ombudsman. 68.41 Sec. 21. [REPEALER.] 68.42 Minnesota Statutes 2002, sections 241.41; 241.42; 241.43; 68.43 241.44; 241.441; and 241.45, are repealed. 68.44 Sec. 22. [EFFECTIVE DATE.] 68.45 Sections 1 to 21 are effective the day following final 69.1 enactment unless otherwise specified. 69.2 ARTICLE 8 69.3 STATE GOVERNMENT REDUCTIONS 69.4 Section 1. [STATE GOVERNMENT REDUCTIONS.] 69.5 The dollar amounts in the columns under "APPROPRIATION 69.6 CHANGE," shown in parentheses, are subtracted from the 69.7 appropriations in Laws 2001, First Special Session chapter 10, 69.8 as amended by Laws 2002, chapters 220 and 374, or other law to 69.9 the specified agencies. The amounts are from the general fund 69.10 or other named fund. The figure "2003" means that the 69.11 subtraction from the appropriations listed under the figure is 69.12 for the fiscal year ending June 30, 2003. 69.13 APPROPRIATION CHANGE 69.14 Sec. 2. LEGISLATURE 69.15 Subdivision 1. Total Reduction (3,095,000) 69.16 Subd. 2. House of Representatives 69.17 (640,000) 69.18 Subd. 3. Senate 69.19 (1,700,000) 69.20 Subd. 4. Legislative Coordinating 69.21 Commission 69.22 (755,000) 69.23 Sec. 3. SECRETARY OF STATE (164,000) 69.24 Sec. 4. GOVERNOR'S OFFICE (162,000) 69.25 Sec. 5. STATE AUDITOR (390,000) 69.26 Sec. 6. ATTORNEY GENERAL (1,168,000) 69.27 Sec. 7. OFFICE OF STRATEGIC 69.28 AND LONG-RANGE PLANNING (338,000) 69.29 Sec. 8. ADMINISTRATION (1,411,000) 69.30 $2,200,000 of the balance in the 69.31 facility repair and replacement account 69.32 in the state government special revenue 69.33 fund is canceled to the general fund. 69.34 This is a onetime cancellation. 69.35 $950,000 from the voting equipment 69.36 grant account is canceled to the 69.37 general fund on a onetime basis. 69.38 $300 is a reduction in the 69.39 appropriation for the state employees' 69.40 band. 69.41 Sec. 9. FINANCE (694,000) 70.1 Sec. 10. EMPLOYEE RELATIONS (305,000) 70.2 Sec. 11. REVENUE (1,810,000) 70.3 Sec. 12. AMATEUR SPORTS COMMISSION (25,000) 70.4 Sec. 13. MILITARY AFFAIRS (413,000) 70.5 Sec. 14. VETERANS AFFAIRS (186,000) 70.6 Sec. 15. CAMPAIGN FINANCE AND 70.7 PUBLIC DISCLOSURE BOARD (27,000) 70.8 Sec. 16. INVESTMENT BOARD (90,000) 70.9 Sec. 17. LAWFUL GAMBLING CONTROL BOARD (89,000) 70.10 Sec. 18. MINNESOTA RACING COMMISSION (16,000) 70.11 Sec. 19. [CANCELLATION.] 70.12 The unspent and unencumbered balance of the appropriation 70.13 in Laws 1995, chapter 254, article 1, section 13, to the capitol 70.14 area architectural and planning board for predesign and design 70.15 of the Korean War veterans' memorial is canceled on a onetime 70.16 basis. 70.17 Sec. 20. [REDUCTIONS TO BASE.] 70.18 The reductions in sections 2 to 18 are permanent reductions 70.19 in the base unless otherwise indicated. 70.20 Sec. 21. [EFFECTIVE DATE.] 70.21 Sections 1 to 20 are effective the day following final 70.22 enactment unless otherwise specified. 70.23 ARTICLE 9 70.24 TAXES 70.25 Section 1. Minnesota Statutes 2002, section 289A.56, 70.26 subdivision 4, is amended to read: 70.27 Subd. 4. [CAPITAL EQUIPMENT AND CERTAIN BUILDING MATERIALS 70.28 REFUNDS; REFUNDS TO PURCHASERS.] Notwithstanding subdivision 3, 70.29 for refunds payable under section 297A.75, subdivision 70.30 1,clauses (1), (2), (3), and (5),interest is computed from 90 70.31 days after the date the refund claim is filed with the 70.32 commissioner. For refunds payable under section 289A.50, 70.33 subdivision 2a, interest is computed from the 20th day of the 70.34 month following the month of the invoice date for the purchase 70.35 which is the subject of the refund, if the refund claim includes 70.36 a detailed schedule of purchases made during each of the periods 71.1 in the claim. If the refund claim submitted does not contain a 71.2 schedule reflecting purchases made in each period, interest is 71.3 computed from the date the claim was filed. 71.4 [EFFECTIVE DATE.] This section is effective for refund 71.5 claims filed on or after January 15, 2003. 