1.1                          A bill for an act 
  1.2             relating to human services; modifying child welfare 
  1.3             programs and children's mental health collaboratives; 
  1.4             providing for privatization of adoption services for 
  1.5             children under state guardianship; establishing pilot 
  1.6             projects; appropriating money; amending Minnesota 
  1.7             Statutes 1996, sections 245.4882, subdivision 5; 
  1.8             245.493, subdivision 1, and by adding a subdivision; 
  1.9             256.01, subdivision 2, and by adding a subdivision; 
  1.10            256.045, subdivisions 3, 3b, 4, 5, and 8; 256.82, by 
  1.11            adding a subdivision; 393.07, subdivision 2; 466.01, 
  1.12            subdivision 1; 471.59, subdivision 11; 517.08, 
  1.13            subdivision 1c; 626.558, subdivisions 1 and 2; and 
  1.14            626.559, subdivision 5. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1996, section 245.4882, 
  1.17  subdivision 5, is amended to read: 
  1.18     Subd. 5.  [SPECIALIZED RESIDENTIAL TREATMENT SERVICES.] The 
  1.19  commissioner of human services shall continue efforts to further 
  1.20  interagency collaboration to develop a comprehensive system of 
  1.21  services, including family community support and specialized 
  1.22  residential treatment services for children.  The services shall 
  1.23  be designed for children with emotional disturbance who exhibit 
  1.24  violent or destructive behavior and for whom local treatment 
  1.25  services are not feasible due to the small number of children 
  1.26  statewide who need the services and the specialized nature of 
  1.27  the services required.  The services shall be located in 
  1.28  community settings.  If no appropriate services are available in 
  1.29  Minnesota or within the geographical area in which the residents 
  1.30  of the county normally do business, the commissioner is 
  2.1   responsible, effective July 1, 1997, for 50 percent of the 
  2.2   nonfederal costs of out-of-state treatment of children for whom 
  2.3   no appropriate resources are available in Minnesota.  Counties 
  2.4   are eligible to receive enhanced state funding under this 
  2.5   section only if they have established juvenile screening teams 
  2.6   under section 260.151, subdivision 3, and if the out-of-state 
  2.7   treatment has been approved by the commissioner.  By January 1, 
  2.8   1995, the commissioners of human services and corrections shall 
  2.9   jointly develop a plan, including a financing strategy, for 
  2.10  increasing the in-state availability of treatment within a 
  2.11  secure setting.  By July 1, 1994, the commissioner of human 
  2.12  services shall also: 
  2.13     (1) conduct a study and develop a plan to meet the needs of 
  2.14  children with both a developmental disability and severe 
  2.15  emotional disturbance; and 
  2.16     (2) study the feasibility of expanding medical assistance 
  2.17  coverage to include specialized residential treatment for the 
  2.18  children described in this subdivision.  
  2.19     Sec. 2.  Minnesota Statutes 1996, section 245.493, 
  2.20  subdivision 1, is amended to read: 
  2.21     Subdivision 1.  [REQUIREMENTS TO QUALIFY AS A LOCAL 
  2.22  CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 
  2.23  a local children's mental health collaborative and be eligible 
  2.24  to receive start-up funds, the representatives of the local 
  2.25  system of care, including entities provided under section 
  2.26  245.4875, subdivision 6, and nongovernmental entities such as 
  2.27  parents of children in the target population; parent and 
  2.28  consumer organizations; community, civic, and religious 
  2.29  organizations; private and nonprofit mental and physical health 
  2.30  care providers; culturally specific organizations; local 
  2.31  foundations; and businesses, or at a minimum one county, one 
  2.32  school district or special education cooperative, and one mental 
  2.33  health entity, and, by July 1, 1998, one juvenile justice or 
  2.34  corrections entity, must agree to the following: 
  2.35     (1) to establish a local children's mental health 
  2.36  collaborative and develop an integrated service system; and 
  3.1      (2) to commit resources to providing services through the 
  3.2   local children's mental health collaborative. 
  3.3      Sec. 3.  Minnesota Statutes 1996, section 245.493, is 
  3.4   amended by adding a subdivision to read: 
  3.5      Subd. 1a.  [DUTIES OF CERTAIN COORDINATING BODIES.] By 
  3.6   mutual agreement of the collaborative and a coordinating body 
  3.7   listed in this subdivision, a children's mental health 
  3.8   collaborative or a collaborative established by the merger of a 
  3.9   children's mental health collaborative and a family services 
  3.10  collaborative under section 121.8355, may assume the duties of a 
  3.11  community transition interagency committee established under 
  3.12  section 120.17, subdivision 16; an interagency early 
  3.13  intervention committee established under 120.1701, subdivision 
  3.14  5; a local advisory council established under section 245.4875, 
  3.15  subdivision 5; or a local coordinating council established under 
  3.16  section 245.4875, subdivision 6. 
  3.17     Sec. 4.  Minnesota Statutes 1996, section 256.01, 
  3.18  subdivision 2, is amended to read: 
  3.19     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
  3.20  section 241.021, subdivision 2, the commissioner of human 
  3.21  services shall: 
  3.22     (1) Administer and supervise all forms of public assistance 
  3.23  provided for by state law and other welfare activities or 
  3.24  services as are vested in the commissioner.  Administration and 
  3.25  supervision of human services activities or services includes, 
  3.26  but is not limited to, assuring timely and accurate distribution 
  3.27  of benefits, completeness of service, and quality program 
  3.28  management.  In addition to administering and supervising human 
  3.29  services activities vested by law in the department, the 
  3.30  commissioner shall have the authority to: 
  3.31     (a) require county agency participation in training and 
  3.32  technical assistance programs to promote compliance with 
  3.33  statutes, rules, federal laws, regulations, and policies 
  3.34  governing human services; 
  3.35     (b) monitor, on an ongoing basis, the performance of county 
  3.36  agencies in the operation and administration of human services, 
  4.1   enforce compliance with statutes, rules, federal laws, 
  4.2   regulations, and policies governing welfare services and promote 
  4.3   excellence of administration and program operation; 
  4.4      (c) develop a quality control program or other monitoring 
  4.5   program to review county performance and accuracy of benefit 
  4.6   determinations; 
  4.7      (d) require county agencies to make an adjustment to the 
  4.8   public assistance benefits issued to any individual consistent 
  4.9   with federal law and regulation and state law and rule and to 
  4.10  issue or recover benefits as appropriate; 
  4.11     (e) delay or deny payment of all or part of the state and 
  4.12  federal share of benefits and administrative reimbursement 
  4.13  according to the procedures set forth in section 256.017; and 
  4.14     (f) make contracts with and grants to public and private 
  4.15  agencies and organizations, both profit and nonprofit, and 
  4.16  individuals, using appropriated funds. 
