1.1 	A bill for an act
1.2 	relating to human services; changing the chemical
1.3 	dependency allocation; amending Minnesota Statutes
1.4 	2004, section 254B.02, subdivision 3, by adding a
1.5 	subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 254B.02,
1.8 	subdivision 3, is amended to read:
1.9 		Subd. 3.Reserve account.  The commissioner shall
1.10 	allocate money from the reserve account to counties that, during
1.11 	the current fiscal year, have met or exceeded the base level of
1.12 	expenditures for eligible chemical dependency services from
1.13 	local money.  The commissioner shall establish the base level
1.14 	for fiscal year 1988 as the amount of local money used for
1.15 	eligible services in calendar year 1986.  In later years, the
1.16 	base level must be increased in the same proportion as state
1.17 	appropriations to implement Laws 1986, chapter 394, sections 8
1.18 	to 20, are increased, except the county expenditure under
1.19 	subdivision 2 shall not exceed 55 percent of the total
1.20 	expenditures for fiscal year 2005; 50 percent in fiscal year
1.21 	2006; 45 percent in fiscal year 2007; and 40 percent in fiscal
1.22 	year 2008.  Thereafter the expenditure shall decrease by five
1.23 	percent each fiscal year until the maximum county match is 15
1.24 	percent.  The base level must be decreased if the fund balance
1.25 	from which allocations are made under section 254B.02,
2.1 	subdivision 1, is decreased in later years.  The local match
2.2 	rate for the reserve account is the same rate as applied to the
2.3 	initial allocation.  Reserve account payments must not be
2.4 	included when calculating the county adjustments made according
2.5 	to subdivision 2.  For counties providing medical assistance or
2.6 	general assistance medical care through managed care plans on
2.7 	January 1, 1996, the base year is fiscal year 1995.  For
2.8 	counties beginning provision of managed care after January 1,
2.9 	1996, the base year is the most recent fiscal year before
2.10 	enrollment in managed care begins.  For counties providing
2.11 	managed care, the base level will be increased or decreased in
2.12 	proportion to changes in the fund balance from which allocations
2.13 	are made under subdivision 2, but will be additionally increased
2.14 	or decreased in proportion to the change in county adjusted
2.15 	population made in subdivision 1, paragraphs (b) and (c).
2.16 	Effective July 1, 2001, at the end of each biennium, any funds
2.17 	deposited in the reserve account funds in excess of those needed
2.18 	to meet obligations incurred under this section and sections
2.19 	254B.06 and 254B.09 shall cancel to the general fund.

2.20 	Sec. 2. Minnesota Statutes 2004, section 254B.02, is
2.21 	amended by adding a subdivision to read:
2.22 		Subd. 3a.County expenditure. After the county meets its
2.23 	expenditure requirement under this section and the state
2.24 	appropriation is expended, counties may provide chemical
2.25 	dependency treatment under this section as funding allows.
2.26 	Counties are not required to spend additional funds for chemical
2.27 	dependency treatment.