1.1                          A bill for an act 
  1.2             relating to human services; changing provisions in 
  1.3             foster care reimbursement; allowing the commissioner 
  1.4             to enter into contractual agreements with Indian 
  1.5             tribes so that the tribes may receive direct federal 
  1.6             and state reimbursement; requiring the commissioner to 
  1.7             study foster care, adoption assistance, and relative 
  1.8             custody assistance programs; amending Minnesota 
  1.9             Statutes 2000, sections 256.01, subdivision 2; 256.82, 
  1.10            subdivision 3, by adding a subdivision; repealing 
  1.11            Minnesota Statutes 2000, section 256.82, subdivisions 
  1.12            4, 5. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2000, section 256.01, 
  1.15  subdivision 2, is amended to read: 
  1.16     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
  1.17  section 241.021, subdivision 2, the commissioner of human 
  1.18  services shall: 
  1.19     (1) Administer and supervise all forms of public assistance 
  1.20  provided for by state law and other welfare activities or 
  1.21  services as are vested in the commissioner.  Administration and 
  1.22  supervision of human services activities or services includes, 
  1.23  but is not limited to, assuring timely and accurate distribution 
  1.24  of benefits, completeness of service, and quality program 
  1.25  management.  In addition to administering and supervising human 
  1.26  services activities vested by law in the department, the 
  1.27  commissioner shall have the authority to: 
  1.28     (a) require county agency participation in training and 
  1.29  technical assistance programs to promote compliance with 
  2.1   statutes, rules, federal laws, regulations, and policies 
  2.2   governing human services; 
  2.3      (b) monitor, on an ongoing basis, the performance of county 
  2.4   agencies in the operation and administration of human services, 
  2.5   enforce compliance with statutes, rules, federal laws, 
  2.6   regulations, and policies governing welfare services and promote 
  2.7   excellence of administration and program operation; 
  2.8      (c) develop a quality control program or other monitoring 
  2.9   program to review county performance and accuracy of benefit 
  2.10  determinations; 
  2.11     (d) require county agencies to make an adjustment to the 
  2.12  public assistance benefits issued to any individual consistent 
  2.13  with federal law and regulation and state law and rule and to 
  2.14  issue or recover benefits as appropriate; 
  2.15     (e) delay or deny payment of all or part of the state and 
  2.16  federal share of benefits and administrative reimbursement 
  2.17  according to the procedures set forth in section 256.017; 
  2.18     (f) make contracts with and grants to public and private 
  2.19  agencies and organizations, both profit and nonprofit, and 
  2.20  individuals, using appropriated funds; and 
  2.21     (g) enter into contractual agreements with federally 
  2.22  recognized Indian tribes with a reservation in Minnesota to the 
  2.23  extent necessary for the tribe to operate a federally approved 
  2.24  family assistance program or any other program under the 
  2.25  supervision of the commissioner.  The commissioner may also 
  2.26  enter into contractual agreements with federally recognized 
  2.27  Indian tribes with a reservation in Minnesota to the extent 
  2.28  necessary for the tribes to operate placement programs for 
  2.29  Indian children so that the tribes may receive direct federal 
  2.30  and state reimbursement, where appropriate, for the placement of 
  2.31  individual Indian children.  The commissioner shall consult with 
  2.32  the affected county or counties in the contractual agreement 
  2.33  negotiations, if the county or counties wish to be included, in 
  2.34  order to avoid the duplication of county and tribal assistance 
  2.35  program services.  The commissioner may establish necessary 
  2.36  accounts for the purposes of receiving and disbursing funds as 
  3.1   necessary for the operation of the programs. 
  3.2      (2) Inform county agencies, on a timely basis, of changes 
  3.3   in statute, rule, federal law, regulation, and policy necessary 
  3.4   to county agency administration of the programs. 
  3.5      (3) Administer and supervise all child welfare activities; 
  3.6   promote the enforcement of laws protecting handicapped, 
  3.7   dependent, neglected and delinquent children, and children born 
  3.8   to mothers who were not married to the children's fathers at the 
  3.9   times of the conception nor at the births of the children; 
  3.10  license and supervise child-caring and child-placing agencies 
  3.11  and institutions; supervise the care of children in boarding and 
  3.12  foster homes or in private institutions; and generally perform 
  3.13  all functions relating to the field of child welfare now vested 
  3.14  in the state board of control. 