  4.17     (2) Inform county agencies, on a timely basis, of changes 
  4.18  in statute, rule, federal law, regulation, and policy necessary 
  4.19  to county agency administration of the programs. 
  4.20     (3) Administer and supervise all child welfare activities; 
  4.21  promote the enforcement of laws protecting handicapped, 
  4.22  dependent, neglected and delinquent children, and children born 
  4.23  to mothers who were not married to the children's fathers at the 
  4.24  times of the conception nor at the births of the children; 
  4.25  license and supervise child-caring and child-placing agencies 
  4.26  and institutions; supervise the care of children in boarding and 
  4.27  foster homes or in private institutions; and generally perform 
  4.28  all functions relating to the field of child welfare now vested 
  4.29  in the state board of control. 
  4.30     (4) Administer and supervise all noninstitutional service 
  4.31  to handicapped persons, including those who are visually 
  4.32  impaired, hearing impaired, or physically impaired or otherwise 
  4.33  handicapped.  The commissioner may provide and contract for the 
  4.34  care and treatment of qualified indigent children in facilities 
  4.35  other than those located and available at state hospitals when 
  4.36  it is not feasible to provide the service in state hospitals. 
  5.1      (5) Assist and actively cooperate with other departments, 
  5.2   agencies and institutions, local, state, and federal, by 
  5.3   performing services in conformity with the purposes of Laws 
  5.4   1939, chapter 431. 
  5.5      (6) Act as the agent of and cooperate with the federal 
  5.6   government in matters of mutual concern relative to and in 
  5.7   conformity with the provisions of Laws 1939, chapter 431, 
  5.8   including the administration of any federal funds granted to the 
  5.9   state to aid in the performance of any functions of the 
  5.10  commissioner as specified in Laws 1939, chapter 431, and 
  5.11  including the promulgation of rules making uniformly available 
  5.12  medical care benefits to all recipients of public assistance, at 
  5.13  such times as the federal government increases its participation 
  5.14  in assistance expenditures for medical care to recipients of 
  5.15  public assistance, the cost thereof to be borne in the same 
  5.16  proportion as are grants of aid to said recipients. 
  5.17     (7) Establish and maintain any administrative units 
  5.18  reasonably necessary for the performance of administrative 
  5.19  functions common to all divisions of the department. 
  5.20     (8) Act as designated guardian of both the estate and the 
  5.21  person of all the wards of the state of Minnesota, whether by 
  5.22  operation of law or by an order of court, without any further 
  5.23  act or proceeding whatever, except as to persons committed as 
  5.24  mentally retarded.  For children under the guardianship of the 
  5.25  commissioner whose interests would be best served by adoptive 
  5.26  placement, the commissioner may contract with a licensed 
  5.27  child-placing agency to provide adoption services.  A contract 
  5.28  with a licensed child-placing agency must be designed to 
  5.29  supplement existing county efforts, and shall not replace 
  5.30  existing county programs, unless the replacement is agreed to by 
  5.31  the county board and the appropriate exclusive bargaining 
  5.32  representative.  
  5.33     (9) Act as coordinating referral and informational center 
  5.34  on requests for service for newly arrived immigrants coming to 
  5.35  Minnesota. 
  5.36     (10) The specific enumeration of powers and duties as 
  6.1   hereinabove set forth shall in no way be construed to be a 
  6.2   limitation upon the general transfer of powers herein contained. 
  6.3      (11) Establish county, regional, or statewide schedules of 
  6.4   maximum fees and charges which may be paid by county agencies 
  6.5   for medical, dental, surgical, hospital, nursing and nursing 
  6.6   home care and medicine and medical supplies under all programs 
  6.7   of medical care provided by the state and for congregate living 
  6.8   care under the income maintenance programs. 
  6.9      (12) Have the authority to conduct and administer 
  6.10  experimental projects to test methods and procedures of 
  6.11  administering assistance and services to recipients or potential 
  6.12  recipients of public welfare.  To carry out such experimental 
  6.13  projects, it is further provided that the commissioner of human 
  6.14  services is authorized to waive the enforcement of existing 
  6.15  specific statutory program requirements, rules, and standards in 
  6.16  one or more counties.  The order establishing the waiver shall 
  6.17  provide alternative methods and procedures of administration, 
  6.18  shall not be in conflict with the basic purposes, coverage, or 
  6.19  benefits provided by law, and in no event shall the duration of 
  6.20  a project exceed four years.  It is further provided that no 
  6.21  order establishing an experimental project as authorized by the 
  6.22  provisions of this section shall become effective until the 
  6.23  following conditions have been met: 
  6.24     (a) The proposed comprehensive plan, including estimated 
  6.25  project costs and the proposed order establishing the waiver, 
  6.26  shall be filed with the secretary of the senate and chief clerk 
  6.27  of the house of representatives at least 60 days prior to its 
  6.28  effective date. 
