1.1 	A bill for an act
1.2 	relating to state government; making supplemental appropriations for higher 
1.3 	education, economic development, transportation, public safety, corrections, 
1.4 	state government, health and human services, and early childhood, kindergarten 
1.5 	through grade 12, and adult education; modifying certain statutory provisions 
1.6 	and laws; providing for certain programs; regulating the carrying of pistols in the 
1.7 	capitol area; making forecast adjustments; setting and modifying fees; providing 
1.8 	for rate increases; regulating certain accounts; providing for conformity with 
1.9 	federal law; authorizing the issuance of state bonds; appropriating money;
1.10 	amending Minnesota Statutes 2012, sections 13.46, subdivision 4; 122A.415, 
1.11 	subdivision 1; 123A.05, subdivision 2; 124D.09, subdivision 13; 124D.111, by 
1.12 	adding a subdivision; 124D.522; 124D.531, subdivision 3; 125A.76, subdivision 
1.13 	2; 126C.10, subdivisions 25, 26; 165.15, subdivision 2; 171.02, subdivision 3; 
1.14 	171.06, subdivision 2; 174.02, by adding a subdivision; 245C.03, by adding a 
1.15 	subdivision; 245C.04, by adding a subdivision; 245C.05, subdivision 5; 245C.10, 
1.16 	by adding a subdivision; 245C.33, subdivisions 1, 4; 252.451, subdivision 
1.17 	2; 254B.12; 256.01, by adding a subdivision; 256.9685, subdivisions 1, 1a; 
1.18 	256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 2c, 3a, 3b, 6a, 9, 10, 
1.19 	14, 17, 30, by adding subdivisions; 256B.0625, subdivision 30; 256B.199; 
1.20 	256B.5012, by adding a subdivision; 256I.05, subdivision 2; 257.85, subdivision 
1.21 	11; 260C.212, subdivision 1; 260C.515, subdivision 4; 260C.611; 268.057, 
1.22 	subdivision 5; 268.18, subdivision 2b; 473.39, by adding a subdivision; 609.66, 
1.23 	subdivision 1g; Minnesota Statutes 2013 Supplement, sections 124D.11, 
1.24 	subdivision 1; 124D.111, subdivision 1; 124D.531, subdivision 1; 124D.862, 
1.25 	subdivisions 1, 2; 125A.11, subdivision 1; 125A.76, subdivisions 1, 2a, 2b, 2c; 
1.26 	125A.79, subdivisions 1, 5, 8; 126C.05, subdivision 15; 126C.10, subdivisions 
1.27 	2a, 24, 31; 126C.17, subdivisions 6, 7b, 9, 9a; 126C.44; 127A.47, subdivision 7; 
1.28 	174.12, subdivision 2; 245.8251; 245A.042, subdivision 3; 245C.08, subdivision 
1.29 	1; 245D.02, subdivisions 3, 4b, 8b, 11, 15b, 29, 34, 34a, by adding a subdivision; 
1.30 	245D.03, subdivisions 1, 2, 3, by adding a subdivision; 245D.04, subdivision 
1.31 	3; 245D.05, subdivisions 1, 1a, 1b, 2, 4, 5; 245D.051; 245D.06, subdivisions 2, 
1.32 	4, 6, 7, 8; 245D.071, subdivisions 3, 4, 5; 245D.081, subdivision 2; 245D.09, 
1.33 	subdivisions 3, 4a; 245D.091, subdivisions 2, 3, 4; 245D.10, subdivision 3; 
1.34 	245D.11, subdivision 2; 256B.04, subdivision 21; 256B.055, subdivision 1; 
1.35 	256B.439, subdivisions 1, 7; 256B.4912, subdivision 1; 256B.85, subdivisions 
1.36 	2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 23, 24, by adding subdivisions; 
1.37 	256N.02, by adding a subdivision; 256N.21, subdivision 2, by adding a 
1.38 	subdivision; 256N.22, subdivisions 1, 2, 4, 6; 256N.23, subdivisions 1, 4; 
1.39 	256N.24, subdivisions 9, 10; 256N.25, subdivisions 2, 3; 256N.26, subdivision 1; 
2.1 	256N.27, subdivision 4; Laws 2009, chapter 83, article 1, section 10, subdivision 
2.2 	7; Laws 2010, chapter 189, section 15, subdivision 12; Laws 2012, chapter 
2.3 	287, article 2, section 1; Laws 2012, First Special Session chapter 1, article 1, 
2.4 	section 28; Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter 
2.5 	85, article 1, section 3, subdivision 2; Laws 2013, chapter 99, article 1, section 
2.6 	4, subdivision 3; article 3, section 3; Laws 2013, chapter 108, article 7, section 
2.7 	49; article 14, sections 2, subdivisions 5, 6; 3, subdivisions 1, 4; 12; Laws 
2.8 	2013, chapter 116, article 1, section 58, subdivisions 2, 3, 4, 5, 6, 7, 11; article 
2.9 	3, section 37, subdivisions 3, 4, 5, 6, 8, 20; article 4, section 9, subdivision 2; 
2.10 	article 5, section 31, subdivisions 2, 3, 4; article 6, section 12, subdivisions 2, 
2.11 	3, 4, 6; article 7, section 21, subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5, 
2.12 	subdivisions 2, 3, 4, 10, 11, 14; article 9, section 2; Laws 2013, chapter 117, 
2.13 	article 1, sections 3, subdivisions 2, 3, 6; 4; proposing coding for new law in 
2.14 	Minnesota Statutes, chapters 144A; 171; repealing Minnesota Statutes 2012, 
2.15 	sections 245.825, subdivisions 1, 1b; 256.969, subdivisions 8b, 9a, 9b, 11, 13, 
2.16 	20, 21, 22, 25, 26, 27, 28; 256.9695, subdivisions 3, 4; Minnesota Statutes 2013 
2.17 	Supplement, sections 245D.02, subdivisions 2b, 2c, 3b, 5a, 8a, 15a, 15b, 23b, 28, 
2.18 	29, 34a; 245D.06, subdivisions 5, 6, 7, 8; 245D.061, subdivisions 1, 2, 3, 4, 5, 6, 
2.19 	7, 8, 9; 256N.26, subdivision 7; Minnesota Rules, parts 4830.7500, subpart 2a; 
2.20 	9525.2700; 9525.2810.
2.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.22 	ARTICLE 1
2.23 	HIGHER EDUCATION

2.24	Section 1. APPROPRIATIONS.
 	
2.25 	The sums shown in the columns marked "Appropriations" are added to the 
2.26 	appropriations in Laws 2013, chapter 99, article 1, unless otherwise specified, to the 
2.27 	agencies and for the purposes specified in this article. The appropriations are from the 
2.28 	general fund, or another named fund, and are available for the fiscal year indicated for 
2.29 	each purpose. The figure "2015" used in this article mean that the appropriation listed 
2.30 	under them are available for the fiscal year ending June 30, 2015.

2.31				APPROPRIATIONS
	
2.32				Available for the Year
	
2.33				Ending June 30
	
2.34					2014
		2015

2.35
2.36
2.37	Sec. 2. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES
 			$
	17,000,000
	
2.38 	This appropriation is to help meet 
2.39 	compensation needs for faculty and staff. 
2.40 	This appropriation represents an increase in 
2.41 	base funding for Minnesota State Colleges 
2.42 	and Universities.

3.1
3.2	Sec. 3. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

3.3	Subdivision 1.Total Appropriation
 			$
	5,000,000

3.4	Subd. 2.Operations and Maintenance
 				5,000,000
	
3.5 	This appropriation is for fiscal year 2015 
3.6 	only and is intended to be used to address 
3.7 	immediate and critical financial challenges 
3.8 	in order to preserve academic programs and 
3.9 	student service levels. The Board of Regents 
3.10 	is requested to allocate this appropriation to 
3.11 	meet financial challenges at the University of 
3.12 	Minnesota-Duluth campus.

3.13 	Sec. 4. Laws 2013, chapter 99, article 1, section 4, subdivision 3, is amended to read:

3.14	Subd. 3.Operations and Maintenance
 		550,726,000
		567,954,000
	
3.15 	This appropriation includes $25,500,000 in 
3.16 	fiscal year 2014 and $52,500,000 in fiscal 
3.17 	year 2015 for student tuition relief. The 
3.18 	Board of Trustees may not set the tuition 
3.19 	rate in any undergraduate degree-granting 
3.20 	program for the 2013-2014 and 2014-2015 
3.21 	academic years at a rate greater than the 
3.22 	2012-2013 academic year rate. The student 
3.23 	tuition relief may not be offset by increases 
3.24 	in mandatory fees, charges, or other 
3.25 	assessments to the student.
3.26 	To the extent that appropriations under 
3.27 	this subdivision are insufficient to meet 
3.28 	obligations contained in a labor or program
3.29 	 contract, the Board of Trustees shall fund 
3.30 	those obligations through reductions in costs 
3.31 	associated with central administration of 
3.32 	the system and executive administration of 
3.33 	individual campuses, or through reallocation 
4.1 	of nonstate funds received by the system. 
4.2 	In the event layoffs are necessary to meet 
4.3 	these obligations, Minnesota State Colleges 
4.4 	and Universities will reduce personnel in 
4.5 	accordance with Minnesota Statutes, section 
4.6 	43A.046. 
4.7 	These outstanding obligations may not be 
4.8 	funded through reduction in any program or 
4.9 	service that directly impacts students or that 
4.10 	is newly-authorized by the legislature for the 
4.11 	2014-2015 biennium, or through increased 
4.12 	fees or costs directly assessed to students.
4.13 	$17,000,000 in fiscal year 2014 is for 
4.14 	retention of talented faculty and staff. No 
4.15 	later than April 1, 2014, the Board of Trustees 
4.16 	must report to the legislative committees with 
4.17 	jurisdiction over higher education finance 
4.18 	and policy on the expenditure of these funds.
4.19 	 The report must include:
4.20 	(1) the aggregate number of positions retained 
4.21 	systemwide, and by individual campus;
4.22 	(2) the criteria used to determine whether a 
4.23 	position qualified for retention funds from 
4.24 	this appropriation;
4.25 	(3) the allocation of this appropriation 
4.26 	among employment categories including, 
4.27 	but not limited to, central administrative 
4.28 	staff, executive administration on individual 
4.29 	campuses, directors or chairs of individual 
4.30 	programs and departments, faculty, academic 
4.31 	support and student services staff, auxiliary 
4.32 	services, and other employment categories as 
4.33 	appropriate, and the average compensation 
4.34 	increase for positions within each category;
5.1 	(4) an itemized accounting of this 
5.2 	appropriation's allocation by individual 
5.3 	employment position, including each 
5.4 	position's job title, the full compensation 
5.5 	and benefit structure for that position before 
5.6 	and after this appropriation is allocated, 
5.7 	the percent increase in compensation and 
5.8 	benefits for that position as a result of 
5.9 	this appropriation, and data comparing the 
5.10 	compensation and benefit structure offered 
5.11 	with similar positions at peer institutions; and
5.12 	(5) the number of talented faculty and staff 
5.13 	positions targeted for retention that were not 
5.14 	able to be retained, and the reasons those 
5.15 	positions were not retained.
5.16 	$18,000 each year is for transfer to the Cook 
5.17 	County Higher Education Board to provide 
5.18 	educational programming and academic 
5.19 	support services to remote regions in 
5.20 	northeastern Minnesota. This appropriation 
5.21 	is in addition to the $102,000 per fiscal year 
5.22 	this project currently receives. The project 
5.23 	shall continue to provide information to the 
5.24 	Board of Trustees on the number of students 
5.25 	served, credit hours delivered, and services 
5.26 	provided to students. The base appropriation 
5.27 	under this paragraph is $120,000 each year.
5.28 	$7,278,000 in fiscal year 2015 is for a 
5.29 	leveraged equipment program. For the 
5.30 	purpose of this section, "equipment" means 
5.31 	equipment for instructional purposes for 
5.32 	programs that the board determines would 
5.33 	produce graduates with skills for which there 
5.34 	is a high employer need within the state. An 
5.35 	equipment acquisition may be made under 
6.1 	this appropriation only if matched by cash or 
6.2 	in-kind contributions from nonstate sources.
6.3 	No later than January 15, 2015, the Board 
6.4 	of Trustees shall submit a report to the 
6.5 	legislative committees with oversight over 
6.6 	higher education finance and policy on the 
6.7 	expenditure of these funds to date. The 
6.8 	reports must also list each donor, and the 
6.9 	amount contributed by the donor, or in the 
6.10 	case of an in-kind contribution, the nature 
6.11 	and value of the contribution, received to 
6.12 	date for purposes of the required match.
6.13 	$50,000 in fiscal year 2014 is to convene 
6.14 	a mental health issues summit. This is a 
6.15 	onetime appropriation.
6.16 	Five percent of the fiscal year 2015 
6.17 	appropriation in this subdivision is available 
6.18 	in fiscal year 2015 when the Board of 
6.19 	Trustees of the Minnesota State Colleges and 
6.20 	Universities (MnSCU) demonstrates to the 
6.21 	commissioner of management and budget 
6.22 	that the board has met at least three of the 
6.23 	following five performance goals:
6.24 	(1) increase by at least four percent in 
6.25 	fiscal year 2013, compared to fiscal year 
6.26 	2010, graduates or degrees, diplomas, and 
6.27 	certificates conferred;
6.28 	(2) increase by at least one percent the fall 
6.29 	2013 persistence and completion rate for fall 
6.30 	2012 entering students compared to the fall 
6.31 	2010 rate for fall 2009 entering students;
6.32 	(3) increase by at least four percent the fiscal 
6.33 	year 2013 related employment rate for 2012 
6.34 	graduates compared to the 2011 rate for 2010 
6.35 	graduates;
7.1 	(4) by 2014, MnSCU must collect data on 
7.2 	the number of Open Educational Resources 
7.3 	(OER) tools and services offered and 
7.4 	formulate a plan to actualize a one percent 
7.5 	reduction in expenses directly related to the 
7.6 	cost of instruction incurred by students; and
7.7 	(5) reallocate $22,000,000 that became 
7.8 	available through expense realignment in 
7.9 	fiscal year 2014.
7.10 	"Open Educational Resources" includes, 
7.11 	but is not limited to, textbooks, study 
7.12 	guides, worksheets, journals, video, audio 
7.13 	recordings, massive open online courses, or 
7.14 	other innovative course configuration.
7.15 	"Cost of instruction" means average tuition, 
7.16 	average fees, average cost to student for 
7.17 	textbooks and related course material.
7.18 	By August 1, 2013, the Board of Trustees 
7.19 	and the Minnesota Office of Higher 
7.20 	Education must agree on specific numerical 
7.21 	indicators and definitions for each of the five 
7.22 	goals that will be used to demonstrate the 
7.23 	Minnesota State Colleges and Universities' 
7.24 	attainment of each goal. On or before April 
7.25 	1, 2014, the Board of Trustees must report 
7.26 	to the legislative committees with primary 
7.27 	jurisdiction over higher education finance and 
7.28 	policy the progress of the Minnesota State 
7.29 	Colleges and Universities toward attaining 
7.30 	the goals. The appropriation base for the 
7.31 	next biennium shall include appropriations 
7.32 	not made available under this subdivision for 
7.33 	failure to meet performance goals.

7.34 	Sec. 5. Laws 2013, chapter 99, article 3, section 3, is amended to read:
8.1 	Sec. 3. STATE GRANT TUITION CAPS; LIVING AND MISCELLANEOUS 
8.2 	EXPENSE ALLOWANCE.
 8.3 	(a) For the purposes of the state grant program under Minnesota Statutes, section 
8.4 	136A.121, for the biennium ending June 30, 2015, the tuition maximum is $13,000 
8.5 	each fiscal year of the biennium for fiscal year 2014 and $13,620 for fiscal year 2015
8.6 	 for students in four-year programs, and $5,808 in each fiscal year of the biennium for 
8.7 	students in two-year programs.
8.8 	(b) The living and miscellaneous expense allowance for the state grant program under 
8.9 	Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2015, is set at 
8.10 	$7,900 for each fiscal year of the biennium fiscal year 2014 and $8,300 for fiscal year 2015.

8.11 	Sec. 6. REPEALER.
 8.12 	Minnesota Rules, part 4830.7500, subpart 2a, is repealed.

8.13 	ARTICLE 2
8.14 	TRANSPORTATION POLICY AND FUNDING

8.15 	Section 1. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:
8.16 		Subd. 2.Use of funds. (a) Income derived from the investment of principal in the 
8.17 	account may be used by the commissioner of transportation for operations and routine 
8.18 	maintenance of the Stillwater lift bridge, including bridge safety inspections and reactive 
8.19 	repairs. No money from this account may be used for any purposes except those described 
8.20 	in this section, and no money from this account may be transferred to any other account 
8.21 	in the state treasury without specific legislative authorization. Any money transferred 
8.22 	from the trunk highway fund may only be used for trunk highway purposes. For the 
8.23 	purposes of this section:
8.24 	(1) "Income" is the amount of interest on debt securities and dividends on equity 
8.25 	securities. Any gains or losses from the sale of securities must be added to the principal 
8.26 	of the account.
8.27 	(2) "Routine maintenance" means activities that are predictable and repetitive, but 
8.28 	not activities that would constitute major repairs or rehabilitation.
8.29 	(b) Investment management fees incurred by the State Board of Investment are 
8.30 	eligible expenses for reimbursement from the account.
8.31 	(c) The commissioner of transportation has authority to approve or deny expenditures 
8.32 	of funds in the account.

8.33 	Sec. 2. Minnesota Statutes 2012, section 171.02, subdivision 3, is amended to read:
9.1 		Subd. 3.Motorized bicycle. (a) A motorized bicycle may not be operated on any 
9.2 	public roadway by any person who does not possess a valid driver's license, unless the 
9.3 	person has obtained a motorized bicycle operator's permit or motorized bicycle instruction 
9.4 	permit from the commissioner of public safety. The operator's permit may be issued to 
9.5 	any person who has attained the age of 15 years and who has passed the examination 
9.6 	prescribed by the commissioner. The instruction permit may be issued to any person who 
9.7 	has attained the age of 15 years and who has successfully completed an approved safety 
9.8 	course and passed the written portion of the examination prescribed by the commissioner.
9.9 	(b) This course must consist of, but is not limited to, a basic understanding of:
9.10 	(1) motorized bicycles and their limitations;
9.11 	(2) motorized bicycle laws and rules;
9.12 	(3) safe operating practices and basic operating techniques;
9.13 	(4) helmets and protective clothing;
9.14 	(5) motorized bicycle traffic strategies; and
9.15 	(6) effects of alcohol and drugs on motorized bicycle operators.
9.16 	(c) The commissioner may adopt rules prescribing the content of the safety course, 
9.17 	examination, and the information to be contained on the permits. A person operating a 
9.18 	motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed 
9.19 	by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel 
9.20 	instruction permit.
9.21 	(d) The fees for motorized bicycle operator's permits are as follows:

9.22	(1)
	Examination and operator's permit, valid for one year
	$
	6.75
	
9.23	(2)
	Duplicate
	$
	3.75
	
9.24
9.25	(3) (1)
	Renewal Motorized bicycle operator's permit before age 21 
and valid until age 21
	$
	9.75
	
9.26	(4) (2)
	Renewal permit age 21 or older and valid for four years
	$
	15.75
	
9.27	(5) (3)
	Duplicate of any renewal permit
	$
	5.25
	
9.28	(6) (4)
	Written examination and instruction permit, valid for 30 days
	$
	6.75

9.29 	Sec. 3. Minnesota Statutes 2012, section 171.06, subdivision 2, is amended to read:
9.30 		Subd. 2.Fees. (a) The fees for a license and Minnesota identification card are 
9.31 	as follows:

9.32	Classified Driver's License
		D-$17.25
	C-$21.25
	B-$28.25
	A-$36.25
	
9.33	Classified Under-21 D.L.
		D-$17.25
	C-$21.25
	B-$28.25
	A-$16.25
	
9.34	Enhanced Driver's License
		D-$32.25
	C-$36.25
	B-$43.25
	A-$51.25
	
9.35	Instruction Permit
					$5.25
	
9.36
9.37	Enhanced Instruction 
Permit
					$20.25
	
10.1
10.2	Commercial Learner's 
Permit
					$2.50
	
10.3	Provisional License
					$8.25
	
10.4
10.5	Enhanced Provisional 
License
					$23.25
	
10.6
10.7
10.8	Duplicate License or 
duplicate identification 
card
					$6.75
	
10.910.10
10.11
10.12
	Enhanced Duplicate 
License or enhanced 
duplicate identification 
card
					$21.75
	
10.13
10.14
10.15
10.16
10.17
10.18
10.19	Minnesota identification 
card or Under-21 
Minnesota identification 
card, other than duplicate, 
except as otherwise 
provided in section 171.07, 
subdivisions 3 and 3a
					$11.25
	
10.20
10.21	Enhanced Minnesota 
identification card
					$26.25
	
10.22 	In addition to each fee required in this paragraph, the commissioner shall collect a 
10.23 	surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30, 
10.24 	2016. Surcharges collected under this paragraph must be credited to the driver and vehicle 
10.25 	services technology account in the special revenue fund under section 299A.705.
10.26 	(b) Notwithstanding paragraph (a), an individual who holds a provisional license and 
10.27 	has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 
10.28 	169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving 
10.29 	violations, and (3) convictions for moving violations that are not crash related, shall have a 
10.30 	$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" 
10.31 	has the meaning given it in section 171.04, subdivision 1.
10.32 	(c) In addition to the driver's license fee required under paragraph (a), the 
10.33 	commissioner shall collect an additional $4 processing fee from each new applicant 
10.34 	or individual renewing a license with a school bus endorsement to cover the costs for 
10.35 	processing an applicant's initial and biennial physical examination certificate. The 
10.36 	department shall not charge these applicants any other fee to receive or renew the 
10.37 	endorsement.
10.38 	(d) In addition to the fee required under paragraph (a), a driver's license agent may 
10.39 	charge and retain a filing fee as provided under section 171.061, subdivision 4.
10.40 	(e) In addition to the fee required under paragraph (a), the commissioner shall 
10.41 	charge a filing fee at the same amount as a driver's license agent under section 171.061, 
11.1 	subdivision 4. Revenue collected under this paragraph must be deposited in the driver 
11.2 	services operating account.
11.3 	(f) An application for a Minnesota identification card, instruction permit, provisional 
11.4 	license, or driver's license, including an application for renewal, must contain a provision 
11.5 	that allows the applicant to add to the fee under paragraph (a), a $2 donation for the 
11.6 	purposes of public information and education on anatomical gifts under section 171.075.

11.7 	Sec. 4. [171.161] COMMERCIAL DRIVER'S LICENSE; FEDERAL 
11.8 	CONFORMITY.
11.9 		Subdivision 1.Conformity with federal law. The commissioner of public safety 
11.10 	shall ensure the programs and policies related to commercial drivers' licensure and the 
11.11 	operation of commercial motor vehicles in Minnesota conform with the requirements of 
11.12 	Code of Federal Regulations, title 49, part 383.
11.13 		Subd. 2.Conflicts. To the extent a requirement of sections 171.162 to 171.169, or 
11.14 	any other state or local law, conflicts with a provision of Code of Federal Regulations, title 
11.15 	49, part 383, the federal provision prevails.

11.16 	Sec. 5. Minnesota Statutes 2012, section 174.02, is amended by adding a subdivision 
11.17 	to read:
11.18 		Subd. 10.Products and services; billing. The commissioner of transportation may 
11.19 	bill operations units of the department for costs of centrally managed products or services 
11.20 	that benefit multiple operations units. These costs may include equipment acquisition and 
11.21 	rental, labor, materials, and other costs determined by the commissioner. Receipts must be 
11.22 	credited to the special products and services account, which is established in the trunk 
11.23 	highway fund, and are appropriated to the commissioner to pay the costs for which the 
11.24 	billings are made. 

11.25 	Sec. 6. Minnesota Statutes 2013 Supplement, section 174.12, subdivision 2, is 
11.26 	amended to read:
11.27 		Subd. 2.Transportation economic development accounts. (a) A transportation 
11.28 	economic development account is established in the special revenue fund under the 
11.29 	budgetary jurisdiction of the legislative committees having jurisdiction over transportation 
11.30 	finance. Money in the account may be expended only as appropriated by law. The account 
11.31 	may not contain money transferred or otherwise provided from the trunk highway fund.
11.32 	(b) A transportation economic development account is established in the trunk 
11.33 	highway fund. The account consists of funds donated, allotted, transferred, or otherwise 
12.1 	provided to the account. Money in the account may be used only for trunk highway 
12.2 	purposes. All funds in the account available prior to August 1, 2013, are available until 
12.3 	expended.

12.4 	Sec. 7. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision 
12.5 	to read:
12.6 		Subd. 1t.Obligations. In addition to other authority in this section, the council may 
12.7 	issue certificates of indebtedness, bonds, or other obligations under this section in an 
12.8 	amount not exceeding $75,300,000 for capital expenditures as prescribed in the council's 
12.9 	transit capital improvement program and for related costs, including the costs of issuance 
12.10 	and sale of the obligations. Of this authorization, after July 1, 2014, the council may 
12.11 	issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding 
12.12 	$37,000,000 and after July 1, 2015, the council may issue certificates of indebtedness, 
12.13 	bonds, or other obligations in an additional amount not exceeding $38,300,000.

12.14 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
12.15 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
12.16 	Scott, and Washington.

12.17 	Sec. 8. Minnesota Statutes 2012, section 609.66, subdivision 1g, is amended to read:
12.18 		Subd. 1g.Felony; possession in courthouse or certain state buildings. (a) 
12.19 	A person who commits either of the following acts is guilty of a felony and may be 
12.20 	sentenced to imprisonment for not more than five years or to payment of a fine of not 
12.21 	more than $10,000, or both:
12.22 	(1) possesses a dangerous weapon, ammunition, or explosives within any courthouse 
12.23 	complex; or
12.24 	(2) possesses a dangerous weapon, ammunition, or explosives in any state building 
12.25 	within the Capitol Area described in chapter 15B, other than the National Guard Armory.
12.26 	(b) Unless a person is otherwise prohibited or restricted by other law to possess a 
12.27 	dangerous weapon, this subdivision does not apply to:
12.28 	(1) licensed peace officers or military personnel who are performing official duties;
12.29 	(2) persons who carry pistols according to the terms of a permit issued under section 
12.30 	624.714 and who so notify the sheriff or the commissioner of public safety, as appropriate
12.31 	 prior to entering a courthouse complex;
12.32 	(3) persons who possess dangerous weapons for the purpose of display as 
12.33 	demonstrative evidence during testimony at a trial or hearing or exhibition in compliance 
13.1 	with advance notice and safety guidelines set by the sheriff or the commissioner of public 
13.2 	safety; or
13.3 	(4) persons who possess dangerous weapons in a courthouse complex with the 
13.4 	express consent of the county sheriff or who possess dangerous weapons in a state building 
13.5 	with the express consent of the commissioner of public safety; or
13.6 	(5) persons who enter a state building in the Capitol Area carrying pistols according 
13.7 	to the terms of a permit issued under section 624.714 and the requirements in paragraph (c).
13.8 	(c) Prior to entering a state building in the Capitol Area, a person under paragraph 
13.9 	(b), clause (5), shall provide written notice by United States mail or electronic mail to the 
13.10 	commissioner of public safety of the person's intent to carry a pistol in the building. The 
13.11 	notice must include the person's name, date of birth, expiration date of the permit to 
13.12 	carry, and mailing address for notifications sent by United States mail or e-mail address 
13.13 	for notifications sent by electronic mail. The commissioner shall confirm receipt of the 
13.14 	notification by United States mail or e-mail. Within 30 days of the renewal date of a 
13.15 	person's permit to carry, the person shall renotify the commissioner of the person's intent 
13.16 	to carry a pistol under paragraph (b), clause (5). A person carrying a pistol in a state 
13.17 	building in the Capitol Area shall display the permit to carry card and a government-issued 
13.18 	identification document upon request by a licensed peace officer.

13.19 	Sec. 9. Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:

13.20
13.21	Subd. 12.Rochester Maintenance Facility
 				26,430,000
 24,937,000
	
13.22 	This appropriation is from the bond proceeds 
13.23 	account in the trunk highway fund.
13.24 	To prepare a site for and design, construct, 
13.25 	furnish, and equip a new maintenance facility 
13.26 	in Rochester.

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

13.28 	Sec. 10. Laws 2012, chapter 287, article 2, section 1, is amended to read:
13.29 	Section 1. ROCHESTER MAINTENANCE FACILITY.
 13.30 	$16,100,000 $17,593,000 is appropriated to the commissioner of transportation 
13.31 	to design, construct, furnish, and equip the maintenance facility in Rochester and 
13.32 	corresponding remodeling of the existing district headquarters building. This appropriation 
13.33 	is from the bond proceeds account in the trunk highway fund.