71.6 Sec. 2. Minnesota Statutes 2002, section 297A.75, 71.7 subdivision 4, is amended to read: 71.8 Subd. 4. [INTEREST.] Interest must be paid on the refund 71.9 under this section at the rate in section 270.76from the date71.10the refund claim is filed for taxes paid under subdivision 1,71.11clauses (1) to (3), and (5), andfrom6090 days after the date 71.12 the refund claim is filed with the commissionerfor claims filed71.13under subdivision 1, clauses (4), (6), (7), (8), and (9)until 71.14 the refund is paid. 71.15 [EFFECTIVE DATE.] This section is effective for refund 71.16 claims filed on or after January 15, 2003. 71.17 ARTICLE 10 71.18 CAPITAL PROJECT CANCELLATIONS 71.19 Section 1. [CAPITAL PROJECT CANCELLATION REPORT.] 71.20 Notwithstanding Minnesota Statutes, section 16A.642, 71.21 subdivision 1, the general fund appropriations that are 71.22 unencumbered or otherwise not obligated that are reported by the 71.23 commissioner of finance in 2003, under section 16A.642, 71.24 subdivision 1, are canceled February 1, 2003. 71.25 Sec. 2. [TRANSPORTATION; PORT DEVELOPMENT ASSISTANCE.] 71.26 The unencumbered balance of the appropriation in Laws 2001, 71.27 First Special Session chapter 8, article 1, section 2, 71.28 subdivision 4, in the statewide accounting system as of January 71.29 23, 2003, to the commissioner of transportation for port 71.30 development assistance grants, estimated to be $20,832, is 71.31 canceled to the general fund. 71.32 Sec. 3. [CHILDREN, FAMILIES, AND LEARNING; YOUTH 71.33 ENRICHMENT GRANTS.] 71.34 The unencumbered balance of the appropriation in Laws 2000, 71.35 chapter 492, article 1, section 5, subdivision 7, in the 71.36 statewide accounting system as of January 23, 2003, to the 72.1 commissioner of children, families, and learning for youth 72.2 enrichment grants, estimated to be $994,504, is canceled to the 72.3 general fund. 72.4 Sec. 4. [ADMINISTRATION.] 72.5 Subdivision 1. [BCA HEADQUARTERS.] The unencumbered 72.6 balance of the appropriation in Laws 2000, chapter 492, article 72.7 1, section 12, subdivision 6, in the statewide accounting system 72.8 as of January 23, 2003, to the commissioner of administration 72.9 for the bureau of criminal apprehension offices and 72.10 laboratories, estimated to be $99,788, is canceled to the 72.11 general fund. 72.12 Subd. 2. [PREDESIGN FOR HEALTH AND HUMAN SERVICES 72.13 FACILITIES.] The unencumbered balance of the appropriation in 72.14 Laws 2000, chapter 492, article 1, section 12, subdivision 9, in 72.15 the statewide accounting system as of January 23, 2003, to the 72.16 commissioner of administration for predesign of new facilities 72.17 for the departments of health and human services, estimated to 72.18 be $381, is canceled to the general fund. 72.19 Subd. 3. [AGENCY RELOCATION.] (a) The unencumbered balance 72.20 of the appropriation in Laws 2000, chapter 492, article 1, 72.21 section 12, subdivision 11, in the statewide accounting system 72.22 as of January 23, 2003, to the commissioner of administration 72.23 for agency relocation, estimated to be $53,900, is canceled to 72.24 the general fund. 72.25 (b) The unencumbered balance of the appropriation in Laws 72.26 2002, chapter 393, section 13, subdivision 4, in the statewide 72.27 accounting system as of January 23, 2003, to the commissioner of 72.28 administration for agency relocation, estimated to be 72.29 $1,499,608, is canceled to the general fund. 72.30 Subd. 4. [CAPITOL AREA ARCHITECTURAL AND PLANNING 72.31 BOARD.] The unencumbered balance of the appropriation in Laws 72.32 2002, chapter 393, section 14, in the statewide accounting 72.33 system as of January 23, 2003, to the commissioner of 72.34 administration for repair and conservation work in areas of the 72.35 capitol building, estimated to be $591,614, is canceled to the 72.36 general fund. 73.1 Subd. 5. [MINNEAPOLIS; GUTHRIE THEATER.] The unencumbered 73.2 balance of the appropriation in Laws 2000, chapter 492, article 73.3 