  6.29     (b) The secretary of health, education, and welfare of the 
  6.30  United States has agreed, for the same project, to waive state 
  6.31  plan requirements relative to statewide uniformity. 
  6.32     (c) A comprehensive plan, including estimated project 
  6.33  costs, shall be approved by the legislative advisory commission 
  6.34  and filed with the commissioner of administration.  
  6.35     (13) In accordance with federal requirements, establish 
  6.36  procedures to be followed by local welfare boards in creating 
  7.1   citizen advisory committees, including procedures for selection 
  7.2   of committee members. 
  7.3      (14) Allocate federal fiscal disallowances or sanctions 
  7.4   which are based on quality control error rates for the aid to 
  7.5   families with dependent children, medical assistance, or food 
  7.6   stamp program in the following manner:  
  7.7      (a) One-half of the total amount of the disallowance shall 
  7.8   be borne by the county boards responsible for administering the 
  7.9   programs.  For the medical assistance and AFDC programs, 
  7.10  disallowances shall be shared by each county board in the same 
  7.11  proportion as that county's expenditures for the sanctioned 
  7.12  program are to the total of all counties' expenditures for the 
  7.13  AFDC and medical assistance programs.  For the food stamp 
  7.14  program, sanctions shall be shared by each county board, with 50 
  7.15  percent of the sanction being distributed to each county in the 
  7.16  same proportion as that county's administrative costs for food 
  7.17  stamps are to the total of all food stamp administrative costs 
  7.18  for all counties, and 50 percent of the sanctions being 
  7.19  distributed to each county in the same proportion as that 
  7.20  county's value of food stamp benefits issued are to the total of 
  7.21  all benefits issued for all counties.  Each county shall pay its 
  7.22  share of the disallowance to the state of Minnesota.  When a 
  7.23  county fails to pay the amount due hereunder, the commissioner 
  7.24  may deduct the amount from reimbursement otherwise due the 
  7.25  county, or the attorney general, upon the request of the 
  7.26  commissioner, may institute civil action to recover the amount 
  7.27  due. 
  7.28     (b) Notwithstanding the provisions of paragraph (a), if the 
  7.29  disallowance results from knowing noncompliance by one or more 
  7.30  counties with a specific program instruction, and that knowing 
  7.31  noncompliance is a matter of official county board record, the 
  7.32  commissioner may require payment or recover from the county or 
  7.33  counties, in the manner prescribed in paragraph (a), an amount 
  7.34  equal to the portion of the total disallowance which resulted 
  7.35  from the noncompliance, and may distribute the balance of the 
  7.36  disallowance according to paragraph (a).  
  8.1      (15) Develop and implement special projects that maximize 
  8.2   reimbursements and result in the recovery of money to the 
  8.3   state.  For the purpose of recovering state money, the 
  8.4   commissioner may enter into contracts with third parties.  Any 
  8.5   recoveries that result from projects or contracts entered into 
  8.6   under this paragraph shall be deposited in the state treasury 
  8.7   and credited to a special account until the balance in the 
  8.8   account reaches $1,000,000.  When the balance in the account 
  8.9   exceeds $1,000,000, the excess shall be transferred and credited 
  8.10  to the general fund.  All money in the account is appropriated 
  8.11  to the commissioner for the purposes of this paragraph. 
  8.12     (16) Have the authority to make direct payments to 
  8.13  facilities providing shelter to women and their children 
  8.14  pursuant to section 256D.05, subdivision 3.  Upon the written 
  8.15  request of a shelter facility that has been denied payments 
  8.16  under section 256D.05, subdivision 3, the commissioner shall 
  8.17  review all relevant evidence and make a determination within 30 
  8.18  days of the request for review regarding issuance of direct 
  8.19  payments to the shelter facility.  Failure to act within 30 days 
  8.20  shall be considered a determination not to issue direct payments.
  8.21     (17) Have the authority to establish and enforce the 
  8.22  following county reporting requirements:  
  8.23     (a) The commissioner shall establish fiscal and statistical 
  8.24  reporting requirements necessary to account for the expenditure 
  8.25  of funds allocated to counties for human services programs.  
  8.26  When establishing financial and statistical reporting 
  8.27  requirements, the commissioner shall evaluate all reports, in 
  8.28  consultation with the counties, to determine if the reports can 
  8.29  be simplified or the number of reports can be reduced. 
  8.30     (b) The county board shall submit monthly or quarterly 
  8.31  reports to the department as required by the commissioner.  
  8.32  Monthly reports are due no later than 15 working days after the 
  8.33  end of the month.  Quarterly reports are due no later than 30 
  8.34  calendar days after the end of the quarter, unless the 
  8.35  commissioner determines that the deadline must be shortened to 
  8.36  20 calendar days to avoid jeopardizing compliance with federal 
  9.1   deadlines or risking a loss of federal funding.  Only reports 
  9.2   that are complete, legible, and in the required format shall be 
  9.3   accepted by the commissioner.  
  9.4      (c) If the required reports are not received by the 
  9.5   deadlines established in clause (b), the commissioner may delay 
  9.6   payments and withhold funds from the county board until the next 
  9.7   reporting period.  When the report is needed to account for the 
  9.8   use of federal funds and the late report results in a reduction 
  9.9   in federal funding, the commissioner shall withhold from the 
  9.10  county boards with late reports an amount equal to the reduction 
  9.11  in federal funding until full federal funding is received.  
  9.12     (d) A county board that submits reports that are late, 
  9.13  illegible, incomplete, or not in the required format for two out 
  9.14  of three consecutive reporting periods is considered 
  9.15  noncompliant.  When a county board is found to be noncompliant, 
  9.16  the commissioner shall notify the county board of the reason the 
  9.17  county board is considered noncompliant and request that the 
  9.18  county board develop a corrective action plan stating how the 
  9.19  county board plans to correct the problem.  The corrective 
  9.20  action plan must be submitted to the commissioner within 45 days 
  9.21  after the date the county board received notice of noncompliance.
