1.1 	A bill for an act
1.2 	relating to state government; making changes to continuing care; agency 
1.3 	management; state-operated services; children and family services; health care 
1.4 	programs; Department of Health provisions; appropriating money;amending 
1.5 	Minnesota Statutes 2006, sections 144.1222, subdivision 1a, by adding 
1.6 	subdivisions; 157.16, as amended; 256.741, subdivisions 2, 2a, 3; 256.969, 
1.7 	subdivisions 2b, 20; 256B.0571, subdivisions 8, 9; 256B.0621, subdivisions 2, 6, 
1.8 	10; 256B.0625, subdivisions 3c, 13e; 256B.0924, subdivisions 4, 6; 256B.19, 
1.9 	subdivision 1d; 256B.431, subdivision 23; 256B.434, by adding a subdivision; 
1.10 	256B.441, by adding a subdivision; 256B.69, subdivisions 5a, 6; 256D.44, 
1.11 	subdivisions 2, 5; 256L.12, subdivision 9; 518A.50; 518A.53, subdivision 
1.12 	5; Minnesota Statutes 2007 Supplement, sections 16A.724, subdivision 2; 
1.13 	256.01, subdivision 2; 256.741, subdivision 1; 256B.0625, subdivision 20; 
1.14 	256B.0631, subdivisions 1, 3; 256B.199; 256J.621; 256L.04, subdivisions 1, 
1.15 	7; 256L.07, subdivision 1; Laws 2006, chapter 282, article 20, section 37, as 
1.16 	amended; Laws 2007, chapter 147, article 2, section 21; article 19, sections 
1.17 	3, subdivisions 1, 4, 6; 4, subdivisions 2, 4; proposing coding for new law in 
1.18 	Minnesota Statutes, chapters 246B; 256B; repealing Minnesota Statutes 2006, 
1.19 	sections 62J.58; 256.741, subdivision 15; 256B.441, subdivision 25; Minnesota 
1.20 	Statutes 2007 Supplement, sections 256.962, subdivision 5; 256.969, subdivision 
1.21 	27; 256B.057, subdivision 2c; 256B.441, subdivisions 1, 14a, 30, 31, 48, 49, 50, 
1.22 	51, 52, 53, 54, 55, 56, 58; 256L.07, subdivision 7.
1.23 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.24 	ARTICLE 1
1.25 	CONTINUING CARE

1.26 	Section 1. Minnesota Statutes 2006, section 256B.0621, subdivision 2, is amended to 
1.27 	read:
1.28 		Subd. 2.Targeted case management; definitions. For purposes of subdivisions 3 
1.29 	to 10, the following terms have the meanings given them:
1.30 	(1) "home care service recipients" means those individuals receiving the following 
1.31 	services under sections 256B.0651 to 256B.0656: skilled nursing visits, home health aide 
2.1 	visits, private duty nursing, personal care assistants, or therapies provided through a 
2.2 	home health agency;
2.3 	(2) "home care targeted case management" means the provision of targeted case 
2.4 	management services for the purpose of assisting home care service recipients to gain 
2.5 	access to needed services and supports so that they may remain in the community;
2.6 	(3) "institutions" means hospitals, consistent with Code of Federal Regulations, title 
2.7 	42, section 440.10; regional treatment center inpatient services, consistent with section 
2.8 	245.474; nursing facilities; and intermediate care facilities for persons with developmental 
2.9 	disabilities;
2.10 	(4) "relocation targeted case management" includes the provision of both county 
2.11 	targeted case management and public or private vendor service coordination services 
2.12 	for the purpose of assisting recipients to gain access to needed services and supports if 
2.13 	they choose to move from an institution to the community. Relocation targeted case 
2.14 	management may be provided during the lesser of:
2.15 	(i) the last 180 consecutive days of an eligible recipient's institutional stay; or
2.16 	(ii) the limits and conditions which apply to federal Medicaid funding for this 
2.17 	service; and
2.18 	(5) "targeted case management" means case management services provided to help 
2.19 	recipients gain access to needed medical, social, educational, and other services and 
2.20 	supports.

2.21 	Sec. 2. Minnesota Statutes 2006, section 256B.0621, subdivision 6, is amended to read:
2.22 		Subd. 6.Eligible services. (a) Services eligible for medical assistance 
2.23 	reimbursement as targeted case management include:
2.24 	(1) assessment of the recipient's need for targeted case management services and 
2.25 	for persons choosing to relocate, the county must provide service coordination provider 
2.26 	options at the first contact and upon request;
2.27 	(2) development, completion, and regular review of a written individual service 
2.28 	plan, which is based upon the assessment of the recipient's needs and choices, and which 
2.29 	will ensure access to medical, social, educational, and other related services and supports;
2.30 	(3) routine contact or communication with the recipient, recipient's family, primary 
2.31 	caregiver, legal representative, substitute care provider, service providers, or other relevant 
2.32 	persons identified as necessary to the development or implementation of the goals of the 
2.33 	individual service plan;
3.1 	(4) coordinating referrals for, and the provision of, case management services for 
3.2 	the recipient with appropriate service providers, consistent with section 1902(a)(23) of 
3.3 	the Social Security Act;
3.4 	(5) coordinating and monitoring the overall service delivery and engaging in 
3.5 	advocacy as needed to ensure quality of services, appropriateness, and continued need;
3.6 	(6) completing and maintaining necessary documentation that supports and verifies 
3.7 	the activities in this subdivision;
3.8 	(7) assisting individuals in order to access needed services, including travel to 
3.9 	conduct a visit with the recipient or other relevant person necessary to develop or 
3.10 	implement the goals of the individual service plan; and
3.11 	(8) coordinating with the institution discharge planner in the 180-day period before 
3.12 	the recipient's discharge.
3.13 	(b) Relocation targeted county case management includes services under paragraph 
3.14 	(a), clauses (1), (2), and (4). Relocation service coordination includes services under 
3.15 	paragraph (a), clauses (3) and (5) to (8). Home care targeted case management includes 
3.16 	services under paragraph (a), clauses (1) to (8).

3.17 	Sec. 3. Minnesota Statutes 2006, section 256B.0621, subdivision 10, is amended to 
3.18 	read:
3.19 		Subd. 10.Payment rates. The commissioner shall set payment rates for targeted 
3.20 	case management under this subdivision. Case managers may bill according to the 
3.21 	following criteria:
3.22 	(1) for relocation targeted case management, case managers may bill for direct case 
3.23 	management activities, including face-to-face and telephone contacts, in the lesser of:
3.24 	(i) 180 days preceding an eligible recipient's discharge from an institution; or
3.25 	(ii) the limits and conditions which apply to federal Medicaid funding for this 
3.26 	service;
3.27 	(2) for home care targeted case management, case managers may bill for direct case 
3.28 	management activities, including face-to-face and telephone contacts; and
3.29 	(3) billings for targeted case management services under this subdivision shall not 
3.30 	duplicate payments made under other program authorities for the same purpose.

3.31 	Sec. 4. Minnesota Statutes 2007 Supplement, section 256B.0625, subdivision 20, 
3.32 	is amended to read:
3.33 		Subd. 20.Mental health case management. (a) To the extent authorized by rule 
3.34 	of the state agency, medical assistance covers case management services to persons with 
4.1 	serious and persistent mental illness and children with severe emotional disturbance. 
4.2 	Services provided under this section must meet the relevant standards in sections 245.461
4.3 	to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota 
4.4 	Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
4.5 	(b) Entities meeting program standards set out in rules governing family community 
4.6 	support services as defined in section 245.4871, subdivision 17, are eligible for medical 
4.7 	assistance reimbursement for case management services for children with severe 
4.8 	emotional disturbance when these services meet the program standards in Minnesota 
4.9 	Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
4.10 	(c) Medical assistance and MinnesotaCare payment for mental health case 
4.11 	management shall be made on a monthly basis. In order to receive payment for an eligible 
4.12 	child, the provider must document at least a face-to-face contact with the child, the child's 
4.13 	parents, or the child's legal representative. To receive payment for an eligible adult, the 
4.14 	provider must document:
4.15 	(1) at least a face-to-face contact with the adult or the adult's legal representative; or
4.16 	(2) at least a telephone contact with the adult or the adult's legal representative and 
4.17 	document a face-to-face contact with the adult or the adult's legal representative within 
4.18 	the preceding two months.
4.19 	(d) Payment for mental health case management provided by county or state staff 
4.20 	shall be based on the monthly rate methodology under section 256B.094, subdivision 6, 
4.21 	paragraph (b), with separate rates calculated for child welfare and mental health, and 
4.22 	within mental health, separate rates for children and adults. 
4.23 	(e) Payment for mental health case management provided by Indian health services 
4.24 	or by agencies operated by Indian tribes may be made according to this section or other 
4.25 	relevant federally approved rate setting methodology.
4.26 	(f) Payment for mental health case management provided by vendors who contract 
4.27 	with a county or Indian tribe shall be based on a monthly rate negotiated by the host county 
4.28 	or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same 
4.29 	service to other payers. If the service is provided by a team of contracted vendors, the 
4.30 	county or tribe may negotiate a team rate with a vendor who is a member of the team. The 
4.31 	team shall determine how to distribute the rate among its members. No reimbursement 
4.32 	received by contracted vendors shall be returned to the county or tribe, except to reimburse 
4.33 	the county or tribe for advance funding provided by the county or tribe to the vendor.
4.34 	(g) If the service is provided by a team which includes contracted vendors, tribal 
4.35 	staff, and county or state staff, the costs for county or state staff participation in the team 
4.36 	shall be included in the rate for county-provided services. In this case, the contracted 
5.1 	vendor, the tribal agency, and the county may each receive separate payment for services 
5.2 	provided by each entity in the same month. In order to prevent duplication of services, 
5.3 	each entity must document, in the recipient's file, the need for team case management and 
5.4 	a description of the roles of the team members.
5.5 	(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs 
5.6 	for mental health case management shall be provided by the recipient's county of 
5.7 	responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal 
5.8 	funds or funds used to match other federal funds. If the service is provided by a tribal 
5.9 	agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this 
5.10 	service is paid by the state without a federal share through fee-for-service, 50 percent of 
5.11 	the cost shall be provided by the recipient's county of responsibility.
5.12 	(i) Notwithstanding any administrative rule to the contrary, prepaid medical 
5.13 	assistance, general assistance medical care, and MinnesotaCare include mental health case 
5.14 	management. When the service is provided through prepaid capitation, the nonfederal 
5.15 	share is paid by the state and the county pays no share.
5.16 	(j) The commissioner may suspend, reduce, or terminate the reimbursement to a 
5.17 	provider that does not meet the reporting or other requirements of this section. The county 
5.18 	of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal 
5.19 	agency, is responsible for any federal disallowances. The county or tribe may share this 
5.20 	responsibility with its contracted vendors. 
5.21 	(k) The commissioner shall set aside a portion of the federal funds earned for county 
5.22 	expenditures under this section to repay the special revenue maximization account under 
5.23 	section 256.01, subdivision 2, clause (15). The repayment is limited to: 
5.24 	(1) the costs of developing and implementing this section; and
5.25 	(2) programming the information systems.
5.26 	(l) Payments to counties and tribal agencies for case management expenditures 
5.27 	under this section shall only be made from federal earnings from services provided 
5.28 	under this section. When this service is paid by the state without a federal share through 
5.29 	fee-for-service, 50 percent of the cost shall be provided by the state. Payments to 
5.30 	county-contracted vendors shall include the federal earnings, the state share, and the 
5.31 	county share.
5.32 	(m) Case management services under this subdivision do not include therapy, 
5.33 	treatment, legal, or outreach services.
5.34 	(n) If the recipient is a resident of a nursing facility, intermediate care facility, or 
5.35 	hospital, and the recipient's institutional care is paid by medical assistance, payment for 
5.36 	case management services under this subdivision is limited to the lesser of:
6.1 	(1) the last 180 days of the recipient's residency in that facility and may not exceed 
6.2 	more than six months in a calendar year; or
6.3 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
6.4 	(o) Payment for case management services under this subdivision shall not duplicate 
6.5 	payments made under other program authorities for the same purpose.

6.6 	Sec. 5. [256B.0658] HOUSING ACCESS GRANTS.
6.7 	The commissioner of human services shall award through a competitive process 
6.8 	contracts for grants to public and private agencies to support and assist individuals eligible 
6.9 	for publicly funded home and community-based services, including state plan home care, 
6.10 	to access housing. Grants may be awarded to agencies that may include, but are not 
6.11 	limited to, the following supports: assess to assure suitability of housing, accompanying 
6.12 	an individual to look at housing, filling out applications and rental agreements, meeting 
6.13 	with landlords, helping with Section 8 or other program applications, helping to develop 
6.14 	a budget, obtaining furniture and household goods, if necessary, and assisting with any 
6.15 	problems that may arise with housing.

6.16 	Sec. 6. Minnesota Statutes 2006, section 256B.0924, subdivision 4, is amended to read:
6.17 		Subd. 4.Targeted case management service activities. (a) For persons with 
6.18 	developmental disabilities, targeted case management services must meet the provisions 
6.19 	of section 256B.092. 
6.20 	(b) For persons not eligible as a person with a developmental disability, targeted 
6.21 	case management service activities include:
6.22 	(1) an assessment of the person's need for targeted case management services;
6.23 	(2) the development of a written personal service plan;
6.24 	(3) a regular review and revision of the written personal service plan with the 
6.25 	recipient and the recipient's legal representative, and others as identified by the recipient, 
6.26 	to ensure access to necessary services and supports identified in the plan;
6.27 	(4) effective communication with the recipient and the recipient's legal representative 
6.28 	and others identified by the recipient;
6.29 	(5) coordination of referrals for needed services with qualified providers;
6.30 	(6) coordination and monitoring of the overall service delivery to ensure the quality 
6.31 	and effectiveness of services;
6.32 	(7) assistance to the recipient and the recipient's legal representative to help make 
6.33 	an informed choice of services;
7.1 	(8) advocating on behalf of the recipient when service barriers are encountered or 
7.2 	referring the recipient and the recipient's legal representative to an independent advocate;
7.3 	(9) monitoring and evaluating services identified in the personal service plan to 
7.4 	ensure personal outcomes are met and to ensure satisfaction with services and service 
7.5 	delivery;
7.6 	(10) conducting face-to-face monitoring with the recipient at least twice a year;
7.7 	(11) completing and maintaining necessary documentation that supports and verifies 
7.8 	the activities in this section;
7.9 	(12) coordinating with the medical assistance facility discharge planner in the 
7.10 	180-day period prior to the recipient's discharge into the community; and
7.11 	(13) a personal service plan developed and reviewed at least annually with the 
7.12 	recipient and the recipient's legal representative. The personal service plan must be revised 
7.13 	when there is a change in the recipient's status. The personal service plan must identify:
7.14 	(i) the desired personal short and long-term outcomes;
7.15 	(ii) the recipient's preferences for services and supports, including development of 
7.16 	a person-centered plan if requested; and
7.17 	(iii) formal and informal services and supports based on areas of assessment, such 
7.18 	as: social, health, mental health, residence, family, educational and vocational, safety, 
7.19 	legal, self-determination, financial, and chemical health as determined by the recipient and 
7.20 	the recipient's legal representative and the recipient's support network.

7.21 	Sec. 7. Minnesota Statutes 2006, section 256B.0924, subdivision 6, is amended to read:
7.22 		Subd. 6.Payment for targeted case management. (a) Medical assistance and 
7.23 	MinnesotaCare payment for targeted case management shall be made on a monthly basis. 
7.24 	In order to receive payment for an eligible adult, the provider must document at least one 
7.25 	contact per month and not more than two consecutive months without a face-to-face 
7.26 	contact with the adult or the adult's legal representative, family, primary caregiver, or 
7.27 	other relevant persons identified as necessary to the development or implementation 
7.28 	of the goals of the personal service plan.
7.29 	(b) Payment for targeted case management provided by county staff under this 
7.30 	subdivision shall be based on the monthly rate methodology under section 256B.094, 
7.31 	subdivision 6, paragraph (b), calculated as one combined average rate together with 
7.32 	adult mental health case management under section 256B.0625, subdivision 20, except 
7.33 	for calendar year 2002. In calendar year 2002, the rate for case management under this 
7.34 	section shall be the same as the rate for adult mental health case management in effect 
8.1 	as of December 31, 2001. Billing and payment must identify the recipient's primary 
8.2 	population group to allow tracking of revenues. 
8.3 	(c) Payment for targeted case management provided by county-contracted vendors 
8.4 	shall be based on a monthly rate negotiated by the host county. The negotiated rate must 
8.5 	not exceed the rate charged by the vendor for the same service to other payers. If the 
8.6 	service is provided by a team of contracted vendors, the county may negotiate a team rate 
8.7 	with a vendor who is a member of the team. The team shall determine how to distribute 
8.8 	the rate among its members. No reimbursement received by contracted vendors shall be 
8.9 	returned to the county, except to reimburse the county for advance funding provided by 
8.10 	the county to the vendor.
8.11 	(d) If the service is provided by a team that includes contracted vendors and county 
8.12 	staff, the costs for county staff participation on the team shall be included in the rate for 
8.13 	county-provided services. In this case, the contracted vendor and the county may each 
8.14 	receive separate payment for services provided by each entity in the same month. In 
8.15 	order to prevent duplication of services, the county must document, in the recipient's file, 
8.16 	the need for team targeted case management and a description of the different roles of 
8.17 	the team members.
8.18 	(e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs 
8.19 	for targeted case management shall be provided by the recipient's county of responsibility, 
8.20 	as defined in sections 256G.01 to 256G.12, from sources other than federal funds or 
8.21 	funds used to match other federal funds. 
8.22 	(f) The commissioner may suspend, reduce, or terminate reimbursement to a 
8.23 	provider that does not meet the reporting or other requirements of this section. The county 
8.24 	of responsibility, as defined in sections 256G.01 to 256G.12, is responsible for any federal 
8.25 	disallowances. The county may share this responsibility with its contracted vendors. 
8.26 	(g) The commissioner shall set aside five percent of the federal funds received under 
8.27 	this section for use in reimbursing the state for costs of developing and implementing 
8.28 	this section.
8.29 	(h) Payments to counties for targeted case management expenditures under this 
8.30 	section shall only be made from federal earnings from services provided under this 
8.31 	section. Payments to contracted vendors shall include both the federal earnings and the 
8.32 	county share.
8.33 	(i) Notwithstanding section 256B.041, county payments for the cost of case 
8.34 	management services provided by county staff shall not be made to the commissioner of 
8.35 	finance. For the purposes of targeted case management services provided by county staff 
9.1 	under this section, the centralized disbursement of payments to counties under section 
9.2 	256B.041 consists only of federal earnings from services provided under this section. 
9.3 	(j) If the recipient is a resident of a nursing facility, intermediate care facility, or 
9.4 	hospital, and the recipient's institutional care is paid by medical assistance, payment for 
9.5 	targeted case management services under this subdivision is limited to the lesser of:
9.6 	(1) the last 180 days of the recipient's residency in that facility and may not exceed 
9.7 	more than six months in a calendar year; or
9.8 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
9.9 	(k) Payment for targeted case management services under this subdivision shall not 
9.10 	duplicate payments made under other program authorities for the same purpose.
9.11 	(l) Any growth in targeted case management services and cost increases under this 
9.12 	section shall be the responsibility of the counties.

9.13 	Sec. 8. Minnesota Statutes 2006, section 256B.19, subdivision 1d, is amended to read:
9.14 		Subd. 1d.Portion of nonfederal share to be paid by certain counties. (a) 
9.15 	In addition to the percentage contribution paid by a county under subdivision 1, the 
9.16 	governmental units designated in this subdivision shall be responsible for an additional 
9.17 	portion of the nonfederal share of medical assistance cost. For purposes of this 
9.18 	subdivision, "designated governmental unit" means the counties of Becker, Beltrami, 
9.19 	Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, Pennington, Pipestone, Ramsey, St. 
9.20 	Louis, Steele, Todd, Traverse, and Wadena.
9.21 	(b) Beginning in 1994, each of the governmental units designated in this subdivision 
9.22 	shall transfer before noon on May 31 to the state Medicaid agency an amount equal to the 
9.23 	number of licensed beds in any nursing home owned and operated by the county on that 
9.24 	date, with the county named as licensee, multiplied by $5,723. If two or more counties own 
9.25 	and operate a nursing home, the payment shall be prorated. These sums shall be part of the 
9.26 	designated governmental unit's portion of the nonfederal share of medical assistance costs.
9.27 	(c) Beginning in 2002, in addition to any transfer under paragraph (b), each of the 
9.28 	governmental units designated in this subdivision shall transfer before noon on May 31 
9.29 	to the state Medicaid agency an amount equal to the number of licensed beds in any 
9.30 	nursing home owned and operated by the county on that date, with the county named as 
9.31 	licensee, multiplied by $10,784. The provisions of paragraph (b) apply to transfers under 
9.32 	this paragraph.
9.33 	(d) Beginning in 2003, in addition to any transfer under paragraphs (b) and (c), each 
9.34 	of the governmental units designated in this subdivision shall transfer before noon on May 
9.35 	31 to the state Medicaid agency an amount equal to the number of licensed beds in any 
10.1 	nursing home owned and operated by the county on that date, with the county named as 
10.2 	licensee, multiplied by $2,230. The provisions of paragraph (b) apply to transfers under 
10.3 	this paragraph.
10.4 	(e) (d) The commissioner may reduce the intergovernmental transfers under 
10.5 	paragraphs paragraph (c) and (d) based on the commissioner's determination of the 
10.6 	payment rate in section 256B.431, subdivision 23, paragraphs (c), and (d), and (e). Any 
10.7 	adjustments must be made on a per-bed basis and must result in an amount equivalent to 
10.8 	the total amount resulting from the rate adjustment in section 256B.431, subdivision 23, 
10.9 	paragraphs (c), and (d), and (e). 

10.10 	Sec. 9. Minnesota Statutes 2006, section 256B.431, subdivision 23, is amended to read:
10.11 		Subd. 23.County nursing home payment adjustments. (a) Beginning in 1994, 
10.12 	the commissioner shall pay a nursing home payment adjustment on May 31 after noon 
10.13 	to a county in which is located a nursing home that, on that date, was county-owned and 
10.14 	operated, with the county named as licensee by the commissioner of health, and had over 
10.15 	40 beds and medical assistance occupancy in excess of 50 percent during the reporting 
10.16 	year ending September 30, 1991. The adjustment shall be an amount equal to $16 per 
10.17 	calendar day multiplied by the number of beds licensed in the facility on that date.
10.18 	(b) Payments under paragraph (a) are excluded from medical assistance per diem 
10.19 	rate calculations. These payments are required notwithstanding any rule prohibiting 
10.20 	medical assistance payments from exceeding payments from private pay residents. A 
10.21 	facility receiving a payment under paragraph (a) may not increase charges to private pay 
10.22 	residents by an amount equivalent to the per diem amount payments under paragraph (a) 
10.23 	would equal if converted to a per diem.
10.24 	(c) Beginning in 2002, in addition to any payment under paragraph (a), the 
10.25 	commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in 
10.26 	an amount equal to $29.55 per calendar day multiplied by the number of beds licensed 
10.27 	in the facility on that date. The provisions of paragraphs (a) and (b) apply to payments 
10.28 	under this paragraph.
10.29 	(d) Beginning in 2003, in addition to any payment under paragraphs (a) and (c), the 
10.30 	commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in 
10.31 	an amount equal to $6.11 per calendar day multiplied by the number of beds licensed in 
10.32 	the facility on that date. The provisions of paragraphs (a) and (b) apply to payments 
10.33 	under this paragraph.
10.34 	(e) (d) The commissioner may reduce payments under paragraphs paragraph (c) and 
10.35 	(d) based on the commissioner's determination of Medicare upper payment limits. Any 
11.1 	adjustments must be proportional to adjustments made under section  256B.19, subdivision 
11.2 	1d, paragraph (e) (d). 

11.3 	Sec. 10. Minnesota Statutes 2006, section 256B.434, is amended by adding a 
11.4 	subdivision to read:
11.5 		Subd. 21.Nursing facility rate increases beginning October 1, 2009. For the rate 
11.6 	year beginning October 1, 2009, the commissioner shall make available to each nursing 
11.7 	facility reimbursed under this section operating payment rate adjustments equal to 1.5 
11.8 	percent of the operating payment rates in effect on September 30, 2009. The September 
11.9 	30, 2009, operating rate does not include rate adjustments given under subdivision 4, 
11.10 	paragraph (d).