  3.15     (4) Administer and supervise all noninstitutional service 
  3.16  to handicapped persons, including those who are visually 
  3.17  impaired, hearing impaired, or physically impaired or otherwise 
  3.18  handicapped.  The commissioner may provide and contract for the 
  3.19  care and treatment of qualified indigent children in facilities 
  3.20  other than those located and available at state hospitals when 
  3.21  it is not feasible to provide the service in state hospitals. 
  3.22     (5) Assist and actively cooperate with other departments, 
  3.23  agencies and institutions, local, state, and federal, by 
  3.24  performing services in conformity with the purposes of Laws 
  3.25  1939, chapter 431. 
  3.26     (6) Act as the agent of and cooperate with the federal 
  3.27  government in matters of mutual concern relative to and in 
  3.28  conformity with the provisions of Laws 1939, chapter 431, 
  3.29  including the administration of any federal funds granted to the 
  3.30  state to aid in the performance of any functions of the 
  3.31  commissioner as specified in Laws 1939, chapter 431, and 
  3.32  including the promulgation of rules making uniformly available 
  3.33  medical care benefits to all recipients of public assistance, at 
  3.34  such times as the federal government increases its participation 
  3.35  in assistance expenditures for medical care to recipients of 
  3.36  public assistance, the cost thereof to be borne in the same 
  4.1   proportion as are grants of aid to said recipients. 
  4.2      (7) Establish and maintain any administrative units 
  4.3   reasonably necessary for the performance of administrative 
  4.4   functions common to all divisions of the department. 
  4.5      (8) Act as designated guardian of both the estate and the 
  4.6   person of all the wards of the state of Minnesota, whether by 
  4.7   operation of law or by an order of court, without any further 
  4.8   act or proceeding whatever, except as to persons committed as 
  4.9   mentally retarded.  For children under the guardianship of the 
  4.10  commissioner whose interests would be best served by adoptive 
  4.11  placement, the commissioner may contract with a licensed 
  4.12  child-placing agency to provide adoption services.  A contract 
  4.13  with a licensed child-placing agency must be designed to 
  4.14  supplement existing county efforts and may not replace existing 
  4.15  county programs, unless the replacement is agreed to by the 
  4.16  county board and the appropriate exclusive bargaining 
  4.17  representative or the commissioner has evidence that child 
  4.18  placements of the county continue to be substantially below that 
  4.19  of other counties.  Funds encumbered and obligated under an 
  4.20  agreement for a specific child shall remain available until the 
  4.21  terms of the agreement are fulfilled or the agreement is 
  4.22  terminated. 
  4.23     (9) Act as coordinating referral and informational center 
  4.24  on requests for service for newly arrived immigrants coming to 
  4.25  Minnesota. 
  4.26     (10) The specific enumeration of powers and duties as 
  4.27  hereinabove set forth shall in no way be construed to be a 
  4.28  limitation upon the general transfer of powers herein contained. 
  4.29     (11) Establish county, regional, or statewide schedules of 
  4.30  maximum fees and charges which may be paid by county agencies 
  4.31  for medical, dental, surgical, hospital, nursing and nursing 
  4.32  home care and medicine and medical supplies under all programs 
  4.33  of medical care provided by the state and for congregate living 
  4.34  care under the income maintenance programs. 
  4.35     (12) Have the authority to conduct and administer 
  4.36  experimental projects to test methods and procedures of 
  5.1   administering assistance and services to recipients or potential 
  5.2   recipients of public welfare.  To carry out such experimental 
  5.3   projects, it is further provided that the commissioner of human 
  5.4   services is authorized to waive the enforcement of existing 
  5.5   specific statutory program requirements, rules, and standards in 
  5.6   one or more counties.  The order establishing the waiver shall 
  5.7   provide alternative methods and procedures of administration, 
  5.8   shall not be in conflict with the basic purposes, coverage, or 
  5.9   benefits provided by law, and in no event shall the duration of 
  5.10  a project exceed four years.  It is further provided that no 
  5.11  order establishing an experimental project as authorized by the 
  5.12  provisions of this section shall become effective until the 
  5.13  following conditions have been met: 
  5.14     (a) The secretary of health and human services of the 
  5.15  United States has agreed, for the same project, to waive state 
  5.16  plan requirements relative to statewide uniformity. 