  9.22     (e) The final deadline for fiscal reports or amendments to 
  9.23  fiscal reports is one year after the date the report was 
  9.24  originally due.  If the commissioner does not receive a report 
  9.25  by the final deadline, the county board forfeits the funding 
  9.26  associated with the report for that reporting period and the 
  9.27  county board must repay any funds associated with the report 
  9.28  received for that reporting period. 
  9.29     (f) The commissioner may not delay payments, withhold 
  9.30  funds, or require repayment under paragraph (c) or (e) if the 
  9.31  county demonstrates that the commissioner failed to provide 
  9.32  appropriate forms, guidelines, and technical assistance to 
  9.33  enable the county to comply with the requirements.  If the 
  9.34  county board disagrees with an action taken by the commissioner 
  9.35  under paragraph (c) or (e), the county board may appeal the 
  9.36  action according to sections 14.57 to 14.69. 
 10.1      (g) Counties subject to withholding of funds under 
 10.2   paragraph (c) or forfeiture or repayment of funds under 
 10.3   paragraph (e) shall not reduce or withhold benefits or services 
 10.4   to clients to cover costs incurred due to actions taken by the 
 10.5   commissioner under paragraph (c) or (e). 
 10.6      (18) Allocate federal fiscal disallowances or sanctions for 
 10.7   audit exceptions when federal fiscal disallowances or sanctions 
 10.8   are based on a statewide random sample for the foster care 
 10.9   program under title IV-E of the Social Security Act, United 
 10.10  States Code, title 42, in direct proportion to each county's 
 10.11  title IV-E foster care maintenance claim for that period. 
 10.12     Sec. 5.  Minnesota Statutes 1996, section 256.01, is 
 10.13  amended by adding a subdivision to read: 
 10.14     Subd. 14.  [CHILD WELFARE REFORM PILOTS.] The commissioner 
 10.15  of human services shall encourage local reforms in the delivery 
 10.16  of child welfare services and is authorized to approve local 
 10.17  pilot programs which focus on reforming the child protection and 
 10.18  child welfare systems in Minnesota.  Authority to approve pilots 
 10.19  includes authority to waive existing state rule and statutory 
 10.20  requirements as needed to accomplish reform efforts.  Pilot 
 10.21  programs must be required to address responsibility for safety 
 10.22  and protection of children, be time limited, and include 
 10.23  evaluation of the pilot program. 
 10.24     Sec. 6.  Minnesota Statutes 1996, section 256.045, 
 10.25  subdivision 3, is amended to read: 
 10.26     Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
 10.27  hearings are available for the following:  (1) any person 
 10.28  applying for, receiving or having received public assistance or 
 10.29  a program of social services granted by the state agency or a 
 10.30  county agency under sections 252.32, 256.031 to 256.036, and 
 10.31  256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 
 10.32  federal Food Stamp Act whose application for assistance is 
 10.33  denied, not acted upon with reasonable promptness, or whose 
 10.34  assistance is suspended, reduced, terminated, or claimed to have 
 10.35  been incorrectly paid; (2) any patient or relative aggrieved by 
 10.36  an order of the commissioner under section 252.27; (3) a party 
 11.1   aggrieved by a ruling of a prepaid health plan; (4) any 
 11.2   individual or facility determined by a lead agency to have 
 11.3   maltreated a vulnerable adult under section 626.557 after they 
 11.4   have exercised their right to administrative reconsideration 
 11.5   under section 626.557; (5) any person whose claim for foster 
 11.6   care payment pursuant to a placement of the child resulting from 
 11.7   a child protection assessment under section 626.556 is denied or 
 11.8   not acted upon with reasonable promptness, regardless of funding 
 11.9   source; (6) any person to whom a right of appeal pursuant to 
 11.10  this section is given by other provision of law; or (7) an 
 11.11  applicant aggrieved by an adverse decision to an application for 
 11.12  a hardship waiver under section 256B.15; or (8) an individual or 
 11.13  facility determined to have maltreated a minor under section 
 11.14  626.556.  The failure to exercise the right to an administrative 
 11.15  reconsideration shall not be a bar to a hearing under this 
 11.16  section if federal law provides an individual the right to a 
 11.17  hearing to dispute a finding of maltreatment.  Individuals and 
 11.18  organizations specified in this section may contest the 
 11.19  specified action, decision, or final disposition before the 
 11.20  state agency by submitting a written request for a hearing to 
 11.21  the state agency within 30 days after receiving written notice 
 11.22  of the action, decision, or final disposition, or within 90 days 
 11.23  of such written notice if the applicant, recipient, patient, or 
 11.24  relative shows good cause why the request was not submitted 
 11.25  within the 30-day time limit. 
 11.26     The hearing for an individual or facility under clause (4) 
 11.27  or (8) is the only administrative appeal to the final lead 
 11.28  agency disposition determination specifically, including a 
 11.29  challenge to the accuracy and completeness of data under section 
 11.30  13.04.  Hearings requested under clause (4) apply only to 
 11.31  incidents of maltreatment that occur on or after October 1, 
 11.32  1995.  Hearings requested by nursing assistants in nursing homes 
 11.33  alleged to have maltreated a resident prior to October 1, 1995, 
 11.34  shall be held as a contested case proceeding under the 
 11.35  provisions of chapter 14.  Hearings requested under clause (8) 
 11.36  apply only to incidents of maltreatment that occur on or after 
 12.1   July 1, 1997.  A hearing for an individual or facility under 
 12.2   clause (8) is only available when there is no juvenile court or 
 12.3   adult criminal action pending.  If such action is filed in 
 12.4   either court while an administrative review is pending, the 
 12.5   administrative review must be suspended until the judicial 
 12.6   actions are completed.  If the juvenile court action or criminal 
 12.7   charge is dismissed or the criminal action overturned, the 
 12.8   matter may be considered in an administrative hearing. 