1, section 14, subdivision 3, vetoed on May 15, 2000, and 73.4 approved by the legislature overriding the veto on May 17, 2000, 73.5 as amended by Laws 2002, chapter 393, section 31, subdivision 8, 73.6 in the statewide accounting system as of January 23, 2003, to 73.7 the commissioner of administration for a grant to the 73.8 Minneapolis community development agency for land acquisition 73.9 for the Guthrie Theater, estimated to be $2,000,000, is canceled 73.10 to the general fund. 73.11 Sec. 5. [PUBLIC FACILITIES AUTHORITY; WIF.] 73.12 The unencumbered balance of the appropriation in Laws 2000, 73.13 chapter 492, article 1, section 22, subdivision 3, as amended by 73.14 Laws 2000, chapter 499, section 15, Laws 2001, First Special 73.15 Session chapter 12, section 15, and Laws 2002, chapter 393, 73.16 section 81, in the statewide accounting system as of January 23, 73.17 2003, to the public facilities authority for the wastewater 73.18 infrastructure fund program, estimated to be $125,443, is 73.19 canceled to the general fund. 73.20 Sec. 6. [TRADE AND ECONOMIC DEVELOPMENT; REDEVELOPMENT 73.21 GRANTS.] 73.22 The unencumbered balance of the appropriation in Laws 2000, 73.23 chapter 492, article 1, section 22, subdivision 5, in the 73.24 statewide accounting system as of January 23, 2003, to the 73.25 commissioner of trade and economic development for redevelopment 73.26 grants under Minnesota Statutes, section 116J.561, estimated to 73.27 be $17,824, is canceled to the general fund. 73.28 Sec. 7. [EFFECTIVE DATE.] 73.29 This article is effective the day following final enactment. 73.30 ARTICLE 11 73.31 STATE GOVERNMENT LANGUAGE 73.32 Section 1. Minnesota Statutes 2002, section 16A.17, is 73.33 amended by adding a subdivision to read: 73.34 Subd. 10. [DIRECT DEPOSIT.] Notwithstanding section 73.35 177.23, the commissioner may require direct deposit for all 73.36 state employees who are being paid by the state payroll system. 74.1 Sec. 2. Minnesota Statutes 2002, section 16B.47, is 74.2 amended to read: 74.3 16B.47 [MICROGRAPHICS.] 74.4 The commissionershallmay provide micrographics services 74.5 and products to meet agency needs. Within available resources, 74.6 the commissioner may also provide micrographic services to 74.7 political subdivisions. Agency plans and programs for 74.8 micrographics must be submitted to and receive the approval of 74.9 the commissioner prior to implementation. Upon the 74.10 commissioner's approval, subsidiary or independent microfilm 74.11 operations may be implemented in other state agencies. The 74.12 commissioner may direct that copies of official state documents 74.13 be distributed to official state depositories on microfilm. 74.14 Sec. 3. Minnesota Statutes 2002, section 16B.48, 74.15 subdivision 2, is amended to read: 74.16 Subd. 2. [PURPOSE OF FUNDS.] Money in the state treasury 74.17 credited to the general services revolving fund and money that 74.18 is deposited in the fund is appropriated annually to the 74.19 commissioner for the following purposes: 74.20 (1) to operate a central store and equipment service; 74.21 (2)to operate a central duplication and printing service;74.22(3)to operate the central mailing service, including 74.23 purchasing postage and related items and refunding postage 74.24 deposits; 74.25(4)(3) to operate a documents service as prescribed by 74.26 section 16B.51; 74.27(5)(4) to provide services for the maintenance, operation, 74.28 and upkeep of buildings and grounds managed by the commissioner 74.29 of administration; 74.30(6)(5) to operate a materials handling service, including 74.31 interagency mail and product delivery, solid waste removal, 74.32 courier service, equipment rental, and vehicle and equipment 74.33 maintenance; 74.34(7)(6) to provide analytical, statistical, and 74.35 organizational development services to state agencies, local 74.36 units of government, metropolitan and regional agencies, and 75.1 school districts; 75.2(8)(7) to operate a