  5.17     (b) A comprehensive plan, including estimated project 
  5.18  costs, shall be approved by the legislative advisory commission 
  5.19  and filed with the commissioner of administration.  
  5.20     (13) According to federal requirements, establish 
  5.21  procedures to be followed by local welfare boards in creating 
  5.22  citizen advisory committees, including procedures for selection 
  5.23  of committee members. 
  5.24     (14) Allocate federal fiscal disallowances or sanctions 
  5.25  which are based on quality control error rates for the aid to 
  5.26  families with dependent children program formerly codified in 
  5.27  sections 256.72 to 256.87, medical assistance, or food stamp 
  5.28  program in the following manner:  
  5.29     (a) One-half of the total amount of the disallowance shall 
  5.30  be borne by the county boards responsible for administering the 
  5.31  programs.  For the medical assistance and the AFDC program 
  5.32  formerly codified in sections 256.72 to 256.87, disallowances 
  5.33  shall be shared by each county board in the same proportion as 
  5.34  that county's expenditures for the sanctioned program are to the 
  5.35  total of all counties' expenditures for the AFDC program 
  5.36  formerly codified in sections 256.72 to 256.87, and medical 
  6.1   assistance programs.  For the food stamp program, sanctions 
  6.2   shall be shared by each county board, with 50 percent of the 
  6.3   sanction being distributed to each county in the same proportion 
  6.4   as that county's administrative costs for food stamps are to the 
  6.5   total of all food stamp administrative costs for all counties, 
  6.6   and 50 percent of the sanctions being distributed to each county 
  6.7   in the same proportion as that county's value of food stamp 
  6.8   benefits issued are to the total of all benefits issued for all 
  6.9   counties.  Each county shall pay its share of the disallowance 
  6.10  to the state of Minnesota.  When a county fails to pay the 
  6.11  amount due hereunder, the commissioner may deduct the amount 
  6.12  from reimbursement otherwise due the county, or the attorney 
  6.13  general, upon the request of the commissioner, may institute 
  6.14  civil action to recover the amount due. 
  6.15     (b) Notwithstanding the provisions of paragraph (a), if the 
  6.16  disallowance results from knowing noncompliance by one or more 
  6.17  counties with a specific program instruction, and that knowing 
  6.18  noncompliance is a matter of official county board record, the 
  6.19  commissioner may require payment or recover from the county or 
  6.20  counties, in the manner prescribed in paragraph (a), an amount 
  6.21  equal to the portion of the total disallowance which resulted 
  6.22  from the noncompliance, and may distribute the balance of the 
  6.23  disallowance according to paragraph (a).  
  6.24     (15) Develop and implement special projects that maximize 
  6.25  reimbursements and result in the recovery of money to the 
  6.26  state.  For the purpose of recovering state money, the 
  6.27  commissioner may enter into contracts with third parties.  Any 
  6.28  recoveries that result from projects or contracts entered into 
  6.29  under this paragraph shall be deposited in the state treasury 
  6.30  and credited to a special account until the balance in the 
  6.31  account reaches $1,000,000.  When the balance in the account 
  6.32  exceeds $1,000,000, the excess shall be transferred and credited 
  6.33  to the general fund.  All money in the account is appropriated 
  6.34  to the commissioner for the purposes of this paragraph. 
  6.35     (16) Have the authority to make direct payments to 
  6.36  facilities providing shelter to women and their children 
  7.1   according to section 256D.05, subdivision 3.  Upon the written 
  7.2   request of a shelter facility that has been denied payments 
  7.3   under section 256D.05, subdivision 3, the commissioner shall 
  7.4   review all relevant evidence and make a determination within 30 
  7.5   days of the request for review regarding issuance of direct 
  7.6   payments to the shelter facility.  Failure to act within 30 days 
  7.7   shall be considered a determination not to issue direct payments.