 12.9      For purposes of this section, bargaining unit grievance 
 12.10  procedures are not an administrative appeal. 
 12.11     The scope of hearings involving claims to foster care 
 12.12  payments under clause (5) shall be limited to the issue of 
 12.13  whether the county is legally responsible for a child's 
 12.14  placement under court order or voluntary placement agreement 
 12.15  and, if so, the correct amount of foster care payment to be made 
 12.16  on the child's behalf and shall not include review of the 
 12.17  propriety of the county's child protection determination or 
 12.18  child placement decision. 
 12.19     (b) Except for a prepaid health plan, a vendor of medical 
 12.20  care as defined in section 256B.02, subdivision 7, or a vendor 
 12.21  under contract with a county agency to provide social services 
 12.22  under section 256E.08, subdivision 4, is not a party and may not 
 12.23  request a hearing under this section, except if assisting a 
 12.24  recipient as provided in subdivision 4. 
 12.25     (c) An applicant or recipient is not entitled to receive 
 12.26  social services beyond the services included in the amended 
 12.27  community social services plan developed under section 256E.081, 
 12.28  subdivision 3, if the county agency has met the requirements in 
 12.29  section 256E.081. 
 12.30     Sec. 7.  Minnesota Statutes 1996, section 256.045, 
 12.31  subdivision 3b, is amended to read: 
 12.32     Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT 
 12.33  HEARINGS.] The state human services referee shall determine that 
 12.34  maltreatment has occurred if a preponderance of evidence exists 
 12.35  to support the final disposition under section sections 626.556 
 12.36  and 626.557. 
 13.1      The state human services referee shall recommend an order 
 13.2   to the commissioner of health or human services, as applicable, 
 13.3   who shall issue a final order.  The commissioner shall affirm, 
 13.4   reverse, or modify the final disposition.  Any order of the 
 13.5   commissioner issued in accordance with this subdivision is 
 13.6   conclusive upon the parties unless appeal is taken in the manner 
 13.7   provided in subdivision 7.  In any licensing appeal under 
 13.8   chapter 245A and sections 144.50 to 144.58 and 144A.02 to 
 13.9   144A.46, the commissioner's findings determination as to whether 
 13.10  maltreatment occurred is conclusive. 
 13.11     Sec. 8.  Minnesota Statutes 1996, section 256.045, 
 13.12  subdivision 4, is amended to read: 
 13.13     Subd. 4.  [CONDUCT OF HEARINGS.] (a) All hearings held 
 13.14  pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 
 13.15  according to the provisions of the federal Social Security Act 
 13.16  and the regulations implemented in accordance with that act to 
 13.17  enable this state to qualify for federal grants-in-aid, and 
 13.18  according to the rules and written policies of the commissioner 
 13.19  of human services.  County agencies shall install equipment 
 13.20  necessary to conduct telephone hearings.  A state human services 
 13.21  referee may schedule a telephone conference hearing when the 
 13.22  distance or time required to travel to the county agency offices 
 13.23  will cause a delay in the issuance of an order, or to promote 
 13.24  efficiency, or at the mutual request of the parties.  Hearings 
 13.25  may be conducted by telephone conferences unless the applicant, 
 13.26  recipient, former recipient, person, or facility contesting 
 13.27  maltreatment objects.  The hearing shall not be held earlier 
 13.28  than five days after filing of the required notice with the 
 13.29  county or state agency.  The state human services referee shall 
 13.30  notify all interested persons of the time, date, and location of 
 13.31  the hearing at least five days before the date of the hearing.  
 13.32  Interested persons may be represented by legal counsel or other 
 13.33  representative of their choice, including a provider of therapy 
 13.34  services, at the hearing and may appear personally, testify and 
 13.35  offer evidence, and examine and cross-examine witnesses.  The 
 13.36  applicant, recipient, former recipient, person, or facility 
 14.1   contesting maltreatment shall have the opportunity to examine 
 14.2   the contents of the case file and all documents and records to 
 14.3   be used by the county or state agency at the hearing at a 
 14.4   reasonable time before the date of the hearing and during the 
 14.5   hearing.  In cases alleging discharge for maltreatment, In 
 14.6   hearings under subdivision 3, paragraph (b), clauses (4) and 
 14.7   (8), either party may subpoena the private data relating to the 
 14.8   investigation memorandum prepared by the lead agency under 
 14.9   section 626.556 or 626.557, provided the name identity of the 
 14.10  reporter may not be disclosed. 
 14.11     (b) The private data must be subject to a protective order 
 14.12  which prohibits its disclosure for any other purpose outside the 
 14.13  hearing provided for in this section without prior order of the 
 14.14  district court.  Disclosure without court order is punishable by 
 14.15  a sentence of not more than 90 days imprisonment or a fine of 
 14.16  not more than $700, or both.  These restrictions on the use of 
 14.17  private data do not prohibit access to the data under section 
 14.18  13.03, subdivision 6.  Except for appeals under subdivision 3, 
 14.19  paragraph (a), clauses (4), (5), and (8), upon request, the 
 14.20  county agency shall provide reimbursement for transportation, 
 14.21  child care, photocopying, medical assessment, witness fee, and 
 14.22  other necessary and reasonable costs incurred by the applicant, 
 14.23  recipient, or former recipient in connection with the appeal, 
 14.24  except in appeals brought under subdivision 3b.  All evidence, 
 14.25  except that privileged by law, commonly accepted by reasonable 
 14.26  people in the conduct of their affairs as having probative value 
 14.27  with respect to the issues shall be submitted at the hearing and 
 14.28  such hearing shall not be "a contested case" within the meaning 
 14.29  of section 14.02, subdivision 3.  The agency must present its 
 14.30  evidence prior to or at the hearing, and may not submit evidence 
 14.31  after the hearing except by agreement of the parties at the 
 14.32  hearing, provided the recipient petitioner has the opportunity 
 14.33  to respond. 