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

14.2 	Sec. 11. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended to 
14.3 	read:
14.4 	Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND 
14.5 	SALE AUTHORIZATIONS REDUCED.
 14.6 	(a) The remaining balance of the appropriation in Laws 2010, Second Special 
14.7 	Session chapter 1, article 1, section 7, for the economic development and housing 
14.8 	challenge program, estimated to be $450,000, is transferred to the general fund.
14.9 	(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
14.10 	section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section 
14.11 	12A.07, is reduced by $1,358,000.
14.12 	(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
14.13 	section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota 
14.14 	Statutes, section 12A.06, is reduced by $30,000.
14.15 	(d) The appropriation in Laws 2010, Second Special Session chapter 1, article 
14.16 	1, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota 
14.17 	Statutes, section 12A.06, is reduced by $392,000.
14.18 	(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
14.19 	section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota 
14.20 	Statutes, section 12A.06, is reduced by $2,000.
14.21 	(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
14.22 	section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes, 
14.23 	section 12A.06, is reduced by $5,000.
14.24 	(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2, 
14.25 	section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes, 
14.26 	section 12A.06, is reduced by $271,000.
14.27 	(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
14.28 	section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08, 
14.29 	is reduced by $103,000.
14.30 	(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session 
14.31 	chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk 
14.32 	highways and trunk highway bridges is canceled. The bond sale authorization in Laws 
14.33 	2007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced 
14.34 	by $1,428,000 $534,000.
15.1 	(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2, 
15.2 	article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for 
15.3 	grants to local governments for capital costs related to rehabilitation and replacement of 
15.4 	local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes, 
15.5 	section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special 
15.6 	Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.
15.7 	(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1, 
15.8 	article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement 
15.9 	pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond 
15.10 	sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17, 
15.11 	subdivision 2, is reduced by $2,133,000.
15.12 	(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
15.13 	section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant 
15.14 	to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.

15.15 	Sec. 12. Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:

15.16	Subd. 2.Multimodal Systems
 					
15.17 	(a) Aeronautics

15.18
15.19	(1) Airport Development and Assistance
		13,648,000
14,648,000
		13,648,000
16,648,000
	
15.20 	This appropriation is from the state 
15.21 	airports fund and must be spent according 
15.22 	to Minnesota Statutes, section 360.305, 
15.23 	subdivision 4.
15.24 	The base appropriation for fiscal years 2016 
15.25 	and 2017 is $14,298,000 for each year.
15.26 	Notwithstanding Minnesota Statutes, section 
15.27 	16A.28, subdivision 6, this appropriation is 
15.28 	available for five years after appropriation. 
15.29 	If the appropriation for either year is 
15.30 	insufficient, the appropriation for the other 
15.31 	year is available for it.
15.32 	For the current biennium, the commissioner 
15.33 	of transportation may establish different 
15.34 	local contribution rates for airport projects 
16.1 	than those established in Minnesota Statutes, 
16.2 	section 360.305, subdivision 4.

16.3	(2) Aviation Support and Services
		6,386,000
		6,386,000

16.4	Appropriations by Fund
	
16.5	Airports
	5,286,000
	5,286,000
	
16.6	Trunk Highway
	1,100,000
	1,100,000
	
16.7 	$65,000 in each year is from the state airports 
16.8 	fund for the Civil Air Patrol.

16.9	(b) Transit
		17,226,000
		17,245,000

16.10	Appropriations by Fund
	
16.11	General
	16,451,000
	16,470,000
	
16.12	Trunk Highway
	775,000
	775,000
	
16.13 	$100,000 in each year is from the general 
16.14 	fund for the administrative expenses of the 
16.15 	Minnesota Council on Transportation Access 
16.16 	under Minnesota Statutes, section 174.285.
16.17 	$78,000 in each year is from the general 
16.18 	fund for grants to greater Minnesota transit 
16.19 	providers as reimbursement for the costs of 
16.20 	providing fixed route public transit rides free 
16.21 	of charge under Minnesota Statutes, section 
16.22 	174.24, subdivision 7, for veterans certified 
16.23 	as disabled.

16.24	(c) Passenger Rail
		500,000
		500,000
	
16.25 	This appropriation is from the general 
16.26 	fund for passenger rail system planning, 
16.27 	alternatives analysis, environmental analysis, 
16.28 	design, and preliminary engineering under 
16.29 	Minnesota Statutes, sections 174.632 to 
16.30 	174.636.

16.31	(d) Freight
		5,653,000
		5,153,000

16.32	Appropriations by Fund
	
16.33	General
	756,000
	256,000
	
16.34	Trunk Highway
	4,897,000
	4,897,000
	
17.1 	$500,000 in the first year is from the general 
17.2 	fund to pay for the department's share of costs 
17.3 	associated with the cleanup of contaminated 
17.4 	state rail bank property. This appropriation is 
17.5 	available until expended.

17.6	(e) Safe Routes to School
		250,000
		250,000
	
17.7 	This appropriation is from the general fund 
17.8 	for non-infrastructure activities in the safe 
17.9 	routes to school program under Minnesota 
17.10 	Statutes, section 174.40, subdivision 7a.

17.11 	Sec. 13. Laws 2013, chapter 117, article 1, section 3, subdivision 3, is amended to read:

17.12	Subd. 3.State Roads

17.13
17.14	(a) Operations and Maintenance
		262,395,000
267,395,000
		262,395,000
280,395,000

17.15
17.16	(b) Program Planning and Delivery
		206,795,000
		206,720,000
209,720,000

17.17	Appropriations by Fund
	
17.18		2014
	2015
	
17.19	H.U.T.D.
	75,000
	0
	
17.20	Trunk Highway
	206,720,000
	206,720,000
	
17.21 	$250,000 in each year is for the department's 
17.22 	administrative costs for creation and 
17.23 	operation of the Joint Program Office for 
17.24 	Economic Development and Alternative 
17.25 	Finance, including costs of hiring a 
17.26 	consultant and preparing required reports.
17.27 	$130,000 in each year is available for 
17.28 	administrative costs of the targeted group 
17.29 	business program.
17.30 	$266,000 in each year is available for grants 
17.31 	to metropolitan planning organizations 
17.32 	outside the seven-county metropolitan area.
17.33 	$75,000 in each year is available for a 
17.34 	transportation research contingent account 
18.1 	to finance research projects that are 
18.2 	reimbursable from the federal government or 
18.3 	from other sources. If the appropriation for 
18.4 	either year is insufficient, the appropriation 
18.5 	for the other year is available for it.
18.6 	$900,000 in each year is available for 
18.7 	grants for transportation studies outside 
18.8 	the metropolitan area to identify critical 
18.9 	concerns, problems, and issues. These 
18.10 	grants are available: (1) to regional 
18.11 	development commissions; (2) in regions 
18.12 	where no regional development commission 
18.13 	is functioning, to joint powers boards 
18.14 	established under agreement of two or 
18.15 	more political subdivisions in the region to 
18.16 	exercise the planning functions of a regional 
18.17 	development commission; and (3) in regions 
18.18 	where no regional development commission 
18.19 	or joint powers board is functioning, to the 
18.20 	department's district office for that region.
18.21 	$75,000 in the first year is from the highway 
18.22 	user tax distribution fund to the commissioner 
18.23 	for a grant to the Humphrey School of Public 
18.24 	Affairs at the University of Minnesota for 
18.25 	WorkPlace Telework program congestion 
18.26 	relief efforts consisting of maintenance of 
18.27 	Web site tools and content. This is a onetime 
18.28 	appropriation and is available in the second 
18.29 	year.

18.30	(c) State Road Construction Activity

18.31
18.32	(1) Economic Recovery Funds - Federal 
Highway Aid
		1,000,000
		1,000,000
	
18.33 	This appropriation is to complete projects 
18.34 	using funds made available to the 
18.35 	commissioner of transportation under 
19.1 	title XII of the American Recovery and 
19.2 	Reinvestment Act of 2009, Public Law 
19.3 	111-5, and implemented under Minnesota 
19.4 	Statutes, section 161.36, subdivision 7. The 
19.5 	base appropriation is $1,000,000 in fiscal 
19.6 	year 2016 and $0 in fiscal year 2017.

19.7
19.8	(2) State Road Construction
		909,400,000
923,400,000
		815,600,000
	
19.9 	It is estimated that these appropriations will 
19.10 	be funded as follows:

19.11	Appropriations by Fund
	
19.12
19.13	Federal Highway 
Aid
	489,200,000
	482,200,000
	
19.14
19.15	Highway User Taxes
	420,200,000
434,200,000
	333,400,000
	
19.16 	The commissioner of transportation shall 
19.17 	notify the chairs and ranking minority 
19.18 	members of the legislative committees with 
19.19 	jurisdiction over transportation finance of 
19.20 	any significant events that should cause these 
19.21 	estimates to change.
19.22 	This appropriation is for the actual 
19.23 	construction, reconstruction, and 
19.24 	improvement of trunk highways, including 
19.25 	design-build contracts and consultant usage 
19.26 	to support these activities. This includes the 
19.27 	cost of actual payment to landowners for 
19.28 	lands acquired for highway rights-of-way, 
19.29 	payment to lessees, interest subsidies, and 
19.30 	relocation expenses.
19.31 	The base appropriation for state road 
19.32 	construction for fiscal years 2016 and 2017 
19.33 	is $645,000,000 in each year.
19.34 	$10,000,000 in each year is for the 
19.35 	transportation economic development 
20.1 	program under Minnesota Statutes, section 
20.2 	174.12.
20.3 	The commissioner may expend up to one-half 
20.4 	of one percent of the federal appropriations 
20.5 	under this clause as grants to opportunity 
20.6 	industrialization centers and other nonprofit 
20.7 	job training centers for job training programs 
20.8 	related to highway construction.
20.9 	The commissioner may transfer up to 
20.10 	$15,000,000 each year to the transportation 
20.11 	revolving loan fund.
20.12 	The commissioner may receive money 
20.13 	covering other shares of the cost of 
20.14 	partnership projects. These receipts are 
20.15 	appropriated to the commissioner for these 
20.16 	projects.
20.17 	Of this appropriation, $14,000,000 in the first 
20.18 	year is for the specific improvements to "Old 
20.19 	Highway 14" described in the settlement 
20.20 	agreement and release executed January 
20.21 	7, 2014, between the state and Steele and 
20.22 	Waseca Counties.

20.23	(d) Highway Debt Service
		158,417,000
		189,821,000
	
20.24 	$148,917,000 in the first year and 
20.25 	$180,321,000 in the second year are for 
20.26 	transfer to the state bond fund. If an 
20.27 	appropriation is insufficient to make all 
20.28 	transfers required in the year for which it is 
20.29 	made, the commissioner of management and 
20.30 	budget shall notify the senate Committee 
20.31 	on Finance and the house of representatives 
20.32 	Committee on Ways and Means of the 
20.33 	amount of the deficiency and shall then 
20.34 	transfer that amount under the statutory open 
21.1 	appropriation. Any excess appropriation 
21.2 	cancels to the trunk highway fund.

21.3	(e) Electronic Communications
		5,171,000
		5,171,000

21.4	Appropriations by Fund
	
21.5	General
	3,000
	3,000
	
21.6	Trunk Highway
	5,168,000
	5,168,000
	
21.7 	The general fund appropriation is to equip 
21.8 	and operate the Roosevelt signal tower for 
21.9 	Lake of the Woods weather broadcasting.

21.10 	Sec. 14. Laws 2013, chapter 117, article 1, section 3, subdivision 6, is amended to read:

21.11	Subd. 6.Transfers
 					
21.12 	(a) With the approval of the commissioner of 
21.13 	management and budget, the commissioner 
21.14 	of transportation may transfer unencumbered 
21.15 	balances among the appropriations from the 
21.16 	trunk highway fund and the state airports 
21.17 	fund made in this section. No transfer 
21.18 	may be made from the appropriations for 
21.19 	state road construction or for debt service. 
21.20 	Transfers under this paragraph may not be 
21.21 	made between funds. Transfers under this 
21.22 	paragraph must be reported immediately to 
21.23 	the chairs and ranking minority members of 
21.24 	the legislative committees with jurisdiction 
21.25 	over transportation finance.
21.26 	(b) The commissioner shall transfer from 
21.27 	the flexible highway account in the county 
21.28 	state-aid highway fund: (1) $5,700,000 in the 
21.29 	first year and $21,000,000 in the second year 
21.30 	to the trunk highway fund; (2) $13,000,000 
21.31 	in the first year to the municipal turnback 
21.32 	account in the municipal state-aid street fund; 
21.33 	(3) $10,000,000 in the second year to the 
21.34 	municipal turnback account in the municipal 
22.1 	state-aid street fund; and (4) the remainder 
22.2 	in each year to the county turnback account 
22.3 	in the county state-aid highway fund. The 
22.4 	funds transferred are for highway turnback 
22.5 	purposes as provided under Minnesota 
22.6 	Statutes, section 161.081, subdivision 3.

22.7 	Sec. 15. Laws 2013, chapter 117, article 1, section 4, is amended to read:

22.8
22.9	Sec. 4. METROPOLITAN COUNCIL
 	$
	107,889,000
	$
	76,970,000
76,910,000
	
22.10 	This appropriation is from the general fund 
22.11 	for transit system operations under Minnesota 
22.12 	Statutes, sections 473.371 to 473.449.
22.13 	The base appropriation for fiscal years 2016 
22.14 	and 2017 is $76,686,000 $76,626,000 in 
22.15 	each year.
22.16 	$37,000,000 in the first year is for the 
22.17 	Southwest Corridor light rail transit line 
22.18 	from the Hiawatha light rail transit line in 
22.19 	downtown Minneapolis to Eden Prairie, to be 
22.20 	used for environmental studies, preliminary 
22.21 	engineering, acquisition of real property, or 
22.22 	interests in real property, and design. This 
22.23 	is a onetime appropriation and is available 
22.24 	until expended.

22.25 	Sec. 16. HIGHWAY 14 TURNBACK.
 22.26 	Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and 161.16, or 
22.27 	any other law to the contrary, the commissioner of transportation may:
22.28 	(1) by temporary order, take over the road described as "Old Highway 14" in the 
22.29 	settlement agreement and release executed January 7, 2014, between the state and Waseca 
22.30 	and Steele Counties;
22.31 	(2) expend $35,000,000 or the amount necessary to complete the work required 
22.32 	under the settlement agreement; and
22.33 	(3) upon completion of the work described in the settlement agreement, release "Old 
22.34 	Highway 14" back to Steele and Waseca Counties.
23.1 	Upon completion of the work described in the settlement agreement between the 
23.2 	state and Waseca and Steele Counties, the counties shall accept responsibility for the road 
23.3 	described in the agreement as "Old Highway 14."

23.4 	Sec. 17. STILLWATER LIFT BRIDGE ENDOWMENT.
 23.5 	Notwithstanding Laws 2013, chapter 117, article 1, section 3, subdivision 6, the 
23.6 	commissioner of transportation may transfer up to $6,000,000 from the existing trunk 
23.7 	highway fund state road construction appropriation in Laws 2013, chapter 117, article 1, 
23.8 	section 3, subdivision 3, paragraph (c), clause (2), to the Stillwater lift bridge endowment 
23.9 	account established in Minnesota Statutes, section 165.15.

23.10 	Sec. 18. CAPITOL COMPLEX SECURITY; APPROPRIATION.
 23.11 	$2,000,000 in fiscal year 2015 is appropriated from the general fund to the 
23.12 	commissioner of public safety for the Capitol Complex Security Division.

23.13 	ARTICLE 3
23.14 	PUBLIC SAFETY AND CORRECTIONS

23.15	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
23.16 	The amounts shown in this section summarize direct appropriations, by fund, made 
23.17 	in this article.

23.18			2014
		2015
		Total
	
23.19	General
	$
	-0-
	$
	30,149,000
	$
	30,149,000
	
23.20
23.21	State Government Special 
Revenue
		5,059,000
		6,865,000
		11,924,000
	
23.22	Total
	$
	5,059,000
	$
	37,014,000
	$
	42,073,000

23.23	Sec. 2. APPROPRIATIONS.
 	
23.24 	The sums shown in the columns marked "Appropriations" are added to the 
23.25 	appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes 
23.26 	specified in this article. The appropriations are from the general fund, or another named 
23.27 	fund, and are available for the fiscal years indicated for each purpose. The figures "2014" 
23.28 	and "2015" used in this article mean that the addition to the appropriation listed under 
23.29 	them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 
23.30 	Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the 
23.31 	day following final enactment.

24.1				APPROPRIATIONS
	
24.2				Available for the Year
	
24.3				Ending June 30
	
24.4					2014
		2015

24.5	Sec. 3. DEPARTMENT OF PUBLIC SAFETY

24.6	Subdivision 1.Total Appropriation
 	$
	5,059,000
	$
	6,925,000

24.7	Appropriations by Fund
	
24.8	General
	-0-
	60,000
	
24.924.10
	State Government 
Special Revenue
	5,059,000
	6,865,000
	
24.11 	The amounts that may be spent for each 
24.12 	purpose are specified in the following 
24.13 	subdivisions.

24.14	Subd. 2.Fire Marshal
 		-0-
		60,000
	
24.15 	$60,000 in 2015 is from the general fund 
24.16 	for light rail safety oversight. The base 
24.17 	appropriation for fiscal years 2016 and 2017 
24.18 	is $60,000 each year.

24.19	Subd. 3.Emergency Communication Networks
 		5,059,000
		6,865,000
	
24.20 	This appropriation is from the state 
24.21 	government special revenue fund for 911 
24.22 	emergency telecommunications services.

24.23	Sec. 4. CORRECTIONS

24.24	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	30,089,000
	
24.25 	The amounts that may be spent for each 
24.26 	purpose are specified in the following 
24.27 	subdivisions.

24.28	Subd. 2.Correctional Institutions
 		-0-
		27,289,000
	
24.29 	This includes a onetime appropriation of 
24.30 	$11,089,000.

24.31	Subd. 3.Community Services
 		-0-
		1,900,000

24.32	Subd. 4.Operations Support
 		-0-
		900,000

25.1 	Sec. 5. Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to read:

25.2	Subd. 7.Emergency Communication Networks
 		66,470,000
		70,233,000
	
25.3 	This appropriation is from the state 
25.4 	government special revenue fund for 911 
25.5 	emergency telecommunications services.
25.6 	(a) Public Safety Answering Points.
25.7 	$13,664,000 each year is to be distributed 
25.8 	as provided in Minnesota Statutes, section 
25.9 	403.113, subdivision 2.
25.10 	(b) Medical Resource Communication 
25.11 	Centers. $683,000 each year is for grants 
25.12 	to the Minnesota Emergency Medical 
25.13 	Services Regulatory Board for the Metro 
25.14 	East and Metro West Medical Resource 
25.15 	Communication Centers that were in 
25.16 	operation before January 1, 2000.
25.17 	(c) ARMER Debt Service. $17,557,000 the 
25.18 	first year and $23,261,000 the second year 
25.19 	are to the commissioner of finance to pay 
25.20 	debt service on revenue bonds issued under 
25.21 	Minnesota Statutes, section 403.275.
25.22 	Any portion of this appropriation not needed 
25.23 	to pay debt service in a fiscal year may be 
25.24 	used by the commissioner of public safety to 
25.25 	pay cash for any of the capital improvements 
25.26 	for which bond proceeds were appropriated 
25.27 	by Laws 2005, chapter 136, article 1, section 
25.28 	9, subdivision 8, or Laws 2007, chapter 54, 
25.29 	article 1, section 10, subdivision 8.
25.30 	(d) Metropolitan Council Debt Service.
25.31 	$1,410,000 each year is to the commissioner 
25.32 	of finance for payment to the Metropolitan 
25.33 	Council for debt service on bonds issued 
25.34 	under Minnesota Statutes, section 403.27.
26.1 	(e) ARMER State Backbone Operating 
26.2 	Costs. $5,060,000 each year is to the 
26.3 	commissioner of transportation for costs 
26.4 	of maintaining and operating the statewide 
26.5 	radio system backbone.
26.6 	(f) ARMER Improvements. $1,000,000 
26.7 	each year is for the Statewide Radio Board for 
26.8 	costs of design, construction, maintenance 
26.9 	of, and improvements to those elements 
26.10 	of the statewide public safety radio and 
26.11 	communication system that support mutual 
26.12 	aid communications and emergency medical 
26.13 	services or provide enhancement of public 
26.14 	safety communication interoperability.
26.15 	(g) Next Generation 911. $3,431,000 the 
26.16 	first year and $6,490,000 the second year 
26.17 	are to replace the current system with the 
26.18 	Next Generation Internet Protocol (IP) based 
26.19 	network. This appropriation is available until 
26.20 	expended. The base level of funding for 
26.21 	fiscal year 2012 shall be $2,965,000.
26.22 	(h) Grants to Local Government. 
26.23 	$5,000,000 the first year is for grants to 
26.24 	local units of government to assist with 
26.25 	the transition to the ARMER system. This 
26.26 	appropriation is available until June 30, 2012.

26.27 	ARTICLE 4
26.28 	ECONOMIC DEVELOPMENT APPROPRIATIONS

26.29	Section 1. APPROPRIATIONS.
 	
26.30 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
26.31 	in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 1, 
26.32 	unless otherwise specified, to the agencies and for the purposes specified in this article. 
26.33 	The appropriations are from the general fund, or another named fund, and are available for 
26.34 	the fiscal year indicated for each purpose. The figure "2015" used in this article means 
27.1 	that the addition to the appropriation listed under it is available for the fiscal year ending 
27.2 	June 30, 2015.

27.3				APPROPRIATIONS
	
27.4				Available for the Year
	
27.5				Ending June 30
	
27.6							2015

27.7
27.8	Sec. 2. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

27.9	General Support Services
			$
			500,000
	
27.10 	$500,000 in fiscal year 2015 is for 
27.11 	establishing and operating the interagency 
27.12 	Olmstead Implementation Office. The base 
27.13 	for this purpose is $2,000,000 in each of 
27.14 	fiscal years 2016 and 2017.

27.15 	Sec. 3. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:

27.16
27.17	Subd. 2.Business and Community 
Development
 		53,642,000
		45,407,000

27.18	Appropriations by Fund
	
27.19	General
	52,942,000
	44,707,000
	
27.20	Remediation
	700,000
	700,000
	
27.21 	(a)(1) $15,000,000 each year is for the 
27.22 	Minnesota investment fund under Minnesota 
27.23 	Statutes, section 116J.8731. Of this amount, 
27.24 	the commissioner of employment and 
27.25 	economic development may use up to three 
27.26 	percent for administrative expenses. This 
27.27 	appropriation is available until spent.
27.28 	(2) Of the amount available under clause 
27.29 	(1), up to $3,000,000 in fiscal year 2014 
27.30 	is for a loan to facilitate initial investment 
27.31 	in the purchase and operation of a 
27.32 	biopharmaceutical manufacturing facility. 
27.33 	This loan is not subject to the loan limitations 
27.34 	under Minnesota Statutes, section 116J.8731, 
28.1 	and shall be forgiven by the commissioner 
28.2 	of employment and economic development 
28.3 	upon verification of meeting performance 
28.4 	goals. Purchases related to and for the 
28.5 	purposes of this loan award must be made 
28.6 	between January 1, 2013, and June 30, 2015. 
28.7 	The amount under this clause is available 
28.8 	until expended.
28.9 	(3) Of the amount available under clause (1), 
28.10 	up to $2,000,000 is available for subsequent 
28.11 	investment in the biopharmaceutical facility 
28.12 	project in clause (2). The amount under this 
28.13 	clause is available until expended. Loan 
28.14 	thresholds under clause (2) must be achieved 
28.15 	and maintained to receive funding. Loans 
28.16 	are not subject to the loan limitations under 
28.17 	Minnesota Statutes, section 116J.8731, and 
28.18 	shall be forgiven by the commissioner of 
28.19 	employment and economic development 
28.20 	upon verification of meeting performance 
28.21 	goals. Purchases related to and for the 
28.22 	purposes of loan awards must be made during 
28.23 	the biennium the loan was received.
28.24 	(4) Notwithstanding any law to the contrary, 
28.25 	the biopharmaceutical manufacturing facility 
28.26 	in this paragraph shall be deemed eligible 
28.27 	for the Minnesota job creation fund under 
28.28 	Minnesota Statutes, section 116J.8748, 
28.29 	by having at least $25,000,000 in capital 
28.30 	investment and 190 retained employees.
28.31 	(5) For purposes of clauses (1) to (4), 
28.32 	"biopharmaceutical" and "biologics" are 
28.33 	interchangeable and mean medical drugs 
28.34 	or medicinal preparations produced using 
28.35 	technology that uses biological systems, 
29.1 	living organisms, or derivatives of living 
29.2 	organisms, to make or modify products or 
29.3 	processes for specific use. The medical drugs 
29.4 	or medicinal preparations include but are not 
29.5 	limited to proteins, antibodies, nucleic acids, 
29.6 	and vaccines.
29.7 	(b) $12,000,000 each year is for the 
29.8 	Minnesota job creation fund under Minnesota 
29.9 	Statutes, section 116J.8748. Of this amount, 
29.10 	the commissioner of employment and 
29.11 	economic development may use up to three 
29.12 	percent for administrative expenses. This 
29.13 	appropriation is available until spent. The 
29.14 	base funding for this program shall be 
29.15 	$12,500,000 each year in the fiscal year 
29.16 	2016-2017 biennium.
29.17 	(c) $1,272,000 each year is from the 
29.18 	general fund for contaminated site cleanup 
29.19 	and development grants under Minnesota 
29.20 	Statutes, sections 116J.551 to 116J.558. This 
29.21 	appropriation is available until expended.
29.22 	(d) $700,000 each year is from the 
29.23 	remediation fund for contaminated site 
29.24 	cleanup and development grants under 
29.25 	Minnesota Statutes, sections 116J.551 to 
29.26 	116J.558. This appropriation is available 
29.27 	until expended.
29.28 	(e) $1,425,000 the first year and $1,425,000 
29.29 	the second year are from the general fund for 
29.30 	the business development competitive grant 
29.31 	program. Of this amount, up to five percent 
29.32 	is for administration and monitoring of the 
29.33 	business development competitive grant 
29.34 	program. All grant awards shall be for two 
30.1 	consecutive years. Grants shall be awarded 
30.2 	in the first year.
30.3 	(f) $4,195,000 each year is from the general 
30.4 	fund for the Minnesota job skills partnership 
30.5 	program under Minnesota Statutes, sections 
30.6 	116L.01 to 116L.17. If the appropriation for 
30.7 	either year is insufficient, the appropriation 
30.8 	for the other year is available. This 
30.9 	appropriation is available until spent.
30.10 	(g) $6,000,000 the first year is from the 
30.11 	general fund for the redevelopment program 
30.12 	under Minnesota Statutes, section 116J.571. 
30.13 	This is a onetime appropriation and is 
30.14 	available until spent.
30.15 	(h) $12,000 each year is from the general 
30.16 	fund for a grant to the Upper Minnesota Film 
30.17 	Office.
30.18 	(i) $325,000 each year is from the general 
30.19 	fund for the Minnesota Film and TV Board. 
30.20 	The appropriation in each year is available 
30.21 	only upon receipt by the board of $1 in 
30.22 	matching contributions of money or in-kind 
30.23 	contributions from nonstate sources for every 
30.24 	$3 provided by this appropriation, except that 
30.25 	each year up to $50,000 is available on July 
30.26 	1 even if the required matching contribution 
30.27 	has not been received by that date.
30.28 	(j) $100,000 each year is for a grant to the 
30.29 	Northern Lights International Music Festival.
30.30 	(k) $5,000,000 each year is from the general 
30.31 	fund for a grant to the Minnesota Film 
30.32 	and TV Board for the film production jobs 
30.33 	program under Minnesota Statutes, section 
30.34 	116U.26. This appropriation is available 
30.35 	until expended. The base funding for this 
31.1 	program shall be $1,500,000 each year in the 
31.2 	fiscal year 2016-2017 biennium.
31.3 	(l) $375,000 each year is from the general 
31.4 	fund for a grant to Enterprise Minnesota, Inc., 
31.5 	for the small business growth acceleration 
31.6 	program under Minnesota Statutes, section 
31.7 	116O.115. This is a onetime appropriation.
31.8 	(m) $160,000 each year is from the general 
31.9 	fund for a grant to develop and implement 
31.10 	a southern and southwestern Minnesota 
31.11 	initiative foundation collaborative pilot 
31.12 	project. Funds available under this paragraph 
31.13 	must be used to support and develop 
31.14 	entrepreneurs in diverse populations in 
31.15 	southern and southwestern Minnesota. This 
31.16 	is a onetime appropriation and is available 
31.17 	until expended. 
31.18 	(n) $100,000 each year is from the general 
31.19 	fund for the Center for Rural Policy 
31.20 	and Development. This is a onetime 
31.21 	appropriation.
31.22 	(o) $250,000 each year is from the general 
31.23 	fund for the Broadband Development Office.
31.24 	(p) $250,000 the first year is from the 
31.25 	general fund for a onetime grant to the St. 
31.26 	Paul Planning and Economic Development 
31.27 	Department for neighborhood stabilization 
31.28 	use in NSP3.
31.29 	(q) $1,235,000 the first year is from the 
31.30 	general fund for a onetime grant to a city 
31.31 	of the second class that is designated as an 
31.32 	economically depressed area by the United 
31.33 	States Department of Commerce. The 
31.34 	appropriation is for economic development, 
31.35 	redevelopment, and job creation programs 
32.1 	and projects. This appropriation is available 
32.2 	until expended.
32.3 	(r) $875,000 each year is from the general 
32.4 	fund for the Host Community Economic 
32.5 	Development Program established in 
32.6 	Minnesota Statutes, section 116J.548.
32.7 	(s) $750,000 the first year is from the general 
32.8 	fund for a onetime grant to the city of Morris 
32.9 	for loans or grants to agricultural processing 
32.10 	facilities for energy efficiency improvements. 
32.11 	Funds available under this section shall be 
32.12 	used to increase conservation and promote 
32.13 	energy efficiency through retrofitting existing 
32.14 	systems and installing new systems to 
32.15 	recover waste heat from industrial processes 
32.16 	and reuse energy. This appropriation is not 
32.17 	available until the commissioner determines 
32.18 	that at least $1,250,000 is committed to 
32.19 	the project from nonpublic sources. This 
32.20 	appropriation is available until expended.