  7.8      (17) Have the authority to establish and enforce the 
  7.9   following county reporting requirements:  
  7.10     (a) The commissioner shall establish fiscal and statistical 
  7.11  reporting requirements necessary to account for the expenditure 
  7.12  of funds allocated to counties for human services programs.  
  7.13  When establishing financial and statistical reporting 
  7.14  requirements, the commissioner shall evaluate all reports, in 
  7.15  consultation with the counties, to determine if the reports can 
  7.16  be simplified or the number of reports can be reduced. 
  7.17     (b) The county board shall submit monthly or quarterly 
  7.18  reports to the department as required by the commissioner.  
  7.19  Monthly reports are due no later than 15 working days after the 
  7.20  end of the month.  Quarterly reports are due no later than 30 
  7.21  calendar days after the end of the quarter, unless the 
  7.22  commissioner determines that the deadline must be shortened to 
  7.23  20 calendar days to avoid jeopardizing compliance with federal 
  7.24  deadlines or risking a loss of federal funding.  Only reports 
  7.25  that are complete, legible, and in the required format shall be 
  7.26  accepted by the commissioner.  
  7.27     (c) If the required reports are not received by the 
  7.28  deadlines established in clause (b), the commissioner may delay 
  7.29  payments and withhold funds from the county board until the next 
  7.30  reporting period.  When the report is needed to account for the 
  7.31  use of federal funds and the late report results in a reduction 
  7.32  in federal funding, the commissioner shall withhold from the 
  7.33  county boards with late reports an amount equal to the reduction 
  7.34  in federal funding until full federal funding is received.  
  7.35     (d) A county board that submits reports that are late, 
  7.36  illegible, incomplete, or not in the required format for two out 
  8.1   of three consecutive reporting periods is considered 
  8.2   noncompliant.  When a county board is found to be noncompliant, 
  8.3   the commissioner shall notify the county board of the reason the 
  8.4   county board is considered noncompliant and request that the 
  8.5   county board develop a corrective action plan stating how the 
  8.6   county board plans to correct the problem.  The corrective 
  8.7   action plan must be submitted to the commissioner within 45 days 
  8.8   after the date the county board received notice of noncompliance.
  8.9      (e) The final deadline for fiscal reports or amendments to 
  8.10  fiscal reports is one year after the date the report was 
  8.11  originally due.  If the commissioner does not receive a report 
  8.12  by the final deadline, the county board forfeits the funding 
  8.13  associated with the report for that reporting period and the 
  8.14  county board must repay any funds associated with the report 
  8.15  received for that reporting period. 
  8.16     (f) The commissioner may not delay payments, withhold 
  8.17  funds, or require repayment under paragraph (c) or (e) if the 
  8.18  county demonstrates that the commissioner failed to provide 
  8.19  appropriate forms, guidelines, and technical assistance to 
  8.20  enable the county to comply with the requirements.  If the 
  8.21  county board disagrees with an action taken by the commissioner 
  8.22  under paragraph (c) or (e), the county board may appeal the 
  8.23  action according to sections 14.57 to 14.69. 
  8.24     (g) Counties subject to withholding of funds under 
  8.25  paragraph (c) or forfeiture or repayment of funds under 
  8.26  paragraph (e) shall not reduce or withhold benefits or services 
  8.27  to clients to cover costs incurred due to actions taken by the 
  8.28  commissioner under paragraph (c) or (e). 
  8.29     (18) Allocate federal fiscal disallowances or sanctions for 
  8.30  audit exceptions when federal fiscal disallowances or sanctions 
  8.31  are based on a statewide random sample for the foster care 
  8.32  program under title IV-E of the Social Security Act, United 
  8.33  States Code, title 42, in direct proportion to each county's 
  8.34  title IV-E foster care maintenance claim for that period. 
  8.35     (19) Be responsible for ensuring the detection, prevention, 
  8.36  investigation, and resolution of fraudulent activities or 
  9.1   behavior by applicants, recipients, and other participants in 
  9.2   the human services programs administered by the department. 
  9.3      (20) Require county agencies to identify overpayments, 
  9.4   establish claims, and utilize all available and cost-beneficial 
  9.5   methodologies to collect and recover these overpayments in the 
  9.6   human services programs administered by the department. 