 14.34     Sec. 9.  Minnesota Statutes 1996, section 256.045, 
 14.35  subdivision 5, is amended to read: 
 14.36     Subd. 5.  [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 
 15.1   This subdivision does not apply to appeals under subdivision 
 15.2   3b.  A state human services referee shall conduct a hearing on 
 15.4   the appeal and shall recommend an order to the commissioner of 
 15.5   human services.  The recommended order must be based on all 
 15.6   relevant evidence and must not be limited to a review of the 
 15.7   propriety of the state or county agency's action.  A referee may 
 15.8   take official notice of adjudicative facts.  The commissioner of 
 15.9   human services may accept the recommended order of a state human 
 15.10  services referee and issue the order to the county agency and 
 15.11  the applicant, recipient, former recipient, or prepaid health 
 15.12  plan.  The commissioner on refusing to accept the recommended 
 15.13  order of the state human services referee, shall notify the 
 15.14  county petitioner, the agency and the applicant, recipient, 
 15.15  former recipient, or prepaid health plan of that fact and shall 
 15.16  state reasons therefor and shall allow each party ten days' time 
 15.17  to submit additional written argument on the matter.  After the 
 15.18  expiration of the ten-day period, the commissioner shall issue 
 15.19  an order on the matter to the county petitioner, the agency and 
 15.20  the applicant, recipient, former recipient, or prepaid health 
 15.21  plan. 
 15.22     A party aggrieved by an order of the commissioner may 
 15.23  appeal under subdivision 7, or request reconsideration by the 
 15.24  commissioner within 30 days after the date the commissioner 
 15.25  issues the order.  The commissioner may reconsider an order upon 
 15.26  request of any party or on the commissioner's own motion.  A 
 15.27  request for reconsideration does not stay implementation of the 
 15.28  commissioner's order.  Upon reconsideration, the commissioner 
 15.29  may issue an amended order or an order affirming the original 
 15.30  order. 
 15.31     Any order of the commissioner issued under this subdivision 
 15.32  shall be conclusive upon the parties unless appeal is taken in 
 15.33  the manner provided by subdivision 7.  Any order of the 
 15.34  commissioner is binding on the parties and must be implemented 
 15.35  by the state agency or a county agency until the order is 
 15.36  reversed by the district court, or unless the commissioner or a 
 15.37  district court orders monthly assistance or aid or services paid 
 16.1   or provided under subdivision 10. 
 16.2      Except for a prepaid health plan, a vendor of medical care 
 16.3   as defined in section 256B.02, subdivision 7, or a vendor under 
 16.4   contract with a county agency to provide social services under 
 16.5   section 256E.08, subdivision 4, is not a party and may not 
 16.6   request a hearing or seek judicial review of an order issued 
 16.7   under this section, unless assisting a recipient as provided in 
 16.8   subdivision 4. 
 16.9      Sec. 10.  Minnesota Statutes 1996, section 256.045, 
 16.10  subdivision 8, is amended to read: 
 16.11     Subd. 8.  [HEARING.] Any party may obtain a hearing at a 
 16.12  special term of the district court by serving a written notice 
 16.13  of the time and place of the hearing at least ten days prior to 
 16.14  the date of the hearing.  Except for appeals under subdivision 
 16.15  3b, The court may consider the matter in or out of chambers, and 
 16.16  shall take no new or additional evidence unless it determines 
 16.17  that such evidence is necessary for a more equitable disposition 
 16.18  of the appeal. 
 16.19     Sec. 11.  Minnesota Statutes 1996, section 256.82, is 
 16.20  amended by adding a subdivision to read: 
 16.21     Subd. 5.  [DIFFICULTY OF CARE ASSESSMENT PILOT 
 16.22  PROJECT.] Notwithstanding any law to the contrary, the 
 16.23  commissioner of human services shall conduct a two-year 
 16.24  statewide pilot project beginning July 1, 1997, to conduct a 
 16.25  difficulty of care assessment process which both assesses an 
 16.26  individual child's current functioning and identifies needs in a 
 16.27  variety of life situations.  The pilot project must take into 
 16.28  consideration existing difficulty of care payments so that, to 
 16.29  the extent possible, no child for whom a difficulty of care rate 
 16.30  is currently established will be adversely affected.  The pilot 
 16.31  project must include an evaluation and an interim report to the 
 16.32  legislature by January 15, 1999. 