32.21 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

32.22 	ARTICLE 5
32.23 	UNEMPLOYMENT INSURANCE INTEREST RATES

32.24 	Section 1. Minnesota Statutes 2012, section 268.057, subdivision 5, is amended to read:
32.25 		Subd. 5.Interest on amounts past due. If any amounts due from an employer 
32.26 	under this chapter or section 116L.20, except late fees under section 268.044, are not 
32.27 	received on the date due the unpaid balance bears interest at the rate of one and one-half
32.28 	 percent per month or any part thereof of a month. Interest collected under this subdivision 
32.29 	is credited to the contingent account.

32.30 	EFFECTIVE DATE. This section applies to all interest assessed after July 1, 2015.

32.31 	Sec. 2. Minnesota Statutes 2012, section 268.18, subdivision 2b, is amended to read:
33.1 		Subd. 2b.Interest. (a) On any unemployment benefits fraudulently obtained, 
33.2 	and any penalty amounts assessed under subdivision 2, the commissioner must assess 
33.3 	interest at the rate of 1-1/2 one percent per month on any amount that remains unpaid 
33.4 	beginning 30 calendar days after the date of the determination of overpayment by fraud. A 
33.5 	determination of overpayment by fraud must state that interest will be assessed. Interest is 
33.6 	assessed in the same manner as on employer debt under section 268.057, subdivision 5.
33.7 	(b) If the determination did not state that interest will be assessed, interest is assessed 
33.8 	beginning 30 calendar days after notification, by mail or electronic transmission, to the 
33.9 	applicant that interest is now assessed.
33.10 	(c) Interest payments collected under this section subdivision are credited to the 
33.11 	trust fund.

33.12 	EFFECTIVE DATE. This section applies to interest assessed after July 1, 2015.

33.13 	ARTICLE 6
33.14 	STATE GOVERNMENT APPROPRIATIONS

33.15	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
33.16 	The sums shown in the columns marked "Appropriations" are added to the 
33.17 	appropriations in Laws 2013, chapter 142, article 1, section 16, to the agencies and for 
33.18 	the purposes specified in this article. The appropriations are from the general fund, or 
33.19 	another named fund, and are available for the fiscal years indicated for each purpose. The 
33.20 	figures "2014" and "2015" used in this article mean that the addition to the appropriation 
33.21 	listed under them is available for the fiscal year ending June 30, 2014, or June 30, 2015, 
33.22 	respectively. Supplemental appropriations for the fiscal year ending June 30, 2014, are 
33.23 	effective the day following final enactment.

33.24				APPROPRIATIONS
	
33.25				Available for the Year
	
33.26				Ending June 30
	
33.27					2014
		2015

33.28	Sec. 2. RACING COMMISSION
 	$
	100,000
	$
	85,000
	
33.29 	These appropriations are from the racing 
33.30 	and card playing regulation accounts in the 
33.31 	special revenue fund. These appropriations 
33.32 	are onetime and are available either year of 
33.33 	the biennium.

34.1 	ARTICLE 7
34.2 	GENERAL EDUCATION

34.3 	Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
34.4 		Subd. 2.Reserve revenue. Each district that is a member of an area learning center 
34.5 	or alternative learning program must reserve revenue in an amount equal to the sum of 
34.6 	(1) at least between 90 and 100 percent of the district average general education revenue 
34.7 	per adjusted pupil unit minus an amount equal to the product of the formula allowance 
34.8 	according to section 126C.10, subdivision 2, times .0485 .0466, calculated without 
34.9 	basic skills revenue and transportation sparsity revenue, times the number of pupil units 
34.10 	attending an area learning center or alternative learning program under this section, plus 
34.11 	(2) the amount of basic skills revenue generated by pupils attending the area learning 
34.12 	center or alternative learning program. The amount of reserved revenue under this 
34.13 	subdivision may only be spent on program costs associated with the area learning center 
34.14 	or alternative learning program.

34.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
34.16 	and later.

34.17 	Sec. 2. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
34.18 		Subd. 13.Financial arrangements. For a pupil enrolled in a course under this 
34.19 	section, the department must make payments according to this subdivision for courses that 
34.20 	were taken for secondary credit.
34.21 	The department must not make payments to a school district or postsecondary 
34.22 	institution for a course taken for postsecondary credit only. The department must not 
34.23 	make payments to a postsecondary institution for a course from which a student officially 
34.24 	withdraws during the first 14 days of the quarter or semester or who has been absent from 
34.25 	the postsecondary institution for the first 15 consecutive school days of the quarter or 
34.26 	semester and is not receiving instruction in the home or hospital.
34.27 	A postsecondary institution shall receive the following:
34.28 	(1) for an institution granting quarter credit, the reimbursement per credit hour shall 
34.29 	be an amount equal to 88 percent of the product of the formula allowance minus $415
34.30 	 $425, multiplied by 1.3 1.2, and divided by 45; or
34.31 	(2) for an institution granting semester credit, the reimbursement per credit hour 
34.32 	shall be an amount equal to 88 percent of the product of the general revenue formula 
34.33 	allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
35.1 	The department must pay to each postsecondary institution 100 percent of the 
35.2 	amount in clause (1) or (2) within 30 days of receiving initial enrollment information 
35.3 	each quarter or semester. If changes in enrollment occur during a quarter or semester, 
35.4 	the change shall be reported by the postsecondary institution at the time the enrollment 
35.5 	information for the succeeding quarter or semester is submitted. At any time the 
35.6 	department notifies a postsecondary institution that an overpayment has been made, the 
35.7 	institution shall promptly remit the amount due.

35.8 	Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is 
35.9 	amended to read:
35.10 		Subdivision 1.General education revenue.  General education revenue must be 
35.11 	paid to a charter school as though it were a district. The general education revenue for 
35.12 	each adjusted pupil unit is the state average general education revenue per pupil unit, plus 
35.13 	the referendum equalization aid allowance in the pupil's district of residence, minus an 
35.14 	amount equal to the product of the formula allowance according to section 126C.10, 
35.15 	subdivision 2, times .0466, calculated without declining enrollment revenue, location 
35.16 	equity revenue, basic skills revenue, extended time revenue, pension adjustment revenue, 
35.17 	transition revenue, and transportation sparsity revenue, plus declining enrollment revenue, 
35.18 	basic skills revenue, extended time revenue, pension adjustment revenue, and transition 
35.19 	revenue as though the school were a school district. The general education revenue for 
35.20 	each extended time pupil unit equals $4,794.

35.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
35.22 	and later.

35.23 	Sec. 4. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, is 
35.24 	amended to read:
35.25 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
35.26 	year program under section 124D.128, an area learning center or an alternative learning 
35.27 	program approved by the commissioner under sections 123A.05 and 123A.06, or a 
35.28 	contract alternative program under section 124D.68, subdivision 3, paragraph (d), or 
35.29 	subdivision 4, for more than 1,020 hours in a school year for a secondary student, more 
35.30 	than 935 hours in a school year for an elementary student, more than 850 hours in a school 
35.31 	year for a kindergarten student without a disability in an all-day kindergarten program, 
35.32 	or more than 425 hours in a school year for a half-day kindergarten student without a 
35.33 	disability, that pupil may be counted as more than one pupil in average daily membership 
35.34 	for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must 
36.1 	be determined by the ratio of the number of hours of instruction provided to that pupil in 
36.2 	excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time 
36.3 	secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours 
36.4 	or the number of hours required for a full-time elementary pupil in the district to 935 for 
36.5 	an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the 
36.6 	number of hours required for a full-time kindergarten student without a disability in the 
36.7 	district to 425 850 for a kindergarten student without a disability; and (iv) the greater of 
36.8 	425 hours or the number of hours required for a half-time kindergarten student without a 
36.9 	disability in the district to 425 for a half-day kindergarten student without a disability. 
36.10 	Hours that occur after the close of the instructional year in June shall be attributable to 
36.11 	the following fiscal year. A student in kindergarten or grades 1 through 12 must not be 
36.12 	counted as more than 1.2 pupils in average daily membership under this subdivision.
36.13 	(b)(i) To receive general education revenue for a pupil in an area learning center 
36.14 	or alternative learning program that has an independent study component, a district 
36.15 	must meet the requirements in this paragraph. The district must develop, for the pupil, 
36.16 	a continual learning plan consistent with section 124D.128, subdivision 3. Each school 
36.17 	district that has an area learning center or alternative learning program must reserve 
36.18 	revenue in an amount equal to at least 90 percent of the district average general education 
36.19 	revenue per pupil unit, minus an amount equal to the product of the formula allowance 
36.20 	according to section 126C.10, subdivision 2, times .0466, calculated without basic skills 
36.21 	and transportation sparsity revenue, times the number of pupil units generated by students 
36.22 	attending an area learning center or alternative learning program. The amount of reserved 
36.23 	revenue available under this subdivision may only be spent for program costs associated 
36.24 	with the area learning center or alternative learning program. Basic skills revenue 
36.25 	generated according to section 126C.10, subdivision 4, by pupils attending the eligible 
36.26 	program must be allocated to the program.
36.27 	(ii) General education revenue for a pupil in a state-approved alternative program 
36.28 	without an independent study component must be prorated for a pupil participating for less 
36.29 	than a full year, or its equivalent. The district must develop a continual learning plan for the 
36.30 	pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area 
36.31 	learning center or alternative learning program must reserve revenue in an amount equal to 
36.32 	at least 90 percent of the district average general education revenue per pupil unit, minus 
36.33 	an amount equal to the product of the formula allowance according to section 126C.10, 
36.34 	subdivision 2, times .0466, calculated without basic skills and transportation sparsity 
36.35 	revenue, times the number of pupil units generated by students attending an area learning 
36.36 	center or alternative learning program. The amount of reserved revenue available under this 
37.1 	subdivision may only be spent for program costs associated with the area learning center or 
37.2 	alternative learning program. Basic skills revenue generated according to section 126C.10, 
37.3 	subdivision 4, by pupils attending the eligible program must be allocated to the program.
37.4 	(iii) General education revenue for a pupil in a state-approved alternative program 
37.5 	that has an independent study component must be paid for each hour of teacher contact 
37.6 	time and each hour of independent study time completed toward a credit or graduation 
37.7 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
37.8 	number of hours of teacher contact time and independent study time divided by 1,020.
37.9 	(iv) For a state-approved alternative program having an independent study 
37.10 	component, the commissioner shall require a description of the courses in the program, the 
37.11 	kinds of independent study involved, the expected learning outcomes of the courses, and 
37.12 	the means of measuring student performance against the expected outcomes.

37.13 	Sec. 5. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a, is 
37.14 	amended to read:
37.15 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue for 
37.16 	fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal 
37.17 	cost pupil units of the district for each pupil in average daily membership in excess of 1.0 
37.18 	and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended 
37.19 	time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum 
37.20 	of the adjusted pupil units of the district for each pupil in average daily membership in 
37.21 	excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
37.22 	(b) A school district's extended time revenue may be used for extended day 
37.23 	programs, extended week programs, summer school, and other programming authorized 
37.24 	under the learning year program.

37.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
37.26 	and applies to revenue for fiscal year 2014 and later.

37.27 	Sec. 6. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24, is 
37.28 	amended to read:
37.29 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
37.30 	(1) the school district's adjusted pupil unit amount of basic revenue, transition 
37.31 	revenue, and referendum revenue is less than the value of the school district at or 
37.32 	immediately above the 95th percentile of school districts in its equity region for those 
37.33 	revenue categories; and
38.1 	(2) the school district's administrative offices are not located in a city of the first 
38.2 	class on July 1, 1999.
38.3 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
38.4 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil 
38.5 	units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's 
38.6 	equity index computed under subdivision 27.
38.7 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
38.8 	under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil 
38.9 	units for that year times $14.
38.10 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
38.11 	equal to the district's resident adjusted pupil units times the difference between ten percent 
38.12 	of the statewide average amount of referendum revenue per resident adjusted pupil unit for 
38.13 	that year and the district's referendum revenue per resident adjusted pupil unit. A school 
38.14 	district's revenue under this paragraph must not exceed $100,000 for that year.
38.15 	(e) A school district's equity revenue for a school district located in the metro equity 
38.16 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
38.17 	(f) A school district's additional equity revenue equals $50 times its adjusted pupil 
38.18 	units.

38.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
38.20 	and later.

38.21 	Sec. 7. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
38.22 		Subd. 25.Regional equity gap. The regional equity gap equals the difference 
38.23 	between the value of the school district at or immediately above the fifth percentile of 
38.24 	adjusted general revenue per adjusted marginal cost pupil unit and the value of the school 
38.25 	district at or immediately above the 95th percentile of adjusted general revenue per 
38.26 	adjusted marginal cost pupil unit.

38.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
38.28 	and later.

38.29 	Sec. 8. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
38.30 		Subd. 26.District equity gap. A district's equity gap equals the greater of zero 
38.31 	or the difference between the district's adjusted general revenue and the value of the 
38.32 	school district at or immediately above the regional 95th percentile of adjusted general 
38.33 	revenue per adjusted marginal cost pupil unit.

39.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
39.2 	and later.

39.3 	Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31, is 
39.4 	amended to read:
39.5 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
39.6 	sum of the transition revenue the district would have received for fiscal year 2015 under 
39.7 	Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater 
39.8 	of zero or the difference between:
39.9 	(1) the sum of:
39.10 	(i) the general education revenue the district would have received for fiscal year 
39.11 	2015 according to Minnesota Statutes 2012, section 126C.10;
39.12 	(ii) the integration revenue the district received for fiscal year 2013 under Minnesota 
39.13 	Statutes 2012, section 124D.86;
39.14 	(iii) the pension adjustment the district would have received for fiscal year 2015 
39.15 	under Minnesota Statutes 2012, section 127A.50;
39.16 	(iv) the special education aid the district would have received for fiscal year 2015 
39.17 	under Minnesota Statutes 2012, section 125A.76; and
39.18 	(v) the special education excess cost aid the district would have received for fiscal 
39.19 	year 2015 under Minnesota Statutes 2012, section 125A.79; and
39.20 	(2) the sum of the district's:
39.21 	(i) general education revenue for fiscal year 2015 excluding transition revenue 
39.22 	under this section;
39.23 	(ii) achievement and integration revenue for fiscal year 2015 under section 
39.24 	124D.862; and
39.25 	(iii) special education aid for fiscal year 2015 under section 125A.76; and
39.26 	(iv) alternative teacher compensation revenue for fiscal year 2015 under section 
39.27 	122A.415,
39.28 	divided by the number of adjusted pupil units for fiscal year 2015.
39.29 	(b) A district's transition revenue for fiscal year 2015 and later equals the product of 
39.30 	the district's transition allowance times the district's adjusted pupil units.

39.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
39.32 	and later.

40.1 	Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is 
40.2 	amended to read:
40.3 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later,
40.4 	 A district's referendum equalization levy equals the sum of the first tier referendum 
40.5 	equalization levy, the second tier referendum equalization levy, and the third tier 
40.6 	referendum equalization levy.
40.7 	(b) A district's first tier referendum equalization levy equals the district's first tier 
40.8 	referendum equalization revenue times the lesser of one or the ratio of the district's 
40.9 	referendum market value per resident pupil unit to $880,000.
40.10 	(c) A district's second tier referendum equalization levy equals the district's second 
40.11 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
40.12 	referendum market value per resident pupil unit to $510,000.
40.13 	(d) A district's third tier referendum equalization levy equals the district's third 
40.14 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
40.15 	referendum market value per resident pupil unit to $290,000.

40.16 	Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b, 
40.17 	is amended to read:
40.18 		Subd. 7b.Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum 
40.19 	of a district's referendum equalization aid and location equity aid under section 126C.10, 
40.20 	subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum 
40.21 	equalization aid the district would have received for fiscal year 2015 under Minnesota 
40.22 	Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have 
40.23 	received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs 
40.24 	(a), (b), and (c).
40.25 	(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and 
40.26 	location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later, 
40.27 	for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must 
40.28 	not be less than the product of (1) the district's referendum equalization aid for fiscal year 
40.29 	2015, times (2) the lesser of one or the ratio of the district's referendum revenue for that 
40.30 	school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser 
40.31 	of one or the ratio of the district's referendum market value used for fiscal year 2015 
40.32 	referendum equalization calculations to the district's referendum market value used for 
40.33 	that year's referendum equalization calculations.

40.34 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
40.35 	and later.

41.1 	Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is 
41.2 	amended to read:
41.3 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
41.4 	subdivision 1, may be increased in the amount approved by the voters of the district 
41.5 	at a referendum called for the purpose. The referendum may be called by the board. 
41.6 	The referendum must be conducted one or two calendar years before the increased levy 
41.7 	authority, if approved, first becomes payable. Only one election to approve an increase 
41.8 	may be held in a calendar year. Unless the referendum is conducted by mail under 
41.9 	subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the 
41.10 	first Monday in November. The ballot must state the maximum amount of the increased 
41.11 	revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board, 
41.12 	of increased revenue per adjusted pupil unit that differs from year to year over the number 
41.13 	of years for which the increased revenue is authorized or may state that the amount shall 
41.14 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the 
41.15 	annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may 
41.16 	state that existing referendum levy authority is expiring. In this case, the ballot may also 
41.17 	compare the proposed levy authority to the existing expiring levy authority, and express 
41.18 	the proposed increase as the amount, if any, over the expiring referendum levy authority. 
41.19 	The ballot must designate the specific number of years, not to exceed ten, for which the 
41.20 	referendum authorization applies. The ballot, including a ballot on the question to revoke 
41.21 	or reduce the increased revenue amount under paragraph (c), must abbreviate the term 
41.22 	"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may 
41.23 	be modified to read, in cases of renewing existing levies at the same amount per pupil 
41.24 	as in the previous year:
41.25 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
41.26 	TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 
41.27 	SCHEDULED TO EXPIRE."
41.28 	The ballot may contain a textual portion with the information required in this 
41.29 	subdivision and a question stating substantially the following:
41.30 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
41.31 	School District No. .., be approved?"
41.32 	If approved, an amount equal to the approved revenue per adjusted pupil unit times 
41.33 	the adjusted pupil units for the school year beginning in the year after the levy is certified 
41.34 	shall be authorized for certification for the number of years approved, if applicable, or 
41.35 	until revoked or reduced by the voters of the district at a subsequent referendum.
42.1 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
42.2 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
42.3 	and the proposed revenue increase. The board need not mail more than one notice to any 
42.4 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
42.5 	those shown to be owners on the records of the county auditor or, in any county where 
42.6 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
42.7 	Every property owner whose name does not appear on the records of the county auditor 
42.8 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
42.9 	has requested in writing that the county auditor or county treasurer, as the case may be, 
42.10 	include the name on the records for this purpose. The notice must project the anticipated 
42.11 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
42.12 	homesteads, apartments, and commercial-industrial property within the school district.
42.13 	The notice for a referendum may state that an existing referendum levy is expiring 
42.14 	and project the anticipated amount of increase over the existing referendum levy in 
42.15 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
42.16 	homesteads, apartments, and commercial-industrial property within the district.
42.17 	The notice must include the following statement: "Passage of this referendum will 
42.18 	result in an increase in your property taxes." However, in cases of renewing existing levies, 
42.19 	the notice may include the following statement: "Passage of this referendum extends an 
42.20 	existing operating referendum at the same amount per pupil as in the previous year."
42.21 	(c) A referendum on the question of revoking or reducing the increased revenue 
42.22 	amount authorized pursuant to paragraph (a) may be called by the board. A referendum to 
42.23 	revoke or reduce the revenue amount must state the amount per resident marginal cost
42.24 	 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved 
42.25 	by the voters of the district pursuant to paragraph (a) must be available to the school 
42.26 	district at least once before it is subject to a referendum on its revocation or reduction for 
42.27 	subsequent years. Only one revocation or reduction referendum may be held to revoke or 
42.28 	reduce referendum revenue for any specific year and for years thereafter.
42.29 	(d) The approval of 50 percent plus one of those voting on the question is required to 
42.30 	pass a referendum authorized by this subdivision.
42.31 	(e) At least 15 days before the day of the referendum, the district must submit a 
42.32 	copy of the notice required under paragraph (b) to the commissioner and to the county 
42.33 	auditor of each county in which the district is located. Within 15 days after the results 
42.34 	of the referendum have been certified by the board, or in the case of a recount, the 
42.35 	certification of the results of the recount by the canvassing board, the district must notify 
42.36 	the commissioner of the results of the referendum.

43.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
43.2 	and later.

43.3 	Sec. 13. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a, 
43.4 	is amended to read:
43.5 		Subd. 9a.Board-approved referendum allowance. Notwithstanding subdivision 
43.6 	9, a school district may convert up to $300 per adjusted pupil unit of referendum authority 
43.7 	from voter approved to board approved by a board vote. A district with less than $300 per 
43.8 	adjusted pupil unit of referendum authority after the location equity revenue subtraction 
43.9 	under subdivision 1 may authorize new referendum authority up to the difference between 
43.10 	$300 per adjusted pupil unit and the district's referendum authority. The board may 
43.11 	authorize this levy for up to five years and may subsequently reauthorize that authority 
43.12 	in increments of up to five years.

43.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
43.14 	and later.

43.15 	Sec. 14. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
43.16 	126C.44 SAFE SCHOOLS LEVY.
43.17 	(a) Each district may make a levy on all taxable property located within the district 
43.18 	for the purposes specified in this section. The maximum amount which may be levied for 
43.19 	all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil 
43.20 	units for the school year. The proceeds of the levy must be reserved and used for directly 
43.21 	funding the following purposes or for reimbursing the cities and counties who contract 
43.22 	with the district for the following purposes:
43.23 	(1) to pay the costs incurred for the salaries, benefits, and transportation costs of 
43.24 	peace officers and sheriffs for liaison in services in the district's schools;
43.25 	(2) to pay the costs for a drug abuse prevention program as defined in section 
43.26 	609.101, subdivision 3, paragraph (e), in the elementary schools;
43.27 	(3) to pay the costs for a gang resistance education training curriculum in the 
43.28 	district's schools;
43.29 	(4) to pay the costs for security in the district's schools and on school property;
43.30 	(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 
43.31 	voluntary opt-in suicide prevention tools, and violence prevention measures taken by 
43.32 	the school district;
44.1 	(6) to pay costs for licensed school counselors, licensed school nurses, licensed 
44.2 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
44.3 	dependency counselors to help provide early responses to problems;
44.4 	(7) to pay for facility security enhancements including laminated glass, public 
44.5 	announcement systems, emergency communications devices, and equipment and facility 
44.6 	modifications related to violence prevention and facility security;
44.7 	(8) to pay for costs associated with improving the school climate; or
44.8 	(9) to pay costs for colocating and collaborating with mental health professionals 
44.9 	who are not district employees or contractors.
44.10 	(b) For expenditures under paragraph (a), clause (1), the district must initially 
44.11 	attempt to contract for services to be provided by peace officers or sheriffs with the 
44.12 	police department of each city or the sheriff's department of the county within the district 
44.13 	containing the school receiving the services. If a local police department or a county 
44.14 	sheriff's department does not wish to provide the necessary services, the district may 
44.15 	contract for these services with any other police or sheriff's department located entirely or 
44.16 	partially within the school district's boundaries.
44.17 	(c) A school district that is a member of an intermediate school district may 
44.18 	include in its authority under this section the costs associated with safe schools activities 
44.19 	authorized under paragraph (a) for intermediate school district programs. This authority 
44.20 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
44.21 	This authority is in addition to any other authority authorized under this section. Revenue 
44.22 	raised under this paragraph must be transferred to the intermediate school district.

44.23 	Sec. 15. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is 
44.24 	amended to read:
44.25 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
44.26 	special education aid for districts must be adjusted for each pupil attending a nonresident 
44.27 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
44.28 	adjustments must be made according to this subdivision.
44.29 	(b) For purposes of this subdivision, the "unreimbursed cost of providing special 
44.30 	education and services" means the difference between: (1) the actual cost of providing 
44.31 	special instruction and services, including special transportation and unreimbursed 
44.32 	building lease and debt service costs for facilities used primarily for special education, for 
44.33 	a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 
44.34 	125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil 
44.35 	receives special instruction and services outside the regular classroom for more than 
45.1 	60 percent of the school day, the amount of general education revenue and referendum 
45.2 	equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable 
45.3 	to that pupil for the portion of time the pupil receives special instruction and services 
45.4 	outside of the regular classroom, excluding portions attributable to district and school 
45.5 	administration, district support services, operations and maintenance, capital expenditures, 
45.6 	and pupil transportation, minus (3) special education aid under section 125A.76 
45.7 	attributable to that pupil, that is received by the district providing special instruction and 
45.8 	services. For purposes of this paragraph, general education revenue and referendum 
45.9 	equalization aid attributable to a pupil must be calculated using the serving district's 
45.10 	average general education revenue and referendum equalization aid per adjusted pupil unit.
45.11 	(c) For fiscal year 2015 and later, special education aid paid to a resident district 
45.12 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
45.13 	special education and services.
45.14 	(d) Notwithstanding paragraph (c), special education aid paid to a resident district 
45.15 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
45.16 	education and services provided to students at an intermediate district, cooperative, or 
45.17 	charter school where the percent of students eligible for special education services is at 
45.18 	least 70 percent of the charter school's total enrollment.
45.19 	(e) Special education aid paid to the district or cooperative providing special 
45.20 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, 
45.21 	must be increased by the amount of the reduction in the aid paid to the resident district 
45.22 	under paragraphs (c) and (d). If the resident district's special education aid is insufficient 
45.23 	to make the full adjustment, the remaining adjustment shall be made to other state aids 
45.24 	due to the district.
45.25 	(f) An area learning center operated by a service cooperative, intermediate district, 
45.26 	education district, or a joint powers cooperative may elect through the action of the 
45.27 	constituent boards to charge the resident district tuition for pupils rather than to have the 
45.28 	general education revenue paid to a fiscal agent school district. Except as provided in 
45.29 	paragraph (e), the district of residence must pay tuition equal to at least between 90 and 100 
45.30 	percent of the district average general education revenue per pupil unit minus an amount 
45.31 	equal to the product of the formula allowance according to section 126C.10, subdivision 
45.32 	2, times .0466, calculated without compensatory revenue and transportation sparsity 
45.33 	revenue, times the number of pupil units for pupils attending the area learning center.

45.34 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
45.35 	and later.

46.1 	Sec. 16. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
46.2 		Subd. 2.General education aid. For general education aid under Minnesota 
46.3 	Statutes, section 126C.13, subdivision 4:

46.4
46.5		$
	6,051,766,000
6,851,972,000
	.....
	2014
	
46.6
46.7		$
	6,370,640,000
6,435,898,000
	.....
	2015
	
46.8 	The 2014 appropriation includes $781,842,000 780,709,000 for 2013 and 
46.9 	$5,269,924,000 $6,071,263,000 for 2014.
46.10 	The 2015 appropriation includes $823,040,000 $589,097,000 for 2014 and 
46.11 	$5,547,600,000 $5,846,801,000 for 2015.

46.12 	ARTICLE 8
46.13 	EDUCATION EXCELLENCE

46.14 	Section 1. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to 
46.15 	read:
46.16 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
46.17 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
46.18 	application approved by the commissioner is eligible for alternative teacher compensation 
46.19 	revenue.
46.20 	(b) For school district and intermediate school district applications, the commissioner 
46.21 	must consider only those applications to participate that are submitted jointly by a 
46.22 	district and the exclusive representative of the teachers. The application must contain an 
46.23 	alternative teacher professional pay system agreement that:
46.24 	(1) implements an alternative teacher professional pay system consistent with 
46.25 	section 122A.414; and
46.26 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
46.27 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
46.28 	district may enter into a contract for a term of two or four years.
46.29 	Alternative teacher compensation revenue for a qualifying school district or site in 
46.30 	which the school board and the exclusive representative of the teachers agree to place 
46.31 	teachers in the district or at the site on the alternative teacher professional pay system 
46.32 	equals $260 times the number of pupils enrolled at the district or site on October 1 of 
46.33 	the previous fiscal year. Alternative teacher compensation revenue for a qualifying 
46.34 	intermediate school district must be calculated under section 126C.10, subdivision 34
46.35 	 subdivision 4, paragraphs (a) and (b).
47.1 	(c) For a newly combined or consolidated district, the revenue shall be computed 
47.2 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
47.3 	into the combination or consolidation. The commissioner may adjust the revenue computed 
47.4 	for a site using prior year data to reflect changes attributable to school closings, school 
47.5 	openings, or grade level reconfigurations between the prior year and the current year.
47.6 	(d) The revenue is available only to school districts, intermediate school districts, 
47.7 	school sites, and charter schools that fully implement an alternative teacher professional 
47.8 	pay system by October 1 of the current school year.

47.9 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
47.10 	and later.

47.11 	Sec. 2. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is 
47.12 	amended to read:
47.13 		Subdivision 1.Initial achievement and integration revenue. (a) An eligible 
47.14 	district's initial achievement and integration revenue equals the lesser of 100.3 percent of 
47.15 	the district's expenditures under the budget approved by the commissioner under section 
47.16 	124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive 
47.17 	revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil 
47.18 	units for that year times the ratio of the district's enrollment of protected students for the 
47.19 	previous school year to total enrollment for the previous school year and (2) the greater of 
47.20 	zero or 66 percent of the difference between the district's integration revenue for fiscal 
47.21 	year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
47.22 	(b) In each year, 0.3 percent of each district's initial achievement and integration 
47.23 	revenue is transferred to the department for the oversight and accountability activities 
47.24 	required under this section and section 124D.861.

47.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
47.26 	and applies to revenue for fiscal year 2014 and later.

