1.1                          A bill for an act 
  1.2             relating to human services; authorizing the 
  1.3             commissioner of human services to process federal 
  1.4             reimbursement claims for a private entity; amending 
  1.5             Minnesota Statutes 1998, section 256.01, subdivision 2.
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 256.01, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
  1.10  section 241.021, subdivision 2, the commissioner of human 
  1.11  services shall: 
  1.12     (1) Administer and supervise all forms of public assistance 
  1.13  provided for by state law and other welfare activities or 
  1.14  services as are vested in the commissioner.  Administration and 
  1.15  supervision of human services activities or services includes, 
  1.16  but is not limited to, assuring timely and accurate distribution 
  1.17  of benefits, completeness of service, and quality program 
  1.18  management.  In addition to administering and supervising human 
  1.19  services activities vested by law in the department, the 
  1.20  commissioner shall have the authority to: 
  1.21     (a) require county agency participation in training and 
  1.22  technical assistance programs to promote compliance with 
  1.23  statutes, rules, federal laws, regulations, and policies 
  1.24  governing human services; 
  1.25     (b) monitor, on an ongoing basis, the performance of county 
  2.1   agencies in the operation and administration of human services, 
  2.2   enforce compliance with statutes, rules, federal laws, 
  2.3   regulations, and policies governing welfare services and promote 
  2.4   excellence of administration and program operation; 
  2.5      (c) develop a quality control program or other monitoring 
  2.6   program to review county performance and accuracy of benefit 
  2.7   determinations; 
  2.8      (d) require county agencies to make an adjustment to the 
  2.9   public assistance benefits issued to any individual consistent 
  2.10  with federal law and regulation and state law and rule and to 
  2.11  issue or recover benefits as appropriate; 
  2.12     (e) delay or deny payment of all or part of the state and 
  2.13  federal share of benefits and administrative reimbursement 
  2.14  according to the procedures set forth in section 256.017; 
  2.15     (f) make contracts with and grants to public and private 
  2.16  agencies and organizations, both profit and nonprofit, and 
  2.17  individuals, using appropriated funds; and 
  2.18     (g) enter into contractual agreements with federally 
  2.19  recognized Indian tribes with a reservation in Minnesota to the 
  2.20  extent necessary for the tribe to operate a federally approved 
  2.21  family assistance program or any other program under the 
  2.22  supervision of the commissioner.  The commissioner shall consult 
  2.23  with the affected county or counties in the contractual 
  2.24  agreement negotiations, if the county or counties wish to be 
  2.25  included, in order to avoid the duplication of county and tribal 
  2.26  assistance program services.  The commissioner may establish 
  2.27  necessary accounts for the purposes of receiving and disbursing 
  2.28  funds as necessary for the operation of the programs. 
  2.29     (2) Inform county agencies, on a timely basis, of changes 
  2.30  in statute, rule, federal law, regulation, and policy necessary 
  2.31  to county agency administration of the programs. 
  2.32     (3) Administer and supervise all child welfare activities; 
  2.33  promote the enforcement of laws protecting handicapped, 
  2.34  dependent, neglected and delinquent children, and children born 
  2.35  to mothers who were not married to the children's fathers at the 
  2.36  times of the conception nor at the births of the children; 
  3.1   license and supervise child-caring and child-placing agencies 
  3.2   and institutions; supervise the care of children in boarding and 
  3.3   foster homes or in private institutions; and generally perform 
  3.4   all functions relating to the field of child welfare now vested 
  3.5   in the state board of control. 
  3.6      (4) Administer and supervise all noninstitutional service 
  3.7   to handicapped persons, including those who are visually 
  3.8   impaired, hearing impaired, or physically impaired or otherwise 
  3.9   handicapped.  The commissioner may provide and contract for the 
  3.10  care and treatment of qualified indigent children in facilities 
  3.11  other than those located and available at state hospitals when 
  3.12  it is not feasible to provide the service in state hospitals. 
  3.13     (5) Assist and actively cooperate with other departments, 
  3.14  agencies and institutions, local, state, and federal, by 
  3.15  performing services in conformity with the purposes of Laws 
  3.16  1939, chapter 431. 