  9.7      (21) Have the authority to administer a drug rebate program 
  9.8   for drugs purchased pursuant to the prescription drug program 
  9.9   established under section 256.955 after the beneficiary's 
  9.10  satisfaction of any deductible established in the program.  The 
  9.11  commissioner shall require a rebate agreement from all 
  9.12  manufacturers of covered drugs as defined in section 256B.0625, 
  9.13  subdivision 13.  Rebate agreements for prescription drugs 
  9.14  delivered on or after July 1, 2002, must include rebates for 
  9.15  individuals covered under the prescription drug program who are 
  9.16  under 65 years of age.  For each drug, the amount of the rebate 
  9.17  shall be equal to the basic rebate as defined for purposes of 
  9.18  the federal rebate program in United States Code, title 42, 
  9.19  section 1396r-8(c)(1).  This basic rebate shall be applied to 
  9.20  single-source and multiple-source drugs.  The manufacturers must 
  9.21  provide full payment within 30 days of receipt of the state 
  9.22  invoice for the rebate within the terms and conditions used for 
  9.23  the federal rebate program established pursuant to section 1927 
  9.24  of title XIX of the Social Security Act.  The manufacturers must 
  9.25  provide the commissioner with any information necessary to 
  9.26  verify the rebate determined per drug.  The rebate program shall 
  9.27  utilize the terms and conditions used for the federal rebate 
  9.28  program established pursuant to section 1927 of title XIX of the 
  9.29  Social Security Act. 
  9.30     (22) Operate the department's communication systems account 
  9.31  established in Laws 1993, First Special Session chapter 1, 
  9.32  article 1, section 2, subdivision 2, to manage shared 
  9.33  communication costs necessary for the operation of the programs 
  9.34  the commissioner supervises.  A communications account may also 
  9.35  be established for each regional treatment center which operates 
  9.36  communications systems.  Each account must be used to manage 
 10.1   shared communication costs necessary for the operations of the 
 10.2   programs the commissioner supervises.  The commissioner may 
 10.3   distribute the costs of operating and maintaining communication 
 10.4   systems to participants in a manner that reflects actual usage. 
 10.5   Costs may include acquisition, licensing, insurance, 
 10.6   maintenance, repair, staff time and other costs as determined by 
 10.7   the commissioner.  Nonprofit organizations and state, county, 
 10.8   and local government agencies involved in the operation of 
 10.9   programs the commissioner supervises may participate in the use 
 10.10  of the department's communications technology and share in the 
 10.11  cost of operation.  The commissioner may accept on behalf of the 
 10.12  state any gift, bequest, devise or personal property of any 
 10.13  kind, or money tendered to the state for any lawful purpose 
 10.14  pertaining to the communication activities of the department.  
 10.15  Any money received for this purpose must be deposited in the 
 10.16  department's communication systems accounts.  Money collected by 
 10.17  the commissioner for the use of communication systems must be 
 10.18  deposited in the state communication systems account and is 
 10.19  appropriated to the commissioner for purposes of this section. 
 10.20     (23) Receive any federal matching money that is made 
 10.21  available through the medical assistance program for the 
 10.22  consumer satisfaction survey.  Any federal money received for 
 10.23  the survey is appropriated to the commissioner for this 
 10.24  purpose.  The commissioner may expend the federal money received 
 10.25  for the consumer satisfaction survey in either year of the 
 10.26  biennium. 
 10.27     (24) Incorporate cost reimbursement claims from First Call 
 10.28  Minnesota into the federal cost reimbursement claiming processes 
 10.29  of the department according to federal law, rule, and 
 10.30  regulations.  Any reimbursement received is appropriated to the 
 10.31  commissioner and shall be disbursed to First Call Minnesota 
 10.32  according to normal department payment schedules. 
 10.33     (25) Develop recommended standards for foster care homes 
 10.34  that address the components of specialized therapeutic services 
 10.35  to be provided by foster care homes with those services. 