47.27 	Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is 
47.28 	amended to read:
47.29 		Subd. 2.Incentive revenue. An eligible school district's maximum incentive 
47.30 	revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must 
47.31 	be A district's incentive revenue equals the lesser of the maximum incentive revenue 
47.32 	or the district's expenditures for implementing a voluntary plan to reduce racial and 
47.33 	economic enrollment disparities through intradistrict and interdistrict activities that have 
48.1 	been approved as a part of the district's achievement and integration plan under the budget 
48.2 	approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).

48.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
48.4 	and applies to revenue for fiscal year 2014 and later.

48.5 	ARTICLE 9
48.6 	SPECIAL EDUCATION

48.7 	Section 1. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, 
48.8 	is amended to read:
48.9 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2015 and 
48.10 	later, when a school district provides special instruction and services for a pupil with 
48.11 	a disability as defined in section 125A.02 outside the district of residence, excluding 
48.12 	a pupil for whom an adjustment to special education aid is calculated according to 
48.13 	section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the 
48.14 	resident district must be reduced by an amount equal to (1) the actual cost of providing 
48.15 	special instruction and services to the pupil, including a proportionate amount for special 
48.16 	transportation and unreimbursed building lease and debt service costs for facilities used 
48.17 	primarily for special education, plus (2) the amount of general education revenue and 
48.18 	referendum equalization aid attributable to that pupil, calculated using the resident district's 
48.19 	average general education revenue and referendum equalization aid per adjusted pupil 
48.20 	unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity 
48.21 	revenue, minus (3) the amount of special education aid for children with a disability 
48.22 	under section 125A.76 received on behalf of that child, minus (4) if the pupil receives 
48.23 	special instruction and services outside the regular classroom for more than 60 percent 
48.24 	of the school day, the amount of general education revenue and referendum equalization 
48.25 	aid, excluding portions attributable to district and school administration, district support 
48.26 	services, operations and maintenance, capital expenditures, and pupil transportation, 
48.27 	attributable to that pupil for the portion of time the pupil receives special instruction 
48.28 	and services outside of the regular classroom, calculated using the resident district's 
48.29 	average general education revenue and referendum equalization aid per adjusted pupil unit 
48.30 	excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
48.31 	and the serving district's basic skills revenue, elementary sparsity revenue and secondary 
48.32 	sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils 
48.33 	served by a cooperative unit without a fiscal agent school district, the general education 
48.34 	revenue and referendum equalization aid attributable to a pupil must be calculated using 
49.1 	the resident district's average general education revenue and referendum equalization aid 
49.2 	excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity 
49.3 	revenue. Special education aid paid to the district or cooperative providing special 
49.4 	instruction and services for the pupil must be increased by the amount of the reduction in 
49.5 	the aid paid to the resident district. Amounts paid to cooperatives under this subdivision 
49.6 	and section 127A.47, subdivision 7, shall be recognized and reported as revenues and 
49.7 	expenditures on the resident school district's books of account under sections 123B.75 
49.8 	and 123B.76. If the resident district's special education aid is insufficient to make the full 
49.9 	adjustment, the remaining adjustment shall be made to other state aid due to the district.
49.10 	(b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs 
49.11 	(b) to (d), a charter school where more than 30 percent of enrolled students receive special 
49.12 	education and related services, a site approved under section 125A.515, an intermediate 
49.13 	district, a special education cooperative, or a school district that served as the applicant 
49.14 	agency for a group of school districts for federal special education aids for fiscal year 
49.15 	2006 may apply to the commissioner for authority to charge the resident district an 
49.16 	additional amount to recover any remaining unreimbursed costs of serving pupils with 
49.17 	a disability. The application must include a description of the costs and the calculations 
49.18 	used to determine the unreimbursed portion to be charged to the resident district. Amounts 
49.19 	approved by the commissioner under this paragraph must be included in the tuition billings 
49.20 	or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs 
49.21 	(b) to (d), as applicable.
49.22 	(c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
49.23 	(d) and (e) paragraph (b), "general education revenue and referendum equalization aid" 
49.24 	means the sum of the general education revenue according to section 126C.10, subdivision 
49.25 	1, excluding the location equity levy according to section 126C.10, subdivision 2e, 
49.26 	paragraph (c), plus the referendum equalization aid according to section 126C.17, 
49.27 	subdivision 7.

49.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
49.29 	and later.

49.30 	Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is 
49.31 	amended to read:
49.32 		Subdivision 1.Definitions. (a) For the purposes of this section and section 125A.79, 
49.33 	the definitions in this subdivision apply.
50.1 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
50.2 	For the purposes of computing basic revenue pursuant to this section, each child with a 
50.3 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
50.4 	(c) "Essential personnel" means teachers, cultural liaisons, related services, and 
50.5 	support services staff providing services to students. Essential personnel may also include 
50.6 	special education paraprofessionals or clericals providing support to teachers and students 
50.7 	by preparing paperwork and making arrangements related to special education compliance 
50.8 	requirements, including parent meetings and individualized education programs. Essential 
50.9 	personnel does not include administrators and supervisors.
50.10 	(d) "Average daily membership" has the meaning given it in section 126C.05.
50.11 	(e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015, 
50.12 	1.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the 
50.13 	program growth factor for the previous year for fiscal year 2018 and later.
50.14 	(f) "Nonfederal special education expenditure" means all direct expenditures that 
50.15 	are necessary and essential to meet the district's obligation to provide special instruction 
50.16 	and services to children with a disability according to sections 124D.454, 125A.03 to 
50.17 	125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by 
50.18 	the department under section 125A.75, subdivision 4, excluding expenditures:
50.19 	(1) reimbursed with federal funds;
50.20 	(2) reimbursed with other state aids under this chapter;
50.21 	(3) for general education costs of serving students with a disability;
50.22 	(4) for facilities;
50.23 	(5) for pupil transportation; and
50.24 	(6) for postemployment benefits.
50.25 	(g) "Old formula special education expenditures" means expenditures eligible for 
50.26 	revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
50.27 	(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy 
50.28 	for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and 
50.29 	fringe benefits of one-to-one instructional and behavior management aides and one-to-one 
50.30 	licensed, certified professionals assigned to a child attending the academy, if the aides or 
50.31 	professionals are required by the child's individualized education program.
50.32 	(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 
50.33 	2014 and 2.27 percent for fiscal year 2015.
50.34 	(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 
50.35 	for fiscal year 2015.
51.1 	(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100 
51.2 	for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education 
51.3 	aid increase limit for the previous fiscal year and $40.

51.4 	Sec. 3. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
51.5 		Subd. 2.Special education initial aid. The special education initial aid equals the 
51.6 	sum of the following amounts computed using current year data:
51.7 	(1) 68 percent of the salary of each essential person employed in the district's program 
51.8 	for children with a disability during the fiscal year, whether the person is employed by one 
51.9 	or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
51.10 	(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 
51.11 	for the Blind, 68 percent of the salary of each one to one one-to-one instructional and 
51.12 	behavior management aide and one-to-one licensed, certified professional assigned to 
51.13 	a child attending the academy, if the aides or professionals are required by the child's 
51.14 	individualized education program;
51.15 	(3) for special instruction and services provided to any pupil by contracting with 
51.16 	public, private, or voluntary agencies other than school districts, in place of special 
51.17 	instruction and services provided by the district, 52 percent of the difference between 
51.18 	the amount of the contract and the general education revenue, excluding basic skills 
51.19 	revenue and alternative teacher compensation revenue, and referendum equalization aid 
51.20 	attributable to a pupil, calculated using the resident district's average general education 
51.21 	revenue and referendum equalization aid per adjusted pupil unit for the fraction of the 
51.22 	school day the pupil receives services under the contract. This includes children who 
51.23 	are residents of the state, receive services under this subdivision and subdivision 1, and 
51.24 	are placed in a care and treatment facility by court action in a state that does not have a 
51.25 	reciprocity agreement with the commissioner under section 125A.155 as provided for in 
51.26 	section 125A.79, subdivision 8;
51.27 	(4) for special instruction and services provided to any pupil by contracting for 
51.28 	services with public, private, or voluntary agencies other than school districts, that are 
51.29 	supplementary to a full educational program provided by the school district, 52 percent of 
51.30 	the amount of the contract for that pupil;
51.31 	(5) for supplies and equipment purchased or rented for use in the instruction of 
51.32 	children with a disability, an amount equal to 47 percent of the sum actually expended by 
51.33 	the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 
51.34 	not to exceed an average of $47 in any one school year for each child with a disability 
51.35 	receiving instruction;
52.1 	(6) for fiscal years 1997 and later, special education base revenue shall include 
52.2 	amounts under clauses (1) to (5) for special education summer programs provided during 
52.3 	the base year for that fiscal year;
52.4 	(7) the cost of providing transportation services for children with disabilities under 
52.5 	section 123B.92, subdivision 1, paragraph (b), clause (4); and
52.6 	(8) the district's transition-disabled program initial aid according to section 
52.7 	124D.454, subdivision 3.
52.8 	The department shall establish procedures through the uniform financial accounting 
52.9 	and reporting system to identify and track all revenues generated from third-party billings 
52.10 	as special education revenue at the school district level; include revenue generated from 
52.11 	third-party billings as special education revenue in the annual cross-subsidy report; and 
52.12 	exclude third-party revenue from calculation of excess cost aid to the districts.

52.13 	Sec. 4. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is 
52.14 	amended to read:
52.15 		Subd. 2a.Special education initial aid. For fiscal year 2016 and later, a district's 
52.16 	special education initial aid equals the sum of:
52.17 	(1) the lesser least of 62 percent of the district's old formula special education 
52.18 	expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50 
52.19 	percent of the district's nonfederal special education expenditures for the prior year, 
52.20 	excluding pupil transportation expenditures, or 56 percent of the product of the sum of the 
52.21 	following amounts, computed using prior fiscal year data, and the program growth factor:
52.22 	(i) the product of the district's average daily membership served and the sum of:
52.23 	(A) $450; plus
52.24 	(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
52.25 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
52.26 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
52.27 	(C) .008 times the district's average daily membership served; plus
52.28 	(ii) $10,400 times the December 1 child count for the primary disability areas of 
52.29 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
52.30 	(iii) $18,000 times the December 1 child count for the primary disability areas of 
52.31 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
52.32 	(iv) $27,000 times the December 1 child count for the primary disability areas of 
52.33 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
52.34 	physically impaired, visually impaired, and deafblind; plus
53.1 	(2) the cost of providing transportation services for children with disabilities under 
53.2 	section 123B.92, subdivision 1, paragraph (b), clause (4).

53.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
53.4 	and later.

53.5 	Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is 
53.6 	amended to read:
53.7 		Subd. 2b.Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross 
53.8 	subsidy reduction aid for a school district, not including a charter school, equals the 
53.9 	lesser of (a) the product of the cross subsidy reduction aid limit and the district's average 
53.10 	daily membership served or (b) the sum of the product of the cross subsidy reduction aid 
53.11 	percentage, the district's average daily membership served, and the sum of:
53.12 	(1) $450; plus
53.13 	(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
53.14 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
53.15 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
53.16 	(3) .008 times the district's average daily membership served; plus the product of the 
53.17 	cross subsidy aid percentage and the sum of:
53.18 	(i) $10,100 times the December 1 child count for the primary disability areas of 
53.19 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
53.20 	(ii) $17,500 times the December 1 child count for the primary disability areas of 
53.21 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
53.22 	(iii) $26,000 times the December 1 child count for the primary disability areas of 
53.23 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
53.24 	physically impaired, visually impaired, and deafblind.

53.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
53.26 	and applies to revenue for fiscal year 2014 and later.

53.27 	Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is 
53.28 	amended to read:
53.29 		Subd. 2c.Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 
53.30 	district's special education aid equals the sum of the district's special education initial aid 
53.31 	under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and 
53.32 	the district's excess cost aid under section 125A.79, subdivision 7.
54.1 	(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 
54.2 	the district's special education initial aid under subdivision 2a and the district's excess cost 
54.3 	aid under section 125A.79, subdivision 5.
54.4 	(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 
54.5 	a school district must not exceed the sum of the special education aid the district would 
54.6 	have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 
54.7 	and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 
54.8 	127A.47, subdivision 7, and the product of the district's average daily membership served 
54.9 	and the special education aid increase limit.
54.10 	(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 
54.11 	aid for a school district must not exceed the sum of: (i) the product of the district's average 
54.12 	daily membership served and the special education aid increase limit and (ii) the product 
54.13 	of the sum of the special education aid the district would have received for fiscal year 2016 
54.14 	under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according 
54.15 	to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of 
54.16 	the district's average daily membership served for the current fiscal year to the district's 
54.17 	average daily membership served for fiscal year 2016, and the program growth factor.
54.18 	(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education 
54.19 	aid for a school district, not including a charter school, must not be less than the lesser of 
54.20 	(1) the district's nonfederal special education expenditures for that fiscal year or (2) the 
54.21 	product of the sum of the special education aid the district would have received for fiscal 
54.22 	year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted 
54.23 	according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the 
54.24 	ratio of the district's adjusted daily membership for the current fiscal year to the district's 
54.25 	average daily membership for fiscal year 2016, and the program growth factor.

54.26 	EFFECTIVE DATE. This section is effective the day following final enactment 
54.27 	and applies to revenue for fiscal year 2014 and later.

54.28 	Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is 
54.29 	amended to read:
54.30 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
54.31 	subdivision apply.
54.32 	(a) "Unreimbursed old formula special education expenditures" means:
54.33 	(1) old formula special education expenditures for the prior fiscal year; minus
54.34 	(2) for fiscal years 2014 and 2015, the sum of the special education aid under section 
54.35 	125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under 
55.1 	section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education 
55.2 	initial aid under section 125A.76, subdivision 2a; minus
55.3 	(3) the amount of general education revenue, excluding location equity revenue, plus 
55.4 	location equity aid and referendum equalization aid for the prior fiscal year attributable 
55.5 	to pupils receiving special instruction and services outside the regular classroom for 
55.6 	more than 60 percent of the school day for the portion of time the pupils receive special 
55.7 	instruction and services outside the regular classroom, excluding portions attributable to 
55.8 	district and school administration, district support services, operations and maintenance, 
55.9 	capital expenditures, and pupil transportation.
55.10 	(b) "Unreimbursed nonfederal special education expenditures" means:
55.11 	(1) nonfederal special education expenditures for the prior fiscal year; minus
55.12 	(2) special education initial aid under section 125A.76, subdivision 2a; minus
55.13 	(3) the amount of general education revenue and referendum equalization aid for the 
55.14 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
55.15 	regular classroom for more than 60 percent of the school day for the portion of time the 
55.16 	pupils receive special instruction and services outside of the regular classroom, excluding 
55.17 	portions attributable to district and school administration, district support services, 
55.18 	operations and maintenance, capital expenditures, and pupil transportation.
55.19 	(c) "General revenue" for a school district means the sum of the general education 
55.20 	revenue according to section 126C.10, subdivision 1, excluding alternative teacher 
55.21 	compensation revenue, minus transportation sparsity revenue minus, location equity 
55.22 	revenue, and total operating capital revenue. "General revenue" for a charter school means 
55.23 	the sum of the general education revenue according to section 124D.11, subdivision 1, and 
55.24 	transportation revenue according to section 124D.11, subdivision 2, excluding alternative 
55.25 	teacher compensation revenue, minus referendum equalization aid minus, transportation 
55.26 	sparsity revenue minus, and operating capital revenue.

55.27 	EFFECTIVE DATE. This section is effective the day following final enactment 
55.28 	and applies to revenue for fiscal year 2014 and later.

55.29 	Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is 
55.30 	amended to read:
55.31 		Subd. 5.Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
55.32 	 excess cost aid equals the greater of:
55.33 	(1) 56 percent of the difference between (i) the district's unreimbursed nonfederal 
55.34 	special education expenditures and (ii) 7.0 percent of the district's general revenue;
56.1 	(2) 62 percent of the difference between (i) the district's unreimbursed old formula 
56.2 	special education expenditures and (ii) 2.5 percent of the district's general revenue; or
56.3 	(3) zero.

56.4 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
56.5 	and later.

56.6 	Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is 
56.7 	amended to read:
56.8 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
56.9 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
56.10 	treatment facility by court action in a state that does not have a reciprocity agreement with 
56.11 	the commissioner under section 125A.155, the resident school district shall submit the 
56.12 	balance receive special education out-of-state tuition aid equal to the amount of the tuition 
56.13 	bills, minus (1) the general education revenue, excluding basic skills revenue and the 
56.14 	location equity levy attributable to the pupil, calculated using the resident district's average 
56.15 	general education revenue per adjusted pupil unit, and (2) the referendum equalization aid 
56.16 	attributable to the pupil, calculated using the resident district's average general education 
56.17 	revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special 
56.18 	education contracted services initial revenueaid attributable to the pupil.

56.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
56.20 	and later.

56.21 	Sec. 10. Laws 2013, chapter 116, article 9, section 2, is amended to read:
56.22 	Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 56.23 	The sums indicated in this section are appropriated from the general fund to the 
56.24 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

56.25		$
	11,749,000
	.....
	2014
	
56.26
56.27		$
	11,664,000
11,964,000
	.....
	2015
	
56.28 	$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading 
56.29 	kitchen facilities. Any balance in the first year does not cancel but is available in the 
56.30 	second year.

57.1 	ARTICLE 10
57.2 	NUTRITION

57.3 	Section 1. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1, 
57.4 	is amended to read:
57.5 		Subdivision 1.School lunch aid computation. Each school year, the state must 
57.6 	pay participants in the national school lunch program the amount of 12.5 cents for each 
57.7 	full paid, reduced-price, and free student lunch and 52 cents for each reduced-price lunch 
57.8 	served to students.

57.9 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
57.10 	and later.

57.11 	Sec. 2. Minnesota Statutes 2012, section 124D.111, is amended by adding a 
57.12 	subdivision to read:
57.13 		Subd. 4.No fees. A participant that receives school lunch aid under this section 
57.14 	must make lunch available without charge to all participating students who qualify for free 
57.15 	or reduced-price meals.

57.16 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
57.17 	and later.

57.18 	Sec. 3. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
57.19 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
57.20 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

57.21
57.22		$
	13,032,000
12,417,000
	.....
	2014
	
57.23
57.24		$
	13,293,000
16,185,000
	.....
	2015

57.25 	ARTICLE 11
57.26 	SELF-SUFFICIENCY AND LIFELONG LEARNING

57.27 	Section 1. Minnesota Statutes 2012, section 124D.522, is amended to read:
57.28 	124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
57.29 	GRANTS.
57.30 	(a) The commissioner, in consultation with the policy review task force under 
57.31 	section 124D.521, may make grants to nonprofit organizations to provide services that 
58.1 	are not offered by a district adult basic education program or that are supplemental to 
58.2 	either the statewide adult basic education program, or a district's adult basic education 
58.3 	program. The commissioner may make grants for: staff development for adult basic 
58.4 	education teachers and administrators; training for volunteer tutors; training, services, and 
58.5 	materials for serving disabled students through adult basic education programs; statewide 
58.6 	promotion of adult basic education services and programs; development and dissemination 
58.7 	of instructional and administrative technology for adult basic education programs; 
58.8 	programs which primarily serve communities of color; adult basic education distance 
58.9 	learning projects, including television instruction programs; and other supplemental 
58.10 	services to support the mission of adult basic education and innovative delivery of adult 
58.11 	basic education services.
58.12 	(b) The commissioner must establish eligibility criteria and grant application 
58.13 	procedures. Grants under this section must support services throughout the state, focus on 
58.14 	educational results for adult learners, and promote outcome-based achievement through 
58.15 	adult basic education programs. Beginning in fiscal year 2002, the commissioner may 
58.16 	make grants under this section from the state total adult basic education aid set aside for 
58.17 	supplemental service grants under section 124D.531. Up to one-fourth of the appropriation 
58.18 	for supplemental service grants must be used for grants for adult basic education programs 
58.19 	to encourage and support innovations in adult basic education instruction and service 
58.20 	delivery. A grant to a single organization cannot exceed 20 40 percent of the total 
58.21 	supplemental services aid. Nothing in this section prevents an approved adult basic 
58.22 	education program from using state or federal aid to purchase supplemental services.

58.23 	Sec. 2. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, is 
58.24 	amended to read:
58.25 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
58.26 	education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 
58.27 	during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 
58.28 	(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later 
58.29 	fiscal years equals:
58.30 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
58.31 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
58.32 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
58.33 	(2) the lesser of:
58.34 	(i) 1.025; or
58.35 	(ii) the average growth in state total contact hours over the prior ten program years.
59.1 	Beginning in fiscal year 2002, two Three percent of the state total adult basic 
59.2 	education aid must be set aside for adult basic education supplemental service grants 
59.3 	under section 124D.522.
59.4 	(b) The state total adult basic education aid, excluding basic population aid, equals 
59.5 	the difference between the amount computed in paragraph (a), and the state total basic 
59.6 	population aid under subdivision 2.

59.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
59.8 	and later.

59.9 	Sec. 3. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
59.10 		Subd. 3.Program revenue. Adult basic education programs established under 
59.11 	section 124D.52 and approved by the commissioner are eligible for revenue under this 
59.12 	subdivision. For fiscal year 2001 and later, adult basic education revenue for each 
59.13 	approved program equals the sum of:
59.14 	(1) the basic population aid under subdivision 2 for districts participating in the 
59.15 	program during the current program year; plus
59.16 	(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the 
59.17 	ratio of the contact hours for students participating in the program during the first prior 
59.18 	program year to the state total contact hours during the first prior program year; plus
59.19 	(3) eight percent times the amount computed in subdivision 1, paragraph (b), times 
59.20 	the ratio of the enrollment of English learners during the second prior school year in 
59.21 	districts participating in the program during the current program year to the state total 
59.22 	enrollment of English learners during the second prior school year in districts participating 
59.23 	in adult basic education programs during the current program year; plus
59.24 	(4) eight percent times the amount computed in subdivision 1, paragraph (b), times 
59.25 	the ratio of the latest federal census count of the number of adults aged 20 25 or older 
59.26 	with no diploma residing in the districts participating in the program during the current 
59.27 	program year to the latest federal census count of the state total number of adults aged 20
59.28 	 25 or older with no diploma residing in the districts participating in adult basic education 
59.29 	programs during the current program year.

59.30 	ARTICLE 12
59.31 	EDUCATION FORECAST ADJUSTMENTS
59.32 	A. GENERAL EDUCATION

60.1 	Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to 
60.2 	read:
60.3 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
60.4 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
60.5 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

60.6
60.7		$
	44,000
37,000
	.....
	2014
	
60.8
60.9		$
	48,000
40,000
	.....
	2015

60.10 	Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
60.11 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
60.12 	127A.49:

60.13
60.14		$
	2,747,000
2,876,000
	.....
	2014
	
60.15
60.16		$
	3,136,000
3,103,000
	.....
	2015
	
60.17 	The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
60.18 	 for 2014.
60.19 	The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
60.20 	 $2,817,000 for 2015.

60.21 	Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
60.22 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
60.23 	Statutes, section 123A.485:

60.24
60.25		$
	472,000
585,000
	.....
	2014
	
60.26
60.27		$
	480,000
254,000
	.....
	2015
	
60.28 	The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
60.29 	The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
60.30 	 for 2015.

60.31 	Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
60.32 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
60.33 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

61.1
61.2		$
	15,582,000
16,068,000
	.....
	2014
	
61.3
61.4		$
	16,169,000
16,074,000
	.....
	2015
	
61.5 	The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000
61.6 	 for 2014.
61.7 	The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
61.8 	 $14,522,000 for 2015.

61.9 	Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
61.10 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
61.11 	under Minnesota Statutes, section 123B.92, subdivision 9:

61.12
61.13		$
	18,565,000
18,566,000
	.....
	2014
	
61.14
61.15		$
	18,946,000
17,646,000
	.....
	2015
	
61.16 	The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000
61.17 	 for 2014.
61.18 	The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
61.19 	 $15,880,000 for 2015.

61.20 	Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
61.21 		Subd. 11.Career and technical aid. For career and technical aid under Minnesota 
61.22 	Statutes, section 124D.4531, subdivision 1b:

61.23
61.24		$
	4,320,000
3,959,000
	.....
	2014
	
61.25
61.26		$
	5,680,000
5,172,000
	.....
	2015
	
61.27 	The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.
61.28 	The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
61.29 	 $4,733,000 for 2015.
61.30 	B. EDUCATION EXCELLENCE

61.31 	Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
61.32 		Subd. 3.Achievement and integration aid. For achievement and integration aid 
61.33 	under Minnesota Statutes, section 124D.862:

62.1
62.2		$
	58,911,000
55,609,000
	.....
	2014
	
62.3
62.4		$
	68,623,000
62,692,000
	.....
	2015
	
62.5 	The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
62.6 	The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
62.7 	 $56,514,000 for 2015.

62.8 	Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
62.9 		Subd. 4.Literacy incentive aid. For literacy incentive aid under Minnesota 
62.10 	Statutes, section 124D.98:

62.11
62.12		$
	52,514,000
50,998,000
	.....
	2014
	
62.13
62.14		$
	53,818,000
47,458,000
	.....
	2015
	
62.15 	The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
62.16 	 for 2014.
62.17 	The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
62.18 	 $42,526,000 for 2015.

62.19 	Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
62.20 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
62.21 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
62.22 	section 124D.87:

62.23
62.24		$
	13,968,000
13,521,000
	.....
	2014
	
62.25
62.26		$
	14,712,000
14,248,000
	.....
	2015

62.27 	Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
62.28 		Subd. 6.Success for the future. For American Indian success for the future grants 
62.29 	under Minnesota Statutes, section 124D.81:

62.30
62.31		$
	2,137,000
2,214,000
	.....
	2014
	
62.32		$
	2,137,000
	.....
	2015
	
62.33 	The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
62.34 	 for 2014.
63.1 	The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
63.2 	 $1,924,000 for 2015.

63.3 	Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
63.4 		Subd. 8.Tribal contract schools. For tribal contract school aid under Minnesota 
63.5 	Statutes, section 124D.83:

63.6
63.7		$
	2,080,000
2,144,000
	.....
	2014
	
63.8
63.9		$
	2,230,000
2,152,000
	.....
	2015
	
63.10 	The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000
63.11 	 for 2014.
63.12 	The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
63.13 	 $1,944,000 for 2015.

63.14 	Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to 
63.15 	read:
63.16 		Subd. 20.Alternative compensation. For alternative teacher compensation aid 
63.17 	under Minnesota Statutes, section 122A.415, subdivision 4:

63.18
63.19		$
	60,340,000
71,599,000
	.....
	2015
	
63.20 	The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.
63.21 	C. CHARTER SCHOOLS

63.22 	Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
63.23 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
63.24 	Statutes, section 124D.11, subdivision 4: 

63.25
63.26		$
	54,484,000
54,763,000
	.....
	2014
	
63.27
63.28		$
	59,533,000
58,294,000
	.....
	2015
	
63.29 	The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000
63.30 	 for 2014.
63.31 	The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
63.32 	 $52,967,000 for 2015.
63.33 	D. SPECIAL PROGRAMS

64.1 	Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
64.2 		Subd. 2.Special education; regular. For special education aid under Minnesota 
64.3 	Statutes, section 125A.75:

64.4
64.5		$
	997,725,000
1,038,514,000
	.....
	2014
	
64.6
64.7		$
	1,108,211,000
1,111,641,000
	.....
	2015
	
64.8 	The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000
64.9 	 $920,282,000 for 2014.
64.10 	The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and 
64.11 	$938,282,000 $982,092,000 for 2015.

64.12 	Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
64.13 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
64.14 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
64.15 	within the district boundaries for whom no district of residence can be determined:

64.16
64.17		$
	1,655,000
1,548,000
	.....
	2014
	
64.18
64.19		$
	1,752,000
1,674,000
	.....
	2015
	
64.20 	If the appropriation for either year is insufficient, the appropriation for the other 
64.21 	year is available.

64.22 	Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
64.23 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
64.24 	services under Minnesota Statutes, section 125A.75, subdivision 1:

64.25
64.26		$
	345,000
351,000
	.....
	2014
	
64.27
64.28		$
	355,000
346,000
	.....
	2015
	
64.29 	The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
64.30 	The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
64.31 	 for 2015.
64.32 	E. FACILITIES AND TECHNOLOGY

64.33 	Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
64.34 		Subd. 2.Health and safety revenue. For health and safety aid according to 
64.35 	Minnesota Statutes, section 123B.57, subdivision 5:

65.1
65.2		$
	463,000
473,000
	.....
	2014
	
65.3
65.4		$
	434,000
651,000
	.....
	2015
	
65.5 	The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.
65.6 	The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
65.7 	 for 2015.

65.8 	Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
65.9 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
65.10 	Statutes, section 123B.53, subdivision 6:

65.11
65.12		$
	19,083,000
19,778,000
	.....
	2014
	
65.13
65.14		$
	25,060,000
22,591,000
	.....
	2015
	
65.15 	The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
65.16 	 for 2014.
65.17 	The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
65.18 	 $20,660,000 for 2015.

65.19 	Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
65.20 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
65.21 	according to Minnesota Statutes, section 123B.59, subdivision 1:

65.22
65.23		$
	19,287,000
19,982,000
	.....
	2014
	
65.24		$
	19,287,000
	.....
	2015
	
65.25 	The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
65.26 	 for 2014.
65.27 	The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
65.28 	 $17,359,000 for 2015.