11.11 	Sec. 11. Minnesota Statutes 2006, section 256B.441, is amended by adding a 
11.12 	subdivision to read:
11.13 		Subd. 46b.Calculation of quality add-on for the rate year beginning October 
11.14 	1, 2009. (a) The payment rate for the rate year beginning October 1, 2009, for the 
11.15 	quality add-on, is a variable amount based on each facility's quality score. For the rate 
11.16 	year, the maximum quality add-on is 1.2 percent of the operating payment rate in effect 
11.17 	on September 30, 2009. The commissioner shall determine the quality add-on for each 
11.18 	facility according to paragraphs (b) to (d).
11.19 	(b) For each facility, the commissioner shall determine the operating payment rate in 
11.20 	effect on September 30, 2009. The September 30, 2009, operating rate does not include 
11.21 	rate adjustments given under section 256B.434, subdivision 4, paragraph (d).
11.22 	(c) For each facility, the commissioner shall determine a ratio of the quality score 
11.23 	of the facility determined in subdivision 44 by subtracting 40 from the quality score, 
11.24 	and dividing the result by 60. If this value is less than zero, the commissioner shall use 
11.25 	the value zero.
11.26 	(d) For each facility, the quality add-on is the value determined in paragraph (b), 
11.27 	multiplied by the value determined in paragraph (c), and then multiplied by 1.2 percent.

11.28 	Sec. 12. Minnesota Statutes 2006, section 256B.69, subdivision 6, is amended to read:
11.29 		Subd. 6.Service delivery. (a) Each demonstration provider shall be responsible for 
11.30 	the health care coordination for eligible individuals. Demonstration providers:
11.31 	(1) shall authorize and arrange for the provision of all needed health services 
11.32 	including but not limited to the full range of services listed in sections 256B.02, 
11.33 	subdivision 8, and 256B.0625 in order to ensure appropriate health care is delivered to 
12.1 	enrollees. Notwithstanding section 256B.0621, demonstration providers that provide 
12.2 	nursing home and community-based services under this section shall provide relocation 
12.3 	service coordination to enrolled persons age 65 and over; 
12.4 	(2) shall accept the prospective, per capita payment from the commissioner in return 
12.5 	for the provision of comprehensive and coordinated health care services for eligible 
12.6 	individuals enrolled in the program;
12.7 	(3) may contract with other health care and social service practitioners to provide 
12.8 	services to enrollees; and
12.9 	(4) shall institute recipient grievance procedures according to the method established 
12.10 	by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved 
12.11 	through this process shall be appealable to the commissioner as provided in subdivision 11.
12.12 	(b) Demonstration providers must comply with the standards for claims settlement 
12.13 	under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health 
12.14 	care and social service practitioners to provide services to enrollees. A demonstration 
12.15 	provider must pay a clean claim, as defined in Code of Federal Regulations, title 42, 
12.16 	section 447.45(b), within 30 business days of the date of acceptance of the claim. 

12.17 	Sec. 13. Minnesota Statutes 2006, section 256D.44, subdivision 2, is amended to read:
12.18 		Subd. 2.Standard of assistance for persons eligible for medical assistance 
12.19 	waivers or at risk of placement in a group residential housing facility. The state 
12.20 	standard of assistance for a person who: (1) is eligible for a medical assistance home and 
12.21 	community-based services waiver or a person who; (2) has been determined by the local 
12.22 	agency to meet the plan requirements for placement in a group residential housing facility 
12.23 	under section 256I.04, subdivision 1a,; or (3) is eligible for a shelter needy payment 
12.24 	under subdivision 5, paragraph (f); is the standard established in subdivision 3, paragraph 
12.25 	(a) or (b). 

12.26 	EFFECTIVE DATE. This section is effective January 1, 2009.

12.27 	Sec. 14. Minnesota Statutes 2006, section 256D.44, subdivision 5, is amended to read:
12.28 		Subd. 5.Special needs. In addition to the state standards of assistance established in 
12.29 	subdivisions 1 to 4, payments are allowed for the following special needs of recipients of 
12.30 	Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
12.31 	center, or a group residential housing facility.
12.32 	(a) The county agency shall pay a monthly allowance for medically prescribed 
12.33 	diets if the cost of those additional dietary needs cannot be met through some other 
12.34 	maintenance benefit. The need for special diets or dietary items must be prescribed by 
13.1 	a licensed physician. Costs for special diets shall be determined as percentages of the 
13.2 	allotment for a one-person household under the thrifty food plan as defined by the United 
13.3 	States Department of Agriculture. The types of diets and the percentages of the thrifty 
13.4 	food plan that are covered are as follows:
13.5 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
13.6 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent 
13.7 	of thrifty food plan;
13.8 	(3) controlled protein diet, less than 40 grams and requires special products, 125 
13.9 	percent of thrifty food plan;
13.10 	(4) low cholesterol diet, 25 percent of thrifty food plan;
13.11 	(5) high residue diet, 20 percent of thrifty food plan;
13.12 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
13.13 	(7) gluten-free diet, 25 percent of thrifty food plan;
13.14 	(8) lactose-free diet, 25 percent of thrifty food plan;
13.15 	(9) antidumping diet, 15 percent of thrifty food plan;
13.16 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
13.17 	(11) ketogenic diet, 25 percent of thrifty food plan.
13.18 	(b) Payment for nonrecurring special needs must be allowed for necessary home 
13.19 	repairs or necessary repairs or replacement of household furniture and appliances using 
13.20 	the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, 
13.21 	as long as other funding sources are not available.
13.22 	(c) A fee for guardian or conservator service is allowed at a reasonable rate 
13.23 	negotiated by the county or approved by the court. This rate shall not exceed five percent 
13.24 	of the assistance unit's gross monthly income up to a maximum of $100 per month. If the 
13.25 	guardian or conservator is a member of the county agency staff, no fee is allowed.
13.26 	(d) The county agency shall continue to pay a monthly allowance of $68 for 
13.27 	restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 
13.28 	1990, and who eats two or more meals in a restaurant daily. The allowance must continue 
13.29 	until the person has not received Minnesota supplemental aid for one full calendar month 
13.30 	or until the person's living arrangement changes and the person no longer meets the criteria 
13.31 	for the restaurant meal allowance, whichever occurs first.
13.32 	(e) A fee of ten percent of the recipient's gross income or $25, whichever is less, 
13.33 	is allowed for representative payee services provided by an agency that meets the 
13.34 	requirements under SSI regulations to charge a fee for representative payee services. This 
13.35 	special need is available to all recipients of Minnesota supplemental aid regardless of 
13.36 	their living arrangement.
14.1 	(f) (1) Notwithstanding the language in this subdivision, an amount equal to the 
14.2 	maximum allotment authorized by the federal Food Stamp Program for a single individual 
14.3 	which is in effect on the first day of January July of the previous each year will be added 
14.4 	to the standards of assistance established in subdivisions 1 to 4 for individuals adults
14.5 	under the age of 65 who qualify as shelter needy and are: (i) relocating from an institution, 
14.6 	or an adult mental health residential treatment program under section 256B.0622, and 
14.7 	who are shelter needy; (ii) self-directed supports option eligible as defined under section 
14.8 	256B.0657, subdivision 2; or (iii) home and community-based waiver recipients living in 
14.9 	their own home or rented or leased apartment which is not owned, operated, or controlled 
14.10 	by a provider of service not related by blood or marriage.
14.11 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the 
14.12 	shelter needy benefit under subdivision 5, paragraph (f), is considered a household of one.
14.13 	An eligible individual who receives this benefit prior to age 65 may continue to receive 
14.14 	the benefit after the age of 65.
14.15 	(3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that 
14.16 	exceed 40 percent of the assistance unit's gross income before the application of this 
14.17 	special needs standard. "Gross income" for the purposes of this section is the applicant's or 
14.18 	recipient's income as defined in section 256D.35, subdivision 10, or the standard specified 
14.19 	in subdivision 3, paragraph (a) or (b), whichever is greater. A recipient of a federal or 
14.20 	state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be 
14.21 	considered shelter needy for purposes of this paragraph.

14.22 	EFFECTIVE DATE. This section is effective January 1, 2009.

14.23 	Sec. 15. Laws 2006, chapter 282, article 20, section 37, as amended by Laws 2007, 
14.24 	chapter 147, article 7, section 69, is amended to read:
14.25 	Sec. 37. REPAYMENT DELAY.
 14.26 	(a) A county that overspent its allowed amounts in calendar year 2004 or 2005 under 
14.27 	the waivered services program for persons with developmental disabilities shall not be 
14.28 	required to pay back the amount of overspending by January 2, 2009. This section applies 
14.29 	to Fillmore, Steele, and St. Louis Counties.
14.30 	(b) Carver County is not required to pay back the amount of overspending under 
14.31 	the waivered services program for persons with developmental disabilities for calendar 
14.32 	years 2004 and 2005 until June 30, 2009. 

14.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

15.1 	Sec. 16.  REPEALER.
 15.2 	Minnesota Statutes 2006, section 256B.441, subdivision 25, is repealed.
15.3 	Minnesota Statutes 2007 Supplement, section 256B.441, subdivisions 1, 14a, 30, 
15.4 	31, 48, 49, 50, 51, 52, 53, 54, 55, 56, and 58, are repealed.

15.5 	ARTICLE 2
15.6 	AGENCY MANAGEMENT

15.7 	Section 1. Minnesota Statutes 2007 Supplement, section 256.01, subdivision 2, is 
15.8 	amended to read:
15.9 		Subd. 2.Specific powers. Subject to the provisions of section 241.021, subdivision 
15.10 	2, the commissioner of human services shall carry out the specific duties in paragraphs (a) 
15.11 	through (cc):
15.12 	(a) Administer and supervise all forms of public assistance provided for by state law 
15.13 	and other welfare activities or services as are vested in the commissioner. Administration 
15.14 	and supervision of human services activities or services includes, but is not limited to, 
15.15 	assuring timely and accurate distribution of benefits, completeness of service, and quality 
15.16 	program management. In addition to administering and supervising human services 
15.17 	activities vested by law in the department, the commissioner shall have the authority to:
15.18 	(1) require county agency participation in training and technical assistance programs 
15.19 	to promote compliance with statutes, rules, federal laws, regulations, and policies 
15.20 	governing human services;
15.21 	(2) monitor, on an ongoing basis, the performance of county agencies in the 
15.22 	operation and administration of human services, enforce compliance with statutes, rules, 
15.23 	federal laws, regulations, and policies governing welfare services and promote excellence 
15.24 	of administration and program operation;
15.25 	(3) develop a quality control program or other monitoring program to review county 
15.26 	performance and accuracy of benefit determinations;
15.27 	(4) require county agencies to make an adjustment to the public assistance benefits 
15.28 	issued to any individual consistent with federal law and regulation and state law and rule 
15.29 	and to issue or recover benefits as appropriate;
15.30 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
15.31 	administrative reimbursement according to the procedures set forth in section 256.017;
15.32 	(6) make contracts with and grants to public and private agencies and organizations, 
15.33 	both profit and nonprofit, and individuals, using appropriated funds; and
15.34 	(7) enter into contractual agreements with federally recognized Indian tribes with 
15.35 	a reservation in Minnesota to the extent necessary for the tribe to operate a federally 
16.1 	approved family assistance program or any other program under the supervision of the 
16.2 	commissioner. The commissioner shall consult with the affected county or counties in 
16.3 	the contractual agreement negotiations, if the county or counties wish to be included, 
16.4 	in order to avoid the duplication of county and tribal assistance program services. The 
16.5 	commissioner may establish necessary accounts for the purposes of receiving and 
16.6 	disbursing funds as necessary for the operation of the programs.
16.7 	(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, 
16.8 	regulation, and policy necessary to county agency administration of the programs.
16.9 	(c) Administer and supervise all child welfare activities; promote the enforcement of 
16.10 	laws protecting disabled, dependent, neglected and delinquent children, and children born 
16.11 	to mothers who were not married to the children's fathers at the times of the conception 
16.12 	nor at the births of the children; license and supervise child-caring and child-placing 
16.13 	agencies and institutions; supervise the care of children in boarding and foster homes or 
16.14 	in private institutions; and generally perform all functions relating to the field of child 
16.15 	welfare now vested in the State Board of Control.
16.16 	(d) Administer and supervise all noninstitutional service to disabled persons, 
16.17 	including those who are visually impaired, hearing impaired, or physically impaired 
16.18 	or otherwise disabled. The commissioner may provide and contract for the care and 
16.19 	treatment of qualified indigent children in facilities other than those located and available 
16.20 	at state hospitals when it is not feasible to provide the service in state hospitals.
16.21 	(e) Assist and actively cooperate with other departments, agencies and institutions, 
16.22 	local, state, and federal, by performing services in conformity with the purposes of Laws 
16.23 	1939, chapter 431.
16.24 	(f) Act as the agent of and cooperate with the federal government in matters of 
16.25 	mutual concern relative to and in conformity with the provisions of Laws 1939, chapter 
16.26 	431, including the administration of any federal funds granted to the state to aid in the 
16.27 	performance of any functions of the commissioner as specified in Laws 1939, chapter 431, 
16.28 	and including the promulgation of rules making uniformly available medical care benefits 
16.29 	to all recipients of public assistance, at such times as the federal government increases its 
16.30 	participation in assistance expenditures for medical care to recipients of public assistance, 
16.31 	the cost thereof to be borne in the same proportion as are grants of aid to said recipients.
16.32 	(g) Establish and maintain any administrative units reasonably necessary for the 
16.33 	performance of administrative functions common to all divisions of the department.
16.34 	(h) Act as designated guardian of both the estate and the person of all the wards of 
16.35 	the state of Minnesota, whether by operation of law or by an order of court, without any 
16.36 	further act or proceeding whatever, except as to persons committed as developmentally 
17.1 	disabled. For children under the guardianship of the commissioner or a tribe in Minnesota 
17.2 	recognized by the Secretary of the Interior whose interests would be best served by 
17.3 	adoptive placement, the commissioner may contract with a licensed child-placing agency 
17.4 	or a Minnesota tribal social services agency to provide adoption services. A contract 
17.5 	with a licensed child-placing agency must be designed to supplement existing county 
17.6 	efforts and may not replace existing county programs or tribal social services, unless the 
17.7 	replacement is agreed to by the county board and the appropriate exclusive bargaining 
17.8 	representative, tribal governing body, or the commissioner has evidence that child 
17.9 	placements of the county continue to be substantially below that of other counties. Funds 
17.10 	encumbered and obligated under an agreement for a specific child shall remain available 
17.11 	until the terms of the agreement are fulfilled or the agreement is terminated.
17.12 	(i) Act as coordinating referral and informational center on requests for service for 
17.13 	newly arrived immigrants coming to Minnesota.
17.14 	(j) The specific enumeration of powers and duties as hereinabove set forth shall in no 
17.15 	way be construed to be a limitation upon the general transfer of powers herein contained.
17.16 	(k) Establish county, regional, or statewide schedules of maximum fees and charges 
17.17 	which may be paid by county agencies for medical, dental, surgical, hospital, nursing and 
17.18 	nursing home care and medicine and medical supplies under all programs of medical 
17.19 	care provided by the state and for congregate living care under the income maintenance 
17.20 	programs.
17.21 	(l) Have the authority to conduct and administer experimental projects to test 
17.22 	methods and procedures of administering assistance and services to recipients or potential 
17.23 	recipients of public welfare. To carry out such experimental projects, it is further provided 
17.24 	that the commissioner of human services is authorized to waive the enforcement of 
17.25 	existing specific statutory program requirements, rules, and standards in one or more 
17.26 	counties. The order establishing the waiver shall provide alternative methods and 
17.27 	procedures of administration, shall not be in conflict with the basic purposes, coverage, or 
17.28 	benefits provided by law, and in no event shall the duration of a project exceed four years. 
17.29 	It is further provided that no order establishing an experimental project as authorized by 
17.30 	the provisions of this section shall become effective until the following conditions have 
17.31 	been met:
17.32 	(1) the secretary of health and human services of the United States has agreed, for 
17.33 	the same project, to waive state plan requirements relative to statewide uniformity; and
17.34 	(2) a comprehensive plan, including estimated project costs, shall be approved by 
17.35 	the Legislative Advisory Commission and filed with the commissioner of administration.
18.1 	(m) According to federal requirements, establish procedures to be followed by 
18.2 	local welfare boards in creating citizen advisory committees, including procedures for 
18.3 	selection of committee members.
18.4 	(n) Allocate federal fiscal disallowances or sanctions which are based on quality 
18.5 	control error rates for the aid to families with dependent children program formerly 
18.6 	codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the 
18.7 	following manner:
18.8 	(1) one-half of the total amount of the disallowance shall be borne by the county 
18.9 	boards responsible for administering the programs. For the medical assistance and the 
18.10 	AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be 
18.11 	shared by each county board in the same proportion as that county's expenditures for the 
18.12 	sanctioned program are to the total of all counties' expenditures for the AFDC program 
18.13 	formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the 
18.14 	food stamp program, sanctions shall be shared by each county board, with 50 percent of 
18.15 	the sanction being distributed to each county in the same proportion as that county's 
18.16 	administrative costs for food stamps are to the total of all food stamp administrative costs 
18.17 	for all counties, and 50 percent of the sanctions being distributed to each county in the 
18.18 	same proportion as that county's value of food stamp benefits issued are to the total of 
18.19 	all benefits issued for all counties. Each county shall pay its share of the disallowance 
18.20 	to the state of Minnesota. When a county fails to pay the amount due hereunder, the 
18.21 	commissioner may deduct the amount from reimbursement otherwise due the county, or 
18.22 	the attorney general, upon the request of the commissioner, may institute civil action 
18.23 	to recover the amount due; and
18.24 	(2) notwithstanding the provisions of clause (1), if the disallowance results from 
18.25 	knowing noncompliance by one or more counties with a specific program instruction, and 
18.26 	that knowing noncompliance is a matter of official county board record, the commissioner 
18.27 	may require payment or recover from the county or counties, in the manner prescribed in 
18.28 	clause (1), an amount equal to the portion of the total disallowance which resulted from the 
18.29 	noncompliance, and may distribute the balance of the disallowance according to clause (1).
18.30 	(o) Develop and implement special projects that maximize reimbursements and 
18.31 	result in the recovery of money to the state. For the purpose of recovering state money, 
18.32 	the commissioner may enter into contracts with third parties. Any recoveries that result 
18.33 	from projects or contracts entered into under this paragraph shall be deposited in the 
18.34 	state treasury and credited to a special account until the balance in the account reaches 
18.35 	$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 
19.1 	transferred and credited to the general fund. All money in the account is appropriated to 
19.2 	the commissioner for the purposes of this paragraph.
19.3 	(p) Have the authority to make direct payments to facilities providing shelter 
19.4 	to women and their children according to section 256D.05, subdivision 3. Upon 
19.5 	the written request of a shelter facility that has been denied payments under section 
19.6 	256D.05, subdivision 3, the commissioner shall review all relevant evidence and make 
19.7 	a determination within 30 days of the request for review regarding issuance of direct 
19.8 	payments to the shelter facility. Failure to act within 30 days shall be considered a 
19.9 	determination not to issue direct payments.
19.10 	(q) Have the authority to establish and enforce the following county reporting 
19.11 	requirements:
19.12 	(1) the commissioner shall establish fiscal and statistical reporting requirements 
19.13 	necessary to account for the expenditure of funds allocated to counties for human 
19.14 	services programs. When establishing financial and statistical reporting requirements, the 
19.15 	commissioner shall evaluate all reports, in consultation with the counties, to determine if 
19.16 	the reports can be simplified or the number of reports can be reduced;
19.17 	(2) the county board shall submit monthly or quarterly reports to the department 
19.18 	as required by the commissioner. Monthly reports are due no later than 15 working days 
19.19 	after the end of the month. Quarterly reports are due no later than 30 calendar days after 
19.20 	the end of the quarter, unless the commissioner determines that the deadline must be 
19.21 	shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines 
19.22 	or risking a loss of federal funding. Only reports that are complete, legible, and in the 
19.23 	required format shall be accepted by the commissioner;
19.24 	(3) if the required reports are not received by the deadlines established in clause (2), 
19.25 	the commissioner may delay payments and withhold funds from the county board until 
19.26 	the next reporting period. When the report is needed to account for the use of federal 
19.27 	funds and the late report results in a reduction in federal funding, the commissioner shall 
19.28 	withhold from the county boards with late reports an amount equal to the reduction in 
19.29 	federal funding until full federal funding is received;
19.30 	(4) a county board that submits reports that are late, illegible, incomplete, or not 
19.31 	in the required format for two out of three consecutive reporting periods is considered 
19.32 	noncompliant. When a county board is found to be noncompliant, the commissioner 
19.33 	shall notify the county board of the reason the county board is considered noncompliant 
19.34 	and request that the county board develop a corrective action plan stating how the 
19.35 	county board plans to correct the problem. The corrective action plan must be submitted 
20.1 	to the commissioner within 45 days after the date the county board received notice 
20.2 	of noncompliance;
20.3 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year 
20.4 	after the date the report was originally due. If the commissioner does not receive a report 
20.5 	by the final deadline, the county board forfeits the funding associated with the report for 
20.6 	that reporting period and the county board must repay any funds associated with the 
20.7 	report received for that reporting period;
20.8 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
20.9 	under clause (3) or (5) if the county demonstrates that the commissioner failed to 
20.10 	provide appropriate forms, guidelines, and technical assistance to enable the county to 
20.11 	comply with the requirements. If the county board disagrees with an action taken by the 
20.12 	commissioner under clause (3) or (5), the county board may appeal the action according 
20.13 	to sections 14.57 to 14.69; and
20.14 	(7) counties subject to withholding of funds under clause (3) or forfeiture or 
20.15 	repayment of funds under clause (5) shall not reduce or withhold benefits or services to 
20.16 	clients to cover costs incurred due to actions taken by the commissioner under clause 
20.17 	(3) or (5).
20.18 	(r) Allocate federal fiscal disallowances or sanctions for audit exceptions when 
20.19 	federal fiscal disallowances or sanctions are based on a statewide random sample for 
20.20 	the foster care program under title IV-E of the Social Security Act, United States Code, 
20.21 	title 42, in direct proportion to each county's title IV-E foster care maintenance claim 
20.22 	for that period.
20.23 	(s) Be responsible for ensuring the detection, prevention, investigation, and 
20.24 	resolution of fraudulent activities or behavior by applicants, recipients, and other 
20.25 	participants in the human services programs administered by the department.
20.26 	(t) Require county agencies to identify overpayments, establish claims, and utilize 
20.27 	all available and cost-beneficial methodologies to collect and recover these overpayments 
20.28 	in the human services programs administered by the department.
20.29 	(u) Have the authority to administer a drug rebate program for drugs purchased 
20.30 	pursuant to the prescription drug program established under section 256.955 after the 
20.31 	beneficiary's satisfaction of any deductible established in the program. The commissioner 
20.32 	shall require a rebate agreement from all manufacturers of covered drugs as defined in 
20.33 	section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on 
20.34 	or after July 1, 2002, must include rebates for individuals covered under the prescription 
20.35 	drug program who are under 65 years of age. For each drug, the amount of the rebate shall 
20.36 	be equal to the rebate as defined for purposes of the federal rebate program in United 
21.1 	States Code, title 42, section 1396r-8. The manufacturers must provide full payment 
21.2 	within 30 days of receipt of the state invoice for the rebate within the terms and conditions 
21.3 	used for the federal rebate program established pursuant to section 1927 of title XIX of 
21.4 	the Social Security Act. The manufacturers must provide the commissioner with any 
21.5 	information necessary to verify the rebate determined per drug. The rebate program shall 
21.6 	utilize the terms and conditions used for the federal rebate program established pursuant to 
21.7 	section 1927 of title XIX of the Social Security Act.
21.8 	(v) Have the authority to administer the federal drug rebate program for drugs 
21.9 	purchased under the medical assistance program as allowed by section 1927 of title XIX 
21.10 	of the Social Security Act and according to the terms and conditions of section 1927. 
21.11 	Rebates shall be collected for all drugs that have been dispensed or administered in an 
21.12 	outpatient setting and that are from manufacturers who have signed a rebate agreement 
21.13 	with the United States Department of Health and Human Services.
21.14 	(w) Have the authority to administer a supplemental drug rebate program for drugs 
21.15 	purchased under the medical assistance program. The commissioner may enter into 
21.16 	supplemental rebate contracts with pharmaceutical manufacturers and may require prior 
21.17 	authorization for drugs that are from manufacturers that have not signed a supplemental 
21.18 	rebate contract. Prior authorization of drugs shall be subject to the provisions of section 
21.19 	256B.0625, subdivision 13.
21.20 	(x) Operate the department's communication systems account established in Laws 
21.21 	1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared 
21.22 	communication costs necessary for the operation of the programs the commissioner 
21.23 	supervises. A communications account may also be established for each regional 
21.24 	treatment center which operates communications systems. Each account must be used 
21.25 	to manage shared communication costs necessary for the operations of the programs the 
21.26 	commissioner supervises. The commissioner may distribute the costs of operating and 
21.27 	maintaining communication systems to participants in a manner that reflects actual usage. 
21.28 	Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and 
21.29 	other costs as determined by the commissioner. Nonprofit organizations and state, county, 
21.30 	and local government agencies involved in the operation of programs the commissioner 
21.31 	supervises may participate in the use of the department's communications technology and 
21.32 	share in the cost of operation. The commissioner may accept on behalf of the state any 
21.33 	gift, bequest, devise or personal property of any kind, or money tendered to the state for 
21.34 	any lawful purpose pertaining to the communication activities of the department. Any 
21.35 	money received for this purpose must be deposited in the department's communication 
21.36 	systems accounts. Money collected by the commissioner for the use of communication 
22.1 	systems must be deposited in the state communication systems account and is appropriated 
22.2 	to the commissioner for purposes of this section.
22.3 	(y) Receive any federal matching money that is made available through the medical 
22.4 	assistance program for the consumer satisfaction survey. Any federal money received for 
22.5 	the survey is appropriated to the commissioner for this purpose. The commissioner may 
22.6 	expend the federal money received for the consumer satisfaction survey in either year of 
22.7 	the biennium.
22.8 	(z) Designate community information and referral call centers and incorporate 
22.9 	cost reimbursement claims from the designated community information and referral 
22.10 	call centers into the federal cost reimbursement claiming processes of the department 
22.11 	according to federal law, rule, and regulations. Existing information and referral centers 
22.12 	provided by Greater Twin Cities United Way or existing call centers for which Greater 
22.13 	Twin Cities United Way has legal authority to represent, shall be included in these 
22.14 	designations upon review by the commissioner and assurance that these services are 
22.15 	accredited and in compliance with national standards. Any reimbursement is appropriated 
22.16 	to the commissioner and all designated information and referral centers shall receive 
22.17 	payments according to normal department schedules established by the commissioner 
22.18 	upon final approval of allocation methodologies from the United States Department of 
22.19 	Health and Human Services Division of Cost Allocation or other appropriate authorities.
22.20 	(aa) Develop recommended standards for foster care homes that address the 
22.21 	components of specialized therapeutic services to be provided by foster care homes with 
22.22 	those services.
22.23 	(bb) Authorize the method of payment to or from the department as part of the 
22.24 	human services programs administered by the department. This authorization includes the 
22.25 	receipt or disbursement of funds held by the department in a fiduciary capacity as part of 
22.26 	the human services programs administered by the department.
22.27 	(cc) Have the authority to administer a drug rebate program for drugs purchased for 
22.28 	persons eligible for general assistance medical care under section 256D.03, subdivision 3. 
22.29 	For manufacturers that agree to participate in the general assistance medical care rebate 
22.30 	program, the commissioner shall enter into a rebate agreement for covered drugs as 
22.31 	defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the 
22.32 	rebate shall be equal to the rebate as defined for purposes of the federal rebate program in 
22.33 	United States Code, title 42, section 1396r-8. The manufacturers must provide payment 
22.34 	within the terms and conditions used for the federal rebate program established under 
22.35 	section 1927 of title XIX of the Social Security Act. The rebate program shall utilize 
23.1 	the terms and conditions used for the federal rebate program established under section 
23.2 	1927 of title XIX of the Social Security Act.
23.3 	Effective January 1, 2006, drug coverage under general assistance medical care shall 
23.4 	be limited to those prescription drugs that:
23.5 	(1) are covered under the medical assistance program as described in section 
23.6 	256B.0625, subdivisions 13 and 13d; and
23.7 	(2) are provided by manufacturers that have fully executed general assistance 
23.8 	medical care rebate agreements with the commissioner and comply with such agreements. 
23.9 	Prescription drug coverage under general assistance medical care shall conform to 
23.10 	coverage under the medical assistance program according to section 256B.0625, 
23.11 	subdivisions 13 to 13g.
23.12 	The rebate revenues collected under the drug rebate program are deposited in the 
23.13 	general fund.