  3.17     (6) Act as the agent of and cooperate with the federal 
  3.18  government in matters of mutual concern relative to and in 
  3.19  conformity with the provisions of Laws 1939, chapter 431, 
  3.20  including the administration of any federal funds granted to the 
  3.21  state to aid in the performance of any functions of the 
  3.22  commissioner as specified in Laws 1939, chapter 431, and 
  3.23  including the promulgation of rules making uniformly available 
  3.24  medical care benefits to all recipients of public assistance, at 
  3.25  such times as the federal government increases its participation 
  3.26  in assistance expenditures for medical care to recipients of 
  3.27  public assistance, the cost thereof to be borne in the same 
  3.28  proportion as are grants of aid to said recipients. 
  3.29     (7) Establish and maintain any administrative units 
  3.30  reasonably necessary for the performance of administrative 
  3.31  functions common to all divisions of the department. 
  3.32     (8) Act as designated guardian of both the estate and the 
  3.33  person of all the wards of the state of Minnesota, whether by 
  3.34  operation of law or by an order of court, without any further 
  3.35  act or proceeding whatever, except as to persons committed as 
  3.36  mentally retarded.  For children under the guardianship of the 
  4.1   commissioner whose interests would be best served by adoptive 
  4.2   placement, the commissioner may contract with a licensed 
  4.3   child-placing agency to provide adoption services.  A contract 
  4.4   with a licensed child-placing agency must be designed to 
  4.5   supplement existing county efforts and may not replace existing 
  4.6   county programs, unless the replacement is agreed to by the 
  4.7   county board and the appropriate exclusive bargaining 
  4.8   representative or the commissioner has evidence that child 
  4.9   placements of the county continue to be substantially below that 
  4.10  of other counties. 
  4.11     (9) Act as coordinating referral and informational center 
  4.12  on requests for service for newly arrived immigrants coming to 
  4.13  Minnesota. 
  4.14     (10) The specific enumeration of powers and duties as 
  4.15  hereinabove set forth shall in no way be construed to be a 
  4.16  limitation upon the general transfer of powers herein contained. 
  4.17     (11) Establish county, regional, or statewide schedules of 
  4.18  maximum fees and charges which may be paid by county agencies 
  4.19  for medical, dental, surgical, hospital, nursing and nursing 
  4.20  home care and medicine and medical supplies under all programs 
  4.21  of medical care provided by the state and for congregate living 
  4.22  care under the income maintenance programs. 
  4.23     (12) Have the authority to conduct and administer 
  4.24  experimental projects to test methods and procedures of 
  4.25  administering assistance and services to recipients or potential 
  4.26  recipients of public welfare.  To carry out such experimental 
  4.27  projects, it is further provided that the commissioner of human 
  4.28  services is authorized to waive the enforcement of existing 
  4.29  specific statutory program requirements, rules, and standards in 
  4.30  one or more counties.  The order establishing the waiver shall 
  4.31  provide alternative methods and procedures of administration, 
  4.32  shall not be in conflict with the basic purposes, coverage, or 
  4.33  benefits provided by law, and in no event shall the duration of 
  4.34  a project exceed four years.  It is further provided that no 
  4.35  order establishing an experimental project as authorized by the 
  4.36  provisions of this section shall become effective until the 
  5.1   following conditions have been met: 
  5.2      (a) The secretary of health, education, and welfare of the 
  5.3   United States has agreed, for the same project, to waive state 
  5.4   plan requirements relative to statewide uniformity. 
  5.5      (b) A comprehensive plan, including estimated project 
  5.6   costs, shall be approved by the legislative advisory commission 
  5.7   and filed with the commissioner of administration.  
  5.8      (13) According to federal requirements, establish 
  5.9   procedures to be followed by local welfare boards in creating 
  5.10  citizen advisory committees, including procedures for selection 
  5.11  of committee members. 