65.29 	Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
65.30 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
65.31 	Minnesota Statutes, section 123B.591, subdivision 4:

65.32
65.33		$
	3,564,000
3,858,000
	.....
	2014
	
65.34
65.35		$
	3,730,000
4,024,000
	.....
	2015
	
66.1 	The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000
66.2 	 for 2014.
66.3 	The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
66.4 	 $3,646,000 for 2015.
66.5 	F. NUTRITION AND LIBRARIES

66.6 	Sec. 21. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
66.7 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
66.8 	Statutes, section 124D.1158:

66.966.10
		$
	5,711,000
5,308,000
	.....
	2014
	
66.11
66.12		$
	6,022,000
5,607,000
	.....
	2015

66.13 	Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
66.14 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
66.15 	section 124D.118:

66.16
66.17		$
	1,039,000
992,000
	.....
	2014
	
66.18
66.19		$
	1,049,000
1,002,000
	.....
	2015

66.20 	Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
66.21 		Subd. 6.Basic system support. For basic system support grants under Minnesota 
66.22 	Statutes, section 134.355:

66.23
66.24		$
	13,570,000
14,058,000
	.....
	2014
	
66.25
66.26		$
	13,570,000
13,570,000
	.....
	2015
	
66.27 	The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
66.28 	 for 2014.
66.29 	The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
66.30 	 $12,213,000 for 2015.

66.31 	Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
66.32 		Subd. 7.Multicounty, multitype library systems. For grants under Minnesota 
66.33 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

67.1
67.2		$
	1,300,000
1,346,000
	.....
	2014
	
67.3		$
	1,300,000
	.....
	2015
	
67.4 	The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
67.5 	 for 2014.
67.6 	The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
67.7 	 $1,170,000 for 2015.

67.8 	Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
67.9 		Subd. 9.Regional library telecommunications aid. For regional library 
67.10 	telecommunications aid under Minnesota Statutes, section 134.355:

67.11
67.12		$
	2,300,000
2,382,000
	.....
	2014
	
67.13		$
	2,300,000
	.....
	2015
	
67.14 	The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
67.15 	 for 2014.
67.16 	The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
67.17 	 $2,070,000 for 2015.
67.18 	G. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, 
67.19 	AND LIFELONG LEARNING

67.20 	Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
67.21 		Subd. 2.School readiness. For revenue for school readiness programs under 
67.22 	Minnesota Statutes, sections 124D.15 and 124D.16:

67.23
67.24		$
	10,095,000
10,458,000
	.....
	2014
	
67.25
67.26		$
	10,159,000
10,162,000
	.....
	2015
	
67.27 	The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
67.28 	 for 2014.
67.29 	The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
67.30 	 $9,153,000 for 2015.

67.31 	Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
67.32 		Subd. 3.Early childhood family education aid. For early childhood family 
67.33 	education aid under Minnesota Statutes, section 124D.135:

68.1
68.2		$
	22,078,000
22,797,000
	.....
	2014
	
68.3
68.4		$
	22,425,000
22,001,000
	.....
	2015
	
68.5 	The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
68.6 	 for 2014.
68.7 	The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
68.8 	 $19,803,000 for 2015.

68.9 	Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
68.10 		Subd. 4.Health and developmental screening aid. For health and developmental 
68.11 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

68.12
68.13		$
	3,421,000
3,527,000
	.....
	2014
	
68.14
68.15		$
	3,344,000
3,330,000
	.....
	2015
	
68.16 	The 2014 appropriation includes $474,000 for 2013 and $2,947,000 $3,053,000
68.17 	 for 2014.
68.18 	The 2015 appropriation includes $463,000 $339,000 for 2014 and $2,881,000
68.19 	 $2,991,000 for 2015.

68.20 	Sec. 29. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
68.21 		Subd. 10.Community education aid. For community education aid under 
68.22 	Minnesota Statutes, section 124D.20:

68.23
68.24		$
	935,000
955,000
	.....
	2014
	
68.25
68.26		$
	1,056,000
1,060,000
	.....
	2015
	
68.27 	The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
68.28 	The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
68.29 	 for 2015.

68.30 	Sec. 30. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
68.31 		Subd. 11.Adults with disabilities program aid. For adults with disabilities 
68.32 	programs under Minnesota Statutes, section 124D.56:

68.33
68.34		$
	710,000
735,000
	.....
	2014
	
68.35		$
	710,000
	.....
	2015
	
69.1 	The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.
69.2 	The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
69.3 	 for 2015.

69.4 	Sec. 31. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
69.5 		Subd. 14.Adult basic education aid. For adult basic education aid under 
69.6 	Minnesota Statutes, section 124D.531:

69.7
69.8		$
	47,005,000
48,782,000
	.....
	2014
	
69.969.10
		$
	48,145,000
48,202,000
	.....
	2015
	
69.11 	The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 $42,498,000
69.12 	 for 2014.
69.13 	The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
69.14 	 $43,480,000 for 2015.

69.15 	ARTICLE 13
69.16 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

69.17	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
69.18 	The amounts shown in this section summarize direct appropriations, by fund, made 
69.19 	in sections 3 and 4.

69.20			2014
		2015
		Total
	
69.21	General
	$
	3,960,000
	$
	81,041,000
	$
	85,001,000
	
69.22
69.23	State Government Special 
Revenue
		817,000
		708,000
		1,525,000
	
69.24	Health Care Access
		(25,000)
		(1,000,000)
		(1,025,000)
	
69.25	Total
	$
	4,752,000
	$
	80,749,000
	$
	85,501,000

69.26	Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
69.27 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
69.28 	in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14 
69.29 	and 15, to the agencies and for the purposes specified in this article. The appropriations 
69.30 	are from the general fund and are available for the fiscal years indicated for each purpose. 
69.31 	The figures "2014" and "2015" used in this article mean that the addition to or subtraction 
69.32 	from the appropriation listed under them is available for the fiscal year ending June 30, 
69.33 	2014, or June 30, 2015, respectively. Supplemental appropriations and reductions to 
70.1 	appropriations for the fiscal year ending June 30, 2014, are effective the day following 
70.2 	final enactment unless a different effective date is explicit.

70.3				APPROPRIATIONS
	
70.4				Available for the Year
	
70.5				Ending June 30
	
70.6					2014
		2015

70.7
70.8	Sec. 3. COMMISSIONER OF HUMAN 
SERVICES

70.9	Subdivision 1.Total Appropriation
 		3,985,000
		81,016,000
	
70.10 	The appropriation modifications for 
70.11 	each purpose are shown in the following 
70.12 	subdivisions.

70.13	Subd. 2.Central Office Operations

70.14	(a) Operations
		-0-
		58,000
	
70.15 	Base adjustment. The general fund base is 
70.16 	decreased by $6,000 in fiscal years 2016 and 
70.17 	2017.

70.18	(b) Health Care
		-0-
		113,000
	
70.19 	Base adjustment. The general fund base is 
70.20 	increased by $112,000 in fiscal years 2016 
70.21 	and 2017.

70.22	(c) Continuing Care
		-0-
		976,000
	
70.23 	Base adjustment. The general fund base is 
70.24 	increased by $239,000 in fiscal year 2016 
70.25 	and $127,000 in fiscal year 2017.

70.26	Subd. 3.Forecasted Programs

70.27	(a) Group Residential Housing
		-0-
		681,000

70.28	(b) Medical Assistance
		-0-
		61,510,000

70.29	(c) Alternative Care
		-0-
		772,000

70.30	Subd. 4.Grant Programs

70.31	(a) Children's Services Grants
		-0-
		(3,000)
	
71.1 	Base adjustment. The general fund base is 
71.2 	increased by $9,000 in fiscal year 2017.

71.3	(b) Aging and Adult Services Grants
		(15,000)
		755,000
	
71.4 	Base adjustment. The general fund base is 
71.5 	increased by $196,000 in fiscal year 2016 
71.6 	and $206,000 in fiscal year 2017.

71.7	(c) Deaf and Hard-of-Hearing Grants
		-0-
		66,000
	
71.8 	Base adjustment. The general fund base is 
71.9 	increased by $6,000 in fiscal years 2016 and 
71.10 	2017.

71.11	(d) Disabilities Grants
		-0-
		1,015,000
	
71.12 	Base adjustment. The general fund base is 
71.13 	increased by $224,000 in fiscal year 2016 
71.14 	and $233,000 in fiscal year 2017.

71.15	Subd. 5.State-Operated Services

71.16	(a) SOS Mental Health
		-0-
		8,076,000
	
71.17 	Base adjustment. The general fund base is 
71.18 	increased by $213,000 in fiscal years 2016 
71.19 	and 2017.

71.20	(b) SOS Enterprise Services
		1,000,000
		1,000,000
	
71.21 	Community Addiction Recovery 
71.22 	Enterprise deficiency funding.
71.23 	(1) Notwithstanding Minnesota Statutes, 
71.24 	section 254B.06, subdivision 1, $4,000,000 
71.25 	is transferred in fiscal years 2014 and 2015 
71.26 	from the consolidated chemical dependency 
71.27 	treatment fund administrative account in the 
71.28 	special revenue fund and deposited into the 
71.29 	enterprise fund for the Community Addiction 
71.30 	Recovery Enterprise.
71.31 	(2) The following general fund amounts are 
71.32 	appropriated to the commissioner for the 
71.33 	C.A.R.E. program:
72.1 	(i) fiscal year 2014: $1,000,000; and
72.2 	(ii) fiscal year 2015: $1,000,000.
72.3 	The commissioner must transfer these 
72.4 	appropriations to the Community Addiction 
72.5 	Recovery Enterprise enterprise fund. These 
72.6 	appropriations are for fiscal years 2014 and 
72.7 	2015 only.
72.8 	(3) Clauses (1) and (2) are effective the day 
72.9 	following final enactment.

72.10	(c) SOS Minnesota Security Hospital
		-0-
		4,820,000

72.11	Subd. 6.Sex Offender Program
 		3,000,000
		1,117,000
	
72.12 	Court-ordered experts. $3,000,000 in 
72.13 	fiscal year 2014 is for the commissioner to 
72.14 	comply with the United States District Court 
72.15 	order of February 20, 2014, in the matter of 
72.16 	Karsjens et al. v. Jesson et al. For purposes 
72.17 	of Minnesota Statutes, section 246B.10, 
72.18 	activities funded by this appropriation are 
72.19 	not considered part of the cost of care. This 
72.20 	appropriation is onetime and is available until 
72.21 	June 30, 2017. Notwithstanding any contrary 
72.22 	provision in this article, this paragraph 
72.23 	expires June 30, 2017.

72.24	Sec. 4. COMMISSIONER OF HEALTH.

72.25	Subdivision 1.Total Appropriation
 	$
	767,000
	$
	(267,000)

72.26	Appropriations by Fund
	
72.27		2014
	2015
	
72.28	General
	(25,000)
	25,000
	
72.29
72.30	State Government 
Special Revenue
	817,000
	708,000
	
72.31	Health Care Access
	(25,000)
	(1,000,000)

72.32	Subd. 2.Health Improvement

72.33	Appropriations by Fund
	
72.34	General
	(25,000)
	25,000

73.1 	Base Level Adjustment. The general fund 
73.2 	base for fiscal year 2016 is $47,619,000. 
73.3 	The general fund base for fiscal year 2017 
73.4 	is $47,669,000.

73.5	Subd. 3.Policy Quality and Compliance

73.6	Appropriations by Fund
	
73.7
73.8	State Government 
Special Revenue
	-0-
	60,000
	
73.9	Health Care Access
	(1,000,000)
	(1,000,000)
	
73.10 	Base level adjustment. The state 
73.11 	government special revenue fund base 
73.12 	for fiscal years 2016 and 2017 shall be 
73.13 	$16,529,000.

73.14	Subd. 4.Health Protection

73.15	Appropriations by Fund
	
73.16
73.17	State Government 
Special Revenue
	817,000
	648,000

73.18	Subd. 5.Administrative Support Services
 		975,000
		-0-

73.19	Appropriations by Fund
	
73.20	Health Care Access
	975,000
	-0-
	
73.21 	Lawsuit settlement. Of the health care 
73.22 	access fund appropriation in fiscal year 2014, 
73.23 	$975,000 is a onetime appropriation for the 
73.24 	cost of settling the lawsuit Bearder v. State 
73.25 	of Minnesota.

73.26 	Sec. 5. Laws 2013, chapter 108, article 14, section 3, subdivision 1, is amended to read:

73.27
73.28	Subdivision 1.Total Appropriation
 	$
	169,326,000
 169,026,000
	$
	165,531,000
 165,231,000

73.29	Appropriations by Fund
	
73.30		2014
	2015
	
73.31	General
	79,476,000
	74,256,000
	
73.32
73.33	State Government 
Special Revenue
	48,094,000
	50,119,000
	
73.34	Health Care Access
	29,743,000
	29,143,000
	
74.1	Federal TANF
	11,713,000
	11,713,000
	
74.2	Special Revenue
	300,000
	300,000
	
74.3 	The amounts that may be spent for each 
74.4 	purpose are specified in the following 
74.5 	subdivisions.

74.6 	Sec. 6. Laws 2013, chapter 108, article 14, section 3, subdivision 4, is amended to read:

74.7	Subd. 4.Health Protection

74.8	Appropriations by Fund
	
74.9	General
	9,201,000
	9,201,000
	
74.10
74.11	State Government 
Special Revenue
	32,633,000
	32,636,000
	
74.12	Special Revenue
	300,000
	300,000
	
74.13 	Infectious Disease Laboratory. Of the 
74.14 	general fund appropriation, $200,000 in 
74.15 	fiscal year 2014 and $200,000 in fiscal year 
74.16 	2015 are to monitor infectious disease trends 
74.17 	and investigate infectious disease outbreaks.
74.18 	Surveillance for Elevated Blood Lead 
74.19 	Levels. Of the general fund appropriation, 
74.20 	$100,000 in fiscal year 2014 and $100,000 
74.21 	in fiscal year 2015 are for the blood lead 
74.22 	surveillance system under Minnesota 
74.23 	Statutes, section 144.9502.
74.24 	Base Level Adjustment. The state 
74.25 	government special revenue base is increased 
74.26 	by $6,000 in fiscal year 2016 and by $13,000 
74.27 	in fiscal year 2017.

74.28 	Sec. 7. EXPIRATION OF UNCODIFIED LANGUAGE.
 74.29 	All uncodified language in this article expires on June 30, 2015, unless a different 
74.30 	expiration date is specified.

75.1 	ARTICLE 14
75.2 	HUMAN SERVICES FORECAST ADJUSTMENTS

75.3	Section 1. HUMAN SERVICES APPROPRIATION.
 	
75.4 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
75.5 	in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article 
75.6 	14, from the general fund or any fund named to the Department of Human Services for 
75.7 	the purposes specified in this article, to be available for the fiscal year indicated for each 
75.8 	purpose. The figures "2014" and "2015" used in this article mean that the appropriations 
75.9 	listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015, 
75.10 	respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. 
75.11 	"The biennium" is fiscal years 2014 and 2015.

75.12				APPROPRIATIONS
	
75.13				Available for the Year
	
75.14				Ending June 30
	
75.15					2014
		2015

75.16
75.17	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

75.18	Subdivision 1.Total Appropriation
 	$
	(196,927)
	$
	64,288

75.19	Appropriations by Fund
	
75.20	General Fund
	(153,497)
	(25,282)
	
75.21
75.22	Health Care Access 
Fund
	(36,533)
	91,294
	
75.23	Federal TANF
	(6,897)
	(1,724)

75.24	Subd. 2.Forecasted Programs

75.25	(a) MFIP/DWP

75.26	Appropriations by Fund
	
75.27	General Fund
	3,571
	173
	
75.28	Federal TANF
	(6,475)
	(1,298)

75.29	(b) MFIP Child Care Assistance
		(684)
		11,114

75.30	(c) General Assistance
		(2,569)
		(1,940)

75.31	(d) Minnesota Supplemental Aid
		(690)
		(614)

75.32	(e) Group Residential Housing
		250
		(1,740)

75.33	(f) MinnesotaCare
		(34,838)
		96,340
	
76.1 	These appropriations are from the health care 
76.2 	access fund.

76.3	(g) Medical Assistance

76.4	Appropriations by Fund
	
76.5	General Fund
	(149,494)
	(27,075)
	
76.6
76.7	Health Care Access 
Fund
	(1,695)
	(5,046)

76.8	(h) Alternative Care Program
		(6,936)
		(13,260)

76.9	(i) CCDTF Entitlements
		3,055
		8,060

76.10	Subd. 3.Technical Activities
 		(422)
		(426)
	
76.11 	These appropriations are from the federal 
76.12 	TANF fund.

76.13 	Sec. 3. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108, 
76.14 	article 6, section 32, is amended to read:
76.15 	Sec. 6. TRANSFER.
 76.16 	(a) The commissioner of management and budget shall transfer from the health care 
76.17 	access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000 
76.18 	in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal 
76.19 	year 2017.
76.20 	(b) The commissioner of human services shall determine the difference between the 
76.21 	actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds 
76.22 	and parents and relative caretaker populations with income between 100 and 138 percent of 
76.23 	the federal poverty guidelines and the cost of adding those populations that was estimated 
76.24 	during the 2013 legislative session based on the data from the February 2013 forecast.
76.25 	(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall 
76.26 	certify and report to the commissioner of management and budget the actual or forecasted
76.27 	 estimated cost difference of adding 19- and 20-year-olds and parents and relative caretaker 
76.28 	populations with income between 100 and 138 percent of the federal poverty guidelines, 
76.29 	as determined under paragraph (b), to the commissioner of management and budget at 
76.30 	least four weeks prior to the release of a forecast under Minnesota Statutes, section 
76.31 	16A.103, of each fiscal year.
76.32 	(d) No later than three weeks before the release of the forecast For fiscal years 2014 to 
76.33 	2017, forecasts under Minnesota Statutes, section 16A.103, prepared by the commissioner 
76.34 	of management and budget shall reduce the include actual or estimated adjustments to
77.1 	 health care access fund transfer transfers in paragraph (a), by the cumulative differences in 
77.2 	costs reported by the commissioner of human services under according to paragraph (c)
77.3 	 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under 
77.4 	paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year, 
77.5 	the amount of the cumulative cost differences determined under paragraph (b) is less than 
77.6 	the amount of the original appropriation, the appropriation for that year must be zero.
77.7 	(e) For each fiscal year from 2014 to 2017, the commissioner of management and 
77.8 	budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in 
77.9 	costs reported by the commissioner of human services under paragraph (c). If, for any 
77.10 	fiscal year, the amount of the cumulative difference in costs reported under paragraph (c) 
77.11 	is positive, no adjustment shall be made.

77.12 	Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 5, is amended to read:

77.13	Subd. 5.Forecasted Programs
 					
77.14 	The amounts that may be spent from this 
77.15 	appropriation for each purpose are as follows:

77.16	(a) MFIP/DWP

77.17	Appropriations by Fund
	
77.18	General
	72,583,000
	76,927,000
	
77.19	Federal TANF
	80,342,000
	76,851,000

77.20	(b) MFIP Child Care Assistance
		61,701,000
		69,294,000

77.21	(c) General Assistance
		54,787,000
		56,068,000
	
77.22 	General Assistance Standard. The 
77.23 	commissioner shall set the monthly standard 
77.24 	of assistance for general assistance units 
77.25 	consisting of an adult recipient who is 
77.26 	childless and unmarried or living apart 
77.27 	from parents or a legal guardian at $203. 
77.28 	The commissioner may reduce this amount 
77.29 	according to Laws 1997, chapter 85, article 
77.30 	3, section 54.
77.31 	Emergency General Assistance. The 
77.32 	amount appropriated for emergency general 
77.33 	assistance funds is limited to no more 
78.1 	than $6,729,812 in fiscal year 2014 and 
78.2 	$6,729,812 in fiscal year 2015. Funds 
78.3 	to counties shall be allocated by the 
78.4 	commissioner using the allocation method in 
78.5 	Minnesota Statutes, section 256D.06.

78.6	(d) MN Supplemental Assistance
		38,646,000
		39,821,000

78.7	(e) Group Residential Housing
		141,138,000
		150,988,000

78.8	(f) MinnesotaCare
		297,707,000
		247,284,000
	
78.9 	This appropriation is from the health care 
78.10 	access fund.

78.11	(g) Medical Assistance

78.12	Appropriations by Fund
	
78.13	General
	4,443,768,000
	4,431,612,000
	
78.14	Health Care Access
	179,550,000
	226,081,000
	
78.15 	Base Adjustment. The health care access 
78.16 	fund base is $424,262,000 in fiscal year 2016 
78.17 	and $425,775,000 in fiscal year 2017.
78.18 	Spending to be apportioned. The 
78.19 	commissioner shall apportion expenditures 
78.20 	under this paragraph consistent with the 
78.21 	requirements of section 12.
78.22 	Support Services for Deaf and 
78.23 	Hard-of-Hearing. $121,000 in fiscal 
78.24 	year 2014 and $141,000 in fiscal year 2015; 
78.25 	and $10,000 in fiscal year 2014 and $13,000 
78.26 	in fiscal year 2015 are from the health care 
78.27 	access fund for the hospital reimbursement 
78.28 	increase in Minnesota Statutes, section 
78.29 	256.969, subdivision 29, paragraph (b).
78.30 	Disproportionate Share Payments.
78.31 	Effective for services provided on or after 
78.32 	July 1, 2011, through June 30, 2015, the 
78.33 	commissioner of human services shall 
78.34 	deposit, in the health care access fund, 
79.1 	additional federal matching funds received 
79.2 	under Minnesota Statutes, section 256B.199, 
79.3 	paragraph (e), as disproportionate share 
79.4 	hospital payments for inpatient hospital 
79.5 	services provided under MinnesotaCare to 
79.6 	lawfully present noncitizens who are not 
79.7 	eligible for MinnesotaCare with federal 
79.8 	financial participation due to immigration 
79.9 	status. The amount deposited shall not exceed 
79.10 	$2,200,000 for the time period specified.
79.11 	Funding for Services Provided to EMA 
79.12 	Recipients. $2,200,000 in fiscal year 2014 is 
79.13 	from the health care access fund to provide 
79.14 	services to emergency medical assistance 
79.15 	recipients under Minnesota Statutes, section 
79.16 	256B.06, subdivision 4, paragraph (l). This 
79.17 	is a onetime appropriation and is available in 
79.18 	either year of the biennium.

79.19	(h) Alternative Care
		50,776,000
		54,922,000
	
79.20 	Alternative Care Transfer. Any money 
79.21 	allocated to the alternative care program that 
79.22 	is not spent for the purposes indicated does 
79.23 	not cancel but shall be transferred to the 
79.24 	medical assistance account.

79.25	(i) CD Treatment Fund
		81,440,000
		74,875,000
	
79.26 	Balance Transfer. The commissioner must 
79.27 	transfer $18,188,000 from the consolidated 
79.28 	chemical dependency treatment fund to the 
79.29 	general fund by September 30, 2013.

79.30 	Sec. 5. Laws 2013, chapter 108, article 14, section 12, is amended to read:
79.31 	Sec. 12. APPROPRIATION ADJUSTMENTS.
 79.32 	(a) The general fund appropriation in section 2, subdivision 5, paragraph (g), 
79.33 	includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015; 
80.1 	$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical 
80.2 	assistance eligibility and administration changes related to:
80.3 	(1) eligibility for children age two to 18 with income up to 275 percent of the federal 
80.4 	poverty guidelines;
80.5 	(2) eligibility for pregnant women with income up to 275 percent of the federal 
80.6 	poverty guidelines;
80.7 	(3) Affordable Care Act enrollment and renewal processes, including elimination 
80.8 	of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes 
80.9 	in verification requirements, and other changes in the eligibility determination and 
80.10 	enrollment and renewal process;
80.11 	(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;
80.12 	(5) eligibility related to spousal impoverishment provisions for waiver recipients; and
80.13 	(6) presumptive eligibility determinations by hospitals.
80.14 	(b) The commissioner of human services shall determine the difference between 
80.15 	the actual or forecasted estimated costs to the medical assistance program attributable to 
80.16 	the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a), 
80.17 	clauses (1) to (6), that were estimated during the 2013 legislative session based on data 
80.18 	from the 2013 February forecast. The costs in this paragraph must be calculated between 
80.19 	January 1, 2014, and June 30, 2017.
80.20 	(c) For each fiscal year from 2014 to 2017, the commissioner of human services 
80.21 	shall certify the actual or forecasted estimated cost differences to the medical assistance 
80.22 	program determined under paragraph (b), and report the difference in costs to the 
80.23 	commissioner of management and budget at least four weeks prior to a forecast under 
80.24 	Minnesota Statutes, section 16A.103. No later than three weeks before the release of 
80.25 	the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section 
80.26 	16A.103, prepared by the commissioner of management and budget shall reduce include 
80.27 	actual or estimated adjustments to the health care access fund appropriation in section 
80.28 	2, subdivision 5, paragraph (g), by the cumulative difference in costs determined in
80.29 	 according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost 
80.30 	differences determined under paragraph (b) is positive, no adjustment shall be made to the 
80.31 	health care access fund appropriation. If for any fiscal year, the amount of the cumulative 
80.32 	cost differences determined under paragraph (b) is less than the original appropriation, the 
80.33 	appropriation for that fiscal year is zero.
80.34 	(d) For each fiscal year from 2014 to 2017, the commissioner of management and 
80.35 	budget must adjust the health care access fund appropriation by the cumulative difference 
80.36 	in costs reported by the commissioner of human services under paragraph (c). If, for any 
81.1 	fiscal year, the amount of the cumulative difference in costs determined under paragraph 
81.2 	(b) is positive, no adjustment shall be made to the health care access fund appropriation.
81.3 	(e) This section expires on January 1, 2018.

81.4 	Sec. 6. EFFECTIVE DATE.
 81.5 	Sections 1 and 2 are effective the day following final enactment. Sections 3 to 5 are 
81.6 	effective retroactively from July 1, 2013.

81.7 	ARTICLE 15
81.8 	HEALTH DEPARTMENT

81.9 	Section 1. [144A.484] INTEGRATED LICENSURE; HOME AND 
81.10 	COMMUNITY-BASED SERVICES DESIGNATION.
81.11 		Subdivision 1.Integrated licensing established. (a) From January 1, 2014, to 
81.12 	June 30, 2015, the commissioner of health shall enforce the home and community-based 
81.13 	services standards under chapter 245D for those providers who also have a home care 
81.14 	license pursuant to chapter 144A as required under Laws 2013, chapter 108, article 11, 
81.15 	section 31, and article 8, section 60.
81.16 	(b) Beginning July 1, 2015, a home care provider applicant or license holder may 
81.17 	apply to the commissioner of health for a home and community-based services designation 
81.18 	for the provision of basic home and community-based services identified under section 
81.19 	245D.03, subdivision 1, paragraph (b). The designation allows the license holder to 
81.20 	provide basic home and community-based services that would otherwise require licensure 
81.21 	under chapter 245D, under the license holder's home care license governed by sections 
81.22 	144A.43 to 144A.481.
81.23 		Subd. 2.Application for home and community-based services designation. An 
81.24 	application for a home and community-based services designation must be made on the 
81.25 	forms and in the manner prescribed by the commissioner. The commissioner shall provide 
81.26 	the applicant with instruction for completing the application and provide information 
81.27 	about the requirements of other state agencies that affect the applicant. Application for 
81.28 	the home and community-based services designation is subject to the requirements under 
81.29 	section 144A.473.
81.30 		Subd. 3.Home and community-based services designation fees. A home care 
81.31 	provider applicant or licensee applying for the home and community-based services 
81.32 	designation or renewal of a home and community-based services designation must submit 
81.33 	a fee in the amount specified in subdivision 8.
82.1 		Subd. 4.Applicability of home and community-based services requirements. A 
82.2 	home care provider with a home and community-based services designation must comply 
82.3 	with the requirements for home care services governed by this chapter. For the provision 
82.4 	of basic home and community-based services, the home care provider must also comply 
82.5 	with the following home and community-based services licensing requirements:
82.6 	(1) person-centered planning requirements in section 245D.07;
82.7 	(2) protection standards in section 245D.06;
82.8 	(3) emergency use of manual restraints in section 245D.061; and
82.9 	(4) service recipient rights in section 245D.04, subdivision 3, paragraph (a), clauses 
82.10 	(5), (7), (8), (12), and (13), and paragraph (b).
82.11 	A home care provider with the integrated license-HCBS designation may utilize a bill of 
82.12 	rights which incorporates the service recipient rights in section 245D.04, subdivision 3, 
82.13 	paragraph (a), clauses (5), (7), (8), (12), and (13), and paragraph (b) with the home care 
82.14 	bill of rights in section 144A.44.
82.15 		Subd. 5.Monitoring and enforcement. (a) The commissioner shall monitor for 
82.16 	compliance with the home and community-based services requirements identified in 
82.17 	subdivision 5, in accordance with this section and any agreements by the commissioners 
82.18 	of health and human services.
82.19 	(b) The commissioner shall enforce compliance with applicable home and 
82.20 	community-based services licensing requirements as follows:
82.21 	(1) the commissioner may deny a home and community-based services designation 
82.22 	in accordance with section 144A.473 or 144A.475; and
82.23 	(2) if the commissioner finds that the applicant or license holder has failed to comply 
82.24 	with the applicable home and community-based services designation requirements the 
82.25 	commissioner may issue:
82.26 	(i) a correction order in accordance with section 144A.474;
82.27 	(ii) an order of conditional license in accordance with section 144A.475;
82.28 	(iii) a sanction in accordance with section 144A.475; or
82.29 	(iv) any combination of clauses (i) to (iii).
82.30 		Subd. 6.Appeals. A home care provider applicant that has been denied a temporary 
82.31 	license will also be denied their application for the home and community-based services 
82.32 	designation. The applicant may request reconsideration in accordance with section 
82.33 	144A.473, subdivision 3. A licensed home care provider whose application for a home 
82.34 	and community-based services designation has been denied or whose designation has been 
82.35 	suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a 
82.36 	home and community-based services designation in accordance with section 144A.475. 
83.1 	A license holder may request reconsideration of a correction order in accordance with 
83.2 	section 144A.474, subdivision 12.
83.3 		Subd. 7.Agreements. The commissioners of health and human services shall enter 
83.4 	into any agreements necessary to implement this section.
83.5 		Subd. 8.Fees; home and community-based services designation. (a) The initial 
83.6 	fee for a basic home and community-based services designation is $155. A home care 
83.7 	provider who is seeking to renew the provider's home and community-based services 
83.8 	designation must pay an annual nonrefundable fee with the annual home care license 
83.9 	fee according to the following schedule and based on revenues from the home and 
83.10 	community-based services:

83.11
83.12	Provider Annual Revenue from HCBS
	HCBS 
Designation

83.13	greater than $1,500,000
	$320
	
83.14	greater than $1,275,000 and no more than $1,500,000
	$300
	
83.15	greater than $1,100,000 and no more than $1,275,000
	$280
	
83.16	greater than $950,000 and no more than $1,100,000
	$260
	
83.17	greater than $850,000 and no more than $950,000
	$240
	
83.18	greater than $750,000 and no more than $850,000
	$220
	
83.19	greater than $650,000 and no more than $750,000
	$200
	
83.20	greater than $550,000 and no more than $650,000
	$180
	
83.21	greater than $450,000 and no more than $550,000
	$160
	
83.22	greater than $350,000 and no more than $450,000
	$140
	
83.23	greater than $250,000 and no more than $350,000
	$120
	
83.24	greater than $100,000 and no more than $250,000
	$100
	
83.25	greater than $50,000 and no more than $100,000
	$80
	
83.26	greater than $25,000 and no more than $50,000
	$60
	
83.27	no more than $25,000
	$40
	
83.28 	(b) Fees and penalties collected under this section shall be deposited in the state 
83.29 	treasury and credited to the state government special revenue fund.