23.14 	ARTICLE 3
23.15 	STATE-OPERATED SERVICES

23.16 	Section 1. [246B.06] ESTABLISHMENT OF MINNESOTA STATE INDUSTRIES.
23.17 		Subdivision 1.Establishment; purpose. (a) The commissioner of human 
23.18 	services may establish, equip, maintain, and operate the Minnesota State Industries at 
23.19 	any Minnesota sex offender program facility under this chapter. The commissioner 
23.20 	may establish industrial and commercial activities for sex offender treatment patients 
23.21 	as the commissioner deems necessary and suitable to the profitable employment, 
23.22 	educational training, and development of proper work habits of patients consistent with 
23.23 	the requirements in section 246B.05. The industrial and commercial activities authorized 
23.24 	by this section are designated Minnesota State Industries and must be for the primary 
23.25 	purpose of sustaining and ensuring Minnesota State Industries' self-sufficiency, providing 
23.26 	educational training, meaningful employment, and the teaching of proper work habits to 
23.27 	the patients of the Minnesota sex offender program under this chapter, and not solely as 
23.28 	competitive business ventures. 
23.29 	(b) The net profits from Minnesota State Industries must be used for the benefit 
23.30 	of the patients as it relates to building education and self-sufficiency skills. Prior to 
23.31 	the establishment of any industrial and commercial activity, the commissioner of 
23.32 	human services may consult with stakeholders including representatives of business, 
23.33 	industry, organized labor, the commissioner of education, the state Apprenticeship 
23.34 	Council, the commissioner of labor and industry, the commissioner of employment and 
23.35 	economic development, the commissioner of administration, and other stakeholders the 
24.1 	commissioner deems qualified. The purpose of the stakeholder consultation is to determine 
24.2 	the quantity and nature of the goods, wares, merchandise, and services to be made or 
24.3 	provided, and the types of processes to be used in their manufacture, processing, repair, 
24.4 	and production consistent with the greatest opportunity for the reform and educational 
24.5 	training of the patients, and with the best interests of the state, business, industry, and labor.
24.6 	(c) The commissioner of human services shall, at all times in the conduct of any 
24.7 	industrial or commercial activity authorized by this section, utilize patient labor to the 
24.8 	greatest extent feasible, provided that the commissioner may employ all administrative, 
24.9 	supervisory, and other skilled workers necessary to the proper instruction of the patients 
24.10 	and the profitable and efficient operation of the industrial and commercial activities 
24.11 	authorized by this section.
24.12 	(d) The commissioner of human services may authorize the director of any 
24.13 	Minnesota sex offender treatment facility under the commissioner's control to accept 
24.14 	work projects from outside sources for processing, fabrication, or repair, provided that 
24.15 	preference is given to the performance of work projects for state departments and agencies.
24.16 		Subd. 2.Revolving fund. As described in section 246B.05, subdivision 2, there 
24.17 	is established a Minnesota State Industries revolving fund under the control of the 
24.18 	commissioner of human services. The revolving fund must be used for Minnesota State 
24.19 	Industries authorized under this section, including, but not limited to, the purchase of 
24.20 	equipment and raw materials, the payment of salaries and wages, and other necessary 
24.21 	expenses as determined by the commissioner of human services. The purchase of 
24.22 	services, materials, and commodities used in and held for resale are not subject to the 
24.23 	competitive bidding procedures of section 16C.06, but are subject to all other provisions 
24.24 	of chapters 16B and 16C. When practical, purchases must be made from small targeted 
24.25 	group businesses designated under section 16C.16. Additionally, the expenses of patient 
24.26 	educational training and self-sufficiency skills may be financed from the revolving fund 
24.27 	in an amount to be determined by the commissioner or designee. The proceeds and 
24.28 	income from all Minnesota State Industries conducted at the Minnesota sex offender 
24.29 	treatment facilities must be deposited in the revolving  fund subject to disbursement under 
24.30 	subdivision 3. The commissioner of human services may request that money in the fund 
24.31 	be invested pursuant to section 11A.25. Proceeds from the investment not currently 
24.32 	needed must be accounted for separately and credited to the revolving fund. 
24.33 		Subd. 3.Disbursement from fund. The Minnesota State Industries revolving 
24.34 	fund must be deposited in the state treasury and paid out only on proper vouchers as 
24.35 	authorized and approved by the commissioner of human services, and in the same manner 
24.36 	and under the same restrictions as are now provided by law for the disbursement of funds 
25.1 	by the commissioner. An amount deposited in the state treasury equal to six months 
25.2 	of net operating cash as determined by the prior 12 months of revenue and cash flow 
25.3 	statements must be restricted for use only by Minnesota State Industries as described 
25.4 	under subdivision 2. For purposes of this subdivision, "net operating cash" means net 
25.5 	income, minus sales, plus cost of goods sold. Cost of goods sold  include all direct costs 
25.6 	of industry products attributable to the goods' production.
25.7 		Subd. 4.Revolving fund; borrowing.  The commissioner of human services is 
25.8 	authorized to borrow sums of money as the commissioner deems necessary to meet 
25.9 	current demands on the Minnesota State Industries revolving fund. The sums borrowed 
25.10 	must not exceed, in any calendar year, six months of net operating cash as determined 
25.11 	by the previous 12 months of the industries' revenue and cash flow statements. If the 
25.12 	commissioner of human services determines that borrowing of funds is necessary, the 
25.13 	commissioner of human services shall certify this need to the commissioner of finance. 
25.14 	Funds may be borrowed from general fund appropriations to the Minnesota sex offender 
25.15 	program with the authorization of the commissioner of finance. Upon authorization of the 
25.16 	commissioner of finance, the transfer must be made and credited to the Minnesota State 
25.17 	Industries revolving fund. The sum transferred to the Minnesota State Industries revolving 
25.18 	fund must be repaid by the commissioner of human services from the revolving fund to 
25.19 	the fund from which it was transferred in a time period specified by the commissioner 
25.20 	of finance, but by no later than the end of the biennium, as defined in section 16A.011, 
25.21 	in which the loan is made. When any transfer is made to the Minnesota State Industries 
25.22 	revolving fund, the commissioner of finance shall notify the commissioner of human 
25.23 	services of the amount transferred to the fund and the date the transfer is to be repaid.
25.24 		Subd. 5.Federal grant fund transfers. Grants received by the commissioner of 
25.25 	human services from the federal government for any vocational training program or for 
25.26 	administration by the commissioner of human services must (1) be credited to a federal 
25.27 	grant fund and then (2) be transferred from the federal grant fund to the credit of the 
25.28 	commissioner of human services in the appropriate account upon certification by the 
25.29 	commissioner of human services that the amounts requested to be transferred have been 
25.30 	earned or are required for the purposes of this section. Funds received by the federal 
25.31 	grant fund need not be budgeted as such, provided transfers from the fund are budgeted 
25.32 	for allotment purposes in the appropriate appropriation.
25.33 		Subd. 6.Wages. Notwithstanding section 177.24 or any other law to the 
25.34 	contrary, wages paid to patients working within this program are at the discretion of the 
25.35 	commissioner of human services.

26.1 	ARTICLE 4
26.2 	CHILDREN AND FAMILY SERVICES

26.3 	Section 1. Minnesota Statutes 2007 Supplement, section 256.741, subdivision 1, 
26.4 	is amended to read:
26.5 		Subdivision 1.Public assistance Definitions. (a) The term "direct support" as used 
26.6 	in this chapter and chapters 257, 518, 518A, and 518C refers to an assigned support 
26.7 	payment from an obligor which is paid directly to a recipient of TANF or MFIP public 
26.8 	assistance.
26.9 	(b) The term "public assistance" as used in this chapter and chapters 257, 518, 518A, 
26.10 	and 518C, includes any form of assistance provided under the AFDC program formerly 
26.11 	codified in sections 256.72 to 256.87, MFIP and MFIP-R formerly codified under chapter 
26.12 	256, MFIP under chapter 256J, work first program formerly codified under chapter 256K; 
26.13 	child care assistance provided through the child care fund under chapter 119B; any form 
26.14 	of medical assistance under chapter 256B; MinnesotaCare under chapter 256L; and foster 
26.15 	care as provided under title IV-E of the Social Security Act. 
26.16 	(c) The term "child support agency" as used in this section refers to the public 
26.17 	authority responsible for child support enforcement.
26.18 	(d) The term "public assistance agency" as used in this section refers to a public 
26.19 	authority providing public assistance to an individual.
26.20 	(e) The terms "child support" and "arrears" as used in this section have the meanings 
26.21 	provided in section 518A.26.
26.22 	(f) The term "maintenance" as used in this section has the meaning provided in 
26.23 	section 518.003.

26.24 	Sec. 2. Minnesota Statutes 2006, section 256.741, subdivision 2, is amended to read:
26.25 		Subd. 2.Assignment of support and maintenance rights. (a) An individual 
26.26 	receiving public assistance in the form of assistance under any of the following programs: 
26.27 	the AFDC program formerly codified in sections 256.72 to 256.87, MFIP under chapter 
26.28 	256J, MFIP-R and MFIP formerly codified under chapter 256, or work first program 
26.29 	formerly codified under chapter 256K is considered to have assigned to the state at the 
26.30 	time of application all rights to child support and maintenance from any other person the 
26.31 	applicant or recipient may have in the individual's own behalf or in the behalf of any other 
26.32 	family member for whom application for public assistance is made. An assistance unit is 
26.33 	ineligible for the Minnesota family investment program unless the caregiver assigns all 
26.34 	rights to child support and spousal maintenance benefits according to this section. 
27.1 	(1) AnThe assignment made according to this section is effective as to:
27.2 	(i) any current child support and current spousal maintenance; and.
27.3 	(ii) any accrued child support and spousal maintenance arrears.
27.4 	(2) An assignment made after September 30, 1997, is effective as to:
27.5 	(i) any current child support and current spousal maintenance;
27.6 	(ii) any accrued child support and spousal maintenance arrears collected before 
27.7 	October 1, 2000, or the date the individual terminates assistance, whichever is later; and
27.8 	(iii) any accrued child support and spousal maintenance arrears collected under 
27.9 	federal tax intercept.
27.10 	(2) Any child support or maintenance arrears that accrue while an individual is 
27.11 	receiving public assistance in the form of assistance under any of the programs listed in 
27.12 	this paragraph are permanently assigned to the state.
27.13 	(3) The assignment of current child support and current maintenance ends on the 
27.14 	date the individual ceases to receive or is no longer eligible to receive public assistance 
27.15 	under any of the programs listed in this paragraph.
27.16 	(b) An individual receiving public assistance in the form of medical assistance, 
27.17 	including MinnesotaCare, is considered to have assigned to the state at the time of 
27.18 	application all rights to medical support from any other person the individual may have 
27.19 	in the individual's own behalf or in the behalf of any other family member for whom 
27.20 	medical assistance is provided.
27.21 	(1) An assignment made after September 30, 1997, is effective as to any medical 
27.22 	support accruing after the date of medical assistance or MinnesotaCare eligibility.
27.23 	(2) Any medical support arrears that accrue while an individual is receiving public 
27.24 	assistance in the form of medical assistance, including MinnesotaCare, are permanently 
27.25 	assigned to the state.
27.26 	(3) The assignment of current medical support ends on the date the individual ceases 
27.27 	to receive or is no longer eligible to receive public assistance in the form of medical 
27.28 	assistance or MinnesotaCare.
27.29 	(c) An individual receiving public assistance in the form of child care assistance 
27.30 	under the child care fund pursuant to chapter 119B is considered to have assigned to the 
27.31 	state at the time of application all rights to child care support from any other person the 
27.32 	individual may have in the individual's own behalf or in the behalf of any other family 
27.33 	member for whom child care assistance is provided.
27.34 	An(1) The assignment made according to this paragraph is effective as to:
27.35 	(1) any current child care support and any child care support arrears assigned and 
27.36 	accruing after July 1, 1997, that are collected before October 1, 2000; and.
28.1 	(2) any accrued child care support arrears collected under federal tax intercept. Any 
28.2 	child support arrears that accrue while an individual is receiving public assistance in the 
28.3 	form of child care assistance under the child care fund in chapter 119B are permanently 
28.4 	assigned to the state.
28.5 	(3) The assignment of current child care support ends on the date the individual 
28.6 	ceases to receive or is no longer eligible to receive public assistance in the form of child 
28.7 	care assistance under the child care fund under chapter 119B.

28.8 	Sec. 3. Minnesota Statutes 2006, section 256.741, subdivision 2a, is amended to read:
28.9 		Subd. 2a.Families-first Distribution of child support arrearages. (a) The 
28.10 	state shall distribute current child support and maintenance received by the state to an 
28.11 	individual who assigns the right to that support under subdivision 2, paragraph (a).
28.12 	(b) When the public authority collects child support arrearages on behalf of an 
28.13 	individual who is receiving public assistance provided under MFIP or MFIP-R under 
28.14 	this chapter, MFIP under chapter 256J, or work first under chapter 256K, and the public 
28.15 	authority has the option of applying the collection to arrears permanently assigned to the 
28.16 	state or to arrears temporarily assigned to the state, the public authority shall first apply the 
28.17 	collection to satisfy those arrears that are permanently assigned to the state.
28.18 	(c) When the public authority collects child support arrearages on behalf of an 
28.19 	individual who is not receiving public assistance, the public authority shall first apply the 
28.20 	collection to satisfy those arrears that are not permanently assigned to the state.
28.21 	(d) When the public authority collects child support arrearages certified under the 
28.22 	federal tax offset, the public authority shall first apply the collection to satisfy those arrears 
28.23 	that are permanently assigned to the state.

28.24 	Sec. 4. Minnesota Statutes 2006, section 256.741, subdivision 3, is amended to read:
28.25 		Subd. 3.Existing assignments. Assignments based on the receipt of public 
28.26 	assistance in existence prior to July 1, 1997, are permanently assigned to the state. Arrears 
28.27 	that accrued prior to the receipt of assistance that were assigned to the state between July 
28.28 	1, 1997, and October 1, 2009, will no longer be assigned as of October 1, 2009.

28.29 	EFFECTIVE DATE. This section is effective October 1, 2009.

28.30 	Sec. 5. Minnesota Statutes 2007 Supplement, section 256J.621, is amended to read:
28.31 	256J.621 WORK PARTICIPATION BONUS FOOD BENEFITS.
29.1 	(a) Effective March 1, 2010, upon exiting the diversionary work program (DWP) or 
29.2 	upon terminating the Minnesota family investment program (MFIP)cash assistance with 
29.3 	earnings, a participant who is employed may be eligible for transitional assistance work 
29.4 	participation food benefits  of $75 per month to assist in meeting the family's basic needs 
29.5 	as the participant continues to move toward self-sufficiency.
29.6 	(b) To be eligible for a transitional assistance payment work participation food 
29.7 	benefits, the participant shall not receive MFIP cash assistance or diversionary work 
29.8 	program assistance during the month and the participant or participants must meet the 
29.9 	following work requirements:
29.10 	(1) if the participant is a single caregiver and has a child under six years of age, the 
29.11 	participant must be employed at least 87 hours per month;
29.12 	(2) if the participant is a single caregiver and does not have a child under six years of 
29.13 	age, the participant must be employed at least 130 hours per month; or
29.14 	(3) if the household is a two-parent family, at least one of the parents must be 
29.15 	employed an average of at least 130 hours per month.
29.16 	Whenever a participant exits the diversionary work program or is terminated from 
29.17 	MFIP cash assistance and meets the other criteria in this section, transitional assistance is
29.18 	work participation food benefits are available for up to 24 consecutive months.
29.19 	(c) Expenditures on the program are maintenance of effort state funds for participants 
29.20 	under paragraph (b), clauses (1) and (2). Expenditures for participants under paragraph 
29.21 	(b), clause (3), are nonmaintenance of effort funds. Months in which a participant receives 
29.22 	transitional assistancework participation food benefits under this section do not count 
29.23 	toward the participant's MFIP 60-month time limit.

29.24 	Sec. 6. Minnesota Statutes 2006, section 518A.50, is amended to read:
29.25 	518A.50 PAYMENT TO PUBLIC AGENCY.
29.26 	(a) This section applies to all proceedings involving a support order, including, but 
29.27 	not limited to, a support order establishing an order for past support or reimbursement 
29.28 	of public assistance.
29.29 	(b) The court shall direct that all payments ordered for maintenance or support 
29.30 	be made to the public authority responsible for child support enforcement so long as 
29.31 	the obligee is receiving or has applied for public assistance, or has applied for child 
29.32 	support or maintenance collection services. Public authorities responsible for child 
29.33 	support enforcement may act on behalf of other public authorities responsible for child 
29.34 	support enforcement, including the authority to represent the legal interests of or execute 
29.35 	documents on behalf of the other public authority in connection with the establishment, 
30.1 	enforcement, and collection of child support, maintenance, or medical support, and 
30.2 	collection on judgments.
30.3 	(c) Payments made to the public authority other than payments under section 
30.4 	518A.53 must be credited as of the date the payment is received by the central collections 
30.5 	unit., except that payments made under section 518A.53 may be considered to have been 
30.6 	paid as of the date the obligor received the remainder of the income.
30.7 	(d) Monthly amounts received by the public agency responsible for child support 
30.8 	enforcement from the obligor that are greater than the monthly amount of public assistance 
30.9 	granted to the obligee must be remitted to the obligee.

30.10 	EFFECTIVE DATE. This section is effective October 1, 2009.

30.11 	Sec. 7. Minnesota Statutes 2006, section 518A.53, subdivision 5, is amended to read:
30.12 		Subd. 5.Payor of funds responsibilities. (a) An order for or notice of withholding 
30.13 	is binding on a payor of funds upon receipt. Withholding must begin no later than the first 
30.14 	pay period that occurs after 14 days following the date of receipt of the order for or notice 
30.15 	of withholding. In the case of a financial institution, preauthorized transfers must occur in 
30.16 	accordance with a court-ordered payment schedule.
30.17 	(b) A payor of funds shall withhold from the income payable to the obligor the 
30.18 	amount specified in the order or notice of withholding and amounts specified under 
30.19 	subdivisions 6 and 9 and shall remit the amounts withheld to the public authority within 
30.20 	seven business days of the date the obligor is paid the remainder of the income. The payor 
30.21 	of funds shall include with the remittance the Social Security number of the obligor, the 
30.22 	case type indicator as provided by the public authority and the date the obligor is paid 
30.23 	the remainder of the income. The obligor is considered to have paid the amount withheld 
30.24 	as of the date the obligor received the remainder of the income. A payor of funds may 
30.25 	combine all amounts withheld from one pay period into one payment to each public 
30.26 	authority, but shall separately identify each obligor making payment.
30.27 	(c) A payor of funds shall not discharge, or refuse to hire, or otherwise discipline an 
30.28 	employee as a result of wage or salary withholding authorized by this section. A payor of 
30.29 	funds shall be liable to the obligee for any amounts required to be withheld. A payor of 
30.30 	funds that fails to withhold or transfer funds in accordance with this section is also liable 
30.31 	to the obligee for interest on the funds at the rate applicable to judgments under section 
30.32 	549.09, computed from the date the funds were required to be withheld or transferred. 
30.33 	A payor of funds is liable for reasonable attorney fees of the obligee or public authority 
30.34 	incurred in enforcing the liability under this paragraph. A payor of funds that has failed 
30.35 	to comply with the requirements of this section is subject to contempt sanctions under 
31.1 	section 518A.73. If the payor of funds is an employer or independent contractor and 
31.2 	violates this subdivision, a court may award the obligor twice the wages lost as a result 
31.3 	of this violation. If a court finds a payor of funds violated this subdivision, the court 
31.4 	shall impose a civil fine of not less than $500. The liabilities in this paragraph apply to 
31.5 	intentional noncompliance with this section. 
31.6 	(d) If a single employee is subject to multiple withholding orders or multiple notices 
31.7 	of withholding for the support of more than one child, the payor of funds shall comply 
31.8 	with all of the orders or notices to the extent that the total amount withheld from the 
31.9 	obligor's income does not exceed the limits imposed under the Consumer Credit Protection 
31.10 	Act, United States Code, title 15, section 1673(b), giving priority to amounts designated in 
31.11 	each order or notice as current support as follows:
31.12 	(1) if the total of the amounts designated in the orders for or notices of withholding 
31.13 	as current support exceeds the amount available for income withholding, the payor of 
31.14 	funds shall allocate to each order or notice an amount for current support equal to the 
31.15 	amount designated in that order or notice as current support, divided by the total of the 
31.16 	amounts designated in the orders or notices as current support, multiplied by the amount 
31.17 	of the income available for income withholding; and
31.18 	(2) if the total of the amounts designated in the orders for or notices of withholding 
31.19 	as current support does not exceed the amount available for income withholding, the 
31.20 	payor of funds shall pay the amounts designated as current support, and shall allocate to 
31.21 	each order or notice an amount for past due support, equal to the amount designated in 
31.22 	that order or notice as past due support, divided by the total of the amounts designated in 
31.23 	the orders or notices as past due support, multiplied by the amount of income remaining 
31.24 	available for income withholding after the payment of current support.
31.25 	(e) When an order for or notice of withholding is in effect and the obligor's 
31.26 	employment is terminated, the obligor and the payor of funds shall notify the public 
31.27 	authority of the termination within ten days of the termination date. The termination 
31.28 	notice shall include the obligor's home address and the name and address of the obligor's 
31.29 	new payor of funds, if known.
31.30 	(f) A payor of funds may deduct one dollar from the obligor's remaining salary for 
31.31 	each payment made pursuant to an order for or notice of withholding under this section to 
31.32 	cover the expenses of withholding.