 16.33     Sec. 12.  Minnesota Statutes 1996, section 393.07, 
 16.34  subdivision 2, is amended to read: 
 16.35     Subd. 2.  [ADMINISTRATION OF PUBLIC WELFARE.] The local 
 16.36  social services agency, subject to the supervision of the 
 17.1   commissioner of human services, shall administer all forms of 
 17.2   public welfare, both for children and adults, responsibility for 
 17.3   which now or hereafter may be imposed on the commissioner of 
 17.4   human services by law, including general assistance, aid to 
 17.5   dependent children, county supplementation, if any, or state aid 
 17.6   to recipients of supplemental security income for aged, blind 
 17.7   and disabled, child welfare services, mental health services, 
 17.8   and other public assistance or public welfare services, provided 
 17.9   that the local social services agency shall not employ public 
 17.10  health nursing or home health service personnel other than 
 17.11  homemaker-home help aides, but shall contract for or purchase 
 17.12  the necessary services from existing community agencies.  The 
 17.13  duties of the local social services agency shall be performed in 
 17.14  accordance with the standards and rules which may be promulgated 
 17.15  by the commissioner of human services to achieve the purposes 
 17.16  intended by law and in order to comply with the requirements of 
 17.17  the federal Social Security Act in respect to public assistance 
 17.18  and child welfare services, so that the state may qualify for 
 17.19  grants-in-aid available under that act.  To avoid administrative 
 17.20  penalties under section 256.017, the local social services 
 17.21  agency must comply with (1) policies established by state law 
 17.22  and (2) instructions from the commissioner relating (i) to 
 17.23  public assistance program policies consistent with federal law 
 17.24  and regulation and state law and rule and (ii) to local agency 
 17.25  program operations.  The commissioner may enforce local social 
 17.26  services agency compliance with the instructions, and may delay, 
 17.27  withhold, or deny payment of all or part of the state and 
 17.28  federal share of benefits and federal administrative 
 17.29  reimbursement, according to the provisions under section 
 17.30  256.017.  The local social services agency shall supervise wards 
 17.31  of the commissioner and, when so designated, act as agent of the 
 17.32  commissioner of human services in the placement of the 
 17.33  commissioner's wards in adoptive homes or in other foster care 
 17.34  facilities.  The local social services agency shall cooperate as 
 17.35  needed when the commissioner contracts with a licensed child 
 17.36  placement agency for adoption services for a child under the 
 18.1   commissioner's guardianship.  The local social services agency 
 18.2   may contract with a bank or other financial institution to 
 18.3   provide services associated with the processing of public 
 18.4   assistance checks and pay a service fee for these services, 
 18.5   provided the fee charged does not exceed the fee charged to 
 18.6   other customers of the institution for similar services. 
 18.7      Sec. 13.  Minnesota Statutes 1996, section 466.01, 
 18.8   subdivision 1, is amended to read: 
 18.9      Subdivision 1.  [MUNICIPALITY.] For the purposes of 
 18.10  sections 466.01 to 466.15, "municipality" means any city, 
 18.11  whether organized under home rule charter or otherwise, any 
 18.12  county, town, public authority, public corporation, nonprofit 
 18.13  firefighting corporation that has associated with it a relief 
 18.14  association as defined in section 424A.001, subdivision 4, 
 18.15  special district, school district, however organized, county 
 18.16  agricultural society organized pursuant to chapter 38, joint 
 18.17  powers board or organization created under section 471.59 or 
 18.18  other statute, public library, regional public library system, 
 18.19  multicounty multitype library system, family services 
 18.20  collaborative established under section 121.8355, children's 
 18.21  mental health collaboratives established under sections 245.491 
 18.22  to 245.496, or a collaborative established by the merger of a 
 18.23  children's mental health collaborative and a family services 
 18.24  collaborative, other political subdivision, or community action 
 18.25  agency. 
 18.26     Sec. 14.  Minnesota Statutes 1996, section 471.59, 
 18.27  subdivision 11, is amended to read: 
 18.28     Subd. 11.  [JOINT POWERS BOARD.] (a) Two or more 
 18.29  governmental units, through action of their governing bodies, by 
 18.30  adoption of a joint powers agreement that complies with the 
 18.31  provisions of subdivisions 1 to 5, may establish a joint board 
 18.32  to issue bonds or obligations under any law by which any of the 
 18.33  governmental units establishing the joint board may 
 18.34  independently issue bonds or obligations and may use the 
 18.35  proceeds of the bonds or obligations to carry out the purposes 
 18.36  of the law under which the bonds or obligations are issued.  A 
 19.1   joint board established under this section may issue obligations 
 19.2   and other forms of indebtedness only in accordance with express 
 19.3   authority granted by the action of the governing bodies of the 
 19.4   governmental units that established the joint board.  Except as 
 19.5   provided in paragraph (b), the joint board established under 
 19.6   this subdivision must be composed solely of members of the 
 19.7   governing bodies of the governmental unit that established the 
 19.8   joint board.  A joint board established under this subdivision 
 19.9   may not pledge the full faith and credit or taxing power of any 
 19.10  of the governmental units that established the joint board.  The 
 19.11  obligations or other forms of indebtedness must be obligations 
 19.12  of the joint board issued on behalf of the governmental units 
 19.13  creating the joint board.  The obligations or other forms of 
 19.14  indebtedness must be issued in the same manner and subject to 
 19.15  the same conditions and limitations that would apply if the 
 19.16  obligations were issued or indebtedness incurred by one of the 
 19.17  governmental units that established the joint board, provided 
 19.18  that any reference to a governmental unit in the statute, law, 
 19.19  or charter provision authorizing the issuance of the bonds or 
 19.20  the incurring of the indebtedness is considered a reference to 
 19.21  the joint board. 
 19.22     (b) Notwithstanding paragraph (a), one school district, one 
 19.23  county, and one public health entity, through action of their 
 19.24  governing bodies, may establish a joint board to establish and 
 19.25  govern a family services collaborative under section 121.8355.  
 19.26  The school district, county, and public health entity may 
 19.27  include other governmental entities at their discretion.  The 
 19.28  membership of a board established under this paragraph, in 
 19.29  addition to members of the governing bodies of the participating 
 19.30  governmental units, must include the representation required by 
 19.31  section 121.8355, subdivision 1, paragraph (a), selected in 
 19.32  accordance with section 121.8355, subdivision 1, paragraph (c). 
 19.33     (c) Notwithstanding paragraph (a), one county, one school 
 19.34  district, and one mental health entity, through action of their 
 19.35  governing bodies, may establish a joint board to establish and 
 19.36  govern a children's mental health collaborative under sections 
 20.1   245.491 to 245.496, or a collaborative established by the merger 
 20.2   of a children's mental health collaborative and a family 
 20.3   services collaborative under section 121.8355.  The county, 
 20.4   school district, and mental health entity may include other 
 20.5   governmental entities at their discretion.  The membership of a 
 20.6   board established under this paragraph, in addition to members 
 20.7   of the governing bodies of the participating governmental units, 
 20.8   must include the representation provided by section 245.493, 
 20.9   subdivision 1. 