 10.36     Sec. 2.  Minnesota Statutes 2000, section 256.82, 
 11.1   subdivision 3, is amended to read: 
 11.2      Subd. 3.  [SETTING FOSTER CARE STANDARD RATES.] The 
 11.3   commissioner shall annually establish minimum standard 
 11.4   maintenance rates for foster care maintenance and difficulty of 
 11.5   care additional payments necessary to meet the child's needs 
 11.6   according to a uniform assessment tool established by the 
 11.7   commissioner for all children in foster care.  
 11.8      Sec. 3.  Minnesota Statutes 2000, section 256.82, is 
 11.9   amended by adding a subdivision to read: 
 11.10     Subd. 6.  [STATE REIMBURSEMENT FOR COST OF CHILD FAMILY 
 11.11  FOSTER CARE.] (a) For purposes of this subdivision, "child 
 11.12  family foster care" means substitute 24-hour care of a child in 
 11.13  a family or group family foster home licensed under section 
 11.14  245A.035 and Minnesota Rules, parts 9545.0010 to 9545.0260 and 
 11.15  9545.0825, or similar licensing or approval requirements 
 11.16  administered by another jurisdiction.  The term includes the 
 11.17  initial 60-day clothing allowance.  It excludes child shelter in 
 11.18  a family foster home and respite care. 
 11.19     (b) The commissioner of human services shall reimburse each 
 11.20  county for its costs of child family foster care in the 
 11.21  following manner: 
 11.22     (1) Beginning July 1, 2002, and annually thereafter, the 
 11.23  commissioner will forecast child family foster care costs for 
 11.24  the current calendar year and make payments as follows: 
 11.25     (i) in July of each year, the commissioner will make a 
 11.26  payment to the county of 40 percent of the county's anticipated 
 11.27  nonfederal costs of child family foster care for that calendar 
 11.28  year; 
 11.29     (ii) in September of each year, the commissioner will make 
 11.30  an additional payment, if necessary, to the county so that the 
 11.31  total of this payment and the payment in item (i) reflects the 
 11.32  actual expenditures by the county of the nonfederal costs of 
 11.33  child family foster care for the period January through June of 
 11.34  that calendar year; 
 11.35     (iii) in December of each year, the commissioner will make 
 11.36  a payment to the county of 90 percent of the county's 
 12.1   anticipated nonfederal costs of child family foster care for 
 12.2   that calendar year less the total of the payments made under 
 12.3   items (i) and (ii); and 
 12.4      (iv) in March following the end of the calendar year during 
 12.5   which the payments were made under items (i) to (iii), the 
 12.6   commissioner will settle-up with each county by making an 
 12.7   additional payment to or recovering money from the county so 
 12.8   that the net total of the payments received by the county under 
 12.9   items (i) to (iii) and the additional payment or recovery made 
 12.10  under this item equal the total reimbursement to be made to the 
 12.11  county under clause (2) or (3); 
 12.12     (2) Unless otherwise provided in clause (3), the total 
 12.13  reimbursement to the county must be 90 percent of the actual 
 12.14  expenditures by the county of the nonfederal costs of child 
 12.15  family foster care for the calendar year; 
 12.16     (3) The total reimbursement to the county for the calendar 
 12.17  year must be 100 percent of the actual expenditures by the 
 12.18  county of the nonfederal costs of child family foster care for 
 12.19  the calendar year if the county meets the requirements of 
 12.20  paragraph (c) and the county has timely hearings under section 
 12.21  260C.201, subdivision 11, or meets the requirements of section 
 12.22  260C.301, subdivisions 3 and 4, with respect to at least 80 
 12.23  percent of the children in family foster care for whom the 
 12.24  county social services agency has legal responsibility for 
 12.25  placement under chapter 260B or 260C or financial responsibility 
 12.26  for placement under chapter 256G; and 
 12.27     (4) If the county social services agency cannot meet the 
 12.28  requirements of clause (3) for reasons beyond the control of the 
 12.29  agency, the agency may demonstrate diligent efforts to comply 
 12.30  with its responsibilities in a reasonable attempt to meet the 
 12.31  requirements, in which case the commissioner shall reimburse the 
 12.32  cost of out-of-home placement as if the requirements had been 
 12.33  met. 