31.33 	EFFECTIVE DATE. This section is effective October 1, 2009.

31.34 	Sec. 8. Laws 2007, chapter 147, article 2, section 21, the effective date, is amended to 
31.35 	read:

32.1 	EFFECTIVE DATE. Subdivision 1 is effective February 1, 2008, and subdivision 
32.2 	2 is effective May 1, 2008 March 1, 2009.

32.3 	Sec. 9. Laws 2007, chapter 147, article 19, section 3, subdivision 1, is amended to read:

32.4	Subdivision 1. Total Appropriation
 	$ 
	5,294,627,000 
	$ 
	5,695,458,000 

32.5	Appropriations by Fund 
	
32.6		2008 
	2009 
	
32.7	General 
	4,614,727,000 
	4,940,293,000 
	
32.8
32.9	State Government 
Special Revenue 
	549,000 
	565,000 
	
32.10	Health Care Access 
	426,628,000 
	492,759,000 
	
32.11	Federal TANF 
	250,537,000 
	260,051,000 
	
32.12	Lottery Prize Fund 
	2,185,000 
	1,790,000 
	
32.13 	The amounts that may be spent for each 
32.14 	purpose are specified in the following 
32.15 	subdivisions. 
32.16 	Receipts for Systems Projects.
32.17 	Appropriations and federal receipts for 
32.18 	information system projects for MAXIS, 
32.19 	PRISM, MMIS, and SSIS must be deposited 
32.20 	in the state system account authorized in 
32.21 	Minnesota Statutes, section 256.014. Money 
32.22 	appropriated for computer projects approved 
32.23 	by the Minnesota Office of Enterprise 
32.24 	Technology, funded by the legislature, and 
32.25 	approved by the commissioner of finance, 
32.26 	may be transferred from one project to 
32.27 	another and from development to operations 
32.28 	as the commissioner of human services 
32.29 	considers necessary. Any unexpended 
32.30 	balance in the appropriation for these 
32.31 	projects does not cancel but is available for 
32.32 	ongoing development and operations. 
32.33 	Pay for Performance. (a) Of the general 
32.34 	fund appropriation, $272,000 each year 
32.35 	is available to the commissioner of 
33.1 	human services only under the following 
33.2 	circumstances: 
33.3 	(1) $272,000 shall be made available by the 
33.4 	commissioner of finance on January 1, 2009, 
33.5 	only after notification by the commissioner 
33.6 	of human services to the commissioner of 
33.7 	finance and to the chairs of the relevant house 
33.8 	of representatives and senate finance and 
33.9 	policy committees that the average number 
33.10 	of days from the receipt of a MinnesotaCare 
33.11 	application at the state processing unit until 
33.12 	the initial eligibility determination of the 
33.13 	application was 30 days or less during the 
33.14 	period October 1, 2007, to September 30, 
33.15 	2008. Applications transferred from counties 
33.16 	to the state processing unit are excluded from 
33.17 	this calculation; and 
33.18 	(2) $272,000 shall be made available by the 
33.19 	commissioner of finance on January 1, 2009, 
33.20 	only after notification by the commissioner 
33.21 	of human services to the commissioner of 
33.22 	finance and to the chairs of the relevant 
33.23 	house of representatives and senate finance 
33.24 	and policy committees that the commissioner 
33.25 	initiated a separate treatment program for 
33.26 	persons in the Minnesota sex offenders 
33.27 	program who are between the ages of 18 and 
33.28 	25 by January 1, 2008. 
33.29 	(b) Regardless of whether these 
33.30 	appropriations are made available to 
33.31 	the commissioner of human services, they 
33.32 	shall be part of base level funding for the 
33.33 	biennium beginning July 1, 2009. 
33.34 	Purchasing Alliance Fund Transfer.
33.35 	On September 1, 2007, any remaining 
34.1 	balance in the purchasing alliance stop-loss 
34.2 	fund account established under Minnesota 
34.3 	Statutes, section 256.956, shall transfer to 
34.4 	the general fund. 
34.5 	Nonfederal Share Transfers. The 
34.6 	nonfederal share of activities for which 
34.7 	federal administrative reimbursement is 
34.8 	appropriated to the commissioner may be 
34.9 	transferred to the special revenue fund. 
34.10 	TANF Maintenance of Effort. (a) In order 
34.11 	to meet the basic MOE requirements of the 
34.12 	TANF block grant specified under Code 
34.13 	of Federal Regulations, title 45, section 
34.14 	263.1, the commissioner may only report 
34.15 	nonfederal money expended for allowable 
34.16 	activities listed in the following clauses as 
34.17 	TANF/MOE expenditures: 
34.18 	(1) MFIP cash, diversionary work program, 
34.19 	and food assistance benefits under Minnesota 
34.20 	Statutes, chapter 256J; 
34.21 	(2) the child care assistance programs 
34.22 	under Minnesota Statutes, sections 119B.03
34.23 	and 119B.05, and county child care 
34.24 	administrative costs under Minnesota 
34.25 	Statutes, section 119B.15; 
34.26 	(3) state and county MFIP administrative 
34.27 	costs under Minnesota Statutes, chapters 
34.28 	256J and 256K; 
34.29 	(4) state, county, and tribal MFIP 
34.30 	employment services under Minnesota 
34.31 	Statutes, chapters 256J and 256K; 
34.32 	(5) expenditures made on behalf of 
34.33 	noncitizen MFIP recipients who qualify 
34.34 	for the medical assistance without federal 
35.1 	financial participation program under 
35.2 	Minnesota Statutes, section 256B.06, 
35.3 	subdivision 4, paragraphs (d), (e), and (j); 
35.4 	and 
35.5 	(6) qualifying working family credit 
35.6 	expenditures under Minnesota Statutes, 
35.7 	section 290.0671. 
35.8 	(b) The commissioner shall ensure that 
35.9 	sufficient qualified nonfederal expenditures 
35.10 	are made each year to meet the state's 
35.11 	TANF/MOE requirements. For the activities 
35.12 	listed in paragraph (a), clauses (2) to 
35.13 	(6), the commissioner may only report 
35.14 	expenditures that are excluded from the 
35.15 	definition of assistance under Code of 
35.16 	Federal Regulations, title 45, section 260.31. 
35.17 	(c) The commissioner shall ensure that the 
35.18 	MOE used by the commissioner of finance 
35.19 	for the February and November forecasts 
35.20 	required under Minnesota Statutes, section 
35.21 	16A.103, contains expenditures under 
35.22 	paragraph (a), clause (1), equal to at least 16 
35.23 	percent of the total required under Code of 
35.24 	Federal Regulations, title 45, section 263.1. 
35.25 	(d) Minnesota Statutes, section 256.011, 
35.26 	subdivision 3, which requires that federal 
35.27 	grants or aids secured or obtained under that 
35.28 	subdivision be used to reduce any direct 
35.29 	appropriations provided by law, does not 
35.30 	apply if the grants or aids are federal TANF 
35.31 	funds. 
35.32 	(e) Beginning October 1, 2007, the 
35.33 	commissioner may not claim an amount 
35.34 	of TANF/MOE in excess of the 75 percent 
36.1 	standard in Code of Federal Regulations, title 
36.2 	45, section 263.1(a)(2), except:
36.3 	(1) to the extent necessary to meet the 
36.4 	80 percent standard in Code of Federal 
36.5 	Regulations, title 45, section 263.1(a)(1), if 
36.6 	it is determined by the commissioner that 
36.7 	the state would not meet the TANF work 
36.8 	participation rate for the current year;
36.9 	(2) any additional amounts under Code of 
36.10 	Federal Regulations, title 45, section 264.5, 
36.11 	that relate to replacement of TANF funds due 
36.12 	to the operation of TANF penalties; and
36.13 	(3) any additional amounts that may 
36.14 	contribute to avoiding TANF work 
36.15 	participation penalties through the operation 
36.16 	of the excess MOE provisions of Code 
36.17 	of Federal Regulations, title 45, section 
36.18 	261.43(a)(2).
36.19 	For the purposes of clauses (1) to (3), 
36.20 	the commissioner may supplement the 
36.21 	MOE claim with working family credit 
36.22 	expenditures or other qualified expenditures 
36.23 	to the extent the expenditures are otherwise 
36.24 	available after considering the expenditures 
36.25 	allowed in this section.
36.26 	(f) If allowable by the federal Office of 
36.27 	Family Assistance, the commissioner may 
36.28 	claim excess MOE with respect to federal 
36.29 	fiscal years 2006 and 2007 to the extent 
36.30 	that working family credit expenditures or 
36.31 	other qualified expenditures are otherwise 
36.32 	available to supplement the state's MOE 
36.33 	claim for those years after considering the 
36.34 	expenditures allowed in this section.
37.1 	(e) (g) Notwithstanding any contrary 
37.2 	provision in this article, this rider expires 
37.3 	June 30, 2011. 
37.4 	Working Family Credit Expenditures as 
37.5 	TANF/MOE. The commissioner may claim 
37.6 	as TANF/MOE up to $6,707,000 per year 
37.7 	for fiscal year 2008 through fiscal year 2011. 
37.8 	Notwithstanding any contrary provision in 
37.9 	this article, this rider expires June 30, 2011. 
37.10 	Additional Working Family Credit 
37.11 	Expenditures to be Claimed for 
37.12 	TANF/MOE. In addition to the amounts 
37.13 	provided in this section, the commissioner 
37.14 	may count the following amounts of working 
37.15 	family credit expenditure as TANF/MOE: 
37.16 	(1) fiscal year 2008, $11,097,000
37.17 	$63,796,000; 
37.18 	(2) fiscal year 2009, $25,401,000
37.19 	$43,219,000; 
37.20 	(3) fiscal year 2010, $20,398,000
37.21 	$24,127,000; and 
37.22 	(4) fiscal year 2011, $19,841,000
37.23 	$21,492,000. 
37.24 	Notwithstanding any contrary provision in 
37.25 	this article, this rider expires June 30, 2011. 
37.26 	Capitation Rate Increase. Of the health care 
37.27 	access fund appropriations to the University 
37.28 	of Minnesota in the higher education 
37.29 	omnibus appropriation bill, $2,157,000 in 
37.30 	fiscal year 2008 and $2,157,000 in fiscal year 
37.31 	2009 are to be used to increase the capitation 
37.32 	payments under Minnesota Statutes, section 
37.33 	256B.69. 

38.1 	Sec. 10. Laws 2007, chapter 147, article 19, section 3, subdivision 4, is amended to 
38.2 	read:

38.3
38.4	Subd. 4. Children and Economic Assistance 
Grants
 					
38.5 	The amounts that may be spent from this 
38.6 	appropriation for each purpose are as follows: 

38.7	(a) MFIP/DWP Grants 

38.8	Appropriations by Fund 
	
38.9	General 
	62,069,000 
	62,405,000 
	
38.10	Federal TANF 
	75,904,000 
	80,841,000 

38.11	(b) Support Services Grants 

38.12	Appropriations by Fund 
	
38.13	General 
	8,715,000 
	8,715,000 
	
38.14	Federal TANF 
	113,429,000 
	115,902,000 
	
38.15 	TANF Prior Appropriation Cancellation.
38.16 	Notwithstanding Laws 2001, First Special 
38.17 	Session chapter 9, article 17, section 
38.18 	2, subdivision 11, paragraph (b), any 
38.19 	unexpended TANF funds appropriated to the 
38.20 	commissioner to contract with the Board of 
38.21 	Trustees of Minnesota State Colleges and 
38.22 	Universities, to provide tuition waivers to 
38.23 	employees of health care and human service 
38.24 	providers that are members of qualifying 
38.25 	consortia operating under Minnesota 
38.26 	Statutes, sections 116L.10 to 116L.15, must 
38.27 	cancel at the end of fiscal year 2007. 
38.28 	MFIP Pilot Program. Of the TANF 
38.29 	appropriation, $100,000 in fiscal year 2008 
38.30 	and $750,000 in fiscal year 2009 are for a 
38.31 	grant to the Stearns-Benton Employment and 
38.32 	Training Council for the Workforce U pilot 
38.33 	program. Base level funding for this program 
38.34 	shall be $750,000 in 2010 and $0 in 2011. 
39.1 	Supported Work. (1) Of the TANF 
39.2 	appropriation, $5,468,000 in fiscal year 
39.3 	2008 and $7,291,000 in fiscal year 
39.4 	2009 are for supported work for MFIP 
39.5 	participants, to be allocated to counties 
39.6 	and tribes based on the criteria under 
39.7 	clauses (2) and (3). Paid transitional work 
39.8 	experience and other supported employment 
39.9 	under this rider provides a continuum of 
39.10 	employment assistance, including outreach 
39.11 	and recruitment, program orientation 
39.12 	and intake, testing and assessment, job 
39.13 	development and marketing, preworksite 
39.14 	training, supported worksite experience, job 
39.15 	coaching, and postplacement follow-up, in 
39.16 	addition to extensive case management and 
39.17 	referral services. * (The preceding text "and 
39.18 	$7,291,000 in fiscal year 2009" was indicated 
39.19 	as vetoed by the governor.) 
39.20 	(2) A county or tribe is eligible to receive an 
39.21 	allocation under this rider if: 
39.22 	(i) the county or tribe is not meeting the 
39.23 	federal work participation rate; 
39.24 	(ii) the county or tribe has participants who 
39.25 	are required to perform work activities under 
39.26 	Minnesota Statutes, chapter 256J, but are not 
39.27 	meeting hourly work requirements; and 
39.28 	(iii) the county or tribe has assessed 
39.29 	participants who have completed six weeks 
39.30 	of job search or are required to perform 
39.31 	work activities and are not meeting the 
39.32 	hourly requirements, and the county or tribe 
39.33 	has determined that the participant would 
39.34 	benefit from working in a supported work 
39.35 	environment. 
40.1 	(3) A county or tribe may also be eligible for 
40.2 	funds in order to contract for supplemental 
40.3 	hours of paid work at the participant's child's 
40.4 	place of education, child care location, or the 
40.5 	child's physical or mental health treatment 
40.6 	facility or office. This grant to counties and 
40.7 	tribes is specifically for MFIP participants 
40.8 	who need to work up to five hours more 
40.9 	per week in order to meet the hourly work 
40.10 	requirement, and the participant's employer 
40.11 	cannot or will not offer more hours to the 
40.12 	participant. 
40.13 	Work Study. Of the TANF appropriation, 
40.14 	$750,000 each year are to the commissioner 
40.15 	to contract with the Minnesota Office of 
40.16 	Higher Education for the biennium beginning 
40.17 	July 1, 2007, for work study grants under 
40.18 	Minnesota Statutes, section 136A.233, 
40.19 	specifically for low-income individuals who 
40.20 	receive assistance under Minnesota Statutes, 
40.21 	chapter 256J, and for grants to opportunities 
40.22 	industrialization centers. * (The preceding 
40.23 	text beginning "Work Study. Of the TANF 
40.24 	appropriation," was indicated as vetoed by 
40.25 	the governor.) 
40.26 	Integrated Service Projects. $2,500,000 
40.27 	in fiscal year 2008 and $2,500,000 in fiscal 
40.28 	year 2009 are appropriated from the TANF 
40.29 	fund to the commissioner to continue to 
40.30 	fund the existing integrated services projects 
40.31 	for MFIP families, and if funding allows, 
40.32 	additional similar projects. 
40.33 	Base Adjustment. The TANF base for fiscal 
40.34 	year 2010 is $115,902,000 and for fiscal year 
40.35 	2011 is $115,152,000. 

41.1	(c) MFIP Child Care Assistance Grants 

41.2	General 
	74,654,000 
	71,951,000 

41.3
41.4	(d) Basic Sliding Fee Child Care Assistance 
Grants 

41.5	General 
	42,995,000 
	45,008,000 
	
41.6 	Base Adjustment. The general fund base 
41.7 	is $44,881,000 for fiscal year 2010 and 
41.8 	$44,852,000 for fiscal year 2011. 
41.9 	At-Home Infant Care Program. No 
41.10 	funding shall be allocated to or spent on 
41.11 	the at-home infant care program under 
41.12 	Minnesota Statutes, section 119B.035. 

41.13	(e) Child Care Development Grants 

41.14	General 
	4,390,000 
	6,390,000 
	
41.15 	Prekindergarten Exploratory Projects. Of 
41.16 	the general fund appropriation, $2,000,000 
41.17 	the first year and $4,000,000 the second 
41.18 	year are for grants to the city of St. Paul, 
41.19 	Hennepin County, and Blue Earth County to 
41.20 	establish scholarship demonstration projects 
41.21 	to be conducted in partnership with the 
41.22 	Minnesota Early Learning Foundation to 
41.23 	promote children's school readiness. This 
41.24 	appropriation is available until June 30, 2009. 
41.25 	Child Care Services Grants. Of this 
41.26 	appropriation, $500,000 each year are for 
41.27 	the purpose of providing child care services 
41.28 	grants under Minnesota Statutes, section 
41.29 	119B.21, subdivision 5. This appropriation 
41.30 	is for the 2008-2009 biennium only, and does 
41.31 	not increase the base funding. 
41.32 	Early Childhood Professional 
41.33 	Development System. Of this appropriation, 
42.1 	$500,000 each year are for purposes of the 
42.2 	early childhood professional development 
42.3 	system, which increases the quality and 
42.4 	continuum of professional development 
42.5 	opportunities for child care practitioners. 
42.6 	This appropriation is for the 2008-2009 
42.7 	biennium only, and does not increase the 
42.8 	base funding. 
42.9 	Base Adjustment. The general fund base 
42.10 	is $1,515,000 for each of fiscal years 2010 
42.11 	and 2011. 

42.12	(f) Child Support Enforcement Grants 

42.13	General 
	11,038,000 
	3,705,000 
	
42.14 	Child Support Enforcement. $7,333,000 
42.15 	for fiscal year 2008 is to make grants to 
42.16 	counties for child support enforcement 
42.17 	programs to make up for the loss under the 
42.18 	2005 federal Deficit Reduction Act of federal 
42.19 	matching funds for federal incentive funds 
42.20 	passed on to the counties by the state. 
42.21 	This appropriation is available until June 30, 
42.22 	2009. 

42.23	(g) Children's Services Grants 

42.24	Appropriations by Fund 
	
42.25	General 
	63,647,000 
	71,147,000 
	
42.26	Health Care Access 
	250,000 
	-0- 
	
42.27	TANF 
	240,000 
	340,000 
	
42.28 	Grants for Programs Serving Young 
42.29 	Parents. Of the TANF fund appropriation, 
42.30 	$140,000 each year is for a grant to a program 
42.31 	or programs that provide comprehensive 
42.32 	services through a private, nonprofit agency 
42.33 	to young parents in Hennepin County who 
42.34 	have dropped out of school and are receiving 
43.1 	public assistance. The program administrator 
43.2 	shall report annually to the commissioner on 
43.3 	skills development, education, job training, 
43.4 	and job placement outcomes for program 
43.5 	participants. 
43.6 	County Allocations for Rate Increases.
43.7 	County Children and Community Services 
43.8 	Act allocations shall be increased by 
43.9 	$197,000 effective October 1, 2007, and 
43.10 	$696,000 effective October 1, 2008, to help 
43.11 	counties pay for the rate adjustments to 
43.12 	day training and habilitation providers for 
43.13 	participants paid by county social service 
43.14 	funds. Notwithstanding the provisions of 
43.15 	Minnesota Statutes, section 256M.40, the 
43.16 	allocation to a county shall be based on 
43.17 	the county's proportion of social services 
43.18 	spending for day training and habilitation 
43.19 	services as determined in the most recent 
43.20 	social services expenditure and grant 
43.21 	reconciliation report. 
43.22 	Privatized Adoption Grants. Federal 
43.23 	reimbursement for privatized adoption grant 
43.24 	and foster care recruitment grant expenditures 
43.25 	is appropriated to the commissioner for 
43.26 	adoption grants and foster care and adoption 
43.27 	administrative purposes. 
43.28 	Adoption Assistance Incentive Grants.
43.29 	Federal funds available during fiscal year 
43.30 	2008 and fiscal year 2009 for the adoption 
43.31 	incentive grants are appropriated to the 
43.32 	commissioner for these purposes. 
43.33 	Adoption Assistance and Relative Custody 
43.34 	Assistance. The commissioner may transfer 
43.35 	unencumbered appropriation balances for 
44.1 	adoption assistance and relative custody 
44.2 	assistance between fiscal years and between 
44.3 	programs. 
44.4 	Children's Mental Health Grants. Of the 
44.5 	general fund appropriation, $5,913,000 in 
44.6 	fiscal year 2008 and $6,825,000 in fiscal year 
44.7 	2009 are for children's mental health grants. 
44.8 	The purpose of these grants is to increase and 
44.9 	maintain the state's children's mental health 
44.10 	service capacity, especially for school-based 
44.11 	mental health services. The commissioner 
44.12 	shall require grantees to utilize all available 
44.13 	third party reimbursement sources as a 
44.14 	condition of using state grant funds. At 
44.15 	least 15 percent of these funds shall be 
44.16 	used to encourage efficiencies through early 
44.17 	intervention services. At least another 15 
44.18 	percent shall be used to provide respite care 
44.19 	services for children with severe emotional 
44.20 	disturbance at risk of out-of-home placement. 
44.21 	Mental Health Crisis Services. Of the 
44.22 	general fund appropriation, $2,528,000 in 
44.23 	fiscal year 2008 and $2,850,000 in fiscal year 
44.24 	2009 are for statewide funding of children's 
44.25 	mental health crisis services. Providers must 
44.26 	utilize all available funding streams. 
44.27 	Children's Mental Health Evidence-Based 
44.28 	and Best Practices. Of the general fund 
44.29 	appropriation, $375,000 in fiscal year 2008 
44.30 	and $750,000 in fiscal year 2009 are for 
44.31 	children's mental health evidence-based and 
44.32 	best practices including, but not limited 
44.33 	to: Adolescent Integrated Dual Diagnosis 
44.34 	Treatment services; school-based mental 
44.35 	health services; co-location of mental 
45.1 	health and physical health care, and; the 
45.2 	use of technological resources to better 
45.3 	inform diagnosis and development of 
45.4 	treatment plan development by mental 
45.5 	health professionals. The commissioner 
45.6 	shall require grantees to utilize all available 
45.7 	third-party reimbursement sources as a 
45.8 	condition of using state grant funds. 
45.9 	Culturally Specific Mental Health 
45.10 	Treatment Grants. Of the general fund 
45.11 	appropriation, $75,000 in fiscal year 2008 
45.12 	and $300,000 in fiscal year 2009 are for 
45.13 	children's mental health grants to support 
45.14 	increased availability of mental health 
45.15 	services for persons from cultural and 
45.16 	ethnic minorities within the state. The 
45.17 	commissioner shall use at least 20 percent 
45.18 	of these funds to help members of cultural 
45.19 	and ethnic minority communities to become 
45.20 	qualified mental health professionals and 
45.21 	practitioners. The commissioner shall assist 
45.22 	grantees to meet third-party credentialing 
45.23 	requirements and require them to utilize all 
45.24 	available third-party reimbursement sources 
45.25 	as a condition of using state grant funds. 
45.26 	Mental Health Services for Children with 
45.27 	Special Treatment Needs. Of the general 
45.28 	fund appropriation, $50,000 in fiscal year 
45.29 	2008 and $200,000 in fiscal year 2009 are 
45.30 	for children's mental health grants to support 
45.31 	increased availability of mental health 
45.32 	services for children with special treatment 
45.33 	needs. These shall include, but not be limited 
45.34 	to: victims of trauma, including children 
45.35 	subjected to abuse or neglect, veterans and 
45.36 	their families, and refugee populations; 
46.1 	persons with complex treatment needs, such 
46.2 	as eating disorders; and those with low 
46.3 	incidence disorders. 
46.4 	MFIP and Children's Mental Health 
46.5 	Pilot Project. Of the TANF appropriation, 
46.6 	$100,000 in fiscal year 2008 and $200,000 
46.7 	in fiscal year 2009 are to fund the MFIP 
46.8 	and children's mental health pilot project. 
46.9 	Of these amounts, up to $100,000 may be 
46.10 	expended on evaluation of this pilot. 
46.11 	Prenatal Alcohol or Drug Use. Of the 
46.12 	general fund appropriation, $75,000 each 
46.13 	year is to award grants beginning July 1, 
46.14 	2007, to programs that provide services 
46.15 	under Minnesota Statutes, section 254A.171, 
46.16 	in Pine, Kanabec, and Carlton Counties. This 
46.17 	appropriation shall become part of the base 
46.18 	appropriation. 
46.19 	Base Adjustment. The general fund base 
46.20 	is $62,572,000 in fiscal year 2010 and 
46.21 	$62,575,000 in fiscal year 2011. 