 20.10     Sec. 15.  Minnesota Statutes 1996, section 517.08, 
 20.11  subdivision 1c, is amended to read: 
 20.12     Subd. 1c.  [DISPOSITION OF LICENSE FEE.] Of the marriage 
 20.13  license fee collected pursuant to subdivision 1b, the court 
 20.14  administrator shall pay $55 to the state treasurer to be 
 20.15  deposited as follows: 
 20.16     (1) $50 in the general fund; 
 20.17     (2) $3 in the special revenue fund to be appropriated to 
 20.18  the commissioner of human services children, families, and 
 20.19  learning for supervised visitation facilities under section 
 20.20  256F.09; and 
 20.21     (3) $2 in the special revenue fund to be appropriated to 
 20.22  the commissioner of health for developing and implementing the 
 20.23  MN ENABL program under section 145.9255. 
 20.24     Sec. 16.  Minnesota Statutes 1996, section 626.558, 
 20.25  subdivision 1, is amended to read: 
 20.26     Subdivision 1.  [ESTABLISHMENT OF THE TEAM.] A county shall 
 20.27  establish a multidisciplinary child protection team that may 
 20.28  include, but not be limited to, the director of the local 
 20.29  welfare agency or designees, the county attorney or designees, 
 20.30  the county sheriff or designees, representatives of health and 
 20.31  education, representatives of mental health or other appropriate 
 20.32  human service or community-based agencies, and parent groups.  
 20.33  As used in this section, a "community-based agency" may include, 
 20.34  but is not limited to, schools, social service agencies, family 
 20.35  service and mental health collaboratives, early childhood and 
 20.36  family education programs, Head Start, or other agencies serving 
 21.1   children and families. 
 21.2      Sec. 17.  Minnesota Statutes 1996, section 626.558, 
 21.3   subdivision 2, is amended to read: 
 21.4      Subd. 2.  [DUTIES OF TEAM.] A multidisciplinary child 
 21.5   protection team may provide public and professional education, 
 21.6   develop resources for prevention, intervention, and treatment, 
 21.7   and provide case consultation to the local welfare agency to 
 21.8   better enable the agency to carry out its child protection 
 21.9   functions under section 626.556 and the community social 
 21.10  services act. or other interested community-based agencies.  The 
 21.11  community-based agencies may request case consultation from the 
 21.12  multidisciplinary child protection team regarding a child or 
 21.13  family for whom the community-based agency is providing 
 21.14  services.  As used in this section, "case consultation" means a 
 21.15  case review process in which recommendations are made concerning 
 21.16  services to be provided to the identified children and family.  
 21.17  Case consultation may be performed by a committee or 
 21.18  subcommittee of members representing human services, including 
 21.19  mental health and chemical dependency; law enforcement, 
 21.20  including probation and parole; the county attorney; health 
 21.21  care; education; community-based agencies and other necessary 
 21.22  agencies; and persons directly involved in an individual case as 
 21.23  designated by other members performing case consultation. 
 21.24     Sec. 18.  Minnesota Statutes 1996, section 626.559, 
 21.25  subdivision 5, is amended to read: 
 21.26     Subd. 5.  [TRAINING REVENUE.] The commissioner of human 
 21.27  services shall add the following funds to the funds appropriated 
 21.28  under section 626.5591, subdivision 2, to develop and support 
 21.29  training: 
 21.30     (a) The commissioner of human services shall submit claims 
 21.31  for federal reimbursement earned through the activities and 
 21.32  services supported through department of human services child 
 21.33  protection or child welfare training funds.  Federal revenue 
 21.34  earned must be used to improve and expand training services by 
 21.35  the department.  The department expenditures eligible for 
 21.36  federal reimbursement under this section must not be made from 
 22.1   federal funds or funds used to match other federal funds. 
 22.2      (b) Each year, the commissioner of human services shall 
 22.3   withhold from funds distributed to each county under Minnesota 
 22.4   Rules, parts 9550.0300 to 9550.0370, an amount equivalent to 1.5 
 22.5   percent of each county's annual Title XX allocation under 
 22.6   section 256E.07.  The commissioner must use these funds to 
 22.7   ensure decentralization of training. 
 22.8      (c) The federal revenue earned under this subdivision is 
 22.9   available for these purposes until the funds are expended. 
 22.10     Sec. 19.  [TRANSFER TO COMMISSIONER OF CHILDREN, FAMILIES, 
 22.11  AND LEARNING.] 
 22.12     Effective July 1, 1997, all duties and funding related to 
 22.13  family visitation centers under Minnesota Statutes, section 
 22.14  256F.09, are transferred to the commissioner of children, 
 22.15  families, and learning.  In the next edition of Minnesota 
 22.16  Statutes, the revisor of statutes shall renumber Minnesota 
 22.17  Statutes, section 256F.09, in Minnesota Statutes, chapter 119A.  
 22.18     Sec. 20.  [EVALUATION REPORT REQUIRED.] 
 22.19     The commissioner shall report the results of the evaluation 
 22.20  required under section 5 to the chairs of the house and senate 
 22.21  health and human services policy committees by January 1, 1999. 
 22.22     Sec. 21.  [APPROPRIATIONS.] 
 22.23     $....... is appropriated from the state government special 
 22.24  revenue fund to the commissioner of children, families, and 
 22.25  learning for supervised visitation facilities under Minnesota 
 22.26  Statutes, sections 256F.09, and 517.08, subdivision 1c; 
 22.27  $.......  is available for the fiscal year beginning July 1, 
 22.28  1997, and $....... is available for the fiscal year beginning 
 22.29  July 1, 1998.  Any unencumbered balance remaining in the first 
 22.30  year does not cancel and is available for the second year of the 
 22.31  biennium.