 12.34     (c) A county's eligibility for 100 percent reimbursement 
 12.35  under paragraph (b), clause (3), is contingent on the county's 
 12.36  demonstrated compliance with the following: 
 13.1      (1) establishment of any nonstate reimbursement for the 
 13.2   cost of family foster care including determining eligibility for 
 13.3   federal participation in reimbursement for the cost of family 
 13.4   foster care under United States Code, title 42, sections 670 to 
 13.5   676; 
 13.6      (2) collection of parental fees or fees from income 
 13.7   attributable to the child under section 260C.331; and 
 13.8      (3) diligent recruitment efforts for family foster homes 
 13.9   under chapter 260C and the operation of a family foster home 
 13.10  licensing program under chapter 245A. 
 13.11     (d) Nothing in this subdivision affects any obligation of a 
 13.12  child or the child's parents under section 260B.331 or 260C.331 
 13.13  to reimburse the county for the costs of the child's care.  Such 
 13.14  reimbursement by the child or the parent must not alter the 
 13.15  amount of reimbursement received by a county under this section. 
 13.16     (e) For purposes of reducing the number of out-of-home 
 13.17  placements in the long term, counties that receive payment under 
 13.18  this section must dedicate each year at least 25 percent of 
 13.19  their local county dollars that they spent on child family 
 13.20  foster care during calendar year 2000 for purposes of prevention 
 13.21  and early intervention in child welfare.  These funds must be in 
 13.22  addition to any funds in calendar year 2000 that the county 
 13.23  spent on prevention and early intervention.  The commissioner 
 13.24  shall review the county expenditures annually using reports 
 13.25  required under sections 245.482, 256.01, subdivision 2, clause 
 13.26  (17), and 256E.08, subdivision 8, to ensure that the base level 
 13.27  of expenditures for child welfare and children's mental health 
 13.28  services is continued from sources other than the state funds 
 13.29  earned under this section.  
 13.30     (f) The commissioner may reduce, suspend, or waive the 
 13.31  requirements in paragraph (e) if the commissioner determines 
 13.32  that one or more of the following conditions apply to that 
 13.33  county: 
 13.34     (1) imposition of levy limits that significantly reduce 
 13.35  available funds for social, health, or health-related services 
 13.36  to families and children; 
 14.1      (2) reduction in the net tax capacity of the taxable 
 14.2   property eligible to be taxed by the county that significantly 
 14.3   reduces available funds for social, health, or health-related 
 14.4   services to families and children; or 
 14.5      (3) reduction in the number of children under age 19 in the 
 14.6   county by 25 percent when compared with the number in 2001 using 
 14.7   the most recent data provided by the state demographer's office. 
 14.8      (g) The commissioner may suspend, reduce, or terminate the 
 14.9   state funds earned under this section to a county that does not 
 14.10  meet the reporting or other requirements of this section. 
 14.11     Sec. 4.  [OUT-OF-HOME PLACEMENT AID; COUNTY PERFORMANCE 
 14.12  MEASURES.] 
 14.13     (a) To receive out-of-home placement aid under Minnesota 
 14.14  Statutes, section 477A.0125, counties must record and report all 
 14.15  child welfare intake calls received and their disposition to the 
 14.16  commissioner of human services. 
 14.17     (b) The commissioner of human services shall identify those 
 14.18  financial reporting codes that will be used to track county 
 14.19  expenditures on alternative response services under the 25 
 14.20  percent minimum expenditure requirement in Minnesota Statutes, 
 14.21  section 477A.0125.  The commissioner must report to the 
 14.22  legislature on county expenditures under this requirement, and 
 14.23  provide technical assistance to counties failing to meet the 
 14.24  minimum expenditure requirement.  The commissioner shall develop 
 14.25  and recommend to the legislature procedures for adjusting 
 14.26  subsequent payments to counties that fail to meet the 
 14.27  expenditure requirement. 
 14.28     (c) By January 1, 2002, the commissioner of human services, 
 14.29  along with county social service and child advocacy 
 14.30  representatives, must develop and propose to the legislature a 
 14.31  system for basing the portion of children's services program 
 14.32  funding on performance measures, such as reducing the number of 
 14.33  children needing out-of-home placement, and outcomes related to 
 14.34  child safety and permanency, such as the incidence of 
 14.35  maltreatment, and timely permanency for children who do not need 
 14.36  out-of-home placement.  The commissioner shall determine if the 
 15.1   current child welfare indicators are adequate to measure state 
 15.2   and county progress in improving child safety and permanency 
 15.3   outcomes and make any recommendations for changes to the 
 15.4   legislature. 