83.30 	EFFECTIVE DATE. Minnesota Statutes, section 144A.484, subdivisions 2 to 8, 
83.31 	are effective July 1, 2015.

83.32 	Sec. 2. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is 
83.33 	amended to read:
83.34 		Subd. 21.Provider enrollment. (a) If the commissioner or the Centers for 
83.35 	Medicare and Medicaid Services determines that a provider is designated "high-risk," the 
83.36 	commissioner may withhold payment from providers within that category upon initial 
84.1 	enrollment for a 90-day period. The withholding for each provider must begin on the date 
84.2 	of the first submission of a claim.
84.3 	(b) An enrolled provider that is also licensed by the commissioner under chapter 
84.4 	245A or that is licensed by the Department of Health under chapter 144A and has a 
84.5 	HCBS designation on the home care license must designate an individual as the entity's 
84.6 	compliance officer. The compliance officer must:
84.7 	(1) develop policies and procedures to assure adherence to medical assistance laws 
84.8 	and regulations and to prevent inappropriate claims submissions;
84.9 	(2) train the employees of the provider entity, and any agents or subcontractors of 
84.10 	the provider entity including billers, on the policies and procedures under clause (1);
84.11 	(3) respond to allegations of improper conduct related to the provision or billing of 
84.12 	medical assistance services, and implement action to remediate any resulting problems;
84.13 	(4) use evaluation techniques to monitor compliance with medical assistance laws 
84.14 	and regulations;
84.15 	(5) promptly report to the commissioner any identified violations of medical 
84.16 	assistance laws or regulations; and
84.17 	(6) within 60 days of discovery by the provider of a medical assistance 
84.18 	reimbursement overpayment, report the overpayment to the commissioner and make 
84.19 	arrangements with the commissioner for the commissioner's recovery of the overpayment.
84.20 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
84.21 	provider within a particular industry sector or category establish a compliance program that 
84.22 	contains the core elements established by the Centers for Medicare and Medicaid Services.
84.23 	(c) The commissioner may revoke the enrollment of an ordering or rendering 
84.24 	provider for a period of not more than one year, if the provider fails to maintain and, upon 
84.25 	request from the commissioner, provide access to documentation relating to written orders 
84.26 	or requests for payment for durable medical equipment, certifications for home health 
84.27 	services, or referrals for other items or services written or ordered by such provider, when 
84.28 	the commissioner has identified a pattern of a lack of documentation. A pattern means a 
84.29 	failure to maintain documentation or provide access to documentation on more than one 
84.30 	occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a 
84.31 	provider under the provisions of section 256B.064.
84.32 	(d) The commissioner shall terminate or deny the enrollment of any individual or 
84.33 	entity if the individual or entity has been terminated from participation in Medicare or 
84.34 	under the Medicaid program or Children's Health Insurance Program of any other state.
84.35 	(e) As a condition of enrollment in medical assistance, the commissioner shall 
84.36 	require that a provider designated "moderate" or "high-risk" by the Centers for Medicare 
85.1 	and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
85.2 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
85.3 	designated contractors to conduct unannounced on-site inspections of any provider location. 
85.4 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
85.5 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
85.6 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
85.7 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
85.8 	The commissioner's designations are not subject to administrative appeal.
85.9 	(f) As a condition of enrollment in medical assistance, the commissioner shall 
85.10 	require that a high-risk provider, or a person with a direct or indirect ownership interest in 
85.11 	the provider of five percent or higher, consent to criminal background checks, including 
85.12 	fingerprinting, when required to do so under state law or by a determination by the 
85.13 	commissioner or the Centers for Medicare and Medicaid Services that a provider is 
85.14 	designated high-risk for fraud, waste, or abuse.
85.15 	(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical 
85.16 	equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in 
85.17 	Minnesota and receiving Medicaid funds must purchase a surety bond that is annually 
85.18 	renewed and designates the Minnesota Department of Human Services as the obligee, and 
85.19 	must be submitted in a form approved by the commissioner.
85.20 	(2) At the time of initial enrollment or reenrollment, the provider agency must 
85.21 	purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 
85.22 	in the previous calendar year is up to and including $300,000, the provider agency must 
85.23 	purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 
85.24 	in the previous calendar year is over $300,000, the provider agency must purchase a 
85.25 	performance bond of $100,000. The performance bond must allow for recovery of costs 
85.26 	and fees in pursuing a claim on the bond.
85.27 	(h) The Department of Human Services may require a provider to purchase a 
85.28 	performance surety bond as a condition of initial enrollment, reenrollment, reinstatement, 
85.29 	or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the 
85.30 	department determines there is significant evidence of or potential for fraud and abuse by 
85.31 	the provider, or (3) the provider or category of providers is designated high-risk pursuant 
85.32 	to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The 
85.33 	performance bond must be in an amount of $100,000 or ten percent of the provider's 
85.34 	payments from Medicaid during the immediately preceding 12 months, whichever is 
85.35 	greater. The performance bond must name the Department of Human Services as an 
85.36 	obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.

86.1 	ARTICLE 16
86.2 	HEALTH CARE

86.3 	Section 1. Minnesota Statutes 2012, section 256.01, is amended by adding a 
86.4 	subdivision to read:
86.5 		Subd. 38.Contract to match recipient third-party liability information. The 
86.6 	commissioner may enter into a contract with a national organization to match recipient 
86.7 	third-party liability information and provide coverage and insurance primacy information 
86.8 	to the department at no charge to providers and the clearinghouses.

86.9 	Sec. 2. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:
86.10 		Subdivision 1.Authority. (a) The commissioner shall establish procedures for 
86.11 	determining medical assistance and general assistance medical care payment rates under 
86.12 	a prospective payment system for inpatient hospital services in hospitals that qualify as 
86.13 	vendors of medical assistance. The commissioner shall establish, by rule, procedures for 
86.14 	implementing this section and sections 256.9686, 256.969, and 256.9695. Services must 
86.15 	meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7, 
86.16 	paragraph (b), to be eligible for payment.
86.17 	(b) The commissioner may reduce the types of inpatient hospital admissions that 
86.18 	are required to be certified as medically necessary after notice in the State Register and a 
86.19 	30-day comment period.

86.20 	Sec. 3. Minnesota Statutes 2012, section 256.9685, subdivision 1a, is amended to read:
86.21 		Subd. 1a.Administrative reconsideration. Notwithstanding sections section
86.22 	256B.04, subdivision 15, and 256D.03, subdivision 7, the commissioner shall establish 
86.23 	an administrative reconsideration process for appeals of inpatient hospital services 
86.24 	determined to be medically unnecessary. A physician or hospital may request a 
86.25 	reconsideration of the decision that inpatient hospital services are not medically necessary 
86.26 	by submitting a written request for review to the commissioner within 30 days after 
86.27 	receiving notice of the decision. The reconsideration process shall take place prior to the 
86.28 	procedures of subdivision 1b and shall be conducted by physicians that are independent 
86.29 	of the case under reconsideration. A majority decision by the physicians is necessary to 
86.30 	make a determination that the services were not medically necessary.

86.31 	Sec. 4. Minnesota Statutes 2012, section 256.9686, subdivision 2, is amended to read:
87.1 		Subd. 2.Base year. "Base year" means a hospital's fiscal year or years that 
87.2 	is recognized by the Medicare program or a hospital's fiscal year specified by the 
87.3 	commissioner if a hospital is not required to file information by the Medicare program 
87.4 	from which cost and statistical data are used to establish medical assistance and general 
87.5 	assistance medical care payment rates.

87.6 	Sec. 5. Minnesota Statutes 2012, section 256.969, subdivision 1, is amended to read:
87.7 		Subdivision 1.Hospital cost index. (a) The hospital cost index shall be the change 
87.8 	in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted 
87.9 	by Data Resources, Inc. The commissioner shall use the indices as forecasted in the 
87.10 	third quarter of the calendar year prior to the rate year. The hospital cost index may be 
87.11 	used to adjust the base year operating payment rate through the rate year on an annually 
87.12 	compounded basis.
87.13 	(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human 
87.14 	services shall not provide automatic annual inflation adjustments for hospital payment 
87.15 	rates under medical assistance, nor under general assistance medical care, except that 
87.16 	the inflation adjustments under paragraph (a) for medical assistance, excluding general 
87.17 	assistance medical care, shall apply through calendar year 2001. The index for calendar 
87.18 	year 2000 shall be reduced 2.5 percentage points to recover overprojections of the index 
87.19 	from 1994 to 1996. The commissioner of management and budget shall include as a 
87.20 	budget change request in each biennial detailed expenditure budget submitted to the 
87.21 	legislature under section 16A.11 annual adjustments in hospital payment rates under 
87.22 	medical assistance and general assistance medical care, based upon the hospital cost index.

87.23 	Sec. 6. Minnesota Statutes 2012, section 256.969, subdivision 2, is amended to read:
87.24 		Subd. 2.Diagnostic categories. The commissioner shall use to the extent possible 
87.25 	existing diagnostic classification systems, including the system used by the Medicare 
87.26 	program created by 3M for all patient refined diagnosis-related groups (APR-DRGs) to 
87.27 	determine the relative values of inpatient services and case mix indices. The commissioner 
87.28 	may combine diagnostic classifications into diagnostic categories and may establish 
87.29 	separate categories and numbers of categories based on program eligibility or hospital 
87.30 	peer group. Relative values shall be recalculated when the base year is changed. Relative 
87.31 	value determinations shall include paid claims for admissions during each hospital's base 
87.32 	year. The commissioner may extend the time period forward to obtain sufficiently valid 
87.33 	information to establish relative values supplement the APR-DRG data with national 
87.34 	averages. Relative value determinations shall not include property cost data, Medicare 
88.1 	crossover data, and data on admissions that are paid a per day transfer rate under 
88.2 	subdivision 14. The computation of the base year cost per admission must include identified 
88.3 	outlier cases and their weighted costs up to the point that they become outlier cases, but 
88.4 	must exclude costs recognized in outlier payments beyond that point. The commissioner 
88.5 	may recategorize the diagnostic classifications and recalculate relative values and case mix 
88.6 	indices to reflect actual hospital practices, the specific character of specialty hospitals, or 
88.7 	to reduce variances within the diagnostic categories after notice in the State Register and a 
88.8 	30-day comment period. The commissioner shall recategorize the diagnostic classifications 
88.9 	and recalculate relative values and case mix indices based on the two-year schedule in 
88.10 	effect prior to January 1, 2013, reflected in subdivision 2b. The first recategorization shall 
88.11 	occur January 1, 2013, and shall occur every two years after. When rates are not rebased 
88.12 	under subdivision 2b, the commissioner may establish relative values and case mix indices 
88.13 	based on charge data and may update the base year to the most recent data available.

88.14 	Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:
88.15 		Subd. 2b.Operating payment rates. In determining operating payment rates for 
88.16 	admissions occurring on or after the rate year beginning January 1, 1991, and every two 
88.17 	years after, or more frequently as determined by the commissioner, the commissioner shall 
88.18 	obtain operating data from an updated base year and establish operating payment rates 
88.19 	per admission for each hospital based on the cost-finding methods and allowable costs of 
88.20 	the Medicare program in effect during the base year. Rates under the general assistance 
88.21 	medical care, medical assistance, and MinnesotaCare programs shall not be rebased to 
88.22 	more current data on January 1, 1997, January 1, 2005, for the first 24 months of the 
88.23 	rebased period beginning January 1, 2009. For the rebased period beginning January 1, 
88.24 	2011, rates shall not be rebased, except that a Minnesota long-term hospital shall be 
88.25 	rebased effective January 1, 2011, based on its most recent Medicare cost report ending on 
88.26 	or before September 1, 2008, with the provisions under subdivisions 9 and 23, based on 
88.27 	the rates in effect on December 31, 2010. For subsequent rate setting periods in which the 
88.28 	base years are updated, a Minnesota long-term hospital's base year shall remain within 
88.29 	the same period as other hospitals. Effective January 1, 2013, and after, rates shall not be 
88.30 	rebased. The base year operating payment rate per admission is standardized by the case 
88.31 	mix index and adjusted by the hospital cost index, relative values, and disproportionate 
88.32 	population adjustment. The cost and charge data used to establish operating rates shall 
88.33 	only reflect inpatient services covered by medical assistance and shall not include property 
88.34 	cost information and costs recognized in outlier payments. In determining operating 
88.35 	payment rates for admissions occurring on or after the rate year beginning January 1, 
89.1 	2011, through December 31, 2012, the operating payment rate per admission must be 
89.2 	based on the cost-finding methods and allowable costs of the Medicare program in effect 
89.3 	during the base year or years.

89.4 	Sec. 8. Minnesota Statutes 2012, section 256.969, subdivision 2c, is amended to read:
89.5 		Subd. 2c.Property payment rates. For each hospital's first two consecutive 
89.6 	fiscal years beginning on or after July 1, 1988, the commissioner shall limit the annual 
89.7 	increase in property payment rates for depreciation, rents and leases, and interest expense 
89.8 	to the annual growth in the hospital cost index derived from the methodology in effect 
89.9 	on the day before July 1, 1989. When computing budgeted and settlement property 
89.10 	payment rates, the commissioner shall use the annual increase in the hospital cost index 
89.11 	forecasted by Data Resources, Inc., consistent with the quarter of the hospital's fiscal year 
89.12 	end. For admissions occurring on or after the rate year beginning January 1, 1991, the 
89.13 	commissioner shall obtain property data from an updated base year and establish property 
89.14 	payment rates per admission for each hospital. Property payment rates shall be derived 
89.15 	from data from the same base year that is used to establish operating payment rates. The 
89.16 	property information shall include cost categories not subject to the hospital cost index 
89.17 	and shall reflect the cost-finding methods and allowable costs of the Medicare program. 
89.18 	The base year property payment rates shall be adjusted for increases in the property cost 
89.19 	by increasing the base year property payment rate 85 percent of the percentage change 
89.20 	from the base year through the year for which a Medicare cost report has been submitted 
89.21 	to the Medicare program and filed with the department by the October 1 before the rate 
89.22 	year. The property rates shall only reflect inpatient services covered by medical assistance. 
89.23 	The commissioner shall adjust rates for the rate year beginning January 1, 1991, to ensure 
89.24 	that all hospitals are subject to the hospital cost index limitation for two complete years.

89.25 	Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
89.26 	to read:
89.27 		Subd. 2d.Budget neutrality factor. For the rebased period effective September 1, 
89.28 	2014, when rebasing rates under subdivisions 2b and 2c, the commissioner must apply a 
89.29 	budget neutrality factor (BNF) to a hospital's conversion factor to ensure that total DRG 
89.30 	payments to hospitals do not exceed total DRG payments that would have been made to 
89.31 	hospitals if the relative rates and weights had not been recalibrated. For the purposes of 
89.32 	this section, BNF equals the percentage change from total aggregate payments calculated 
89.33 	under a new payment system to total aggregate payments calculated under the old system.

90.1 	Sec. 10. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:
90.2 		Subd. 3a.Payments. (a) Acute care hospital billings under the medical 
90.3 	assistance program must not be submitted until the recipient is discharged. However, 
90.4 	the commissioner shall establish monthly interim payments for inpatient hospitals that 
90.5 	have individual patient lengths of stay over 30 days regardless of diagnostic category. 
90.6 	Except as provided in section 256.9693, medical assistance reimbursement for treatment 
90.7 	of mental illness shall be reimbursed based on diagnostic classifications. Individual 
90.8 	hospital payments established under this section and sections 256.9685, 256.9686, and 
90.9 	256.9695, in addition to third-party and recipient liability, for discharges occurring during 
90.10 	the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 
90.11 	inpatient services paid for the same period of time to the hospital. This payment limitation 
90.12 	shall be calculated separately for medical assistance and general assistance medical 
90.13 	care services. The limitation on general assistance medical care shall be effective for 
90.14 	admissions occurring on or after July 1, 1991. Services that have rates established under 
90.15 	subdivision 11 or 12, must be limited separately from other services. After consulting with 
90.16 	the affected hospitals, the commissioner may consider related hospitals one entity and may 
90.17 	merge the payment rates while maintaining separate provider numbers. The operating and 
90.18 	property base rates per admission or per day shall be derived from the best Medicare and 
90.19 	claims data available when rates are established. The commissioner shall determine the 
90.20 	best Medicare and claims data, taking into consideration variables of recency of the data, 
90.21 	audit disposition, settlement status, and the ability to set rates in a timely manner. The 
90.22 	commissioner shall notify hospitals of payment rates by December 1 of the year preceding 
90.23 	the rate year 30 days prior to implementation. The rate setting data must reflect the 
90.24 	admissions data used to establish relative values. Base year changes from 1981 to the base 
90.25 	year established for the rate year beginning January 1, 1991, and for subsequent rate years, 
90.26 	shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase 
90.27 	under subdivision 1. The commissioner may adjust base year cost, relative value, and case 
90.28 	mix index data to exclude the costs of services that have been discontinued by the October 
90.29 	1 of the year preceding the rate year or that are paid separately from inpatient services. 
90.30 	Inpatient stays that encompass portions of two or more rate years shall have payments 
90.31 	established based on payment rates in effect at the time of admission unless the date of 
90.32 	admission preceded the rate year in effect by six months or more. In this case, operating 
90.33 	payment rates for services rendered during the rate year in effect and established based on 
90.34 	the date of admission shall be adjusted to the rate year in effect by the hospital cost index.
91.1 	(b) For fee-for-service admissions occurring on or after July 1, 2002, the total 
91.2 	payment, before third-party liability and spenddown, made to hospitals for inpatient 
91.3 	services is reduced by .5 percent from the current statutory rates.
91.4 	(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 
91.5 	admissions occurring on or after July 1, 2003, made to hospitals for inpatient services 
91.6 	before third-party liability and spenddown, is reduced five percent from the current 
91.7 	statutory rates. Mental health services within diagnosis related groups 424 to 432, and 
91.8 	facilities defined under subdivision 16 are excluded from this paragraph.
91.9 	(d) In addition to the reduction in paragraphs (b) and (c), the total payment for 
91.10 	fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for 
91.11 	inpatient services before third-party liability and spenddown, is reduced 6.0 percent 
91.12 	from the current statutory rates. Mental health services within diagnosis related groups 
91.13 	424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. 
91.14 	Notwithstanding section 256.9686, subdivision 7, for purposes of this paragraph, medical 
91.15 	assistance does not include general assistance medical care. Payments made to managed 
91.16 	care plans shall be reduced for services provided on or after January 1, 2006, to reflect 
91.17 	this reduction.
91.18 	(e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 
91.19 	fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made 
91.20 	to hospitals for inpatient services before third-party liability and spenddown, is reduced 
91.21 	3.46 percent from the current statutory rates. Mental health services with diagnosis related 
91.22 	groups 424 to 432 and facilities defined under subdivision 16 are excluded from this 
91.23 	paragraph. Payments made to managed care plans shall be reduced for services provided 
91.24 	on or after January 1, 2009, through June 30, 2009, to reflect this reduction.
91.25 	(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 
91.26 	fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011, made 
91.27 	to hospitals for inpatient services before third-party liability and spenddown, is reduced 
91.28 	1.9 percent from the current statutory rates. Mental health services with diagnosis related 
91.29 	groups 424 to 432 and facilities defined under subdivision 16 are excluded from this 
91.30 	paragraph. Payments made to managed care plans shall be reduced for services provided 
91.31 	on or after July 1, 2009, through June 30, 2011, to reflect this reduction.
91.32 	(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 
91.33 	for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for 
91.34 	inpatient services before third-party liability and spenddown, is reduced 1.79 percent 
91.35 	from the current statutory rates. Mental health services with diagnosis related groups 
91.36 	424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. 
92.1 	Payments made to managed care plans shall be reduced for services provided on or after 
92.2 	July 1, 2011, to reflect this reduction.
92.3 	(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total 
92.4 	payment for fee-for-service admissions occurring on or after July 1, 2009, made to 
92.5 	hospitals for inpatient services before third-party liability and spenddown, is reduced 
92.6 	one percent from the current statutory rates. Facilities defined under subdivision 16 are 
92.7 	excluded from this paragraph. Payments made to managed care plans shall be reduced for 
92.8 	services provided on or after October 1, 2009, to reflect this reduction.
92.9 	(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total 
92.10 	payment for fee-for-service admissions occurring on or after July 1, 2011, made to 
92.11 	hospitals for inpatient services before third-party liability and spenddown, is reduced 
92.12 	1.96 percent from the current statutory rates. Facilities defined under subdivision 16 are 
92.13 	excluded from this paragraph. Payments made to managed care plans shall be reduced for 
92.14 	services provided on or after January 1, 2011, to reflect this reduction.

92.15 	Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:
92.16 		Subd. 3b.Nonpayment for hospital-acquired conditions and for certain 
92.17 	treatments. (a) The commissioner must not make medical assistance payments to a 
92.18 	hospital for any costs of care that result from a condition listed in paragraph (c), if the 
92.19 	condition was hospital acquired.
92.20 	(b) For purposes of this subdivision, a condition is hospital acquired if it is not 
92.21 	identified by the hospital as present on admission. For purposes of this subdivision, 
92.22 	medical assistance includes general assistance medical care and MinnesotaCare.
92.23 	(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired 
92.24 	condition listed in this paragraph that is represented by an ICD-9-CM ICD-10-CM
92.25 	 diagnosis code and is designated as a complicating condition or a major complicating 
92.26 	condition:. The list of conditions is defined by the Centers for Medicare and Medicaid 
92.27 	Services on an annual basis with the hospital-acquired conditions (HAC) list:
92.28 	(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);
92.29 	(2) air embolism (ICD-9-CM code 999.1);
92.30 	(3) blood incompatibility (ICD-9-CM code 999.6);
92.31 	(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);
92.32 	(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing 
92.33 	injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating 
92.34 	condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929; 
92.35 	940-949; and 991-994);
93.1 	(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);
93.2 	(7) vascular catheter-associated infection (ICD-9-CM code 999.31);
93.3 	(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11; 
93.4 	249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and 
93.5 	251.0);
93.6 	(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain 
93.7 	orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07; 
93.8 	81.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and 
93.9 	81.85);
93.10 	(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery 
93.11 	(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity 
93.12 	(ICD-9-CM code 278.01);
93.13 	(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary 
93.14 	artery bypass graft (procedure codes 36.10 to 36.19); and
93.15 	(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary 
93.16 	embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement 
93.17 	(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51 
93.18 	to 81.52).
93.19 	(d) The prohibition in paragraph (a) applies to any additional payments that result 
93.20 	from a hospital-acquired condition listed in paragraph (c), including, but not limited to, 
93.21 	additional treatment or procedures, readmission to the facility after discharge, increased 
93.22 	length of stay, change to a higher diagnostic category, or transfer to another hospital. In 
93.23 	the event of a transfer to another hospital, the hospital where the condition listed under 
93.24 	paragraph (c) was acquired is responsible for any costs incurred at the hospital to which 
93.25 	the patient is transferred.
93.26 	(e) A hospital shall not bill a recipient of services for any payment disallowed under 
93.27 	this subdivision.

93.28 	Sec. 12. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
93.29 	to read:
93.30 		Subd. 4b.Medical assistance cost reports for services. (a) A hospital that meets 
93.31 	one of the following criteria must annually file medical assistance cost reports within six 
93.32 	months of the end of the hospital's fiscal year:
93.33 	(1) a hospital designated as a critical access hospital that receives medical assistance 
93.34 	payments; or
94.1 	(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local 
94.2 	trade area that receives a disproportionate population adjustment under subdivision 9.
94.3 	For purposes of this subdivision, local trade area has the meaning given in 
94.4 	subdivision 17.
94.5 	(b) The Department of Human Services must suspend payments to any hospital that 
94.6 	fails to file a report required under this subdivision. Payments must remain suspended 
94.7 	until the report has been filed with and accepted by the Department of Human Services 
94.8 	inpatient rates unit.

94.9 	Sec. 13. Minnesota Statutes 2012, section 256.969, subdivision 6a, is amended to read:
94.10 		Subd. 6a.Special considerations. In determining the payment rates, the 
94.11 	commissioner shall consider whether the circumstances in subdivisions 7 8 to 14 exist.

94.12 	Sec. 14. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
94.13 	to read:
94.14 		Subd. 8c.Hospital residents. Payments for hospital residents shall be made 
94.15 	as follows:
94.16 	(1) payments for the first 180 days of inpatient care shall be the APR-DRG payment 
94.17 	plus any appropriate outliers; and
94.18 	(2) payment for all medically necessary patient care subsequent to 180 days shall 
94.19 	be reimbursed at a rate computed by multiplying the statewide average cost-to-charge 
94.20 	ratio by the usual and customary charges.