records center and provide 75.3 micrographics products and services; and 75.4(9)(8) to perform services for any other agency. Money 75.5 may be expended for this purpose only when directed by the 75.6 governor. The agency receiving the services shall reimburse the 75.7 fund for their cost, and the commissioner shall make the 75.8 appropriate transfers when requested. The term "services" as 75.9 used in this clause means compensation paid officers and 75.10 employees of the state government; supplies, materials, 75.11 equipment, and other articles and things used by or furnished to 75.12 an agency; and utility services and other services for the 75.13 maintenance, operation, and upkeep of buildings and offices of 75.14 the state government. 75.15 Sec. 4. Minnesota Statutes 2002, section 16B.49, is 75.16 amended to read: 75.17 16B.49 [CENTRAL MAILING SYSTEM.] 75.18 The commissionershallmay maintain and operate for state 75.19 agencies, departments, institutions, and offices a central mail 75.20 handling unit. Official, outgoing mail for units in St. Paul 75.21mustmay be required to be delivered unstamped to the unit. The 75.22 unitshallmay also operate an interoffice mail distribution 75.23 system. The department may add personnel and acquire equipment 75.24 that may be necessary to operate the unit efficiently and 75.25 cost-effectively. Account must be kept of the postage required 75.26 on that mail, which is then a proper charge against the agency 75.27 delivering the mail. To provide funds for the payment of 75.28 postage, each agencyshallmay be required to make advance 75.29 payments to the commissioner sufficient to cover its postage 75.30 obligations for at least 60 days. For purposes of this section, 75.31 the Minnesota state colleges and universities is a state agency. 75.32 Sec. 5. Minnesota Statutes 2002, section 16C.08, 75.33 subdivision 2, is amended to read: 75.34 Subd. 2. [DUTIES OF CONTRACTING AGENCY.] Before an agency 75.35 may seek approval of a professional or technical services 75.36 contract valued in excess of $5,000, it must certify to the 76.1 commissioner that: 76.2 (1)no current state employee is able and available to76.3perform the services called for by the contract;76.4(2)the normal competitive bidding mechanisms will not 76.5 provide for adequate performance of the services; 76.6(3)(2) the contractor has certified that the product of 76.7 the services will be original in character; 76.8(4)(3) reasonable efforts were made to publicize the 76.9 availability of the contract to the public; 76.10(5)(4) the agency has received, reviewed, and accepted a 76.11 detailed work plan from the contractor for performance under the 76.12 contract, if applicable; 76.13(6)(5) the agency has developed, and fully intends to 76.14 implement, a written plan providing for the assignment of 76.15 specific agency personnel to a monitoring and liaison function, 76.16 the periodic review of interim reports or other indications of 76.17 past performance, and the ultimate utilization of the final 76.18 product of the services; and 76.19(7)(6) the agency will not allow the contractor to begin 76.20 work before funds are fully encumbered. 76.21 Sec. 6. Minnesota Statutes 2002, section 16C.08, 76.22 subdivision 3, is amended to read: 76.23 Subd. 3. [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES 76.24 CONTRACTS.] Before approving a proposed contract for 76.25 professional or technical services, the commissioner must 76.26 determine, at least, that: 76.27 (1) all provisions of subdivision 2 and section 16C.16 have 76.28 been verified or complied with; 76.29 (2) the work to be performed under the contract is 76.30 necessary to the agency's achievement of its statutory 76.31 responsibilities and there is statutory authority to enter into 76.32 the contract; 76.33 (3) the contract will not establish an employment 76.34 relationship between the state or the agency and any persons 76.35 performing under the contract; 76.36 (4) the