  5.12     (14) Allocate federal fiscal disallowances or sanctions 
  5.13  which are based on quality control error rates for the aid to 
  5.14  families with dependent children, Minnesota family investment 
  5.15  program-statewide, medical assistance, or food stamp program in 
  5.16  the following manner:  
  5.17     (a) One-half of the total amount of the disallowance shall 
  5.18  be borne by the county boards responsible for administering the 
  5.19  programs.  For the medical assistance, MFIP-S, and AFDC 
  5.20  programs, disallowances shall be shared by each county board in 
  5.21  the same proportion as that county's expenditures for the 
  5.22  sanctioned program are to the total of all counties' 
  5.23  expenditures for the AFDC, MFIP-S, and medical assistance 
  5.24  programs.  For the food stamp program, sanctions shall be shared 
  5.25  by each county board, with 50 percent of the sanction being 
  5.26  distributed to each county in the same proportion as that 
  5.27  county's administrative costs for food stamps are to the total 
  5.28  of all food stamp administrative costs for all counties, and 50 
  5.29  percent of the sanctions being distributed to each county in the 
  5.30  same proportion as that county's value of food stamp benefits 
  5.31  issued are to the total of all benefits issued for all 
  5.32  counties.  Each county shall pay its share of the disallowance 
  5.33  to the state of Minnesota.  When a county fails to pay the 
  5.34  amount due hereunder, the commissioner may deduct the amount 
  5.35  from reimbursement otherwise due the county, or the attorney 
  5.36  general, upon the request of the commissioner, may institute 
  6.1   civil action to recover the amount due. 
  6.2      (b) Notwithstanding the provisions of paragraph (a), if the 
  6.3   disallowance results from knowing noncompliance by one or more 
  6.4   counties with a specific program instruction, and that knowing 
  6.5   noncompliance is a matter of official county board record, the 
  6.6   commissioner may require payment or recover from the county or 
  6.7   counties, in the manner prescribed in paragraph (a), an amount 
  6.8   equal to the portion of the total disallowance which resulted 
  6.9   from the noncompliance, and may distribute the balance of the 
  6.10  disallowance according to paragraph (a).  
  6.11     (15) Develop and implement special projects that maximize 
  6.12  reimbursements and result in the recovery of money to the 
  6.13  state.  For the purpose of recovering state money, the 
  6.14  commissioner may enter into contracts with third parties.  Any 
  6.15  recoveries that result from projects or contracts entered into 
  6.16  under this paragraph shall be deposited in the state treasury 
  6.17  and credited to a special account until the balance in the 
  6.18  account reaches $1,000,000.  When the balance in the account 
  6.19  exceeds $1,000,000, the excess shall be transferred and credited 
  6.20  to the general fund.  All money in the account is appropriated 
  6.21  to the commissioner for the purposes of this paragraph. 
  6.22     (16) Have the authority to make direct payments to 
  6.23  facilities providing shelter to women and their children 
  6.24  according to section 256D.05, subdivision 3.  Upon the written 
  6.25  request of a shelter facility that has been denied payments 
  6.26  under section 256D.05, subdivision 3, the commissioner shall 
  6.27  review all relevant evidence and make a determination within 30 
  6.28  days of the request for review regarding issuance of direct 
  6.29  payments to the shelter facility.  Failure to act within 30 days 
  6.30  shall be considered a determination not to issue direct payments.
  6.31     (17) Have the authority to establish and enforce the 
  6.32  following county reporting requirements:  
  6.33     (a) The commissioner shall establish fiscal and statistical 
  6.34  reporting requirements necessary to account for the expenditure 
  6.35  of funds allocated to counties for human services programs.  
  6.36  When establishing financial and statistical reporting 
  7.1   requirements, the commissioner shall evaluate all reports, in 
  7.2   consultation with the counties, to determine if the reports can 
  7.3   be simplified or the number of reports can be reduced. 
  7.4      (b) The county board shall submit monthly or quarterly 
  7.5   reports to the department as required by the commissioner.  
  7.6   Monthly reports are due no later than 15 working days after the 
  7.7   end of the month.  Quarterly reports are due no later than 30 
  7.8   calendar days after the end of the quarter, unless the 
  7.9   commissioner determines that the deadline must be shortened to 
  7.10  20 calendar days to avoid jeopardizing compliance with federal 
  7.11  deadlines or risking a loss of federal funding.  Only reports 
  7.12  that are complete, legible, and in the required format shall be 
  7.13  accepted by the commissioner.  
  7.14     (c) If the required reports are not received by the 
  7.15  deadlines established in clause (b), the commissioner may delay 
  7.16  payments and withhold funds from the county board until the next 
  7.17  reporting period.  When the report is needed to account for the 
  7.18  use of federal funds and the late report results in a reduction 
  7.19  in federal funding, the commissioner shall withhold from the 
  7.20  county boards with late reports an amount equal to the reduction 
  7.21  in federal funding until full federal funding is received.  