 15.5      (d) By January 1, 2003, the commissioners of human services 
 15.6   and revenue must report to the legislature on the effectiveness 
 15.7   of the family preservation and out-of-home placement aids under 
 15.8   Minnesota Statutes, chapter 477A, in meeting the goals of 
 15.9   reducing property tax burdens and out-of-home placement costs, 
 15.10  and improving child safety and permanency. 
 15.11     Sec. 5.  [STUDY OF FOSTER CARE, ADOPTION ASSISTANCE, AND 
 15.12  RELATIVE CUSTODY ASSISTANCE.] 
 15.13     Subdivision 1.  [STUDY.] (a) The commissioner of human 
 15.14  services must study foster care and the adoption assistance and 
 15.15  relative custody assistance programs.  The commissioner shall 
 15.16  make findings and recommendations regarding the following: 
 15.17     (1) the funding systems and payment rates for foster care, 
 15.18  adoption assistance, and relative custody assistance; 
 15.19     (2) how the state's funding systems and payment rates for 
 15.20  foster care, adoption assistance, and relative custody 
 15.21  assistance compare to other states, particularly states that 
 15.22  border Minnesota; 
 15.23     (3) the trends regarding the number and characteristics of 
 15.24  children in placement in foster care, adoptive, and relative 
 15.25  homes, and the outcomes of those placements, including 
 15.26  differences in future employment and use of social services by 
 15.27  children who are adopted and children who age out of the foster 
 15.28  care system; 
 15.29     (4) how the funding systems and payment rates for foster 
 15.30  care, adoption assistance, and relative custody assistance 
 15.31  affect and influence placement decisions and outcomes for 
 15.32  children; 
 15.33     (5) how past changes to federal and state statutes, rules, 
 15.34  and funding systems regarding foster care, adoption assistance, 
 15.35  and relative custody assistance have affected the number of 
 15.36  children served by the programs, placement decisions, and 
 16.1   outcomes for children; 
 16.2      (6) how the foster care, adoption assistance, and relative 
 16.3   custody assistance programs, including the funding systems and 
 16.4   payment rates for the programs, could be changed to improve 
 16.5   outcomes for children; 
 16.6      (7) how any savings, including potential savings in foster 
 16.7   care costs, court costs, and other social services costs, which 
 16.8   occur when a child is placed in an adoptive home or relative's 
 16.9   home rather than in a foster home, compare to the costs of 
 16.10  increasing the payment rates for the adoption assistance and 
 16.11  relative custody assistance programs; and 
 16.12     (8) the consolidation into a single report issues related 
 16.13  to child welfare. 
 16.14     (b) The commissioner must consult with members representing 
 16.15  foster care providers, adoptive parents, parents who receive 
 16.16  relative custody assistance, parents with special needs 
 16.17  children, parents who care for sibling groups, social service 
 16.18  agencies and adoption agencies, counties, child advocates, 
 16.19  private attorneys experienced in the area of adoption, and other 
 16.20  interested parties. 
 16.21     Subd. 2.  [REPORT REQUIRED.] By January 15, 2003, the 
 16.22  commissioner of human services must report to the chairs and 
 16.23  ranking minority members of the senate and house committees 
 16.24  having jurisdiction over issues relating to human services on 
 16.25  the findings and recommendations detailed in the study. 
 16.26     Sec. 6.  [APPROPRIATION.] 
 16.27     $....... is appropriated from the general fund to the 
 16.28  commissioner of human services for the biennium beginning July 
 16.29  1, 2001, in order to reimburse counties for family foster care 
 16.30  costs under Minnesota Statutes, section 256.82, subdivision 6. 
 16.31     Sec. 7.  [REPEALER.] 
 16.32     Minnesota Statutes 2000, section 256.82, subdivisions 4 and 
 16.33  5, are repealed effective July 1, 2002.