94.21 	Sec. 15. Minnesota Statutes 2012, section 256.969, subdivision 9, is amended to read:
94.22 		Subd. 9.Disproportionate numbers of low-income patients served. (a) For 
94.23 	admissions occurring on or after October 1, 1992, through December 31, 1992, the 
94.24 	medical assistance disproportionate population adjustment shall comply with federal law 
94.25 	and shall be paid to a hospital, excluding regional treatment centers and facilities of the 
94.26 	federal Indian Health Service, with a medical assistance inpatient utilization rate in excess 
94.27 	of the arithmetic mean. The adjustment must be determined as follows:
94.28 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
94.29 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
94.30 	federal Indian Health Service but less than or equal to one standard deviation above the 
94.31 	mean, the adjustment must be determined by multiplying the total of the operating and 
94.32 	property payment rates by the difference between the hospital's actual medical assistance 
95.1 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
95.2 	treatment centers and facilities of the federal Indian Health Service; and
95.3 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
95.4 	standard deviation above the mean, the adjustment must be determined by multiplying 
95.5 	the adjustment that would be determined under clause (1) for that hospital by 1.1. If 
95.6 	federal matching funds are not available for all adjustments under this subdivision, the 
95.7 	commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for 
95.8 	federal match. The commissioner may establish a separate disproportionate population 
95.9 	operating payment rate adjustment under the general assistance medical care program. 
95.10 	For purposes of this subdivision medical assistance does not include general assistance 
95.11 	medical care. The commissioner shall report annually on the number of hospitals likely to 
95.12 	receive the adjustment authorized by this paragraph. The commissioner shall specifically 
95.13 	report on the adjustments received by public hospitals and public hospital corporations 
95.14 	located in cities of the first class.
95.15 	(b) For admissions occurring on or after July 1, 1993, the medical assistance 
95.16 	disproportionate population adjustment shall comply with federal law and shall be paid to 
95.17 	a hospital, excluding regional treatment centers, critical access hospitals, and facilities of 
95.18 	the federal Indian Health Service, with a medical assistance inpatient utilization rate in 
95.19 	excess of the arithmetic mean. The adjustment must be determined as follows:
95.20 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
95.21 	arithmetic mean for all hospitals excluding regional treatment centers, critical access 
95.22 	hospitals, and facilities of the federal Indian Health Service but less than or equal to one 
95.23 	standard deviation above the mean, the adjustment must be determined by multiplying the 
95.24 	total of the operating and property payment rates by the difference between the hospital's 
95.25 	actual medical assistance inpatient utilization rate and the arithmetic mean for all hospitals 
95.26 	excluding regional treatment centers and facilities of the federal Indian Health Service; and
95.27 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
95.28 	standard deviation above the mean, the adjustment must be determined by multiplying 
95.29 	the adjustment that would be determined under clause (1) for that hospital by 1.1. The 
95.30 	commissioner may establish a separate disproportionate population operating payment 
95.31 	rate adjustment under the general assistance medical care program. For purposes of this 
95.32 	subdivision, medical assistance does not include general assistance medical care. The 
95.33 	commissioner shall report annually on the number of hospitals likely to receive the 
95.34 	adjustment authorized by this paragraph. The commissioner shall specifically report on 
95.35 	the adjustments received by public hospitals and public hospital corporations located in 
95.36 	cities of the first class;.
96.1 	(3) for a hospital that had medical assistance fee-for-service payment volume during 
96.2 	calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service 
96.3 	payment volume, a medical assistance disproportionate population adjustment shall be 
96.4 	paid in addition to any other disproportionate payment due under this subdivision as 
96.5 	follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995. 
96.6 	For a hospital that had medical assistance fee-for-service payment volume during calendar 
96.7 	year 1991 in excess of eight percent of total medical assistance fee-for-service payment 
96.8 	volume and was the primary hospital affiliated with the University of Minnesota, a 
96.9 	medical assistance disproportionate population adjustment shall be paid in addition to any 
96.10 	other disproportionate payment due under this subdivision as follows: $505,000 due on 
96.11 	the 15th of each month after noon, beginning July 15, 1995; and
96.12 	(4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be 
96.13 	reduced to zero.
96.14 	(c) The commissioner shall adjust rates paid to a health maintenance organization 
96.15 	under contract with the commissioner to reflect rate increases provided in paragraph (b), 
96.16 	clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those 
96.17 	rates to reflect payments provided in clause (3).
96.18 	(d) If federal matching funds are not available for all adjustments under paragraph 
96.19 	(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a 
96.20 	pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
96.21 	(e) For purposes of this subdivision, medical assistance does not include general 
96.22 	assistance medical care.
96.23 	(f) For hospital services occurring on or after July 1, 2005, to June 30, 2007:
96.24 	(1) general assistance medical care expenditures for fee-for-service inpatient and 
96.25 	outpatient hospital payments made by the department shall be considered Medicaid 
96.26 	disproportionate share hospital payments, except as limited below:
96.27 	 (i) only the portion of Minnesota's disproportionate share hospital allotment under 
96.28 	section 1923(f) of the Social Security Act that is not spent on the disproportionate 
96.29 	population adjustments in paragraph (b), clauses (1) and (2), may be used for general 
96.30 	assistance medical care expenditures;
96.31 	 (ii) only those general assistance medical care expenditures made to hospitals that 
96.32 	qualify for disproportionate share payments under section 1923 of the Social Security Act 
96.33 	and the Medicaid state plan may be considered disproportionate share hospital payments;
96.34 	 (iii) only those general assistance medical care expenditures made to an individual 
96.35 	hospital that would not cause the hospital to exceed its individual hospital limits under 
96.36 	section 1923 of the Social Security Act may be considered; and
97.1 	 (iv) general assistance medical care expenditures may be considered only to the 
97.2 	extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
97.3 	All hospitals and prepaid health plans participating in general assistance medical care 
97.4 	must provide any necessary expenditure, cost, and revenue information required by the 
97.5 	commissioner as necessary for purposes of obtaining federal Medicaid matching funds for 
97.6 	general assistance medical care expenditures; and
97.7 	(2) (c) Certified public expenditures made by Hennepin County Medical Center shall 
97.8 	be considered Medicaid disproportionate share hospital payments. Hennepin County 
97.9 	and Hennepin County Medical Center shall report by June 15, 2007, on payments made 
97.10 	beginning July 1, 2005, or another date specified by the commissioner, that may qualify 
97.11 	for reimbursement under federal law. Based on these reports, the commissioner shall 
97.12 	apply for federal matching funds.
97.13 	(g) (d) Upon federal approval of the related state plan amendment, paragraph (f) (c)
97.14 	 is effective retroactively from July 1, 2005, or the earliest effective date approved by the 
97.15 	Centers for Medicare and Medicaid Services.

97.16 	Sec. 16. Minnesota Statutes 2012, section 256.969, subdivision 10, is amended to read:
97.17 		Subd. 10.Separate billing by certified registered nurse anesthetists. Hospitals 
97.18 	may must exclude certified registered nurse anesthetist costs from the operating payment 
97.19 	rate as allowed by section 256B.0625, subdivision 11. To be eligible, a hospital must 
97.20 	notify the commissioner in writing by October 1 of even-numbered years to exclude 
97.21 	certified registered nurse anesthetist costs. The hospital must agree that all hospital 
97.22 	claims for the cost and charges of certified registered nurse anesthetist services will not 
97.23 	be included as part of the rates for inpatient services provided during the rate year. In 
97.24 	this case, the operating payment rate shall be adjusted to exclude the cost of certified 
97.25 	registered nurse anesthetist services.
97.26 	For admissions occurring on or after July 1, 1991, and until the expiration date of 
97.27 	section 256.9695, subdivision 3, services of certified registered nurse anesthetists provided 
97.28 	on an inpatient basis may be paid as allowed by section 256B.0625, subdivision 11, when 
97.29 	the hospital's base year did not include the cost of these services. To be eligible, a hospital 
97.30 	must notify the commissioner in writing by July 1, 1991, of the request and must comply 
97.31 	with all other requirements of this subdivision.

97.32 	Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:
97.33 		Subd. 14.Transfers. Except as provided in subdivisions 11 and 13, Operating 
97.34 	and property payment rates for admissions that result in transfers and transfers shall be 
98.1 	established on a per day payment system. The per day payment rate shall be the sum of 
98.2 	the adjusted operating and property payment rates determined under this subdivision and 
98.3 	subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 8 to 12, divided by the arithmetic mean length 
98.4 	of stay for the diagnostic category. Each admission that results in a transfer and each 
98.5 	transfer is considered a separate admission to each hospital, and the total of the admission 
98.6 	and transfer payments to each hospital must not exceed the total per admission payment 
98.7 	that would otherwise be made to each hospital under this subdivision and subdivisions 
98.8 	2, 2b, 2c, 3a, 4a, 5a, and 7 to 13 8 to 12.

98.9 	Sec. 18. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:
98.10 		Subd. 17.Out-of-state hospitals in local trade areas. Out-of-state hospitals that 
98.11 	are located within a Minnesota local trade area and that have more than 20 admissions in 
98.12 	the base year or years shall have rates established using the same procedures and methods 
98.13 	that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area 
98.14 	means a county contiguous to Minnesota and located in a metropolitan statistical area as 
98.15 	determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals 
98.16 	that are not required by law to file information in a format necessary to establish rates shall 
98.17 	have rates established based on the commissioner's estimates of the information. Relative 
98.18 	values of the diagnostic categories shall not be redetermined under this subdivision until 
98.19 	required by rule statute. Hospitals affected by this subdivision shall then be included in 
98.20 	determining relative values. However, hospitals that have rates established based upon 
98.21 	the commissioner's estimates of information shall not be included in determining relative 
98.22 	values. This subdivision is effective for hospital fiscal years beginning on or after July 
98.23 	1, 1988. A hospital shall provide the information necessary to establish rates under this 
98.24 	subdivision at least 90 days before the start of the hospital's fiscal year.

98.25 	Sec. 19. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:
98.26 		Subd. 30.Payment rates for births. (a) For admissions occurring on or after 
98.27 	October 1, 2009 September 1, 2014, the total operating and property payment rate, 
98.28 	excluding disproportionate population adjustment, for the following diagnosis-related 
98.29 	groups, as they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section 
98.30 	without complicating diagnosis 5601, 5602, 5603, 5604 vaginal delivery; and (2) 372 
98.31 	vaginal delivery with complicating diagnosis; and (3) 373 vaginal delivery without 
98.32 	complicating diagnosis 5401, 5402, 5403, 5404 cesarean section, shall be no greater 
98.33 	than $3,528.
98.34 	(b) The rates described in this subdivision do not include newborn care.
99.1 	(c) Payments to managed care and county-based purchasing plans under section 
99.2 	256B.69, 256B.692, or 256L.12 shall be reduced for services provided on or after October 
99.3 	1, 2009, to reflect the adjustments in paragraph (a).
99.4 	(d) Prior authorization shall not be required before reimbursement is paid for a 
99.5 	cesarean section delivery.

99.6 	Sec. 20. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to 
99.7 	read:
99.8 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic 
99.9 	services, federally qualified health center services, nonprofit community health clinic 
99.10 	services, and public health clinic services. Rural health clinic services and federally 
99.11 	qualified health center services mean services defined in United States Code, title 42, 
99.12 	section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified 
99.13 	health center services shall be made according to applicable federal law and regulation.
99.14 	(b) A federally qualified health center that is beginning initial operation shall submit 
99.15 	an estimate of budgeted costs and visits for the initial reporting period in the form and 
99.16 	detail required by the commissioner. A federally qualified health center that is already in 
99.17 	operation shall submit an initial report using actual costs and visits for the initial reporting 
99.18 	period. Within 90 days of the end of its reporting period, a federally qualified health 
99.19 	center shall submit, in the form and detail required by the commissioner, a report of 
99.20 	its operations, including allowable costs actually incurred for the period and the actual 
99.21 	number of visits for services furnished during the period, and other information required 
99.22 	by the commissioner. Federally qualified health centers that file Medicare cost reports 
99.23 	shall provide the commissioner with a copy of the most recent Medicare cost report filed 
99.24 	with the Medicare program intermediary for the reporting year which support the costs 
99.25 	claimed on their cost report to the state.
99.26 	(c) In order to continue cost-based payment under the medical assistance program 
99.27 	according to paragraphs (a) and (b), a federally qualified health center or rural health clinic 
99.28 	must apply for designation as an essential community provider within six months of final 
99.29 	adoption of rules by the Department of Health according to section 62Q.19, subdivision 
99.30 	7. For those federally qualified health centers and rural health clinics that have applied 
99.31 	for essential community provider status within the six-month time prescribed, medical 
99.32 	assistance payments will continue to be made according to paragraphs (a) and (b) for the 
99.33 	first three years after application. For federally qualified health centers and rural health 
99.34 	clinics that either do not apply within the time specified above or who have had essential 
99.35 	community provider status for three years, medical assistance payments for health services 
100.1 	provided by these entities shall be according to the same rates and conditions applicable 
100.2 	to the same service provided by health care providers that are not federally qualified 
100.3 	health centers or rural health clinics.
100.4 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally 
100.5 	qualified health center or a rural health clinic to make application for an essential 
100.6 	community provider designation in order to have cost-based payments made according 
100.7 	to paragraphs (a) and (b) no longer apply.
100.8 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) 
100.9 	shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
100.10 	(f) Effective January 1, 2001, each federally qualified health center and rural health 
100.11 	clinic may elect to be paid either under the prospective payment system established 
100.12 	in United States Code, title 42, section 1396a(aa), or under an alternative payment 
100.13 	methodology consistent with the requirements of United States Code, title 42, section 
100.14 	1396a(aa), and approved by the Centers for Medicare and Medicaid Services. The 
100.15 	alternative payment methodology shall be 100 percent of cost as determined according to 
100.16 	Medicare cost principles.
100.17 	(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
100.18 	(1) has nonprofit status as specified in chapter 317A;
100.19 	(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
100.20 	(3) is established to provide health services to low-income population groups, 
100.21 	uninsured, high-risk and special needs populations, underserved and other special needs 
100.22 	populations;
100.23 	(4) employs professional staff at least one-half of which are familiar with the 
100.24 	cultural background of their clients;
100.25 	(5) charges for services on a sliding fee scale designed to provide assistance to 
100.26 	low-income clients based on current poverty income guidelines and family size; and
100.27 	(6) does not restrict access or services because of a client's financial limitations or 
100.28 	public assistance status and provides no-cost care as needed.
100.29 	(h) By July 1 of each year, the commissioner shall notify federally qualified health 
100.30 	centers and rural health clinics enrolled in medical assistance of the commissioner's intent 
100.31 	to close out payment rates and claims processing for services provided during the calendar 
100.32 	year two years prior to the year in which notification is provided. If the commissioner 
100.33 	and federally qualified health center or rural health clinic do not mutually agree to close 
100.34 	out these rates and claims processing within 90 days following the commissioner's 
100.35 	notification, the matter shall be submitted to an arbiter to determine whether to extend the 
100.36 	closeout deadline.

101.1 	Sec. 21. Minnesota Statutes 2012, section 256B.199, is amended to read:
101.2 	256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
101.3 	(a) Effective July 1, 2007, The commissioner shall apply for federal matching 
101.4 	funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the 
101.5 	commissioner shall apply for matching funds for expenditures in paragraph (e).
101.6 	(b) The commissioner shall apply for federal matching funds for certified public 
101.7 	expenditures as follows:.
101.8 	(1) Hennepin County, Hennepin County Medical Center, Ramsey County, Regions 
101.9 	Hospital, the University of Minnesota, and Fairview-University Medical Center shall 
101.10 	report quarterly to the commissioner beginning June 1, 2007, payments made during the 
101.11 	second previous quarter that may qualify for reimbursement under federal law;
101.12 	 (2) based on these reports, the commissioner shall apply for federal matching 
101.13 	funds. These funds are appropriated to the commissioner for the payments under section 
101.14 	256.969, subdivision 27; and
101.15 	(3) By May 1 of each year, beginning May 1, 2007, the commissioner shall inform 
101.16 	the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share 
101.17 	hospital payment money expected to be available in the current federal fiscal year.
101.18 	(c) The commissioner shall apply for federal matching funds for general assistance 
101.19 	medical care expenditures as follows:
101.20 	(1) for hospital services occurring on or after July 1, 2007, general assistance medical 
101.21 	care expenditures for fee-for-service inpatient and outpatient hospital payments made by 
101.22 	the department shall be used to apply for federal matching funds, except as limited below:
101.23 	(i) only those general assistance medical care expenditures made to an individual 
101.24 	hospital that would not cause the hospital to exceed its individual hospital limits under 
101.25 	section 1923 of the Social Security Act may be considered; and
101.26 	(ii) general assistance medical care expenditures may be considered only to the extent 
101.27 	of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
101.28 	(2) all hospitals must provide any necessary expenditure, cost, and revenue 
101.29 	information required by the commissioner as necessary for purposes of obtaining federal 
101.30 	Medicaid matching funds for general assistance medical care expenditures.
101.31 	(d) For the period from April 1, 2009, to September 30, 2010, the commissioner shall 
101.32 	apply for additional federal matching funds available as disproportionate share hospital 
101.33 	payments under the American Recovery and Reinvestment Act of 2009. These funds shall 
101.34 	be made available as the state share of payments under section 256.969, subdivision 28. 
101.35 	The entities required to report certified public expenditures under paragraph (b), clause 
101.36 	(1), shall report additional certified public expenditures as necessary under this paragraph.
102.1 	(e) (c) For services provided on or after September 1, 2011, the commissioner shall 
102.2 	apply for additional federal matching funds available as disproportionate share hospital 
102.3 	payments under the MinnesotaCare program according to the requirements and conditions 
102.4 	of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate 
102.5 	share hospital for purposes of this paragraph, if the hospital does not qualify for a payment 
102.6 	under section 256.969, subdivision 9, paragraph (b).

102.7 	Sec. 22. REPEALER.
 102.8 	Minnesota Statutes 2012, sections 256.969, subdivisions 8b, 9a, 9b, 11, 13, 20, 21, 
102.9 	22, 25, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed.

102.10 	ARTICLE 17
102.11 	NORTHSTAR CARE FOR CHILDREN

102.12 	Section 1. Minnesota Statutes 2012, section 245C.05, subdivision 5, is amended to read:
102.13 		Subd. 5.Fingerprints. (a) Except as provided in paragraph (c), for any background 
102.14 	study completed under this chapter, when the commissioner has reasonable cause to 
102.15 	believe that further pertinent information may exist on the subject of the background 
102.16 	study, the subject shall provide the commissioner with a set of classifiable fingerprints 
102.17 	obtained from an authorized agency.
102.18 	(b) For purposes of requiring fingerprints, the commissioner has reasonable cause 
102.19 	when, but not limited to, the:
102.20 	(1) information from the Bureau of Criminal Apprehension indicates that the subject 
102.21 	is a multistate offender;
102.22 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
102.23 	offender status is undetermined; or
102.24 	(3) commissioner has received a report from the subject or a third party indicating 
102.25 	that the subject has a criminal history in a jurisdiction other than Minnesota.
102.26 	(c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for 
102.27 	background studies conducted by the commissioner for child foster care or, adoptions, or a 
102.28 	transfer of permanent legal and physical custody of a child, the subject of the background 
102.29 	study, who is 18 years of age or older, shall provide the commissioner with a set of 
102.30 	classifiable fingerprints obtained from an authorized agency.

102.31 	Sec. 2. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is 
102.32 	amended to read:
103.1 		Subdivision 1.Background studies conducted by Department of Human 
103.2 	Services. (a) For a background study conducted by the Department of Human Services, 
103.3 	the commissioner shall review:
103.4 	(1) information related to names of substantiated perpetrators of maltreatment of 
103.5 	vulnerable adults that has been received by the commissioner as required under section 
103.6 	626.557, subdivision 9c, paragraph (j);
103.7 	(2) the commissioner's records relating to the maltreatment of minors in licensed 
103.8 	programs, and from findings of maltreatment of minors as indicated through the social 
103.9 	service information system;
103.10 	(3) information from juvenile courts as required in subdivision 4 for individuals 
103.11 	listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
103.12 	(4) information from the Bureau of Criminal Apprehension, including information 
103.13 	regarding a background study subject's registration in Minnesota as a predatory offender 
103.14 	under section 243.166;
103.15 	(5) except as provided in clause (6), information from the national crime information 
103.16 	system when the commissioner has reasonable cause as defined under section 245C.05, 
103.17 	subdivision 5; and
103.18 	(6) for a background study related to a child foster care application for licensure, a 
103.19 	transfer of permanent legal and physical custody of a child under sections 260C.503 to 
103.20 	260C.515, or adoptions, the commissioner shall also review:
103.21 	(i) information from the child abuse and neglect registry for any state in which the 
103.22 	background study subject has resided for the past five years; and
103.23 	(ii) information from national crime information databases, when the background 
103.24 	study subject is 18 years of age or older.
103.25 	(b) Notwithstanding expungement by a court, the commissioner may consider 
103.26 	information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 
103.27 	received notice of the petition for expungement and the court order for expungement is 
103.28 	directed specifically to the commissioner.
103.29 	(c) The commissioner shall also review criminal case information received according 
103.30 	to section 245C.04, subdivision 4a, from the Minnesota court information system that 
103.31 	relates to individuals who have already been studied under this chapter and who remain 
103.32 	affiliated with the agency that initiated the background study.

103.33 	Sec. 3. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:
103.34 		Subdivision 1.Background studies conducted by commissioner. (a) Before 
103.35 	placement of a child for purposes of adoption, the commissioner shall conduct a 
104.1 	background study on individuals listed in section sections259.41, subdivision 3, and 
104.2 	260C.611, for county agencies and private agencies licensed to place children for adoption.
104.3 	 When a prospective adoptive parent is seeking to adopt a child who is currently placed in 
104.4 	the prospective adoptive parent's home and is under the guardianship of the commissioner 
104.5 	according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive 
104.6 	parent holds a child foster care license, a new background study is not required when:
104.7 	(1) a background study was completed on persons required to be studied under section 
104.8 	245C.03 in connection with the application for child foster care licensure after July 1, 2007;
104.9 	(2) the background study included a review of the information in section 245C.08, 
104.10 	subdivisions 1, 3, and 4; and
104.11 	(3) as a result of the background study, the individual was either not disqualified 
104.12 	or, if disqualified, the disqualification was set aside under section 245C.22, or a variance 
104.13 	was issued under section 245C.30.
104.14 	(b) Before placement of a child for purposes of transferring permanent legal and 
104.15 	physical custody to a relative under sections 260C.503 to 260C.515, the commissioner 
104.16 	shall conduct a background study on each person age 13 or older living in the home. 
104.17 	When a prospective relative custodian has a child foster care license, a new background 
104.18 	study is not required when:
104.19 	(1) a background study was completed on persons required to be studied under section 
104.20 	245C.03 in connection with the application for child foster care licensure after July 1, 2007;
104.21 	(2) the background study included a review of the information in section 245C.08, 
104.22 	subdivisions 1, 3, and 4; and
104.23 	(3) as a result of the background study, the individual was either not disqualified 
104.24 	or, if disqualified, the disqualification was set aside under section 245C.22, or a variance 
104.25 	was issued under section 245C.30.

104.26 	Sec. 4. Minnesota Statutes 2012, section 245C.33, subdivision 4, is amended to read:
104.27 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review 
104.28 	the following information regarding the background study subject:
104.29 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
104.30 	(2) information from the child abuse and neglect registry for any state in which the 
104.31 	subject has resided for the past five years; and
104.32 	(3) information from national crime information databases, when required under 
104.33 	section 245C.08.
105.1 	(b) The commissioner shall provide any information collected under this subdivision 
105.2 	to the county or private agency that initiated the background study. The commissioner 
105.3 	shall also provide the agency:
105.4 	(1) notice whether the information collected shows that the subject of the background 
105.5 	study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and
105.6 	(2) for background studies conducted under subdivision 1, paragraph (a), the date of 
105.7 	all adoption-related background studies completed on the subject by the commissioner 
105.8 	after June 30, 2007, and the name of the county or private agency that initiated the 
105.9 	adoption-related background study.

105.10 	Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.055, subdivision 1, is 
105.11 	amended to read:
105.12 		Subdivision 1.Children eligible for subsidized adoption assistance. Medical 
105.13 	assistance may be paid for a child eligible for or receiving adoption assistance payments 
105.14 	under title IV-E of the Social Security Act, United States Code, title 42, sections 670 to 
105.15 	676, and to any child who is not title IV-E eligible but who was determined eligible for 
105.16 	adoption assistance under chapter 256N or section 259A.10, subdivision 2, and has a 
105.17 	special need for medical or rehabilitative care.

105.18 	Sec. 6. Minnesota Statutes 2013 Supplement, section 256N.02, is amended by adding a 
105.19 	subdivision to read:
105.20 		Subd. 14a.Licensed child foster parent. "Licensed child foster parent" means a 
105.21 	person who is licensed for child foster care under Minnesota Rules, parts 2960.3000 to 
105.22 	2960.3340, or licensed by a Minnesota tribe in accordance with tribal standards.

105.23 	Sec. 7. Minnesota Statutes 2013 Supplement, section 256N.21, subdivision 2, is 
105.24 	amended to read:
105.25 		Subd. 2.Placement in foster care. To be eligible for foster care benefits under this 
105.26 	section, the child must be in placement away from the child's legal parent or, guardian, or 
105.27 	Indian custodian as defined in section 260.755, subdivision 10, and all of the following 
105.28 	criteria must be met must meet one of the criteria in clause (1) and either clause (2) or (3):
105.29 	(1) the legally responsible agency must have placement authority and care 
105.30 	responsibility, including for a child 18 years old or older and under age 21, who maintains 
105.31 	eligibility for foster care consistent with section 260C.451;
105.32 	(2) (1) the legally responsible agency must have placement authority to place the 
105.33 	child with: (i) a voluntary placement agreement or a court order, consistent with sections 
106.1 	260B.198, 260C.001, and260D.01, or continued eligibility consistent with section 
106.2 	260C.451 for a child 18 years old or older and under age 21 who maintains eligibility for 
106.3 	foster care; or (ii) a voluntary placement agreement or court order by a Minnesota tribe 
106.4 	that is consistent with United States Code, title 42, section 672(a)(2); and
106.5 	(3) (2) the child must be is placed in an emergency relative placement under section 
106.6 	245A.035, with  a licensed foster family setting, foster residence setting, or treatment 
106.7 	foster care setting licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, a 
106.8 	family foster home licensed or approved by a tribal agency or, for a child 18 years old or 
106.9 	older and under age 21, child foster parent; or
106.10 	(3) the child is placed in one of the following unlicensed child foster care settings:
106.11 	(i) an emergency relative placement under tribal licensing regulations or section 
106.12 	245A.035, with the legally responsible agency ensuring the relative completes the required 
106.13 	child foster care application process;
106.14 	(ii) a licensed adult foster home with an approved age variance under section 
106.15 	245A.16 for no more than six months;
106.16 	(iii) for a child 18 years old or older and under age 21 who is eligible for extended 
106.17 	foster care under section 260C.451,  an unlicensed supervised independent living setting 
106.18 	approved by the agency responsible for the youth's child's care.; or
106.19 	(iv) a preadoptive placement in a home specified in section 245A.03, subdivision 
106.20 	2, paragraph (a), clause (9), with an approved adoption home study and signed adoption 
106.21 	placement agreement.

106.22 	Sec. 8. Minnesota Statutes 2013 Supplement, section 256N.21, is amended by adding a 
106.23 	subdivision to read:
106.24 		Subd. 7.Background study. (a) A county or private agency conducting a 
106.25 	background study for purposes of child foster care licensing or approval must conduct 
106.26 	the study in accordance with chapter 245C and must meet the requirements in United 
106.27 	States Code, title 42, section 671(a)(20).
106.28 	(b) A Minnesota tribe conducting a background study for purposes of child foster 
106.29 	care licensing or approval must conduct the study in accordance with the requirements in 
106.30 	United States Code, title 42, section 671(a)(20), when applicable.

106.31 	Sec. 9. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is 
106.32 	amended to read:
106.33 		Subdivision 1.General eligibility requirements. (a) To be eligible for guardianship 
106.34 	assistance under this section, there must be a judicial determination under section 
107.1 	260C.515, subdivision 4, that a transfer of permanent legal and physical custody to a 
107.2 	relative is in the child's best interest. For a child under jurisdiction of a tribal court, a 
107.3 	judicial determination under a similar provision in tribal code indicating that a relative 
107.4 	will assume the duty and authority to provide care, control, and protection of a child who 
107.5 	is residing in foster care, and to make decisions regarding the child's education, health 
107.6 	care, and general welfare until adulthood, and that this is in the child's best interest is 
107.7 	considered equivalent. Additionally, a child must:
107.8 	(1) have been removed from the child's home pursuant to a voluntary placement 
107.9 	agreement or court order;
107.10 	(2)(i) have resided in with the prospective relative custodian who has been a 
107.11 	licensed child foster care parent for at least six consecutive months in the home of the 
107.12 	prospective relative custodian; or
107.13 	(ii) have received from the commissioner an exemption from the requirement in item 
107.14 	(i) from the court that the prospective relative custodian has been a licensed child foster 
107.15 	parent for at least six consecutive months, based on a determination that:
107.16 	(A) an expedited move to permanency is in the child's best interest;
107.17 	(B) expedited permanency cannot be completed without provision of guardianship 
107.18 	assistance; and
107.19 	(C) the prospective relative custodian is uniquely qualified to meet the child's needs, 
107.20 	as defined in section 260C.212, subdivision 2, on a permanent basis;
107.21 	(D) the child and prospective relative custodian meet the eligibility requirements 
107.22 	of this section; and
107.23 	(E) efforts were made by the legally responsible agency to place the child with the 
107.24 	prospective relative custodian as a licensed child foster parent for six consecutive months 
107.25 	before permanency, or an explanation why these efforts were not in the child's best interests;
107.26 	(3) meet the agency determinations regarding permanency requirements in 
107.27 	subdivision 2;
107.28 	(4) meet the applicable citizenship and immigration requirements in subdivision 3;
107.29 	(5) have been consulted regarding the proposed transfer of permanent legal and 
107.30 	physical custody to a relative, if the child is at least 14 years of age or is expected to attain 
107.31 	14 years of age prior to the transfer of permanent legal and physical custody; and
107.32 	(6) have a written, binding agreement under section 256N.25 among the caregiver or 
107.33 	caregivers, the financially responsible agency, and the commissioner established prior to 
107.34 	transfer of permanent legal and physical custody.
108.1 	(b) In addition to the requirements in paragraph (a), the child's prospective relative 
108.2 	custodian or custodians must meet the applicable background study requirements in 
108.3 	subdivision 4.
108.4 	(c) To be eligible for title IV-E guardianship assistance, a child must also meet any 
108.5 	additional criteria in section 473(d) of the Social Security Act. The sibling of a child 
108.6 	who meets the criteria for title IV-E guardianship assistance in section 473(d) of the 
108.7 	Social Security Act is eligible for title IV-E guardianship assistance if the child and 
108.8 	sibling are placed with the same prospective relative custodian or custodians, and the 
108.9 	legally responsible agency, relatives, and commissioner agree on the appropriateness of 
108.10 	the arrangement for the sibling. A child who meets all eligibility criteria except those 
108.11 	specific to title IV-E guardianship assistance is entitled to guardianship assistance paid 
108.12 	through funds other than title IV-E.

108.13 	Sec. 10. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 2, is 
108.14 	amended to read:
108.15 		Subd. 2.Agency determinations regarding permanency. (a) To be eligible for 
108.16 	guardianship assistance, the legally responsible agency must complete the following 
108.17 	determinations regarding permanency for the child prior to the transfer of permanent 
108.18 	legal and physical custody:
108.19 	(1) a determination that reunification and adoption are not appropriate permanency 
108.20 	options for the child; and
108.21 	(2) a determination that the child demonstrates a strong attachment to the prospective 
108.22 	relative custodian and the prospective relative custodian has a strong commitment to 
108.23 	caring permanently for the child.
108.24 	(b) The legally responsible agency shall document the determinations in paragraph 
108.25 	(a) and the eligibility requirements in this section that comply with United States Code, 
108.26 	title 42, sections 673(d) and 675(1)(F). These determinations must be documented in a 
108.27 	kinship placement agreement, which must be in the format prescribed by the commissioner 
108.28 	and must be signed by the prospective relative custodian and the legally responsible 
108.29 	agency. In the case of a Minnesota tribe, the determinations and eligibility requirements 
108.30 	in this section may be provided in an alternative format approved by the commissioner.
108.31 	 Supporting information for completing each determination must be documented in the 
108.32 	legally responsible agency's case file and make them available for review as requested 
108.33 	by the financially responsible agency and the commissioner during the guardianship 
108.34 	assistance eligibility determination process.