46.22	(h) Children and Community Services Grants 

46.23	General 
	101,369,000 
	69,208,000 
	
46.24 	Base Adjustment. The general fund base 
46.25 	is $69,274,000 in each of fiscal years 2010 
46.26 	and 2011. 
46.27 	Targeted Case Management Temporary 
46.28 	Funding. (a) Of the general fund 
46.29 	appropriation, $32,667,000 in fiscal year 
46.30 	2008 is transferred to the targeted case 
46.31 	management contingency reserve account in 
46.32 	the general fund to be allocated to counties 
46.33 	and tribes affected by reductions in targeted 
46.34 	case management federal Medicaid revenue 
47.1 	as a result of the provisions in the federal 
47.2 	Deficit Reduction Act of 2005, Public Law 
47.3 	109-171. 
47.4 	(b) Contingent upon (1) publication by the 
47.5 	federal Centers for Medicare and Medicaid 
47.6 	Services of final regulations implementing 
47.7 	the targeted case management provisions 
47.8 	of the federal Deficit Reduction Act of 
47.9 	2005, Public Law 109-171, or (2) the 
47.10 	issuance of a finding by the Centers for 
47.11 	Medicare and Medicaid Services of federal 
47.12 	Medicaid overpayments for targeted case 
47.13 	management expenditures, up to $32,667,000 
47.14 	is appropriated to the commissioner of human 
47.15 	services. Prior to distribution of funds, the 
47.16 	commissioner shall estimate and certify the 
47.17 	amount by which the federal regulations or 
47.18 	federal disallowance will reduce targeted 
47.19 	case management Medicaid revenue over the 
47.20 	2008-2009 biennium. 
47.21 	(c) Within 60 days of a contingency described 
47.22 	in paragraph (b), the commissioner shall 
47.23 	distribute the grants proportionate to each 
47.24 	affected county or tribe's targeted case 
47.25 	management federal earnings for calendar 
47.26 	year 2005, not to exceed the lower of (1) the 
47.27 	amount of the estimated reduction in federal 
47.28 	revenue or (2) $32,667,000. 
47.29 	(d) These funds are available in either year of 
47.30 	the biennium. Counties and tribes shall use 
47.31 	these funds to pay for social service-related 
47.32 	costs, but the funds are not subject to 
47.33 	provisions of the Children and Community 
47.34 	Services Act grant under Minnesota Statutes, 
47.35 	chapter 256M. 
48.1 	(e) This appropriation shall be available to 
48.2 	pay counties and tribes for expenses incurred 
48.3 	on or after July 1, 2007. The appropriation 
48.4 	shall be available until expended. 

48.5	(i) General Assistance Grants 

48.6	General 
	37,876,000 
	38,253,000 
	
48.7 	General Assistance Standard. The 
48.8 	commissioner shall set the monthly standard 
48.9 	of assistance for general assistance units 
48.10 	consisting of an adult recipient who is 
48.11 	childless and unmarried or living apart 
48.12 	from parents or a legal guardian at $203. 
48.13 	The commissioner may reduce this amount 
48.14 	according to Laws 1997, chapter 85, article 
48.15 	3, section 54. 
48.16 	Emergency General Assistance. The 
48.17 	amount appropriated for emergency general 
48.18 	assistance funds is limited to no more 
48.19 	than $7,889,812 in fiscal year 2008 and 
48.20 	$7,889,812 in fiscal year 2009. Funds 
48.21 	to counties must be allocated by the 
48.22 	commissioner using the allocation method 
48.23 	specified in Minnesota Statutes, section 
48.24 	256D.06. 

48.25	(j) Minnesota Supplemental Aid Grants 

48.26	General 
	30,505,000 
	30,812,000 
	
48.27 	Emergency Minnesota Supplemental 
48.28 	Aid Funds. The amount appropriated for 
48.29 	emergency Minnesota supplemental aid 
48.30 	funds is limited to no more than $1,100,000 
48.31 	in fiscal year 2008 and $1,100,000 in fiscal 
48.32 	year 2009. Funds to counties must be 
48.33 	allocated by the commissioner using the 
49.1 	allocation method specified in Minnesota 
49.2 	Statutes, section 256D.46. 

49.3	(k) Group Residential Housing Grants 

49.4	General 
	91,069,000 
	98,671,000 
	
49.5 	People Incorporated. Of the general fund 
49.6 	appropriation, $460,000 each year is to 
49.7 	augment community support and mental 
49.8 	health services provided to individuals 
49.9 	residing in facilities under Minnesota 
49.10 	Statutes, section 256I.05, subdivision 1m. 

49.11
49.12	(l) Other Children and Economic Assistance 
Grants 

49.13	General 
	20,183,000 
	16,333,000 
	
49.14	Federal TANF 
	1,500,000 
	1,500,000 
	
49.15 	Base Adjustment. The general fund base 
49.16 	shall be $16,033,000 in fiscal year 2010 and 
49.17 	$15,533,000 in fiscal year 2011. The TANF 
49.18 	base shall be $1,500,000 in fiscal year 2010 
49.19 	and $1,181,000 in fiscal year 2011. 
49.20 	Homeless and Runaway Youth. Of the 
49.21 	general fund appropriation, $500,000 each 
49.22 	year are for the Runaway and Homeless 
49.23 	Youth Act under Minnesota Statutes, section 
49.24 	256K.45. Funds shall be spent in each area 
49.25 	of the continuum of care to ensure that 
49.26 	programs are meeting the greatest need. This 
49.27 	is a onetime appropriation. 
49.28 	Long-Term Homelessness. Of the general 
49.29 	fund appropriation, $1,500,000 each year 
49.30 	are$2,000,000 in fiscal year 2008 is for 
49.31 	implementation of programs to address 
49.32 	long-term homelessness and is available in 
49.33 	either year of the biennium. This is a onetime 
49.34 	appropriation. 
50.1 	Minnesota Community Action Grants. (a) 
50.2 	Of the general fund appropriation, $250,000 
50.3 	each year is for the purposes of Minnesota 
50.4 	community action grants under Minnesota 
50.5 	Statutes, sections 256E.30 to 256E.32. This 
50.6 	is a onetime appropriation. 
50.7 	(b) Of the TANF appropriation, $1,500,000 
50.8 	each year is for community action agencies 
50.9 	for auto repairs, auto loans, and auto purchase 
50.10 	grants to individuals who are eligible to 
50.11 	receive benefits under Minnesota Statutes, 
50.12 	chapter 256J, or who have lost eligibility 
50.13 	for benefits under Minnesota Statutes, 
50.14 	chapter 256J, due to earnings in the prior 12 
50.15 	months. Base level funding for this activity 
50.16 	shall be $1,500,000 in fiscal year 2010 
50.17 	and $1,181,000 in fiscal year 2011. * (The 
50.18 	preceding text beginning "(b) Of the TANF 
50.19 	appropriation," was indicated as vetoed by 
50.20 	the governor.) 
50.21 	(c) Money appropriated under paragraphs (a) 
50.22 	and (b) that is not spent in the first year does 
50.23 	not cancel but is available for the second 
50.24 	year. 

50.25 	Sec. 11.  REPEALER.
 50.26 	Minnesota Statutes 2006, section 256.741, subdivision 15, is repealed.

50.27 	ARTICLE 5
50.28 	HEALTH CARE

50.29 	Section 1. Minnesota Statutes 2006, section 256.969, subdivision 2b, is amended to 
50.30 	read:
50.31 		Subd. 2b.Operating payment rates. In determining operating payment rates for 
50.32 	admissions occurring on or after the rate year beginning January 1, 1991, and every two 
50.33 	years after, or more frequently as determined by the commissioner, the commissioner 
51.1 	shall obtain operating data from an updated base year and establish operating payment 
51.2 	rates per admission for each hospital based on the cost-finding methods and allowable 
51.3 	costs of the Medicare program in effect during the base year. Rates under the general 
51.4 	assistance medical care, medical assistance, and MinnesotaCare programs shall not be 
51.5 	rebased to more current data on January 1, 1997, and January 1, 2005, and for the first 
51.6 	year of the rebased period beginning January 1, 2009. The base year operating payment 
51.7 	rate per admission is standardized by the case mix index and adjusted by the hospital 
51.8 	cost index, relative values, and disproportionate population adjustment. The cost and 
51.9 	charge data used to establish operating rates shall only reflect inpatient services covered 
51.10 	by medical assistance and shall not include property cost information and costs recognized 
51.11 	in outlier payments.

51.12 	Sec. 2. Minnesota Statutes 2006, section 256.969, subdivision 20, is amended to read:
51.13 		Subd. 20.Increases in medical assistance inpatient payments; conditions. (a) 
51.14 	Medical assistance inpatient payments shall increase 20 percent for inpatient hospital 
51.15 	originally paid admissions, excluding Medicare crossovers, that occurred between July 1, 
51.16 	1988 and December 31, 1990, if: (i) the hospital had 100 or fewer Minnesota medical 
51.17 	assistance annualized paid admissions, excluding Medicare crossovers, that were paid by 
51.18 	March 1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the hospital had 100 
51.19 	or fewer licensed beds on March 1, 1988; (iii) the hospital is located in Minnesota; and 
51.20 	(iv) the hospital is not located in a city of the first class as defined in section 410.01. 
51.21 	For purposes of this paragraph, medical assistance does not include general assistance 
51.22 	medical care. 
51.23 	(b) Medical assistance inpatient payments shall increase 15 percent for inpatient 
51.24 	hospital originally paid admissions, excluding Medicare crossovers, that occurred between 
51.25 	July 1, 1988 and December 31, 1990, if: (i) the hospital had more than 100 but fewer 
51.26 	than 250 Minnesota medical assistance annualized paid admissions, excluding Medicare 
51.27 	crossovers, that were paid by March 1, 1988, for the period January 1, 1987 to June 30, 
51.28 	1987; (ii) the hospital had 100 or fewer licensed beds on March 1, 1988; (iii) the hospital 
51.29 	is located in Minnesota; and (iv) the hospital is not located in a city of the first class as 
51.30 	defined in section 410.01. For purposes of this paragraph, medical assistance does not 
51.31 	include general assistance medical care. 
51.32 	(c) Medical assistance inpatient payment rates shall increase 20 percent for inpatient 
51.33 	hospital originally paid admissions, excluding Medicare crossovers, that occur on or 
51.34 	after October 1, 1992, if: (i) the hospital had 100 or fewer Minnesota medical assistance 
51.35 	annualized paid admissions, excluding Medicare crossovers, that were paid by March 
52.1 	1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the hospital had 100 or 
52.2 	fewer licensed beds on March 1, 1988; (iii) the hospital is located in Minnesota; and (iv) 
52.3 	the hospital is not located in a city of the first class as defined in section 410.01. For a 
52.4 	hospital that qualifies for an adjustment under this paragraph and under subdivision 9 or 
52.5 	23, the hospital must be paid the adjustment under subdivisions 9 and 23, as applicable, 
52.6 	plus any amount by which the adjustment under this paragraph exceeds the adjustment 
52.7 	under those subdivisions. For this paragraph, medical assistance does not include general 
52.8 	assistance medical care. 
52.9 	(d) Medical assistance inpatient payment rates shall increase 15 percent for inpatient 
52.10 	hospital originally paid admissions, excluding Medicare crossovers, that occur after 
52.11 	September 30, 1992, if: (i) the hospital had more than 100 but fewer than 250 Minnesota 
52.12 	medical assistance annualized paid admissions, excluding Medicare crossovers, that 
52.13 	were paid by March 1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the 
52.14 	hospital had 100 or fewer licensed beds on March 1, 1988; (iii) the hospital is located in 
52.15 	Minnesota; and (iv) the hospital is not located in a city of the first class as defined in 
52.16 	section 410.01. For a hospital that qualifies for an adjustment under this paragraph and 
52.17 	under subdivision 9 or 23, the hospital must be paid the adjustment under subdivisions 
52.18 	9 and 23, as applicable, plus any amount by which the adjustment under this paragraph 
52.19 	exceeds the adjustment under those subdivisions. For purposes of this paragraph, medical 
52.20 	assistance does not include general assistance medical care. 
52.21 	(e) For admissions occurring on or after July 1, 2008, fee-for-service inpatient 
52.22 	payments must increase eight percent for a hospital with a medical assistance inpatient 
52.23 	utilization rate of 17.95 percent of total patient days as of the base year in effect on July 1, 
52.24 	2005, and nine percent for a hospital with a medical assistance inpatient utilization rate of 
52.25 	59.60 percent of total patient days as of the base year in effect on July 1, 2005. Payments 
52.26 	made to managed care plans must not be increased to reflect this increase. For purposes of 
52.27 	this paragraph, medical assistance does not include general assistance medical care.

52.28 	Sec. 3. Minnesota Statutes 2006, section 256B.0571, subdivision 8, is amended to read:
52.29 		Subd. 8.Program established. (a) The commissioner, in cooperation with the 
52.30 	commissioner of commerce, shall establish the Minnesota partnership for long-term care 
52.31 	program to provide for the financing of long-term care through a combination of private 
52.32 	insurance and medical assistance.
52.33 	(b) An individual who meets the requirements in this paragraph is eligible to 
52.34 	participate in the partnership program. The individual must:
53.1 	(1) be a Minnesota resident at the time coverage first became effective under the 
53.2 	partnership policy; and
53.3 	(2) be a beneficiary of a partnership policy that (i) is issued on or after the effective 
53.4 	date of the state plan amendment implementing the partnership program in Minnesota, or 
53.5 	(ii) qualifies as a partnership policy under the provisions of subdivision 8a; and.
53.6 	(3) have exhausted all of the benefits under the partnership policy as described in this 
53.7 	section. Benefits received under a long-term care insurance policy before July 1, 2006, do 
53.8 	not count toward the exhaustion of benefits required in this subdivision.

53.9 	Sec. 4. Minnesota Statutes 2006, section 256B.0571, subdivision 9, is amended to read:
53.10 		Subd. 9.Medical assistance eligibility. (a) Upon application for medical assistance 
53.11 	program payment of long-term care services by an individual who meets the requirements 
53.12 	described in subdivision 8, the commissioner shall determine the individual's eligibility 
53.13 	for medical assistance according to paragraphs (b) to (i).
53.14 	(b) After determining assets subject to the asset limit under section 256B.056, 
53.15 	subdivision 3 or 3c, or 256B.057, subdivision 9 or 10, the commissioner shall allow the 
53.16 	individual to designate assets to be protected from recovery under subdivisions 13 and 
53.17 	15 up to the dollar amount of the benefits utilized under the partnership policy as of the 
53.18 	effective date of eligibility for medical assistance program payment of long-term care 
53.19 	services. Benefits utilized under a long-term care insurance policy before July 1, 2006, 
53.20 	do not count for the purpose of determining the amount of assets that can be designated. 
53.21 	Designated assets shall be disregarded for purposes of determining eligibility for payment 
53.22 	of long-term care services. The dollar amount of benefits utilized must be equal to the 
53.23 	amount of claims paid by the issuer under the policy as verified by the issuer.
53.24 	(c) The individual shall identify the designated assets and the full fair market value 
53.25 	of those assets and designate them as assets to be protected at the time of initial application 
53.26 	for medical assistance payment of long-term care services. The full fair market value of 
53.27 	real property or interests in real property shall be based on the most recent full assessed 
53.28 	value for property tax purposes for the real property, unless the individual provides a 
53.29 	complete professional appraisal by a licensed appraiser to establish the full fair market 
53.30 	value. The extent of a life estate in real property shall be determined using the life estate 
53.31 	table in the health care program's manual. Ownership of any asset in joint tenancy shall be 
53.32 	treated as ownership as tenants in common for purposes of its designation as a disregarded 
53.33 	asset. The unprotected value of any protected asset is subject to estate recovery according 
53.34 	to subdivisions 13 and 15.
54.1 	(d) The right to designate assets to be protected is personal to the individual and 
54.2 	ends when the individual dies, except as otherwise provided in subdivisions 13 and 
54.3 	15. It does not include the increase in the value of the protected asset and the income, 
54.4 	dividends, or profits from the asset. It may be exercised by the individual or by anyone 
54.5 	with the legal authority to do so on the individual's behalf. It shall not be sold, assigned, 
54.6 	transferred, or given away.
54.7 	(e) If the dollar amount of the benefits utilized under a partnership policy is greater 
54.8 	than the full fair market value of all assets protected at the time of the application for 
54.9 	medical assistance long-term care services, As the individual continues to utilize benefits 
54.10 	under a partnership policy after eligibility for medical assistance payment of long-term 
54.11 	care services begins, the individual may designate, for additional protection, an increase 
54.12 	in the value of protected assets and additional assets that become available during the 
54.13 	individual's lifetime for protection under this section up to the amount of additional 
54.14 	benefits utilized. The individual must make the designation in writing to the county agency 
54.15 	no later than the last date on which the individual must report a change in circumstances to 
54.16 	the county agency, as provided for under the medical assistance program. Any excess used 
54.17 	for this purpose shall not be available to the individual's estate to protect assets in the estate 
54.18 	from recovery under section 256B.15 or 524.3-1202, or otherwise. The amount used for 
54.19 	this purpose must reduce the unused amount of asset protection available to protect assets 
54.20 	in the individual's estate from recovery under section 256B.15 or 524.3-1202, or otherwise.
54.21 	(f) This section applies only to estate recovery under United States Code, title 42, 
54.22 	section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other 
54.23 	provisions of federal law, including, but not limited to, recovery from trusts under United 
54.24 	States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from 
54.25 	annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of 
54.26 	the Deficit Reduction Act of 2005, Public Law 109-171.
54.27 	(g) An individual's protected assets owned by the individual's spouse who applies 
54.28 	for payment of medical assistance long-term care services shall not be protected assets or 
54.29 	disregarded for purposes of eligibility of the individual's spouse solely because they were 
54.30 	protected assets of the individual.
54.31 	(h) Assets designated under this subdivision shall not be subject to penalty under 
54.32 	section 256B.0595.
54.33 	(i) The commissioner shall otherwise determine the individual's eligibility 
54.34 	for payment of long-term care services according to medical assistance eligibility 
54.35 	requirements.

55.1 	Sec. 5. Minnesota Statutes 2006, section 256B.0625, subdivision 3c, is amended to 
55.2 	read:
55.3 		Subd. 3c.Health Services Policy Committee. The commissioner, after receiving 
55.4 	recommendations from professional physician associations, professional associations 
55.5 	representing licensed nonphysician health care professionals, and consumer groups, shall 
55.6 	establish a 13-member Health Services Policy Committee, which consists of 12 voting 
55.7 	members and one nonvoting member. The Health Services Policy Committee shall advise 
55.8 	the commissioner regarding health services pertaining to the administration of health 
55.9 	care benefits covered under the medical assistance, general assistance medical care, and 
55.10 	MinnesotaCare programs. The Health Services Policy Committee shall meet at least 
55.11 	quarterly. The Health Services Policy Committee shall annually elect a physician chair 
55.12 	from among its members, who shall work directly with the commissioner's medical 
55.13 	director, to establish the agenda for each meeting. The Health Services Policy Committee 
55.14 	shall also recommend criteria for verifying centers of excellence for specific aspects of 
55.15 	medical care where a specific set of combined services, a volume of patients necessary to 
55.16 	maintain a high level of competency, or a specific level of technical capacity is associated 
55.17 	with improved health outcomes. Individuals receiving fee-for-service medical assistance, 
55.18 	general assistance medical care, and MinnesotaCare may be directed to obtain these 
55.19 	services designated by the Health Services Policy Committee at these centers.

55.20 	Sec. 6. Minnesota Statutes 2006, section 256B.0625, subdivision 13e, is amended to 
55.21 	read:
55.22 		Subd. 13e.Payment rates. (a) The basis for determining the amount of payment 
55.23 	shall be the lower of the actual acquisition costs of the drugs plus a fixed dispensing fee; 
55.24 	the maximum allowable cost set by the federal government or by the commissioner plus 
55.25 	the fixed dispensing fee; or the usual and customary price charged to the public. The 
55.26 	amount of payment basis must be reduced to reflect all discount amounts applied to the 
55.27 	charge by any provider/insurer agreement or contract for submitted charges to medical 
55.28 	assistance programs. The net submitted charge may not be greater than the patient liability 
55.29 	for the service. The pharmacy dispensing fee shall be $3.65, except that the dispensing fee 
55.30 	for intravenous solutions which must be compounded by the pharmacist shall be $8 per 
55.31 	bag, $14 per bag for cancer chemotherapy products, and $30 per bag for total parenteral 
55.32 	nutritional products dispensed in one liter quantities, or $44 per bag for total parenteral 
55.33 	nutritional products dispensed in quantities greater than one liter. Actual acquisition 
55.34 	cost includes quantity and other special discounts except time and cash discounts. 
55.35 	Effective July 1, 2008, the actual acquisition cost of a drug shall be estimated by the 
56.1 	commissioner, at average wholesale price minus 12 14 percent. The actual acquisition 
56.2 	cost of antihemophilic factor drugs shall be estimated at the average wholesale price 
56.3 	minus 30 percent. The maximum allowable cost of a multisource drug may be set by the 
56.4 	commissioner and it shall be comparable to, but no higher than, the maximum amount 
56.5 	paid by other third-party payors in this state who have maximum allowable cost programs. 
56.6 	Establishment of the amount of payment for drugs shall not be subject to the requirements 
56.7 	of the Administrative Procedure Act.
56.8 	(b) An additional dispensing fee of $.30 may be added to the dispensing fee paid 
56.9 	to pharmacists for legend drug prescriptions dispensed to residents of long-term care 
56.10 	facilities when a unit dose blister card system, approved by the department, is used. Under 
56.11 	this type of dispensing system, the pharmacist must dispense a 30-day supply of drug. 
56.12 	The National Drug Code (NDC) from the drug container used to fill the blister card must 
56.13 	be identified on the claim to the department. The unit dose blister card containing the 
56.14 	drug must meet the packaging standards set forth in Minnesota Rules, part 6800.2700, 
56.15 	that govern the return of unused drugs to the pharmacy for reuse. The pharmacy provider 
56.16 	will be required to credit the department for the actual acquisition cost of all unused 
56.17 	drugs that are eligible for reuse. Over-the-counter medications must be dispensed in the 
56.18 	manufacturer's unopened package. The commissioner may permit the drug clozapine to be 
56.19 	dispensed in a quantity that is less than a 30-day supply.
56.20 	(c) Whenever a generically equivalent product is available, payment shall be on the 
56.21 	basis of the actual acquisition cost of the generic drug, or on the maximum allowable cost 
56.22 	established by the commissioner.
56.23 	(d) The basis for determining the amount of payment for drugs administered in an 
56.24 	outpatient setting shall be the lower of the usual and customary cost submitted by the 
56.25 	provider or the amount established for Medicare by the United States Department of 
56.26 	Health and Human Services pursuant to title XVIII, section 1847a of the federal Social 
56.27 	Security Act.
56.28 	(e) The commissioner may negotiate lower reimbursement rates for specialty 
56.29 	pharmacy products than the rates specified in paragraph (a). The commissioner may 
56.30 	require individuals enrolled in the health care programs administered by the department 
56.31 	to obtain specialty pharmacy products from providers with whom the commissioner has 
56.32 	negotiated lower reimbursement rates. Specialty pharmacy products are defined as those 
56.33 	used by a small number of recipients or recipients with complex and chronic diseases 
56.34 	that require expensive and challenging drug regimens. Examples of these conditions 
56.35 	include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis 
56.36 	C, growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms 
57.1 	of cancer. Specialty pharmaceutical products include injectable and infusion therapies, 
57.2 	biotechnology drugs, high-cost therapies, and therapies that require complex care. The 
57.3 	commissioner shall consult with the formulary committee to develop a list of specialty 
57.4 	pharmacy products subject to this paragraph. In consulting with the formulary committee 
57.5 	in developing this list, the commissioner shall take into consideration the population 
57.6 	served by specialty pharmacy products, the current delivery system and standard of care in 
57.7 	the state, and access to care issues. The commissioner shall have the discretion to adjust 
57.8 	the reimbursement rate to prevent access to care issues.