contractor and agents are not employees of the 77.1 state; 77.2 (5)no agency has previously performed or contracted for77.3the performance of tasks which would be substantially duplicated77.4under the proposed contract;77.5(6)the contracting agency has specified a satisfactory 77.6 method of evaluating and using the results of the work to be 77.7 performed; and 77.8(7)(6) the combined contract and amendments will not 77.9 exceed five years, unless otherwise provided for by law. The 77.10 term of the original contract must not exceed two years unless 77.11 the commissioner determines that a longer duration is in the 77.12 best interest of the state. 77.13 Sec. 7. Minnesota Statutes 2002, section 16C.09, is 77.14 amended to read: 77.15 16C.09 [PROCEDURE FOR SERVICE CONTRACTS.] 77.16(a)Before entering into or approving a service contract, 77.17 the commissioner must determine, at least, that: 77.18 (1)no current state employee is able and available to77.19perform the services called for by the contract;77.20(2)the work to be performed under the contract is 77.21 necessary to the agency's achievement of its statutory 77.22 responsibilities and there is statutory authority to enter into 77.23 the contract; 77.24(3)(2) the contract will not establish an employment 77.25 relationship between the state or the agency and any persons 77.26 performing under the contract; 77.27(4)(3) the contractor and agents are not employees of the 77.28 state; 77.29(5)(4) the contracting agency has specified a satisfactory 77.30 method of evaluating and using the results of the work to be 77.31 performed; and 77.32(6)(5) the combined contract and amendments will not 77.33 exceed five years without specific, written approval by the 77.34 commissioner according to established policy, procedures, and 77.35 standards, or unless otherwise provided for by law. The term of 77.36 the original contract must not exceed two years, unless the 78.1 commissioner determines that a longer duration is in the best 78.2 interest of the state. 78.3(b) For purposes of paragraph (a), clause (1), employees78.4are available if qualified and:78.5(1) are already doing the work in question; or78.6(2) are on layoff status in classes that can do the work in78.7question.78.8An employee is not available if the employee is doing other78.9work, is retired, or has decided not to do the work in question.78.10 Sec. 8. Minnesota Statutes 2002, section 16E.07, 78.11 subdivision 9, is amended to read: 78.12 Subd. 9. [AGGREGATION OF SERVICE DEMAND.] The office shall 78.13 identify opportunities to aggregate demand for technical 78.14 services required by government units for online activities and 78.15 may contract with governmental or nongovernmental entities to 78.16 provide services. These contracts are not subject to the 78.17 requirements of chapters 16B and 16C, except sections 16C.04, 78.1816C.07,16C.08, and 16C.09. 78.19 Sec. 9. Minnesota Statutes 2002, section 136F.77, 78.20 subdivision 3, is amended to read: 78.21 Subd. 3. [NO ABROGATION.] Nothing in this section shall 78.22 abrogate the provisions ofsections 43A.047 andsection 136F.581. 78.23 Sec. 10. Minnesota Statutes 2002, section 268.186, is 78.24 amended to read: 78.25 268.186 [RECORDS.] 78.26 (a) Each employer shall keep true and accurate records for 78.27 the periods of time and containing the information the 78.28 commissioner may require. For the purpose of administering this 78.29 chapter, the commissioner has the power to examine, or cause to 78.30 be supplied or copied, any books, correspondence, papers, 78.31 records, or memoranda that are relevant, whether the books, 78.32 correspondence, papers, records, or memoranda are the property 78.33 of or in the possession of the employer or any other person at 78.34 any reasonable time and as often as may be necessary. 