  7.22     (d) A county board that submits reports that are late, 
  7.23  illegible, incomplete, or not in the required format for two out 
  7.24  of three consecutive reporting periods is considered 
  7.25  noncompliant.  When a county board is found to be noncompliant, 
  7.26  the commissioner shall notify the county board of the reason the 
  7.27  county board is considered noncompliant and request that the 
  7.28  county board develop a corrective action plan stating how the 
  7.29  county board plans to correct the problem.  The corrective 
  7.30  action plan must be submitted to the commissioner within 45 days 
  7.31  after the date the county board received notice of noncompliance.
  7.32     (e) The final deadline for fiscal reports or amendments to 
  7.33  fiscal reports is one year after the date the report was 
  7.34  originally due.  If the commissioner does not receive a report 
  7.35  by the final deadline, the county board forfeits the funding 
  7.36  associated with the report for that reporting period and the 
  8.1   county board must repay any funds associated with the report 
  8.2   received for that reporting period. 
  8.3      (f) The commissioner may not delay payments, withhold 
  8.4   funds, or require repayment under paragraph (c) or (e) if the 
  8.5   county demonstrates that the commissioner failed to provide 
  8.6   appropriate forms, guidelines, and technical assistance to 
  8.7   enable the county to comply with the requirements.  If the 
  8.8   county board disagrees with an action taken by the commissioner 
  8.9   under paragraph (c) or (e), the county board may appeal the 
  8.10  action according to sections 14.57 to 14.69. 
  8.11     (g) Counties subject to withholding of funds under 
  8.12  paragraph (c) or forfeiture or repayment of funds under 
  8.13  paragraph (e) shall not reduce or withhold benefits or services 
  8.14  to clients to cover costs incurred due to actions taken by the 
  8.15  commissioner under paragraph (c) or (e). 
  8.16     (18) Allocate federal fiscal disallowances or sanctions for 
  8.17  audit exceptions when federal fiscal disallowances or sanctions 
  8.18  are based on a statewide random sample for the foster care 
  8.19  program under title IV-E of the Social Security Act, United 
  8.20  States Code, title 42, in direct proportion to each county's 
  8.21  title IV-E foster care maintenance claim for that period. 
  8.22     (19) Be responsible for ensuring the detection, prevention, 
  8.23  investigation, and resolution of fraudulent activities or 
  8.24  behavior by applicants, recipients, and other participants in 
  8.25  the human services programs administered by the department. 
  8.26     (20) Require county agencies to identify overpayments, 
  8.27  establish claims, and utilize all available and cost-beneficial 
  8.28  methodologies to collect and recover these overpayments in the 
  8.29  human services programs administered by the department. 
  8.30     (21) Have the authority to administer a drug rebate program 
  8.31  for drugs purchased pursuant to the senior citizen drug program 
  8.32  established under section 256.955 after the beneficiary's 
  8.33  satisfaction of any deductible established in the program.  The 
  8.34  commissioner shall require a rebate agreement from all 
  8.35  manufacturers of covered drugs as defined in section 256B.0625, 
  8.36  subdivision 13.  For each drug, the amount of the rebate shall 
  9.1   be equal to the basic rebate as defined for purposes of the 
  9.2   federal rebate program in United States Code, title 42, section 
  9.3   1396r-8(c)(1).  This basic rebate shall be applied to 
  9.4   single-source and multiple-source drugs.  The manufacturers must 
  9.5   provide full payment within 30 days of receipt of the state 
  9.6   invoice for the rebate within the terms and conditions used for 
  9.7   the federal rebate program established pursuant to section 1927 
  9.8   of title XIX of the Social Security Act.  The manufacturers must 
  9.9   provide the commissioner with any information necessary to 
  9.10  verify the rebate determined per drug.  The rebate program shall 
  9.11  utilize the terms and conditions used for the federal rebate 
  9.12  program established pursuant to section 1927 of title XIX of the 
  9.13  Social Security Act. 
  9.14     (22) Incorporate cost reimbursement claims from First Call 
  9.15  Minnesota into the federal cost reimbursement claiming processes 
  9.16  of the department according to federal law, rule, and 
  9.17  regulations.  Any reimbursement received is appropriated to the 
  9.18  commissioner and shall be disbursed to First Call Minnesota 
  9.19  according to normal department payment schedules.