57.9 	EFFECTIVE DATE. This section is effective July 1, 2008.

57.10 	Sec. 7. Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 1, 
57.11 	is amended to read:
57.12 		Subdivision 1.Co-payments. (a) Except as provided in subdivision 2, the medical 
57.13 	assistance benefit plan shall include the following co-payments for all recipients, effective 
57.14 	for services provided on or after October 1, 2003, and before January 1, 2009:
57.15 	(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an 
57.16 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
57.17 	established illness, and which is delivered in an ambulatory setting by a physician or 
57.18 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
57.19 	audiologist, optician, or optometrist;
57.20 	(2) $3 for eyeglasses;
57.21 	(3) $6 for nonemergency visits to a hospital-based emergency room; and
57.22 	(4) $3 per brand-name drug prescription and $1 per generic drug prescription, 
57.23 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
57.24 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
57.25 	(b) Except as provided in subdivision 2, the medical assistance benefit plan shall 
57.26 	include the following co-payments for all recipients, effective for services provided on 
57.27 	or after January 1, 2009:
57.28 	(1) $6 for nonemergency visits to a hospital-based emergency room; and
57.29 	(2) $3 per brand-name drug prescription and $1 per generic drug prescription, 
57.30 	subject to a $7 per month maximum for prescription drug co-payments. No co-payments 
57.31 	shall apply to antipsychotic drugs when used for the treatment of mental illness.
57.32 	(3) For individuals with income at or below 100 percent of the federal poverty 
57.33 	guidelines, total monthly co-payments must not exceed five percent of family income. 
57.34 	For purposes of this paragraph, family income is the total earned and unearned income of 
58.1 	the individual and the individual's spouse, if the spouse is enrolled in medical assistance 
58.2 	and also subject to the five percent limit on co-payments.
58.3 	(c) Recipients of medical assistance are responsible for all co-payments in this 
58.4 	subdivision.

58.5 	Sec. 8. Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 3, 
58.6 	is amended to read:
58.7 		Subd. 3.Collection. (a) The medical assistance reimbursement to the provider shall 
58.8 	be reduced by the amount of the co-payment, except that reimbursement for prescription 
58.9 	drugs reimbursements shall not be reduced:
58.10 	(1) once a recipient has reached the $12 per month maximum or the $7 per month 
58.11 	maximum effective January 1, 2009, for prescription drug co-payments; or
58.12 	(2) for a recipient under 100 percent of the federal poverty guidelines who has met 
58.13 	their monthly five percent co-payment limit.
58.14 	(b) The provider collects the co-payment from the recipient. Providers may not deny 
58.15 	services to recipients who are unable to pay the co-payment.
58.16 	(c) Medical assistance reimbursement to fee-for-service providers and payments to 
58.17 	managed care plans shall not be increased as a result of the removal of the co-payments 
58.18 	effective January 1, 2009.

58.19 	Sec. 9. [256B.194] FEDERAL PAYMENTS.
58.20 		Subdivision 1.Payments at actual cost.   Notwithstanding any other statute or rule 
58.21 	to the contrary, for providers that are units of government, the commissioner may limit 
58.22 	medical assistance and MinnesotaCare payments to a provider's actual cost of providing 
58.23 	services, according to the Centers for Medicare and Medicaid Services (CMS) final rule 
58.24 	referenced in this subdivision. The commissioner may also require medical assistance 
58.25 	and MinnesotaCare providers to provide any information necessary to determine 
58.26 	Medicaid-related costs, and require the cooperation of providers in any audit or review 
58.27 	necessary to ensure payments are limited to cost. This section does not apply to providers 
58.28 	who are exempt from the provisions of  the CMS final rule. This subdivision becomes 
58.29 	effective when the CMS final rule, published May 29, 2007, at Federal Register, Vol. 72, 
58.30 	No. 100, governing payments to providers that are units of government goes into effect at 
58.31 	the end of the moratorium imposed by Congress.
58.32 		Subd. 2.Loss of federal financial participation. For all transfers, certified 
58.33 	expenditures, and medical assistance payments listed in this subdivision, if the 
58.34 	commissioner determines that federal financial participation is no longer available for the 
59.1 	medical assistance payments listed, then related obligations for the nonfederal share of 
59.2 	payments and the medical assistance payments must terminate. The commissioner shall 
59.3 	notify all affected parties of the loss of federal financial participation, and the resulting 
59.4 	payments and obligations that are terminated. If the commissioner determines that federal 
59.5 	financial  participation is no longer available for any medical assistance payments or 
59.6 	contributions  to the nonfederal share of medical assistance payments that have already 
59.7 	been made, the commissioner may collect the medical assistance payments from providers 
59.8 	and return contributions of the nonfederal share to its source. The transfers, certified 
59.9 	expenditures, and medical assistance payments subject to this section are those specified in 
59.10 	section 62J.692, subdivision 7, paragraphs (b) and (c); 256B.19, subdivisions 1c and 1d; 
59.11 	256B.195; 256B.431, subdivision 23; and 256B.69, subdivision 5c, paragraph (a), clauses 
59.12 	(2) to (4); Laws 2002, chapter 220, article 17, section 2, subdivision 3; and Laws 2005, 
59.13 	First Special Session chapter 4, article 9, section 2, subdivision 1.

59.14 	Sec. 10. Minnesota Statutes 2007 Supplement, section 256B.199, is amended to read:
59.15 	256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
59.16 	(a) Effective July 1, 2007, the commissioner shall apply for federal matching funds 
59.17 	for the expenditures in paragraphs (b) and (c).
59.18 	(b) The commissioner shall apply for federal matching funds for certified public 
59.19 	expenditures as follows:
59.20 	(1) Hennepin County, and Hennepin County Medical Center, Ramsey County, 
59.21 	Regions Hospital, the University of Minnesota, and Fairview-University Medical Center
59.22 	shall report quarterly to the commissioner beginning June 1, 2007, payments made during 
59.23 	the second previous quarter that may qualify for reimbursement under federal law;
59.24 	(2) based on these reports, the commissioner shall apply for federal matching funds. 
59.25 	These funds are appropriated to the commissioner for the payments under section 256.969, 
59.26 	subdivision 27 to offset medical assistance expenditures; and
59.27 	(3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 
59.28 	the nonstate entities listed in this paragraph (a) of the amount of federal disproportionate 
59.29 	share hospital payment money expected to be available in the current federal fiscal year.
59.30 	(c) The commissioner shall apply for federal matching funds for general assistance 
59.31 	medical care expenditures as follows:
59.32 	(1) for hospital services occurring on or after July 1, 2007, general assistance medical 
59.33 	care expenditures for fee-for-service inpatient and outpatient hospital payments made by 
59.34 	the department shall be used to apply for federal matching funds, except as limited below:
60.1 	(i) only those general assistance medical care expenditures made to an individual 
60.2 	hospital that would not cause the hospital to exceed its individual hospital limits under 
60.3 	section 1923 of the Social Security Act may be considered; and
60.4 	(ii) general assistance medical care expenditures may be considered only to the extent 
60.5 	of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
60.6 	(2) all hospitals must provide any necessary expenditure, cost, and revenue 
60.7 	information required by the commissioner as necessary for purposes of obtaining federal 
60.8 	Medicaid matching funds for general assistance medical care expenditures.

60.9 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2007.

60.10 	Sec. 11. Minnesota Statutes 2006, section 256B.69, subdivision 5a, is amended to read:
60.11 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section 
60.12 	and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year 
60.13 	basis beginning January 1, 1996. Managed care contracts which were in effect on June 
60.14 	30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 
60.15 	through December 31, 1995 at the same terms that were in effect on June 30, 1995. The 
60.16 	commissioner may issue separate contracts with requirements specific to services to 
60.17 	medical assistance recipients age 65 and older.
60.18 	(b) A prepaid health plan providing covered health services for eligible persons 
60.19 	pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms 
60.20 	of its contract with the commissioner. Requirements applicable to managed care programs 
60.21 	under chapters 256B, 256D, and 256L, established after the effective date of a contract 
60.22 	with the commissioner take effect when the contract is next issued or renewed.
60.23 	(c) Effective for services rendered on or after January 1, 2003, the commissioner 
60.24 	shall withhold five percent of managed care plan payments under this section for the 
60.25 	prepaid medical assistance and general assistance medical care programs pending 
60.26 	completion of performance targets. Each performance target must be quantifiable, 
60.27 	objective, measurable, and reasonably attainable, except in the case of a performance 
60.28 	target based on a federal or state law or rule. Criteria for assessment of each performance 
60.29 	target must be outlined in writing prior to the contract effective date. The withheld funds 
60.30 	must be returned no sooner than July of the following year if performance targets in the 
60.31 	contract are achieved. The commissioner may exclude special demonstration projects 
60.32 	under subdivision 23. A managed care plan or a county-based purchasing plan under 
60.33 	section 256B.692 may include as admitted assets under section 62D.044 any amount 
60.34 	withheld under this paragraph that is reasonably expected to be returned.
61.1 	(d)(1) Effective for services rendered on or after January 1, 2009, the commissioner 
61.2 	shall withhold an additional two percent of managed care plan payments under this section 
61.3 	for the prepaid medical assistance and general assistance medical care programs. The 
61.4 	withheld funds must be returned no sooner than July 1 and no later than July 31 of the 
61.5 	following year. The commissioner may exclude special demonstration projects under 
61.6 	subdivision 23.
61.7 	(2) A managed care plan or a county-based purchasing plan under section 256B.692 
61.8 	may include as admitted assets under section 62D.044 any amount withheld under this 
61.9 	paragraph that is reasonably expected to be returned.

61.10 	Sec. 12. Minnesota Statutes 2007 Supplement, section 256L.04, subdivision 1, is 
61.11 	amended to read:
61.12 		Subdivision 1.Families with children. (a) Families with children with family 
61.13 	income equal to or less than 275 percent of the federal poverty guidelines for the 
61.14 	applicable family size shall be eligible for MinnesotaCare according to this section. All 
61.15 	other provisions of sections 256L.01 to 256L.18, including the insurance-related barriers 
61.16 	to enrollment under section 256L.07, shall apply unless otherwise specified. 
61.17 	(b) Parents who enroll in the MinnesotaCare program must also enroll their children, 
61.18 	if the children are eligible. Children may be enrolled separately without enrollment by 
61.19 	parents. However, if one parent in the household enrolls, both parents must enroll, unless 
61.20 	other insurance is available. If one child from a family is enrolled, all children must 
61.21 	be enrolled, unless other insurance is available. If one spouse in a household enrolls, 
61.22 	the other spouse in the household must also enroll, unless other insurance is available. 
61.23 	Families cannot choose to enroll only certain uninsured members.
61.24 	(c) Beginning October 1, 2003, the dependent sibling definition no longer applies 
61.25 	to the MinnesotaCare program. These persons are no longer counted in the parental 
61.26 	household and may apply as a separate household.
61.27 	(d) Beginning July 1, 2003, or upon federal approval, whichever is later, parents are 
61.28 	not eligible for MinnesotaCare if their gross income exceeds $50,000.
61.29 	(e) Children formerly enrolled in medical assistance and automatically deemed 
61.30 	eligible for MinnesotaCare according to section 256B.057, subdivision 2c, are exempt 
61.31 	from the requirements of this section until renewal.

61.32 	Sec. 13. Minnesota Statutes 2007 Supplement, section 256L.04, subdivision 7, is 
61.33 	amended to read:
62.1 		Subd. 7.Single adults and households with no children. The definition of eligible 
62.2 	persons includes all individuals and households with no children who have gross family 
62.3 	incomes that are equal to or less than 200 percent of the federal poverty guidelines. 
62.4 	Effective July 1, 2009, the definition of eligible persons includes all individuals and 
62.5 	households with no children who have gross family incomes that are equal to or less than 
62.6 	215 percent of the federal poverty guidelines.

62.7 	Sec. 14. Minnesota Statutes 2007 Supplement, section 256L.07, subdivision 1, is 
62.8 	amended to read:
62.9 		Subdivision 1.General requirements. (a) Children enrolled in the original 
62.10 	children's health plan as of September 30, 1992, children who enrolled in the 
62.11 	MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549, 
62.12 	article 4, section 17, and children who have family gross incomes that are equal to or 
62.13 	less than 150 percent of the federal poverty guidelines are eligible without meeting 
62.14 	the requirements of subdivision 2 and the four-month requirement in subdivision 3, as 
62.15 	long as they maintain continuous coverage in the MinnesotaCare program or medical 
62.16 	assistance. Children who apply for MinnesotaCare on or after the implementation date 
62.17 	of the employer-subsidized health coverage program as described in Laws 1998, chapter 
62.18 	407, article 5, section 45, who have family gross incomes that are equal to or less than 150 
62.19 	percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to 
62.20 	be eligible for MinnesotaCare.
62.21 	Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, whose 
62.22 	income increases above 275 percent of the federal poverty guidelines, are no longer 
62.23 	eligible for the program and shall be disenrolled by the commissioner. Beginning January 
62.24 	1, 2008, individuals enrolled in MinnesotaCare under section 256L.04, subdivision 
62.25 	7, whose income increases above 200 percent of the federal poverty guidelines or 215 
62.26 	percent of the federal poverty guidelines on or after July 1, 2009, are no longer eligible for 
62.27 	the program and shall be disenrolled by the commissioner. For persons disenrolled under 
62.28 	this subdivision, MinnesotaCare coverage terminates the last day of the calendar month 
62.29 	following the month in which the commissioner determines that the income of a family or 
62.30 	individual exceeds program income limits.
62.31 	(b) Notwithstanding paragraph (a), children may remain enrolled in MinnesotaCare 
62.32 	if ten percent of their gross individual or gross family income as defined in section 
62.33 	256L.01, subdivision 4, is less than the annual premium for a policy with a $500 
62.34 	deductible available through the Minnesota Comprehensive Health Association. Children 
62.35 	who are no longer eligible for MinnesotaCare under this clause shall be given a 12-month 
63.1 	notice period from the date that ineligibility is determined before disenrollment. The 
63.2 	premium for children remaining eligible under this clause shall be the maximum premium 
63.3 	determined under section 256L.15, subdivision 2, paragraph (b).
63.4 	(c) Notwithstanding paragraphs (a) and (b), parents are not eligible for 
63.5 	MinnesotaCare if gross household income exceeds $50,000 for the 12-month period 
63.6 	of eligibility.

63.7 	Sec. 15. Minnesota Statutes 2006, section 256L.12, subdivision 9, is amended to read:
63.8 		Subd. 9.Rate setting; performance withholds. (a) Rates will be prospective, 
63.9 	per capita, where possible. The commissioner may allow health plans to arrange for 
63.10 	inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 
63.11 	an independent actuary to determine appropriate rates.
63.12 	(b) For services rendered on or after January 1, 2003, to December 31, 2003, the 
63.13 	commissioner shall withhold .5 percent of managed care plan payments under this section 
63.14 	pending completion of performance targets. The withheld funds must be returned no 
63.15 	sooner than July 1 and no later than July 31 of the following year if performance targets 
63.16 	in the contract are achieved. A managed care plan may include as admitted assets under 
63.17 	section 62D.044 any amount withheld under this paragraph that is reasonably expected 
63.18 	to be returned.
63.19 	(c) For services rendered on or after January 1, 2004, the commissioner shall 
63.20 	withhold five percent of managed care plan payments under this section pending 
63.21 	completion of performance targets. Each performance target must be quantifiable, 
63.22 	objective, measurable, and reasonably attainable, except in the case of a performance 
63.23 	target based on a federal or state law or rule. Criteria for assessment of each performance 
63.24 	target must be outlined in writing prior to the contract effective date. The withheld 
63.25 	funds must be returned no sooner than July 1 and no later than July 31 of the following 
63.26 	calendar year if performance targets in the contract are achieved. A managed care plan or 
63.27 	a county-based purchasing plan under section 256B.692 may include as admitted assets 
63.28 	under section 62D.044 any amount withheld under this paragraph that is reasonably 
63.29 	expected to be returned.
63.30 	(d) For services rendered on or after January 1, 2009, the commissioner shall 
63.31 	withhold an additional two percent of managed care plan payments under this section. The 
63.32 	withheld funds must be returned no sooner than July 1 and no later than July 31 of the 
63.33 	following calendar year. A managed care plan or a county-based purchasing plan under 
63.34 	section 256B.692 may include as admitted assets under section 62D.044 any amount 
63.35 	withheld under this paragraph that is reasonably expected to be returned.

64.1 	Sec. 16. Laws 2007, chapter 147, article 19, section 3, subdivision 6, is amended to 
64.2 	read:

64.3	Subd. 6. Basic Health Care Grants
 					
64.4 	The amounts that may be spent from the 
64.5 	appropriation for each purpose are as follows: 

64.6	(a) MinnesotaCare Grants 

64.7	Health Care Access 
	389,760,000 
	458,401,000 
	
64.8 	HealthMatch Delay. Of this appropriation, 
64.9 	$2,560,000 the first year and $21,735,000 
64.10 	the second year are for the MinnesotaCare 
64.11 	program costs related to a seven-month 
64.12 	delay in implementation of the HealthMatch 
64.13 	program. 
64.14 	Health Match Enrollment Shift. In fiscal 
64.15 	year 2009, $6,178,000 shall be transferred 
64.16 	from the health care access fund to the 
64.17 	general fund to pay for the Health Match 
64.18 	program-related enrollment shift. In the 
64.19 	event no systematic enrollment shift of 
64.20 	MinnesotaCare families and children to 
64.21 	medical assistance occurs prior to June 30, 
64.22 	2009, except as required under Minnesota 
64.23 	Statutes, section 256L.04, subdivision 8, this 
64.24 	transfer shall not occur. 

64.25
64.26	(b) MA Basic Health Care - Families and 
Children 

64.27	Appropriations by Fund 
	
64.28	General 
	739,957,000 
	838,874,000 
	
64.29	Health Care Access 
	1,672,000 
	-0- 

64.30
64.31	(c) MA Basic Health Care - Elderly and 
Disabled 

64.32	General 
	995,560,000 
	1,101,390,000 
	
64.33 	Treatment Foster Care Services Delay. (a) 
64.34 	Notwithstanding Minnesota Statutes, section 
65.1 	256B.0625, subdivision 47, effective July 
65.2 	1, 2009, and subject to federal approval, 
65.3 	medical assistance covers treatment foster 
65.4 	care services according to Minnesota 
65.5 	Statutes, section 256B.0946. 
65.6 	(b) Of the general fund savings that result 
65.7 	from the delayed effective date in paragraph 
65.8 	(a): 
65.9 	(1) The commissioner shall present to the 
65.10 	legislature, by February 1, 2008, a report 
65.11 	and recommendations on establishing a 
65.12 	health insurance exchange that would 
65.13 	provide individuals with greater access, 
65.14 	choice, portability, and affordability of 
65.15 	health insurance products.  The report must 
65.16 	evaluate, identify options, and present 
65.17 	recommendations, on: 
65.18 	(i) whether a health insurance exchange 
65.19 	would provide individuals with greater 
65.20 	access, choice, portability, and affordability 
65.21 	of health care products; 
65.22 	(ii) the duties and powers of the exchange; 
65.23 	(iii) the use of the exchange to receive and 
65.24 	process employee premiums on a pretax 
65.25 	basis through section 125 plans; 
65.26 	(iv) eligibility criteria that enrollees and 
65.27 	health plan companies must meet to 
65.28 	participate in the exchange; 
65.29 	(v) the types of health plans to be offered 
65.30 	through the exchange, and the extent to 
65.31 	which these plans should be available for 
65.32 	purchase only through the exchange; 
65.33 	(vi) loss ratio requirements for health plans 
65.34 	offered through the exchange; 
66.1 	(vii) the extent to which the operation of the 
66.2 	exchange will lower the cost of health care 
66.3 	insurance coverage; 
66.4 	(viii) estimates of administrative costs of 
66.5 	operating the exchange, and methods for 
66.6 	funding these administrative costs; and 
66.7 	(iv) other topics relevant to the design and 
66.8 	operation of the exchange if its establishment 
66.9 	is recommended. 
66.10 	(2) $375,000 each year are for the family, 
66.11 	friend, and neighbor grant program in article 
66.12 	1, section 94. Any balance in the first year 
66.13 	does not cancel but is available in the second 
66.14 	year. This appropriation is for the 2008-2009 
66.15 	biennium only, and does not increase the 
66.16 	base funding. 
66.17 	(3) $300,000 each year from the general fund 
66.18 	and $150,000 each year from the TANF fund 
66.19 	are to the commissioner for the purposes 
66.20 	of a program in Ramsey County that 
66.21 	provides early intervention efforts designed 
66.22 	to discourage pregnant women from using 
66.23 	alcohol and illegal drugs. The appropriation 
66.24 	shall not become part of base level funding 
66.25 	and is available until spent. 
66.26 	(4) $750,000 the first year is for transitional 
66.27 	housing programs under Minnesota Statutes, 
66.28 	section 256E.33. Up to ten percent of this 
66.29 	appropriation may be used for housing and 
66.30 	services which extend beyond 24 months. 
66.31 	$600,000 the first year is for emergency 
66.32 	services grants under Laws 1997, chapter 
66.33 	162, article 3, section 7. 
66.34 	(5) $50,000 each year is for a grant to HOME 
66.35 	Line for the tenant hotline services program. 
67.1 	This is a onetime appropriation. * (The 
67.2 	preceding text beginning "(5) $50,000 each 
67.3 	year is for" was indicated as vetoed by the 
67.4 	governor.) 
67.5 	(6) $60,000 in fiscal year 2008 is to 
67.6 	the commissioner to contract with a 
67.7 	Minnesota-based, nonprofit quality 
67.8 	improvement organization that collaborates 
67.9 	with providers and consumers in health 
67.10 	improvement activities, for the purpose 
67.11 	of conducting an independent analysis 
67.12 	of the reimbursement methodologies for 
67.13 	home health services provided to enrollees 
67.14 	in the Minnesota senior health options 
67.15 	and Minnesota disability health options 
67.16 	programs. The analysis of reimbursement 
67.17 	methodologies shall include, at a minimum, 
67.18 	a review of: 
67.19 	(i) any limitations on flexibility in services or 
67.20 	technology for the home health provider; 
67.21 	(ii) the Medicare program reimbursement 
67.22 	methodologies, including possible 
67.23 	alternatives, and Medicare benefits; 
67.24 	(iii) potential access issues raised by current 
67.25 	reimbursement methodologies; and 
67.26 	(iv) incentives, including episodic care 
67.27 	reimbursement methodologies, to promote 
67.28 	best practices and achieve identified clinical 
67.29 	outcomes. 
67.30 	The analysis and any supporting 
67.31 	recommendations shall be presented 
67.32 	to the commissioner by December 1, 2007, 
67.33 	and to the chairs of the appropriate legislative 
67.34 	committees by December 15, 2007. In no 
67.35 	event shall the study disclose any specific 
68.1 	reimbursement amount or methodologies 
68.2 	attributable to an individual health carrier. 
68.3 	In conducting its analysis, the organization 
68.4 	described in paragraph (a) shall consult with 
68.5 	the commissioner, the Minnesota Home Care 
68.6 	Association, managed care organizations, 
68.7 	and other interested home health entities and 
68.8 	advocates, and shall convene the parties to 
68.9 	discuss pertinent issues. 
68.10 	(7) $50,000 the first year is to conduct 
68.11 	a feasibility study of and to predesign a 
68.12 	Native American juvenile treatment center 
68.13 	on or near the White Earth Reservation. 
68.14 	The facility must house and treat Native 
68.15 	American juveniles and provide culturally 
68.16 	specific programming to juveniles placed in 
68.17 	the treatment center. The commissioner may 
68.18 	contract with parties who have experience 
68.19 	in the design and construction of juvenile 
68.20 	treatment centers to assist in the feasibility 
68.21 	study and predesign. On or before January 
68.22 	15, 2008, the commissioner shall present 
68.23 	the results of the feasibility study and the 
68.24 	predesign of the facility to the chairs of house 
68.25 	of representatives and senate committees 
68.26 	having jurisdiction over human services 
68.27 	finance, public safety finance, and capital 
68.28 	investment. 
68.29 	(8) $200,000 in fiscal year 2008 and $200,000 
68.30 	in fiscal year 2009 are to develop a statewide 
68.31 	quality assurance and improvement system 
68.32 	under Minnesota Statutes, section 256B.096, 
68.33 	for persons receiving disability services. 
68.34 	Any unspent portion of the appropriation 
68.35 	for the first year shall not cancel but shall 
69.1 	be available for the second year. These are 
69.2 	onetime appropriations. 
69.3 	(9) $200,000 is to the commissioner to be 
69.4 	available until June 30, 2009, to make a 
69.5 	grant to Advocating Change Together for the 
69.6 	purposes of the Remembering With Dignity 
69.7 	project. As part of the Remembering With 
69.8 	Dignity project, the grant recipient shall: 
69.9 	(i) conduct necessary research on persons 
69.10 	buried in state cemeteries who were residents 
69.11 	of state hospitals or regional treatment 
69.12 	centers and buried in numbered or unmarked 
69.13 	graves; 
69.14 	(ii) purchase and install headstones that are 
69.15 	properly inscribed with their names on the 
69.16 	graves of those persons; and 
69.17 	(iii) collaborate with community groups 
69.18 	and state and local government agencies to 
69.19 	build community involvement and public 
69.20 	awareness, ensure public access to the 
69.21 	graves, and ensure appropriate perpetual 
69.22 	maintenance of state cemeteries. 
69.23 	(10) $500,000 each year are to fund 
69.24 	the Regional Children's Mental Health 
69.25 	Initiative pilot project. This is a onetime 
69.26 	appropriation. This paragraph does not apply 
69.27 	to a radiation therapy facility that is being 
69.28 	built attached to a community hospital in 
69.29 	Wright County and meets the following 
69.30 	conditions prior to August 1, 2007: the 
69.31 	capital expenditure report required under 
69.32 	Minnesota Statutes, section 62J.17, has been 
69.33 	filed with the commissioner of health; a 
69.34 	timely construction schedule is developed, 
69.35 	stipulating dates for beginning, achieving 
70.1 	various stages, and completing construction; 
70.2 	and all zoning and building permits applied 
70.3 	for. 
70.4 	Provider-Directed Care Coordination. In 
70.5 	addition to medical assistance reimbursement 
70.6 	under Minnesota Statutes, sections 
70.7 	256B.0625 and 256B.76, clinics participating 
70.8 	in provider-directed care coordination under 
70.9 	Minnesota Statutes, section 256B.0625, also 
70.10 	receive a monthly payment per client when 
70.11 	the clinic serves an eligible client. The 
70.12 	payments across the program must average 
70.13 	$50 per month per client. 