78.35 (b) The commissioner may make summaries, compilations, 78.36 photographs, duplications, or reproductions of any records, or 79.1 reports that the commissioner considers advisable for the 79.2 preservation of the information contained therein. Any 79.3 summaries, compilations, photographs, duplications, or 79.4 reproductions shall be admissible in any proceeding under this 79.5 chapter.Regardless of any restrictions contained in section79.616B.50,The commissioner may duplicate records, reports, 79.7 summaries, compilations, instructions, determinations, or any 79.8 other written or recorded matter pertaining to the 79.9 administration of this chapter. 79.10 (c) Regardless of any law to the contrary, the commissioner 79.11 may provide for the destruction of any records, reports, or 79.12 reproductions thereof, or other papers, that are more than two 79.13 years old, and that are no longer necessary for determining 79.14 employer liability or an applicant's unemployment benefit rights 79.15 or for the administration of this chapter, including any 79.16 required audit. The commissioner may provide for the 79.17 destruction or disposition of any record, report, or other paper 79.18 that has been photographed, duplicated, or reproduced. 79.19 Sec. 11. [SALARY SAVINGS.] 79.20 Each appointing authority in the executive, legislative, 79.21 and judicial branches of state government, the Minnesota state 79.22 retirement system, the teachers retirement system, the public 79.23 employees retirement system, the metropolitan council, and the 79.24 state historical society shall determine whether use of 79.25 mandatory unpaid leave is necessary to meet its budget reduction 79.26 goals. Each appointing authority may require unpaid leave and 79.27 shall establish the number of hours to be used by its employees, 79.28 excluding intermittent and emergency appointments, which must 79.29 not exceed 80 hours for full-time employees and a proportional 79.30 share of 80 hours for less than full-time employees. Employees 79.31 may request and appointing authorities may approve additional 79.32 hours of unpaid leave. 79.33 Unpaid leave must be used between the effective date of 79.34 this section and June 30, 2003. Employees on unpaid leave under 79.35 this section shall continue to accrue vacation and sick leave, 79.36 seniority, and service credit in state retirement plans 80.1 permitting service credit for authorized leaves of absence and 80.2 shall be eligible for paid holidays and insurance benefits as if 80.3 the employee had worked the hours of unpaid leave. For purposes 80.4 of overtime, hours of unpaid leave must be treated as paid 80.5 vacation leave. For employees taking unpaid leave under this 80.6 section, any requirement to reduce vacation leave balances by 80.7 the end of the fiscal year is suspended for the year ending June 80.8 30, 2003. Appointing authorities retain discretion to approve 80.9 or disapprove when leave is used and to schedule leave for 80.10 employees who have not arranged by April 1, 2003, to take the 80.11 required number of hours. Unpaid leave under this section is 80.12 not subject to the provisions of collective bargaining 80.13 agreements and plans for unrepresented employees and is not 80.14 subject to collective bargaining under Minnesota Statutes, 80.15 chapter 179A. 80.16 Sec. 12. [GRANTS.] 80.17 Notwithstanding any law to the contrary, no executive 80.18 branch official may take an action that would reduce an 80.19 appropriation for grants and contracts for transmission of 80.20 legislative activities. The executive branch must continue to 80.21 make available the full amount of the appropriation for these 80.22 purposes in Laws 2001, First Special Session chapter 10, article 80.23 1, section 12, subdivision 8. 80.24 Sec. 13. [REPEALER.] 80.25 Minnesota Statutes 2002, sections 16B.50; 16C.07; and 80.26 43A.047, are repealed. 80.27 Sec. 14. [EFFECTIVE DATE.] 80.28 Sections 1 to 13 are effective the day following final 80.29 enactment. 80.30 ARTICLE 12 80.31 AGRICULTURE AND RURAL DEVELOPMENT 80.32 Section 1. [AGRICULTURE AND RURAL DEVELOPMENT APPROPRIATIONS 80.33 AND REDUCTIONS.] 