70.14	(d) General Assistance Medical Care Grants 

70.15	General 
	238,822,000 
	251,412,000 

70.16	(e) Other Health Care Grants 

70.17	General 
	421,000 
	921,000 
	
70.18	Health Care Access 
	850,000 
	900,000 
	
70.19 	Community-Based Health Care 
70.20 	Demonstration Project. Of the general 
70.21 	fund appropriation, $212,000 each year is 
70.22 	to be transferred to the commissioner of 
70.23 	health for the demonstration project grant 
70.24 	described in Minnesota Statutes, section 
70.25 	62Q.80, subdivision 1a. This appropriation 
70.26 	shall remain part of base level funding until 
70.27 	June 30, 2012. Notwithstanding any contrary 
70.28 	provision in this article, this rider expires 
70.29 	July 1, 2012.
70.30 	Care Coordination Pilot Projects. Of 
70.31 	the health care access fund appropriation, 
70.32 	$881,000 in fiscal year 2009 is for the health 
70.33 	care pilot projects for children and adults 
70.34 	with complex health care needs. Base level 
71.1 	funding for this program is $878,000 in 2010 
71.2 	and $0 in 2011. 
71.3 	Patient Incentive Programs. Of the general 
71.4 	fund appropriation, $500,000 in fiscal year 
71.5 	2009 is for patient incentive programs. 
71.6 	Base Adjustment. The health care access 
71.7 	fund base is $900,000 in fiscal year 2010 and 
71.8 	$150,000 in fiscal year 2011. 
71.9 	Oral Health Care Innovations Grants. (a) 
71.10 	Of the health care access fund appropriation, 
71.11 	$400,000 for the fiscal year beginning July 1, 
71.12 	2007, is to award competitive oral health care 
71.13 	innovations grants to organizations described 
71.14 	in Minnesota Statutes, section 256B.76, 
71.15 	paragraph (b), clause (4), or coalitions of 
71.16 	such organizations, providing access to oral 
71.17 	health services for low-income and uninsured 
71.18 	persons. The commissioner shall award one 
71.19 	grant for a project to develop a nonprofit 
71.20 	dental clinic serving public program 
71.21 	recipients and uninsured persons in Beltrami 
71.22 	County; one grant for the maintenance of 
71.23 	nonprofit dental clinics providing oral health 
71.24 	care services to children ages birth to 18 in 
71.25 	St. Louis County; and one grant for the bright 
71.26 	smiles program to increase access to oral 
71.27 	health care for low-income and immigrant 
71.28 	children, ages birth to five years, and their 
71.29 	families in underserved areas in Minneapolis. 
71.30 	(b) This grant shall not become part of base 
71.31 	level funding. 
71.32 	State Health Policies Grant. Of the health 
71.33 	care access fund appropriation, $300,000 in 
71.34 	fiscal year 2008 is to provide a grant to a 
71.35 	research center associated with a safety net 
72.1 	hospital and county-affiliated health system 
72.2 	to develop the capabilities necessary for 
72.3 	evaluating the effects of changes in state 
72.4 	health policies on low-income and uninsured 
72.5 	individuals, including the impact on state 
72.6 	health care program costs, health outcomes, 
72.7 	cost-shifting to different units and levels 
72.8 	of government, and utilization patterns 
72.9 	including use of emergency room care and 
72.10 	hospitalization rates. The center shall report 
72.11 	on the use of this money by December 1, 
72.12 	2008, to the chairs of the senate and house 
72.13 	of representatives committees with relevant 
72.14 	jurisdiction. * (The preceding text beginning 
72.15 	"State Health Policies Grant." was indicated 
72.16 	as vetoed by the governor.) 

72.17 	Sec. 17.  REPEALER.
 72.18 	(a) Minnesota Statutes 2007 Supplement, section 256.969, subdivision 27, is 
72.19 	repealed retroactively from July 1, 2007.
72.20 	(b) Minnesota Statutes 2007 Supplement, sections 256.962, subdivision 5; 256B.057, 
72.21 	subdivision 2c; and 256L.07, subdivision 7, are repealed.

72.22 	ARTICLE 6
72.23 	DEPARTMENT OF HEALTH

72.24 	Section 1. Minnesota Statutes 2006, section 144.1222, subdivision 1a, is amended to 
72.25 	read:
72.26 		Subd. 1a.Fees. All plans and specifications for public swimming pool and spa 
72.27 	construction, installation, or alteration or requests for a variance that are submitted to the 
72.28 	commissioner according to Minnesota Rules, part 4717.3975, shall be accompanied by the 
72.29 	appropriate fees. All public pool construction plans submitted for review after January 1, 
72.30 	2009, must be certified by a professional engineer registered in the state of Minnesota.
72.31 	If the commissioner determines, upon review of the plans, that inadequate fees were 
72.32 	paid, the necessary additional fees shall be paid before plan approval. For purposes of 
72.33 	determining fees, a project is defined as a proposal to construct or install a public pool, 
72.34 	spa, special purpose pool, or wading pool and all associated water treatment equipment 
73.1 	and drains, gutters, decks, water recreation features, spray pads, and those design and 
73.2 	safety features that are within five feet of any pool or spa. The commissioner shall charge 
73.3 	the following fees for plan review and inspection of public pools and spas and for requests 
73.4 	for variance from the public pool and spa rules:
73.5 	(1) each spa pool, $500 $800;
73.6 	(2) projects valued at $250,000 or less, a minimum of $800 per pool plus: each 
73.7 	spa pool, $500;
73.8 	(i) (3)for each slide, an additional $400; and
73.9 	(ii) for each spa pool, an additional $500;
73.10 	(3) (4) projects valued at $250,000 or more, the greater of the sum of the fees in 
73.11 	clauses (1), (2), and (3) or 0.5 percent of the documented estimated project cost to a 
73.12 	maximum fee of $10,000;
73.13 	(4) (5) alterations to an existing pool without changing the size or configuration 
73.14 	of the pool, $400;
73.15 	(5) (6) removal or replacement of pool disinfection equipment only, $75; and
73.16 	(6) (7) request for variance from the public pool and spa rules, $500.

73.17 	Sec. 2. Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision 
73.18 	to read:
73.19 		Subd. 1b.Unblockable drain. "Unblockable drain" means a drain of any size and 
73.20 	shape that a human body cannot sufficiently block to create a suction entrapment hazard.

73.21 	Sec. 3. Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision 
73.22 	to read:
73.23 		Subd. 1c.Public pool construction. All public pools constructed after December 
73.24 	19, 2008, must contain a combination of two or more main drains, or drain covers meeting 
73.25 	ASME/ANSI standards, connected in parallel, per suction pump.

73.26 	Sec. 4. Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision 
73.27 	to read:
73.28 		Subd. 1d.Public pools; required equipment. (a) Beginning December 19, 2008, 
73.29 	all pools with the deepest water being less than four feet deep must meet the requirements 
73.30 	in this subdivision:
73.31 	(1) Each public pool and spa must be equipped with anti-entrapment devices or 
73.32 	systems that comply with ASME/ANSI performance standard A112.19.8, or any successor 
73.33 	standard.
74.1 	(2) Each public pool and spa with a single main drain, other than an unblockable 
74.2 	drain, must be equipped, at a minimum, with one or more of the devices listed in items (i) 
74.3 	to (vi) or with systems designed to prevent entrapment by pool or spa drains that meet the 
74.4 	requirements of paragraph (b):
74.5 	(i) a safety vacuum release system that ceases operation of the pump, reverses 
74.6 	the circulation flow, or otherwise provides a vacuum release at a suction outlet when a 
74.7 	blockage is detected, that has been tested by an independent third party and found to 
74.8 	conform to ASME/ANSI standard A112.19.17 or ASTM standard F2387;
74.9 	(ii) a suction-limiting vent system with a tamper-resistant atmospheric opening;
74.10 	(iii) a gravity drainage system that utilizes a collector tank;
74.11 	(iv) an automatic pump shut-off system;
74.12 	(v) a device or system that disables the drain; and
74.13 	(vi) any other system determined by the commissioner to be equally effective as, 
74.14 	or better than, the systems listed in this paragraph at preventing or eliminating the risk 
74.15 	of injury or death associated with pool drainage systems.
74.16 	(b) Any devise or system described in paragraph (a) must meet the requirements of 
74.17 	any ASME/ANSI or ASTM performance standard if there is a standard for a device or 
74.18 	system, or any applicable consumer product safety standard.
74.19 	(c) All other existing pools must comply with this subdivision no later than 
74.20 	December 19, 2009.

74.21 	Sec. 5. Minnesota Statutes 2006, section 157.16, as amended by Laws 2007, chapter 
74.22 	147, article 9, section 34, is amended to read:
74.23 	157.16 LICENSES REQUIRED; FEES.
74.24 		Subdivision 1.License required annually. A license is required annually for 
74.25 	every person, firm, or corporation engaged in the business of conducting a food and 
74.26 	beverage service establishment, hotel, motel, lodging establishment, public pool, or 
74.27 	resort. Any person wishing to operate a place of business licensed in this section shall 
74.28 	first make application, pay the required fee specified in this section, and receive approval 
74.29 	for operation, including plan review approval. Seasonal and temporary food stands and 
74.30 	special event food stands are not required to submit plans. Nonprofit organizations 
74.31 	operating a special event food stand with multiple locations at an annual one-day event 
74.32 	shall be issued only one license. Application shall be made on forms provided by the 
74.33 	commissioner and shall require the applicant to state the full name and address of the 
74.34 	owner of the building, structure, or enclosure, the lessee and manager of the food and 
74.35 	beverage service establishment, hotel, motel, lodging establishment, public pool, or resort; 
75.1 	the name under which the business is to be conducted; and any other information as may 
75.2 	be required by the commissioner to complete the application for license.
75.3 		Subd. 2.License renewal. Initial and renewal licenses for all food and beverage 
75.4 	service establishments, hotels, motels, lodging establishments, public pools, and resorts 
75.5 	shall be issued for the calendar year for which application is made and shall expire 
75.6 	on December 31 of such year. Any person who operates a place of business after the 
75.7 	expiration date of a license or without having submitted an application and paid the fee 
75.8 	shall be deemed to have violated the provisions of this chapter and shall be subject to 
75.9 	enforcement action, as provided in the Health Enforcement Consolidation Act, sections 
75.10 	144.989 to 144.993. In addition, a penalty of $50 shall be added to the total of the license 
75.11 	fee for any food and beverage service establishment operating without a license as a 
75.12 	mobile food unit, a seasonal temporary or seasonal permanent food stand, or a special 
75.13 	event food stand, and a penalty of $100 shall be added to the total of the license fee for all 
75.14 	restaurants, food carts, hotels, motels, lodging establishments, public pools, and resorts 
75.15 	operating without a license for a period of up to 30 days. A late fee of $300 shall be added 
75.16 	to the license fee for establishments operating more than 30 days without a license.
75.17 		Subd. 2a.Food manager certification. An applicant for certification or certification 
75.18 	renewal as a food manager must submit to the commissioner a $28 nonrefundable 
75.19 	certification fee payable to the Department of Health.
75.20 		Subd. 3.Establishment fees; definitions. (a) The following fees are required for 
75.21 	food and beverage service establishments, hotels, motels, lodging establishments, public 
75.22 	pools, and resorts licensed under this chapter. Food and beverage service establishments 
75.23 	must pay the highest applicable fee under paragraph (d), clause (1), (2), (3), or (4), and 
75.24 	establishments serving alcohol must pay the highest applicable fee under paragraph (d), 
75.25 	clause (6) or (7). The license fee for new operators previously licensed under this chapter 
75.26 	for the same calendar year is one-half of the appropriate annual license fee, plus any 
75.27 	penalty that may be required. The license fee for operators opening on or after October 1 
75.28 	is one-half of the appropriate annual license fee, plus any penalty that may be required.
75.29 	(b) All food and beverage service establishments, except special event food stands, 
75.30 	and all hotels, motels, lodging establishments, public pools, and resorts shall pay an 
75.31 	annual base fee of $150.
75.32 	(c) A special event food stand shall pay a flat fee of $40 annually. "Special event 
75.33 	food stand" means a fee category where food is prepared or served in conjunction with 
75.34 	celebrations, county fairs, or special events from a special event food stand as defined 
75.35 	in section 157.15.
76.1 	(d) In addition to the base fee in paragraph (b), each food and beverage service 
76.2 	establishment, other than a special event food stand, and each hotel, motel, lodging 
76.3 	establishment, public pool, and resort shall pay an additional annual fee for each fee 
76.4 	category, additional food service, or required additional inspection specified in this 
76.5 	paragraph:
76.6 	(1) Limited food menu selection, $50. "Limited food menu selection" means a fee 
76.7 	category that provides one or more of the following:
76.8 	(i) prepackaged food that receives heat treatment and is served in the package;
76.9 	(ii) frozen pizza that is heated and served;
76.10 	(iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;
76.11 	(iv) soft drinks, coffee, or nonalcoholic beverages; or
76.12 	(v) cleaning for eating, drinking, or cooking utensils, when the only food served 
76.13 	is prepared off site.
76.14 	(2) Small establishment, including boarding establishments, $100. "Small 
76.15 	establishment" means a fee category that has no salad bar and meets one or more of 
76.16 	the following:
76.17 	(i) possesses food service equipment that consists of no more than a deep fat fryer, a 
76.18 	grill, two hot holding containers, and one or more microwave ovens;
76.19 	(ii) serves dipped ice cream or soft serve frozen desserts;
76.20 	(iii) serves breakfast in an owner-occupied bed and breakfast establishment;
76.21 	(iv) is a boarding establishment; or
76.22 	(v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum 
76.23 	patron seating capacity of not more than 50.
76.24 	(3) Medium establishment, $260. "Medium establishment" means a fee category 
76.25 	that meets one or more of the following:
76.26 	(i) possesses food service equipment that includes a range, oven, steam table, salad 
76.27 	bar, or salad preparation area;
76.28 	(ii) possesses food service equipment that includes more than one deep fat fryer, 
76.29 	one grill, or two hot holding containers; or
76.30 	(iii) is an establishment where food is prepared at one location and served at one or 
76.31 	more separate locations.
76.32 	Establishments meeting criteria in clause (2), item (v), are not included in this fee 
76.33 	category.
76.34 	(4) Large establishment, $460. "Large establishment" means either:
77.1 	(i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a 
77.2 	medium establishment, (B) seats more than 175 people, and (C) offers the full menu 
77.3 	selection an average of five or more days a week during the weeks of operation; or
77.4 	(ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium 
77.5 	establishment, and (B) prepares and serves 500 or more meals per day.
77.6 	(5) Other food and beverage service, including food carts, mobile food units, 
77.7 	seasonal temporary food stands, and seasonal permanent food stands, $50.
77.8 	(6) Beer or wine table service, $50. "Beer or wine table service" means a fee 
77.9 	category where the only alcoholic beverage service is beer or wine, served to customers 
77.10 	seated at tables.
77.11 	(7) Alcoholic beverage service, other than beer or wine table service, $135.
77.12 	"Alcohol beverage service, other than beer or wine table service" means a fee 
77.13 	category where alcoholic mixed drinks are served or where beer or wine are served from 
77.14 	a bar.
77.15 	(8) Lodging per sleeping accommodation unit, $8, including hotels, motels, 
77.16 	lodging establishments, and resorts, up to a maximum of $800. "Lodging per sleeping 
77.17 	accommodation unit" means a fee category including the number of guest rooms, cottages, 
77.18 	or other rental units of a hotel, motel, lodging establishment, or resort; or the number of 
77.19 	beds in a dormitory.
77.20 	(9) First public swimming pool, $180; each additional public swimming pool, $100. 
77.21 	"Public swimming pool" means a fee category that has the meaning given in Minnesota 
77.22 	Rules, part 4717.0250, subpart 8.
77.23 	(10) First spa, $110; each additional spa, $50. "Spa pool" means a fee category that 
77.24 	has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.
77.25 	(11) Private sewer or water, $50. "Individual private water" means a fee category 
77.26 	with a water supply other than a community public water supply as defined in Minnesota 
77.27 	Rules, chapter 4720. "Individual private sewer" means a fee category with an individual 
77.28 	sewage treatment system which uses subsurface treatment and disposal.
77.29 	(12) Additional food service, $130. "Additional food service" means a location at 
77.30 	a food service establishment, other than the primary food preparation and service area, 
77.31 	used to prepare or serve food to the public.
77.32 	(13) Additional inspection fee, $300. "Additional inspection fee" means a fee to 
77.33 	conduct the second inspection each year for elementary and secondary education facility 
77.34 	school lunch programs when required by the Richard B. Russell National School Lunch 
77.35 	Act.
78.1 	(e) A fee of $350 for review of the construction plans must accompany the initial 
78.2 	license application for restaurants, hotels, motels, lodging establishments, or resorts with 
78.3 	five or more sleeping units.
78.4 	(f) When existing food and beverage service establishments, hotels, motels, lodging 
78.5 	establishments, or resorts are extensively remodeled, a fee of $250 must be submitted 
78.6 	with the remodeling plans. A fee of $250 must be submitted for new construction or 
78.7 	remodeling for a restaurant with a limited food menu selection, a seasonal permanent 
78.8 	food stand, a mobile food unit, or a food cart, or for a hotel, motel, resort, or lodging 
78.9 	establishment addition of less than five sleeping units.
78.10 	(g) Seasonal temporary food stands and special event food stands are not required to 
78.11 	submit construction or remodeling plans for review.
78.12 		Subd. 3a.Statewide hospitality fee. Every person, firm, or corporation that 
78.13 	operates a licensed boarding establishment, food and beverage service establishment, 
78.14 	seasonal temporary or permanent food stand, special event food stand, mobile food unit, 
78.15 	food cart, resort, hotel, motel, or lodging establishment in Minnesota must submit to the 
78.16 	commissioner a $35 annual statewide hospitality fee for each licensed activity. The fee 
78.17 	for establishments licensed by the Department of Health is required at the same time the 
78.18 	licensure fee is due. For establishments licensed by local governments, the fee is due by 
78.19 	July 1 of each year.
78.20 		Subd. 4.Posting requirements. Every food and beverage service establishment, 
78.21 	hotel, motel, lodging establishment, public pool, or resort must have the license posted in 
78.22 	a conspicuous place at the establishment.

78.23 	Sec. 6. Laws 2007, chapter 147, article 19, section 4, subdivision 2, is amended to read:

78.24
78.25	Subd. 2. Community and Family Health 
Promotion

78.26	Appropriations by Fund 
	
78.27	General 
	44,271,000 
	43,836,000 
	
78.28
78.29	State Government 
Special Revenue 
	870,000 
	875,000 
	
78.30	Health Care Access 
	4,050,000 
	4,086,000 
	
78.31	Federal TANF 
	8,735,000 
	8,735,000 
	
78.32 	TANF Appropriations. (a) $3,579,000 of 
78.33 	the TANF funds is appropriated in each year 
78.34 	of the biennium to the commissioner for 
78.35 	home visiting and nutritional services listed 
78.36 	under Minnesota Statutes, section 145.882, 
79.1 	subdivision 7, clauses (6) and (7). Funding 
79.2 	shall be distributed to community health 
79.3 	boards according to Minnesota Statutes, 
79.4 	section 145A.131, subdivision 1. 
79.5 	(b) $4,000,000 in the first year and $4,000,000 
79.6 	in the second year are appropriated to the 
79.7 	commissioner of health for the family 
79.8 	home visiting grant program according 
79.9 	to Minnesota Statutes, section 145A.17. 
79.10 	Funding shall be distributed to community 
79.11 	health boards according to Minnesota 
79.12 	Statutes, section 145A.131, subdivision 1. 
79.13 	The commissioner may use five percent of 
79.14 	the funds appropriated in each fiscal year to 
79.15 	conduct the ongoing evaluations required 
79.16 	under Minnesota Statutes, section 145A.17, 
79.17 	subdivision 7, and may use ten percent of 
79.18 	the funds appropriated each fiscal year to 
79.19 	provide training and technical assistance as 
79.20 	required under Minnesota Statutes, section 
79.21 	145A.17, subdivisions 4 and 5. 
79.22 	TANF Carryforward. Any unexpended 
79.23 	balance of the TANF appropriation in the 
79.24 	first year of the biennium does not cancel but 
79.25 	is available for the second year. 
79.26 	Loan Forgiveness. $400,000 in fiscal 
79.27 	year 2010 and $400,000 in fiscal year 
79.28 	2011 from the state government special 
79.29 	revenue fund are to the commissioner 
79.30 	for the loan forgiveness program under 
79.31 	Minnesota Statutes, section 144.1501. This 
79.32 	appropriation shall not become part of base 
79.33 	level funding for the biennium beginning 
79.34 	July 1, 2011. Notwithstanding any contrary 
80.1 	provision in this article, this rider expires 
80.2 	December 31, 2011. 
80.3 	MN ENABL. Base level funding for the MN 
80.4 	ENABL program, under Minnesota Statutes, 
80.5 	section 145.9255, is reduced by $220,000 
80.6 	each year of the biennium beginning July 1, 
80.7 	2007. 
80.8 	Fetal Alcohol Spectrum Disorder.
80.9 	$500,000 each year in fiscal year 2008 from 
80.10 	the general fund is added to the base for fetal 
80.11 	alcohol spectrum disorder. 
80.12 	(1) On July 1 of each fiscal year, the 
80.13 	portion of the general fund appropriation 
80.14 	to the commissioner of health for fetal 
80.15 	alcohol spectrum disorder administration 
80.16 	and grants shall be transferred to a 
80.17 	statewide organization that focuses solely 
80.18 	on prevention of and intervention with fetal 
80.19 	alcohol spectrum disorder as follows: 
80.20 	(i) on July 1, 2007, $1,690,000; and 
80.21 	(ii) on July 1, 2008, $1,690,000 $1,190,000. 
80.22 	(2) The money shall be used for prevention 
80.23 	and intervention services and programs, 
80.24 	including, but not limited to, community 
80.25 	grants, professional education, public 
80.26 	awareness, and diagnosis. The organization 
80.27 	may retain $60,000 of the transferred money 
80.28 	for administrative costs. The organization 
80.29 	shall report to the commissioner annually 
80.30 	by January 15 on the services and programs 
80.31 	funded by the appropriation. 
80.32 	(3) Notwithstanding any contrary provision 
80.33 	in this article, this rider shall not expire. 
81.1 	Family Planning Grants. Of the TANF 
81.2 	appropriation, $1,156,000 each year is for 
81.3 	family planning grants under Minnesota 
81.4 	Statutes, section 145.925. 
81.5 	Suicide prevention programs. Of the 
81.6 	general fund appropriation, $335,000 in fiscal 
81.7 	year 2008 and $145,000 in fiscal year 2009 
81.8 	are to fund the suicide prevention program. 
81.9 	Hearing Aid and Instrument Loan Bank.
81.10 	Of the general fund appropriation, $70,000 
81.11 	each year is to the commissioner for the 
81.12 	purpose of providing a grant to cover 
81.13 	administrative costs for a statewide hearing 
81.14 	aid and instrument loan bank to families with 
81.15 	children newly diagnosed with hearing loss 
81.16 	from birth to the age of ten. 
81.17 	Medical Home Learning Collaborative.
81.18 	Of the health care access fund appropriation, 
81.19 	$500,000 in fiscal year 2008 and $500,000 in 
81.20 	fiscal year 2009 are to expand the medical 
81.21 	home learning collaborative initiative in 
81.22 	collaboration with the commissioner of 
81.23 	human services. Services provided under this 
81.24 	funding must support a medical home model 
81.25 	for children with special health care needs. 
81.26 	The collaborative shall report back to the 
81.27 	legislature on use of the funds by January 15, 
81.28 	2010. This appropriation shall not become 
81.29 	part of the base funding for the 2010-2011 
81.30 	biennium. 
81.31 	Base Adjustment. The health care access 
81.32 	fund base is $3,586,000 in each of fiscal 
81.33 	years 2010 and 2011. 