80.34 The dollar amounts in the columns under "APPROPRIATION 80.35 CHANGE" are added to or, if shown in parentheses, are subtracted 80.36 from the appropriations in Laws 2001, First Special Session 81.1 chapter 2, as amended, or other law to the specified agencies. 81.2 The appropriations or reductions are from the general fund for 81.3 the fiscal year ending June 30, 2003. 81.4 2003 81.5 TOTAL APPROPRIATION CHANGE $ (2,492,000) 81.6 APPROPRIATION CHANGE 81.7 Sec. 2. COMMISSIONER OF AGRICULTURE 81.8 Subdivision 1. Total Reduction (1,502,000) 81.9 The reductions from the amounts 81.10 appropriated in Laws 2001, First 81.11 Special Session chapter 2, section 9, 81.12 are shown in subdivisions 2 to 5. 81.13 Subd. 2. Protection Service 81.14 (527,000) 81.15 $7,000 of this reduction is from the 81.16 appropriation for activities of the 81.17 dairy development and profitability 81.18 enhancement teams. 81.19 Subd. 3. Agriculture Marketing 81.20 and Development 81.21 (806,000) 81.22 $25,000 of this reduction is from the 81.23 appropriation for the Minnesota 81.24 certification program under Minnesota 81.25 Statutes, section 17.1025. 81.26 $12,000 of this reduction is from the 81.27 appropriation for beaver control grants 81.28 under Minnesota Statutes, section 81.29 17.110. 81.30 $161,000 of this reduction is from the 81.31 appropriation for grants to farmers for 81.32 demonstration projects involving 81.33 sustainable agriculture as authorized 81.34 in Minnesota Statutes, section 17.116. 81.35 $207,000 of this reduction is from the 81.36 appropriation for value-added 81.37 agricultural product processing and 81.38 marketing grants under Minnesota 81.39 Statutes, section 17.101, subdivision 5. 81.40 Subd. 4. Administration and 81.41 Financial Assistance 81.42 (169,000) 81.43 $89,000 is transferred from the methane 81.44 digester loan account in Minnesota 81.45 Statutes, section 41B.049, subdivision 81.46 2, to the general fund. 81.47 $319,000 is transferred from the 81.48 balance in the sustainable agriculture 81.49 loan program in the special revenue 81.50 fund to the general fund. 82.1 $1,000 of this reduction is from the 82.2 appropriation for family farm security 82.3 interest payment adjustments. 82.4 $65,000 is from the balance of the 82.5 appropriation made in Laws 2000, 82.6 chapter 488, article 3, section 5, for 82.7 grants to one or more cooperative 82.8 associations organized under Minnesota 82.9 Statutes, chapter 308A, primarily for 82.10 the purpose of facilitating the 82.11 production and marketing of short 82.12 rotation woody crops. 82.13 Any refunds received by the state from 82.14 the appropriation in Laws 2000, chapter 82.15 488, article 3, section 5, for short 82.16 rotation woody crops cancel to the 82.17 general fund. 82.18 Subd. 5. Ethanol Producer 82.19 Payments 82.20 Notwithstanding other law to the 82.21 contrary, total payments from the 82.22 ethanol development account to all 82.23 producers for the biennium ending June 82.24 30, 2003, may not exceed $63,775,000. 82.25 For payments made during the second and 82.26 third quarters of fiscal year 2003, the 82.27 commissioner shall make payments to 82.28 producers at the rate of $0.16 per 82.29 gallon of eligible ethanol production. 82.30 In the fourth quarter of fiscal year 82.31 2003 the payments shall be prorated 82.32 across all eligible production. In 82.33 recognition of the state's long-term 82.34 commitment to the ethanol industry, it 82.35 is the intent of the legislature to 82.36 restore producer payments withheld 82.37 during periods of budget crisis by 82.38 extending the total quarters of 82.39 eligibility for each eligible plant 82.40 beyond the initial ten years after 82.41 capacity came into production. 82.42 Sec. 3. BOARD OF ANIMAL HEALTH (103,000) 82.43 Sec. 4. AGRICULTURAL UTILIZATION (887,000) 82.44 RESEARCH INSTITUTE 82.45 Sec. 5. [EFFECTIVE DATE.] 82.46 Sections 1 to 4 are effective the day following final 82.47 enactment.