81.34 	Sec. 7. Laws 2007, chapter 147, article 19, section 4, subdivision 4, is amended to read:

82.1	Subd. 4. Health Protection

82.2	Appropriations by Fund 
	
82.3	General 
	15,315,000 
	10,526,000 
	
82.4
82.5	State Government 
Special Revenue 
	27,475,000 
	28,327,000 
	
82.6 	Pandemic Influenza Preparedness. Of the 
82.7 	general fund appropriation, (1) $115,000 in 
82.8 	fiscal year 2008 is for department activities 
82.9 	of epidemiology, laboratory services, 
82.10 	exercises, and planning, and (2) $3,970,000 
82.11 	is to purchase antiviral medications and 
82.12 	prepare and manage a stockpile of health 
82.13 	care supplies. 
82.14 	Lead Abatement. Of the general fund 
82.15 	appropriation, $388,000 in each fiscal year 
82.16 	2008 is for the lead abatement program in 
82.17 	Minnesota Statutes, section 144.9512. 
82.18 	Water Treatment. Of the general fund 
82.19 	appropriation, $40,000 in fiscal year 2008 
82.20 	is to augment any appropriation from the 
82.21 	remediation fund to conduct an evaluation of 
82.22 	point of use water treatment units at removing 
82.23 	perfluorooctanoic acid, perfluorooctane 
82.24 	sulfonate, and perfluorobutanoic acid from 
82.25 	known concentrations of these compounds 
82.26 	in drinking water. The evaluation shall be 
82.27 	completed by December 31, 2007, and the 
82.28 	commissioner may contract for services to 
82.29 	complete the evaluation. This is a onetime 
82.30 	appropriation. 
82.31 	HIV Information. Of the general fund 
82.32 	appropriation, $80,000 each year is to fund 
82.33 	a community-based nonprofit organization 
82.34 	with demonstrated capacity to operate a 
82.35 	statewide HIV information and referral 
83.1 	service using telephone, Internet, and other 
83.2 	appropriate technologies. This appropriation 
83.3 	shall become part of base level funding for 
83.4 	the biennium beginning July 1, 2009. * (The 
83.5 	preceding text beginning "HIV Information. 
83.6 	Of the general fund" was indicated as vetoed 
83.7 	by the governor.) 
83.8 	Base Adjustment. The general fund base 
83.9 	is $10,526,000$10,138,000 in each of the 
83.10 	fiscal years 2010 and 2011. 

83.11 	Sec. 8. REVISOR'S INSTRUCTION.
 83.12 	The revisor of statutes shall change the public pool definition in Minnesota Rules, 
83.13 	part 4717.0250, subpart 8, with the following language: "public pool" means any pool that 
83.14 	is open to the public generally, whether for a fee or free of charge; open exclusively to 
83.15 	members of an organization and their guests; residents of a multiunit apartment building, 
83.16 	apartment complex, residential real estate development, or other multifamily residential 
83.17 	area; or patrons of a hotel or lodging or other public accommodation facility; or operated 
83.18 	by a person in a park, school, licensed child care facility, group home, motel, camp, resort, 
83.19 	club, condominium, manufactured home park, or political subdivision with the exception 
83.20 	of swimming pools at family day care homes licensed under Minnesota Statutes, section 
83.21 	245A.14, subdivision 11, paragraph (a).

83.22 	Sec. 9.  REPEALER.
 83.23 	Minnesota Statutes 2006, section 62J.58, is repealed.

83.24 	ARTICLE 7
83.25 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

83.26	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
83.27 	The amounts shown in this section summarize direct appropriations by fund made 
83.28 	in this article.

83.29			2008
		2009
		Total
	
83.30	General
	$
	(87,755,000)
	$
	(186,164,000)
	$
	(273,919,000)
	
83.31	State Government Special
							
83.32	Revenue
		0
		633,000
		633,000
	
83.33	Health Care Access
		0
		35,551,000
		35,551,000
	
84.1	Federal TANF
		52,700,000
		38,818,000
		91,518,000
	
84.2	Total
	$
	(35,055,000)
	$
	(111,162,000)
	$
	(146,217,000)

84.3	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATION.
 	
84.4 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
84.5 	in parentheses, subtracted from the appropriations in Laws 2007, chapter 147, or other 
84.6 	law to the agencies and for the purposes specified in this article. The appropriations 
84.7 	are from the general fund, or another named fund, and are available for the fiscal years 
84.8 	indicated for each purpose. The figures "2008" and "2009" used in this article mean 
84.9 	that the addition or subtraction from appropriations listed under them are available for 
84.10 	the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The first year" is 
84.11 	fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years 
84.12 	2008 and 2009. Supplemental appropriations and reductions for the fiscal year ending 
84.13 	June 30, 2008, are effective the day following final enactment.

84.14				APPROPRIATIONS
	
84.15				Available for the Year
	
84.16				Ending June 30
	
84.17					2008
		2009

84.18	Sec. 3. HUMAN SERVICES

84.19	Subdivision 1.Total Appropriation
 	$
	(35,055,000)
	$
	(109,482,000)

84.20	Appropriations by Fund
	
84.21		2008
	2009
	
84.22	General
	(87,755,000)
	(183,851,000)
	
84.23	Health Care Access
	0
	35,551,000
	
84.24	Federal TANF
	52,700,000
	38,818,000

84.25	Subd. 2.Agency Management

84.26	Financial Operations
		0
		(5,867,000)
	
84.27 	The amounts that may be spent from the 
84.28 	appropriation for each purpose are as follows:
84.29 	Base Adjustment. The general fund base 
84.30 	is increased $23,000 in fiscal year 2010 and 
84.31 	$26,000 in fiscal year 2011.

84.32
84.33	Subd. 3.Revenue and Pass-Through Revenue 
Expenditures

84.34	Federal TANF
		25,000,000
		27,039,000
	
85.1 	Additional TANF Transfer to Social 
85.2 	Services Block Grant. In addition 
85.3 	to transfers allowed under prior law, 
85.4 	$21,000,000 in fiscal year 2009 is 
85.5 	appropriated to the commissioner for the 
85.6 	purposes of providing services for families 
85.7 	with children whose incomes are at or below 
85.8 	200 percent of the federal poverty guidelines. 
85.9 	The commissioner shall authorize a sufficient 
85.10 	transfer of funds from the state's federal 
85.11 	TANF block grant to the state's federal 
85.12 	social services block grant to meet this 
85.13 	appropriation. The funds must be distributed 
85.14 	to counties for the children and community 
85.15 	services grant according to the formula for 
85.16 	state appropriations in Minnesota Statutes, 
85.17 	chapter 256M.
85.18 	Additional TANF Transfer to Child 
85.19 	Care and Development Fund. In 
85.20 	addition to transfers allowed under prior 
85.21 	law, $25,000,000 in fiscal year 2008 
85.22 	and $6,039,000 in fiscal year 2009 are 
85.23 	appropriated to the commissioner for the 
85.24 	purposes of MFIP transition year child care 
85.25 	under Minnesota Statutes, section 119B.05. 
85.26 	The commissioner shall authorize transfer 
85.27 	of sufficient TANF funds to the federal 
85.28 	child care and development fund to meet 
85.29 	this appropriation and shall ensure that all 
85.30 	transferred funds are expended according to 
85.31 	the federal child care and development fund 
85.32 	regulations.

85.33
85.34	Subd. 4.Children and Economic Assistance 
Grants
 					
85.35 	The amounts that may be spent from this 
85.36 	appropriation for each purpose are as follows:

86.1	(a) MFIP/DWP Grants

86.2	Appropriations by Fund
	
86.3	General
	(27,700,000)
	(11,779,000)
	
86.4	Federal TANF
	27,700,000
	11,779,000

86.5	(b) MFIP Child Care Assistance Grants
		(25,000,000)
		(6,039,000)

86.6	(c) Children's Services Grants
		(311,000)
		(1,742,000)
	
86.7 	Base Adjustment. The general fund base 
86.8 	is increased $1,726,000 in fiscal year 2010 
86.9 	and $1,742,000 in fiscal year 2011 due to 
86.10 	the onetime increase in adoption assistance 
86.11 	grants and the onetime decreases in relative 
86.12 	custody assistance grants, and the delayed 
86.13 	rate increase and county shift for children's 
86.14 	mental health grants.
86.15 	Funding Usage. Up to 75 percent of the 
86.16 	fiscal year 2010 appropriation for children's 
86.17 	mental health screening grants may be used 
86.18 	to fund calendar year 2009 allocations for 
86.19 	these programs, with the resulting calendar 
86.20 	year funding pattern continuing into the 
86.21 	future.

86.22	(d) Children and Community Services Grants
		0
		(21,330,000)
	
86.23 	Base Adjustment. The general fund base 
86.24 	is increased $21,264,000 in fiscal year 2010 
86.25 	and $21,330,000 in fiscal year 2011 to 
86.26 	reinvest a onetime reduction to community 
86.27 	social service grants and the delay of the 
86.28 	cost-of-living adjustment for community 
86.29 	social service grants.

86.30	(e) Minnesota Supplemental Aid Grants
		0
		201,000

86.31	(f) Group Residential Housing Grants
		0
		(433,000)

86.32	Subd. 5.Basic Health Care Grants
 					
87.1 	The amounts that may be spent from this 
87.2 	appropriation for each purpose are as follows:

87.3	(a) MinnesotaCare Grants

87.4	Health Care Access
		0
		(9,618,000)

87.5
87.6	(b) MA Basic Health Care Grants - Families 
and Children
		(17,985,000)
		(33,277,000)
	
87.7 	Hospital Payment Delay. Notwithstanding 
87.8 	Laws 2005, First Special Session chapter 4, 
87.9 	article 9, section 2, subdivision 6, payments 
87.10 	from the Medicaid Management Information 
87.11 	System that would otherwise have been made 
87.12 	for inpatient hospital services for medical 
87.13 	assistance enrollees are delayed as follows: 
87.14 	(1) for fiscal year 2008, the last payments for 
87.15 	the month of June must be included in the 
87.16 	first payments in fiscal year 2009; and (2) 
87.17 	for fiscal year 2009, the last payments in the 
87.18 	month of June must be included in the first 
87.19 	payment of fiscal year 2010. The provisions 
87.20 	of Minnesota Statutes, section 16A.124, shall 
87.21 	not apply to these delayed payments.

87.22
87.23	(c) MA Basic Health Care Grants - Elderly and 
Disabled
		(14,028,000)
		(6,608,000)
	
87.24 	Minnesota Disabilities Options Service 
87.25 	Limits. Enrollment of new members into the 
87.26 	Minnesota disability health options program 
87.27 	under Minnesota Statutes, section 256B.69, 
87.28 	subdivision 23, must be limited to provision 
87.29 	of state plan basic care services as defined 
87.30 	under Minnesota Statutes, section 256B.69, 
87.31 	subdivision 28, after July 1, 2008, except that 
87.32 	nursing home services will remain capitated 
87.33 	at 180 days. Notwithstanding any contrary 
87.34 	section in this article, this provision expires 
87.35 	June 30, 2011.

88.1	(d) General Assistance Medical Care Grants

88.2	Appropriations by Fund
	
88.3	General
	0
	(50,743,000)
	
88.4	Health Care Access
	0
	46,835,000
	
88.5 	GAMC Transition. Notwithstanding 
88.6 	Minnesota Statutes, section 295.581, 
88.7 	payments for general assistance medical care 
88.8 	under Minnesota Statutes, section 256D.03, 
88.9 	subdivision 3, paragraph (c), for adults 
88.10 	transitioning to MinnesotaCare must be 
88.11 	paid for out of the health care access fund. 
88.12 	Notwithstanding any contrary provision in 
88.13 	this article, this provision does not expire.

88.14	(e) Other Health Care Grants
		0
		(212,000)
	
88.15 	MinnesotaCare Outreach Grants Special 
88.16 	Revenue Account. The balance in the 
88.17 	MinnesotaCare outreach grants special 
88.18 	revenue account at the close of fiscal year 
88.19 	2008 must be transferred to the general fund.

88.20	Subd. 6.Health Care Management
 					
88.21 	The amounts that may be spent from the 
88.22 	appropriation for each purpose are as follows:

88.23	(a) Health Care Administration

88.24	Appropriations by Fund
	
88.25	General
	(200,000)
	(1,223,000)
	
88.26	Health Care Access
	0
	(1,096,000)
	
88.27 	Base Adjustment. The general fund base is 
88.28 	increased $164,000 in fiscal year 2010 and 
88.29 	$335,000 in fiscal year 2011. The health care 
88.30 	access fund base is increased $125,000 in 
88.31 	fiscal years 2010 and 2011.

88.32	(b) Health Care Operations

88.33	Health Care Access
		0
		(570,000)
	
89.1 	Base Adjustment. The general fund base is 
89.2 	decreased $1,151,000 in fiscal year 2010 and 
89.3 	$1,068,000 in fiscal year 2011.

89.4	Subd. 7.Continuing Care Grants
 					
89.5 	The amounts that may be spent from the 
89.6 	appropriation for each purpose are as follows:

89.7	(a) Aging and Adult Services Grants
		0
		(241,000)
	
89.8 	Base Adjustment. The general fund base 
89.9 	is increased $193,000 in fiscal year 2010 
89.10 	and $241,000 in fiscal year 2011 due to the 
89.11 	delayed rate adjustment for aging and adult 
89.12 	services grants.

89.13	(b) Alternative Care Grants
		0
		(661,000)
	
89.14 	Base Adjustment. The general fund base 
89.15 	is increased $511,000 in fiscal year 2010 
89.16 	and $661,000 in fiscal year 2011 due to the 
89.17 	delayed rate adjustment for alternative care 
89.18 	grants.

89.19	(c) MA Long-Term Care Facilities Grants
		(2,306,000)
		(8,366,000)
	
89.20 	Long-Term Care Provider Rate 
89.21 	Adjustment Delay. Notwithstanding Laws 
89.22 	2007, chapter 147, article 7, sections 59 
89.23 	and 71, the long-term care provider rate 
89.24 	adjustment for July 1, 2008, is delayed until 
89.25 	July 1, 2009.

89.26
89.27	(d) MA Long-Term Care Waivers and Home 
Care Grants
		0
		(23,679,000)
	
89.28 	Manage Growth in TBI and CADI Waiver.
89.29 	During the fiscal years beginning on July 
89.30 	1, 2008, July 1, 2009, and July 1, 2010, 
89.31 	the commissioner shall allocate money 
89.32 	for home and community-based programs 
89.33 	covered under Minnesota Statutes, section 
89.34 	256B.49, to ensure a reduction in state 
90.1 	spending that is equivalent to limiting the 
90.2 	caseload growth of the traumatic brain injury 
90.3 	(TBI) waiver to 200 diversions in each 
90.4 	year of the biennium and the community 
90.5 	alternatives for disabled individuals (CADI) 
90.6 	waiver to 1,500 diversions each year of the 
90.7 	biennium. Priorities for the allocation of 
90.8 	funds must be for individuals anticipated to 
90.9 	be discharged from institutional settings or 
90.10 	who are at imminent risk of a placement in 
90.11 	an institutional setting. Notwithstanding any 
90.12 	contrary section in this article, this provision 
90.13 	expires June 30, 2011.

90.14	(e) Mental Health Grants
		0
		(5,450,000)
	
90.15 	Base Adjustment. The general fund base 
90.16 	is increased $5,270,000 in fiscal year 2010 
90.17 	and $5,450,000 in fiscal year 2011 due to the 
90.18 	delayed rate adjustment and county payment 
90.19 	shift for adult mental health grants.

90.20	(f) Deaf and Hard-of-Hearing Grants
		0
		(20,000)
	
90.21 	Base Adjustment. The general fund base 
90.22 	is increased $16,000 in fiscal year 2010 and 
90.23 	$20,000 in fiscal year 2011 due to the delayed 
90.24 	rate increase for deaf and hard-of-hearing 
90.25 	grants.

90.26	(g) Chemical Dependency Entitlement Grants
		0
		(3,390,000)
	
90.27 	Payments for Substance Abuse Treatment.
90.28 	For services provided in fiscal year 2009, 
90.29 	county-negotiated rates and provider claims 
90.30 	to the consolidated chemical dependency 
90.31 	fund must not exceed rates charged for 
90.32 	services in excess of those in effect on 
90.33 	May 31, 2008. If statutes authorize a 
90.34 	cost-of-living adjustment during fiscal year 
91.1 	2009, then notwithstanding any law to the 
91.2 	contrary, fiscal year 2009 rates may not 
91.3 	exceed those in effect on May 31, 2008, plus 
91.4 	any authorized cost-of-living adjustments.
91.5 	Chemical Dependency Treatment Fund 
91.6 	Special Revenue Account.
91.7 	The lesser of the balance of the consolidated 
91.8 	chemical dependency treatment fund at the 
91.9 	close of fiscal year 2008 or $2,500,000 must 
91.10 	be transferred and deposited into the general 
91.11 	fund.

91.12
91.13	(h) Chemical Dependency Nonentitlement 
Grants
		0
		2,150,000
	
91.14 	Base Level Adjustment. The general 
91.15 	fund base for chemical dependency 
91.16 	nonentitlement treatment grants shall be 
91.17 	increased by $150,000 for fiscal years 
91.18 	2010 and 2011 for increased grants for 
91.19 	methamphetamine treatment.
91.20 	American Indian Youth Program. Of 
91.21 	the health care access fund appropriation, 
91.22 	$2,000,000 in fiscal year 2009 is for grants 
91.23 	to be awarded competitively to American 
91.24 	Indian tribes to purchase or develop one or 
91.25 	more culturally specific treatment programs 
91.26 	designed to serve youth from native cultures. 
91.27 	This appropriation is onetime and available 
91.28 	until spent.

91.29	(i) Other Continuing Care Grants
		0
		(4,832,000)
	
91.30 	Base Level Adjustment. The general fund 
91.31 	base is increased $7,633,000 in fiscal year 
91.32 	2010 and $5,332,000 in fiscal year 2011, due 
91.33 	to the onetime reduction of HIV grants in 
91.34 	fiscal year 2009, an increase each year for 
91.35 	housing grants under Minnesota Statutes, 
92.1 	section 256B.0658, and the adjustment 
92.2 	for the county grant payment shift for 
92.3 	developmental disability semi-independent 
92.4 	services grants and developmental disability 
92.5 	family support grants.
92.6 	Housing Access Grants. Of the general 
92.7 	fund appropriation, $250,000 is appropriated 
92.8 	in fiscal year 2009 for housing access 
92.9 	grants under Minnesota Statutes, section 
92.10 	256B.0658.
92.11 	Funding Usage. Up to 75 percent of 
92.12 	the fiscal year 2010 appropriation for 
92.13 	developmental disability semi-independent 
92.14 	living services grants and developmental 
92.15 	disability family support grants may be used 
92.16 	to fund calendar year 2009 allocations for 
92.17 	these programs, with the resulting calendar 
92.18 	year funding pattern continuing into the 
92.19 	future.

92.20	Subd. 8.State-Operated Services
 					
92.21 	County Past Due Receivables. The 
92.22 	commissioner is authorized to withhold 
92.23 	county federal administrative reimbursement 
92.24 	when the county of financial responsibility 
92.25 	for cost-of-care payments due to the state 
92.26 	under Minnesota Statutes, section 246.54 
92.27 	or 253B.045, is 180 days past due. The 
92.28 	commissioner shall deposit the federal 
92.29 	administrative withholding into the general 
92.30 	fund to settle the claims with the county of 
92.31 	financial responsibility.

92.32	Mental Health Services
		(225,000)
		(300,000)

92.33	Sec. 4. COMMISSIONER OF HEALTH

92.34	Subdivision 1.Total Appropriation
 	$
	0
	$
	(1,723,000)

93.1	Appropriations by Fund
	
93.2		2008
	2009
	
93.3	General
	0
	(2,356,000)
	
93.4
93.5	State Government 
Special Revenue
	0
	633,000

93.6	Subd. 2.Community and Family Health
 		0
		(825,000)

93.7	Subd. 3.Health Protection

93.8	Appropriations by Fund
	
93.9	General
	0
	(388,000)
	
93.10
93.11	State Government 
Special Revenue
	0
	633,000
	
93.12 	Base Adjustment. The state government 
93.13 	special revenue fund base is increased 
93.14 	$89,000 in fiscal years 2010 and 2011.

93.15	Subd. 4.Administrative Support Services
 		0
		(1,100,000)
	
93.16 	Base Adjustment. The general fund base is 
93.17 	increased $46,000 in fiscal years 2010 and 
93.18 	2011.

93.19	Sec. 5. HEALTH RELATED BOARDS

93.20	Subdivision 1.Total Appropriation 
 		2008
		2009

93.21	State Government Special Revenue
	$
	416,000
	$
	200,000

93.22
93.23	Subd. 2.Board of Nursing Home 
Administrators

93.24	State Government Special Revenue
		100,000
		200,000
	
93.25 	Administrative Services Unit. The amounts 
93.26 	appropriated are for the administrative 
93.27 	services unit to pay for costs of contested 
93.28 	case hearings and other unanticipated costs 
93.29 	of legal proceedings involving health-related 
93.30 	boards funded under Laws 2007, chapter 
93.31 	147, article 19, section 6. Upon certification 
93.32 	of a health-related board to the administrative 
93.33 	services unit that such costs will be 
93.34 	incurred and that there are insufficient 
94.1 	funds available to pay for such costs out of 
94.2 	funds currently available to that board, the 
94.3 	administrative services unit is authorized 
94.4 	to transfer funds from this appropriation 
94.5 	to the board for payment of those costs 
94.6 	with the approval of the commissioner of 
94.7 	finance. This appropriation shall not cancel. 
94.8 	Any unencumbered and unspent balances 
94.9 	remain available for these expenditures in 
94.10 	subsequent fiscal years.

94.11	Subd. 3.Board of Chiropractic Examiners

94.12	State Government Special Revenue
		150,000
		0

94.13	Subd. 4.Board of Dentistry

94.14	State Government Special Revenue
		100,000
		0

94.15	Subd. 5.Board of Veterinary Medicine

94.16	State Government Special Revenue
		54,000
		0

94.17
94.18	Subd. 6.Board of Marriage and Family 
Therapy

94.19	State Government Special Revenue
		12,000
		0

94.20 	Sec. 6. Minnesota Statutes 2007 Supplement, section 16A.724, subdivision 2, is 
94.21 	amended to read:
94.22 		Subd. 2.Transfers. (a) Notwithstanding section 295.581, to the extent available 
94.23 	resources in the health care access fund exceed expenditures in that fund, effective for the 
94.24 	biennium beginning July 1, 2007, the commissioner of finance shall transfer the excess 
94.25 	funds from the health care access fund to the general fund on June 30 of each year, 
94.26 	provided that the amount transferred in any fiscal biennium shall not exceed $96,000,000. 
94.27 	The purpose of this transfer is to meet the rate increase required under Laws 2003, First 
94.28 	Special Session chapter 14, article 13C, section 2, subdivision 6.
94.29 	(b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and, 
94.30 	if necessary, the commissioner shall reduce these transfers from the health care access 
94.31 	fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary, 
94.32 	transfer sufficient funds from the general fund to the health care access fund to meet 
94.33 	annual MinnesotaCare expenditures.
95.1 	(c) The commissioner of finance shall transfer $250,000,000 from the health care 
95.2 	access fund to the general fund on June 30, 2009. This is in addition to the transfer in 
95.3 	paragraph (a).