109.1 	Sec. 11. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 4, is 
109.2 	amended to read:
109.3 		Subd. 4.Background study. (a) A background study under section 245C.33 must be 
109.4 	completed on each prospective relative custodian and any other adult residing in the home 
109.5 	of the prospective relative custodian. The background study must meet the requirements of 
109.6 	United States Code, title 42, section 671(a)(20). A study completed under section 245C.33 
109.7 	meets this requirement. A background study on the prospective relative custodian or adult 
109.8 	residing in the household previously completed under section 245C.04 chapter 245C for the 
109.9 	purposes of child foster care licensure may under chapter 245A or licensure by a Minnesota 
109.10 	tribe, shall be used for the purposes of this section, provided that the background study is 
109.11 	current meets the requirements of this subdivision and the prospective relative custodian is 
109.12 	a licensed child foster parent at the time of the application for guardianship assistance.
109.13 	(b) If the background study reveals:
109.14 	(1) a felony conviction at any time for:
109.15 	(i) child abuse or neglect;
109.16 	(ii) spousal abuse;
109.17 	(iii) a crime against a child, including child pornography; or
109.18 	(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 
109.19 	including other physical assault or battery; or
109.20 	(2) a felony conviction within the past five years for:
109.21 	(i) physical assault;
109.22 	(ii) battery; or
109.23 	(iii) a drug-related offense;
109.24 	the prospective relative custodian is prohibited from receiving guardianship assistance 
109.25 	on behalf of an otherwise eligible child.

109.26 	Sec. 12. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 6, is 
109.27 	amended to read:
109.28 		Subd. 6.Exclusions. (a) A child with a guardianship assistance agreement under 
109.29 	Northstar Care for Children is not eligible for the Minnesota family investment program 
109.30 	child-only grant under chapter 256J.
109.31 	(b) The commissioner shall not enter into a guardianship assistance agreement with:
109.32 	(1) a child's biological parent or stepparent;
109.33 	(2) an individual assuming permanent legal and physical custody of a child or the 
109.34 	equivalent under tribal code without involvement of the child welfare system; or
110.1 	(3) an individual assuming permanent legal and physical custody of a child who was 
110.2 	placed in Minnesota by another state or a tribe outside of Minnesota.

110.3 	Sec. 13. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 1, is 
110.4 	amended to read:
110.5 		Subdivision 1.General eligibility requirements. (a) To be eligible for Northstar 
110.6 	adoption assistance under this section, a child must:
110.7 	(1) be determined to be a child with special needs under subdivision 2;
110.8 	(2) meet the applicable citizenship and immigration requirements in subdivision 3;
110.9 	(3)(i) meet the criteria in section 473 of the Social Security Act; or
110.10 	(ii) have had foster care payments paid on the child's behalf while in out-of-home 
110.11 	placement through the county social service agency or tribe and be either under the
110.12 	 tribal social service agency prior to the issuance of a court order transferring the child's
110.13 	 guardianship of to the commissioner or under the jurisdiction of a Minnesota tribe and 
110.14 	adoption, according to tribal law, is in the child's documented permanency plan making 
110.15 	the child a ward of the tribe; and
110.16 	(4) have a written, binding agreement under section 256N.25 among the adoptive 
110.17 	parent, the financially responsible agency, or, if there is no financially responsible agency, 
110.18 	the agency designated by the commissioner, and the commissioner established prior to 
110.19 	finalization of the adoption.
110.20 	(b) In addition to the requirements in paragraph (a), an eligible child's adoptive parent 
110.21 	or parents must meet the applicable background study requirements in subdivision 4.
110.22 	(c) A child who meets all eligibility criteria except those specific to title IV-E adoption 
110.23 	assistance shall receive adoption assistance paid through funds other than title IV-E.
110.24 	(d) A child receiving Northstar kinship assistance payments under section 256N.22 
110.25 	is eligible for Northstar adoption assistance when the criteria in paragraph (a) are met and 
110.26 	the child's legal custodian is adopting the child.

110.27 	Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is 
110.28 	amended to read:
110.29 		Subd. 4.Background study. (a) A background study under section 259.41 must be 
110.30 	completed on each prospective adoptive parent. and all other adults residing in the home. 
110.31 	A background study must meet the requirements of United States Code, title 42, section 
110.32 	671(a)(20). A study completed under section 245C.33 meets this requirement. If the 
110.33 	prospective adoptive parent is a licensed child foster parent licensed under chapter 245A 
110.34 	or by a Minnesota tribe, the background study previously completed for the purposes of 
111.1 	child foster care licensure shall be used for the purpose of this section, provided that the 
111.2 	background study meets all other requirements of this subdivision and the prospective 
111.3 	adoptive parent is a licensed child foster parent at the time of the application for adoption 
111.4 	assistance.
111.5 	(b) If the background study reveals:
111.6 	(1) a felony conviction at any time for:
111.7 	(i) child abuse or neglect;
111.8 	(ii) spousal abuse;
111.9 	(iii) a crime against a child, including child pornography; or
111.10 	(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 
111.11 	including other physical assault or battery; or
111.12 	(2) a felony conviction within the past five years for:
111.13 	(i) physical assault;
111.14 	(ii) battery; or
111.15 	(iii) a drug-related offense;
111.16 	the adoptive parent is prohibited from receiving adoption assistance on behalf of an 
111.17 	otherwise eligible child.

111.18 	Sec. 15. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 9, is 
111.19 	amended to read:
111.20 		Subd. 9.Timing of and requests for reassessments. Reassessments for an eligible 
111.21 	child must be completed within 30 days of any of the following events:
111.22 	(1) for a child in continuous foster care, when six months have elapsed since 
111.23 	completion of the last assessment the initial assessment, and annually thereafter;
111.24 	(2) for a child in continuous foster care, change of placement location;
111.25 	(3) for a child in foster care, at the request of the financially responsible agency or 
111.26 	legally responsible agency;
111.27 	(4) at the request of the commissioner; or
111.28 	(5) at the request of the caregiver under subdivision 9 10.

111.29 	Sec. 16. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 10, 
111.30 	is amended to read:
111.31 		Subd. 10.Caregiver requests for reassessments. (a) A caregiver may initiate 
111.32 	a reassessment request for an eligible child in writing to the financially responsible 
111.33 	agency or, if there is no financially responsible agency, the agency designated by the 
111.34 	commissioner. The written request must include the reason for the request and the 
112.1 	name, address, and contact information of the caregivers. For an eligible child with a 
112.2 	guardianship assistance or adoption assistance agreement, The caregiver may request a 
112.3 	reassessment if at least six months have elapsed since any previously requested review
112.4 	 previous assessment or reassessment. For an eligible foster child, a foster parent may 
112.5 	request reassessment in less than six months with written documentation that there have 
112.6 	been significant changes in the child's needs that necessitate an earlier reassessment.
112.7 	(b) A caregiver may request a reassessment of an at-risk child for whom a 
112.8 	guardianship assistance or an adoption assistance agreement has been executed if the 
112.9 	caregiver has satisfied the commissioner with written documentation from a qualified 
112.10 	expert that the potential disability upon which eligibility for the agreement was based has 
112.11 	manifested itself, consistent with section 256N.25, subdivision 3, paragraph (b).
112.12 	(c) If the reassessment cannot be completed within 30 days of the caregiver's request, 
112.13 	the agency responsible for reassessment must notify the caregiver of the reason for the 
112.14 	delay and a reasonable estimate of when the reassessment can be completed.
112.15 	(d) Notwithstanding any provision to the contrary in paragraph (a) or subdivision 9, 
112.16 	when a Northstar kinship assistance agreement or adoption assistance agreement under 
112.17 	section 256N.25 has been signed by all parties, no reassessment may be requested or 
112.18 	conducted until the court finalizes the transfer of permanent legal and physical custody or 
112.19 	finalizes the adoption, or the assistance agreement expires according to section 256N.25, 
112.20 	subdivision 1.

112.21 	Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is 
112.22 	amended to read:
112.23 		Subd. 2.Negotiation of agreement. (a) When a child is determined to be eligible 
112.24 	for guardianship assistance or adoption assistance, the financially responsible agency, or, 
112.25 	if there is no financially responsible agency, the agency designated by the commissioner, 
112.26 	must negotiate with the caregiver to develop an agreement under subdivision 1. If and when 
112.27 	the caregiver and agency reach concurrence as to the terms of the agreement, both parties 
112.28 	shall sign the agreement. The agency must submit the agreement, along with the eligibility 
112.29 	determination outlined in sections 256N.22, subdivision 7, and 256N.23, subdivision 7, to 
112.30 	the commissioner for final review, approval, and signature according to subdivision 1.
112.31 	(b) A monthly payment is provided as part of the adoption assistance or guardianship 
112.32 	assistance agreement to support the care of children unless the child is eligible for adoption 
112.33 	assistance and determined to be an at-risk child, in which case the special at-risk monthly 
112.34 	payment under section 256N.26, subdivision 7, must no payment will be made unless and 
113.1 	until the caregiver obtains written documentation from a qualified expert that the potential 
113.2 	disability upon which eligibility for the agreement was based has manifested itself.
113.3 	(1) The amount of the payment made on behalf of a child eligible for guardianship 
113.4 	assistance or adoption assistance is determined through agreement between the prospective 
113.5 	relative custodian or the adoptive parent and the financially responsible agency, or, if there 
113.6 	is no financially responsible agency, the agency designated by the commissioner, using 
113.7 	the assessment tool established by the commissioner in section 256N.24, subdivision 2, 
113.8 	and the associated benefit and payments outlined in section 256N.26. Except as provided 
113.9 	under section 256N.24, subdivision 1, paragraph (c), the assessment tool establishes 
113.10 	the monthly benefit level for a child under foster care. The monthly payment under a 
113.11 	guardianship assistance agreement or adoption assistance agreement may be negotiated up 
113.12 	to the monthly benefit level under foster care. In no case may the amount of the payment 
113.13 	under a guardianship assistance agreement or adoption assistance agreement exceed the 
113.14 	foster care maintenance payment which would have been paid during the month if the 
113.15 	child with respect to whom the guardianship assistance or adoption assistance payment is 
113.16 	made had been in a foster family home in the state.
113.17 	(2) The rate schedule for the agreement is determined based on the age of the 
113.18 	child on the date that the prospective adoptive parent or parents or relative custodian or 
113.19 	custodians sign the agreement.
113.20 	(3) The income of the relative custodian or custodians or adoptive parent or parents 
113.21 	must not be taken into consideration when determining eligibility for guardianship 
113.22 	assistance or adoption assistance or the amount of the payments under section 256N.26.
113.23 	(4) With the concurrence of the relative custodian or adoptive parent, the amount of 
113.24 	the payment may be adjusted periodically using the assessment tool established by the 
113.25 	commissioner in section 256N.24, subdivision 2, and the agreement renegotiated under 
113.26 	subdivision 3 when there is a change in the child's needs or the family's circumstances.
113.27 	(5) The guardianship assistance or adoption assistance agreement of a child who is 
113.28 	identified as at-risk receives the special at-risk monthly payment under section 256N.26, 
113.29 	subdivision 7, unless and until the potential disability manifests itself, as documented by 
113.30 	an appropriate professional, and the commissioner authorizes commencement of payment 
113.31 	by modifying the agreement accordingly. A relative custodian or An adoptive parent 
113.32 	of an at-risk child with a guardianship assistance or an adoption assistance agreement 
113.33 	may request a reassessment of the child under section 256N.24, subdivision 9 10, and 
113.34 	renegotiation of the guardianship assistance or adoption assistance agreement under 
113.35 	subdivision 3 to include a monthly payment, if the caregiver has written documentation 
113.36 	from a qualified expert that the potential disability upon which eligibility for the agreement 
114.1 	was based has manifested itself. Documentation of the disability must be limited to 
114.2 	evidence deemed appropriate by the commissioner.
114.3 	(c) For guardianship assistance agreements:
114.4 	(1) the initial amount of the monthly guardianship assistance payment must be 
114.5 	equivalent to the foster care rate in effect at the time that the agreement is signed less any 
114.6 	offsets under section 256N.26, subdivision 11, or a lesser negotiated amount if agreed to 
114.7 	by the prospective relative custodian and specified in that agreement, unless the child is 
114.8 	identified as at-risk or the guardianship assistance agreement is entered into when a child 
114.9 	is under the age of six; and
114.10 	(2) an at-risk child must be assigned level A as outlined in section 256N.26 and 
114.11 	receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless 
114.12 	and until the potential disability manifests itself, as documented by a qualified expert, and 
114.13 	the commissioner authorizes commencement of payment by modifying the agreement 
114.14 	accordingly; and
114.15 	(3) (2) the amount of the monthly payment for a guardianship assistance agreement 
114.16 	for a child, other than an at-risk child, who is under the age of six must be as specified in 
114.17 	section 256N.26, subdivision 5.
114.18 	(d) For adoption assistance agreements:
114.19 	(1) for a child in foster care with the prospective adoptive parent immediately prior 
114.20 	to adoptive placement, the initial amount of the monthly adoption assistance payment 
114.21 	must be equivalent to the foster care rate in effect at the time that the agreement is signed 
114.22 	less any offsets in section 256N.26, subdivision 11, or a lesser negotiated amount if agreed 
114.23 	to by the prospective adoptive parents and specified in that agreement, unless the child is 
114.24 	identified as at-risk or the adoption assistance agreement is entered into when a child is 
114.25 	under the age of six;
114.26 	(2) for an at-risk child who must be assigned level A as outlined in section 
114.27 	256N.26and receive the special at-risk monthly payment under section 256N.26, 
114.28 	subdivision 7, no payment will be made  unless and until the potential disability manifests 
114.29 	itself, as documented by an appropriate professional, and the commissioner authorizes 
114.30 	commencement of payment by modifying the agreement accordingly;
114.31 	(3) the amount of the monthly payment for an adoption assistance agreement for 
114.32 	a child under the age of six, other than an at-risk child, must be as specified in section 
114.33 	256N.26, subdivision 5;
114.34 	(4) for a child who is in the guardianship assistance program immediately prior 
114.35 	to adoptive placement, the initial amount of the adoption assistance payment must be 
114.36 	equivalent to the guardianship assistance payment in effect at the time that the adoption 
115.1 	assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive 
115.2 	parent and specified in that agreement, unless the child is identified as an at-risk child; and
115.3 	(5) for a child who is not in foster care placement or the guardianship assistance 
115.4 	program immediately prior to adoptive placement or negotiation of the adoption assistance 
115.5 	agreement, the initial amount of the adoption assistance agreement must be determined 
115.6 	using the assessment tool and process in this section and the corresponding payment 
115.7 	amount outlined in section 256N.26.

115.8 	Sec. 18. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 3, is 
115.9 	amended to read:
115.10 		Subd. 3.Renegotiation of agreement. (a) A relative custodian or adoptive 
115.11 	parent of a child with a guardianship assistance or adoption assistance agreement may 
115.12 	request renegotiation of the agreement when there is a change in the needs of the child 
115.13 	or in the family's circumstances. When a relative custodian or adoptive parent requests 
115.14 	renegotiation of the agreement, a reassessment of the child must be completed consistent 
115.15 	with section 256N.24, subdivisions 9 and 10. If the reassessment indicates that the 
115.16 	child's level has changed, the financially responsible agency or, if there is no financially 
115.17 	responsible agency, the agency designated by the commissioner or the commissioner's 
115.18 	designee, and the caregiver must renegotiate the agreement to include a payment with 
115.19 	the level determined through the reassessment process. The agreement must not be 
115.20 	renegotiated unless the commissioner, the financially responsible agency, and the caregiver 
115.21 	mutually agree to the changes. The effective date of any renegotiated agreement must be 
115.22 	determined by the commissioner.
115.23 	(b) A relative custodian or An adoptive parent of an at-risk child with a guardianship 
115.24 	assistance or an adoption assistance agreement may request renegotiation of the agreement 
115.25 	to include a monthly payment higher than the special at-risk monthly payment under 
115.26 	section 256N.26, subdivision 7, if the caregiver has written documentation from a 
115.27 	qualified expert that the potential disability upon which eligibility for the agreement 
115.28 	was based has manifested itself. Documentation of the disability must be limited to 
115.29 	evidence deemed appropriate by the commissioner. Prior to renegotiating the agreement, a 
115.30 	reassessment of the child must be conducted as outlined in section 256N.24, subdivision 
115.31 	9. The reassessment must be used to renegotiate the agreement to include an appropriate 
115.32 	monthly payment. The agreement must not be renegotiated unless the commissioner, the 
115.33 	financially responsible agency, and the caregiver mutually agree to the changes. The 
115.34 	effective date of any renegotiated agreement must be determined by the commissioner.
116.1 	(c) Renegotiation of a guardianship assistance or adoption assistance agreement is 
116.2 	required when one of the circumstances outlined in section 256N.26, subdivision 13, 
116.3 	occurs.

116.4 	Sec. 19. Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 1, is 
116.5 	amended to read:
116.6 		Subdivision 1.Benefits. (a) There are three benefits under Northstar Care for 
116.7 	Children: medical assistance, basic payment, and supplemental difficulty of care payment.
116.8 	(b) A child is eligible for medical assistance under subdivision 2.
116.9 	(c) A child is eligible for the basic payment under subdivision 3, except for a child 
116.10 	assigned level A under section 256N.24, subdivision 1, because the child is determined to 
116.11 	be an at-risk child receiving guardianship assistance or adoption assistance.
116.12 	(d) A child, including a foster child age 18 to 21, is eligible for an additional 
116.13 	supplemental difficulty of care payment under subdivision 4, as determined by the 
116.14 	assessment under section 256N.24.
116.15 	(e) An eligible child entering guardianship assistance or adoption assistance under 
116.16 	the age of six receives a basic payment and supplemental difficulty of care payment as 
116.17 	specified in subdivision 5.
116.18 	(f) A child transitioning in from a pre-Northstar Care for Children program under 
116.19 	section 256N.28, subdivision 7, shall receive basic and difficulty of care supplemental 
116.20 	payments according to those provisions.

116.21 	Sec. 20. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is 
116.22 	amended to read:
116.23 		Subd. 4.Nonfederal share. (a) The commissioner shall establish a percentage share 
116.24 	of the maintenance payments, reduced by federal reimbursements under title IV-E of the 
116.25 	Social Security Act, to be paid by the state and to be paid by the financially responsible 
116.26 	agency.
116.27 	(b) These state and local shares must initially be calculated based on the ratio of the 
116.28 	average appropriate expenditures made by the state and all financially responsible agencies 
116.29 	during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation, 
116.30 	appropriate expenditures for the financially responsible agencies must include basic and 
116.31 	difficulty of care payments for foster care reduced by federal reimbursements, but not 
116.32 	including any initial clothing allowance, administrative payments to child care agencies 
116.33 	specified in section 317A.907, child care, or other support or ancillary expenditures. For 
117.1 	purposes of this calculation, appropriate expenditures for the state shall include adoption 
117.2 	assistance and relative custody assistance, reduced by federal reimbursements.
117.3 	(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017, 
117.4 	2018, and 2019, the commissioner shall adjust this initial percentage of state and local 
117.5 	shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and 
117.6 	2014, taking into account appropriations for Northstar Care for Children and the turnover 
117.7 	rates of the components. In making these adjustments, the commissioner's goal shall be to 
117.8 	make these state and local expenditures other than the appropriations for Northstar Care 
117.9 	for Children to be the same as they would have been had Northstar Care for Children not 
117.10 	been implemented, or if that is not possible, proportionally higher or lower, as appropriate. 
117.11 	Except for adjustments so that the costs of the phase-in are borne by the state, the state and 
117.12 	local share percentages for fiscal year 2019 must be used for all subsequent years.

117.13 	Sec. 21. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:
117.14 		Subd. 11.Financial considerations. (a) Payment of relative custody assistance 
117.15 	under a relative custody assistance agreement is subject to the availability of state funds 
117.16 	and payments may be reduced or suspended on order of the commissioner if insufficient 
117.17 	funds are available.
117.18 	(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner 
117.19 	shall reimburse the local agency in an amount equal to 100 percent of the relative custody 
117.20 	assistance payments provided to relative custodians. The A local agency may not seek and 
117.21 	the commissioner shall not provide reimbursement for the administrative costs associated 
117.22 	with performing the duties described in subdivision 4.
117.23 	(c) For the purposes of determining eligibility or payment amounts under MFIP, 
117.24 	relative custody assistance payments shall be excluded in determining the family's 
117.25 	available income.
117.26 	(d) For expenditures made on or before December 31, 2014, upon receipt from a 
117.27 	local agency of a claim for reimbursement, the commissioner shall reimburse the local 
117.28 	agency in an amount equal to 100 percent of the relative custody assistance payments 
117.29 	provided to relative custodians.
117.30 	(e) For expenditures made on or after January 1, 2015, upon receipt from a local 
117.31 	agency of a claim for reimbursement, the commissioner shall reimburse the local agency as 
117.32 	part of the Northstar Care for Children fiscal reconciliation process under section 256N.27.

117.33 	Sec. 22. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:
118.1 		Subdivision 1.Out-of-home placement; plan. (a) An out-of-home placement plan 
118.2 	shall be prepared within 30 days after any child is placed in foster care by court order or a 
118.3 	voluntary placement agreement between the responsible social services agency and the 
118.4 	child's parent pursuant to section 260C.227 or chapter 260D.
118.5 	(b) An out-of-home placement plan means a written document which is prepared 
118.6 	by the responsible social services agency jointly with the parent or parents or guardian 
118.7 	of the child and in consultation with the child's guardian ad litem, the child's tribe, if the 
118.8 	child is an Indian child, the child's foster parent or representative of the foster care facility, 
118.9 	and, where appropriate, the child. For a child in voluntary foster care for treatment under 
118.10 	chapter 260D, preparation of the out-of-home placement plan shall additionally include 
118.11 	the child's mental health treatment provider. As appropriate, the plan shall be:
118.12 	(1) submitted to the court for approval under section 260C.178, subdivision 7;
118.13 	(2) ordered by the court, either as presented or modified after hearing, under section 
118.14 	260C.178, subdivision 7, or 260C.201, subdivision 6; and
118.15 	(3) signed by the parent or parents or guardian of the child, the child's guardian ad 
118.16 	litem, a representative of the child's tribe, the responsible social services agency, and, if 
118.17 	possible, the child.
118.18 	(c) The out-of-home placement plan shall be explained to all persons involved in its 
118.19 	implementation, including the child who has signed the plan, and shall set forth:
118.20 	(1) a description of the foster care home or facility selected, including how the 
118.21 	out-of-home placement plan is designed to achieve a safe placement for the child in the 
118.22 	least restrictive, most family-like, setting available which is in close proximity to the home 
118.23 	of the parent or parents or guardian of the child when the case plan goal is reunification, 
118.24 	and how the placement is consistent with the best interests and special needs of the child 
118.25 	according to the factors under subdivision 2, paragraph (b);
118.26 	(2) the specific reasons for the placement of the child in foster care, and when 
118.27 	reunification is the plan, a description of the problems or conditions in the home of the 
118.28 	parent or parents which necessitated removal of the child from home and the changes the 
118.29 	parent or parents must make in order for the child to safely return home;
118.30 	(3) a description of the services offered and provided to prevent removal of the child 
118.31 	from the home and to reunify the family including:
118.32 	(i) the specific actions to be taken by the parent or parents of the child to eliminate 
118.33 	or correct the problems or conditions identified in clause (2), and the time period during 
118.34 	which the actions are to be taken; and
118.35 	(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made 
118.36 	to achieve a safe and stable home for the child including social and other supportive 
119.1 	services to be provided or offered to the parent or parents or guardian of the child, the 
119.2 	child, and the residential facility during the period the child is in the residential facility;
119.3 	(4) a description of any services or resources that were requested by the child or the 
119.4 	child's parent, guardian, foster parent, or custodian since the date of the child's placement 
119.5 	in the residential facility, and whether those services or resources were provided and if 
119.6 	not, the basis for the denial of the services or resources;
119.7 	(5) the visitation plan for the parent or parents or guardian, other relatives as defined 
119.8 	in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed 
119.9 	together in foster care, and whether visitation is consistent with the best interest of the 
119.10 	child, during the period the child is in foster care;
119.11 	(6) when a child cannot return to or be in the care of either parent, documentation of 
119.12 	steps to finalize the permanency plan for the child, including:
119.13 	(i) reasonable efforts to place the child for adoption or legal guardianship of the child 
119.14 	if the court has issued an order terminating the rights of both parents of the child or of the 
119.15 	only known, living parent of the child. At a minimum, the documentation must include 
119.16 	consideration of whether adoption is in the best interests of the child, child-specific 
119.17 	recruitment efforts such as relative search and the use of state, regional, and national 
119.18 	adoption exchanges to facilitate orderly and timely placements in and outside of the state. 
119.19 	A copy of this documentation shall be provided to the court in the review required under 
119.20 	section 260C.317, subdivision 3, paragraph (b); and
119.21 	(ii) documentation necessary to support the requirements of the kinship placement 
119.22 	agreement under section 256N.22 when adoption is determined not to be in the child's 
119.23 	best interest;
119.24 	(7) efforts to ensure the child's educational stability while in foster care, including:
119.25 	(i) efforts to ensure that the child remains in the same school in which the child was 
119.26 	enrolled prior to placement or upon the child's move from one placement to another, 
119.27 	including efforts to work with the local education authorities to ensure the child's 
119.28 	educational stability; or
119.29 	(ii) if it is not in the child's best interest to remain in the same school that the child 
119.30 	was enrolled in prior to placement or move from one placement to another, efforts to 
119.31 	ensure immediate and appropriate enrollment for the child in a new school;
119.32 	(8) the educational records of the child including the most recent information 
119.33 	available regarding:
119.34 	(i) the names and addresses of the child's educational providers;
119.35 	(ii) the child's grade level performance;
119.36 	(iii) the child's school record;
120.1 	(iv) a statement about how the child's placement in foster care takes into account 
120.2 	proximity to the school in which the child is enrolled at the time of placement; and
120.3 	(v) any other relevant educational information;
120.4 	(9) the efforts by the local agency to ensure the oversight and continuity of health 
120.5 	care services for the foster child, including:
120.6 	(i) the plan to schedule the child's initial health screens;
120.7 	(ii) how the child's known medical problems and identified needs from the screens, 
120.8 	including any known communicable diseases, as defined in section 144.4172, subdivision 
120.9 	2, will be monitored and treated while the child is in foster care;
120.10 	(iii) how the child's medical information will be updated and shared, including 
120.11 	the child's immunizations;
120.12 	(iv) who is responsible to coordinate and respond to the child's health care needs, 
120.13 	including the role of the parent, the agency, and the foster parent;
120.14 	(v) who is responsible for oversight of the child's prescription medications;
120.15 	(vi) how physicians or other appropriate medical and nonmedical professionals 
120.16 	will be consulted and involved in assessing the health and well-being of the child and 
120.17 	determine the appropriate medical treatment for the child; and
120.18 	(vii) the responsibility to ensure that the child has access to medical care through 
120.19 	either medical insurance or medical assistance;
120.20 	(10) the health records of the child including information available regarding:
120.21 	(i) the names and addresses of the child's health care and dental care providers;
120.22 	(ii) a record of the child's immunizations;
120.23 	(iii) the child's known medical problems, including any known communicable 
120.24 	diseases as defined in section 144.4172, subdivision 2;
120.25 	(iv) the child's medications; and
120.26 	(v) any other relevant health care information such as the child's eligibility for 
120.27 	medical insurance or medical assistance;
120.28 	(11) an independent living plan for a child age 16 or older. The plan should include, 
120.29 	but not be limited to, the following objectives:
120.30 	(i) educational, vocational, or employment planning;
120.31 	(ii) health care planning and medical coverage;
120.32 	(iii) transportation including, where appropriate, assisting the child in obtaining a 
120.33 	driver's license;
120.34 	(iv) money management, including the responsibility of the agency to ensure that 
120.35 	the youth annually receives, at no cost to the youth, a consumer report as defined under 
120.36 	section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;
121.1 	(v) planning for housing;
121.2 	(vi) social and recreational skills; and
121.3 	(vii) establishing and maintaining connections with the child's family and 
121.4 	community; and
121.5 	(12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic 
121.6 	and assessment information, specific services relating to meeting the mental health care 
121.7 	needs of the child, and treatment outcomes.
121.8 	(d) The parent or parents or guardian and the child each shall have the right to legal 
121.9 	counsel in the preparation of the case plan and shall be informed of the right at the time 
121.10 	of placement of the child. The child shall also have the right to a guardian ad litem. 
121.11 	If unable to employ counsel from their own resources, the court shall appoint counsel 
121.12 	upon the request of the parent or parents or the child or the child's legal guardian. The 
121.13 	parent or parents may also receive assistance from any person or social services agency 
121.14 	in preparation of the case plan.
121.15 	After the plan has been agreed upon by the parties involved or approved or ordered 
121.16 	by the court, the foster parents shall be fully informed of the provisions of the case plan 
121.17 	and shall be provided a copy of the plan.
121.18 	Upon discharge from foster care, the parent, adoptive parent, or permanent legal and 
121.19 	physical custodian, as appropriate, and the child, if appropriate, must be provided with 
121.20 	a current copy of the child's health and education record.

121.21 	Sec. 23. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:
121.22 		Subd. 4.Custody to relative. The court may order permanent legal and physical 
121.23 	custody to a fit and willing relative in the best interests of the child according to the 
121.24 	following conditions requirements:
121.25 	(1) an order for transfer of permanent legal and physical custody to a relative shall 
121.26 	only be made after the court has reviewed the suitability of the prospective legal and 
121.27 	physical custodian, including a review of the background study required under sections 
121.28 	245C.33 and 256N.22, subdivision 4;
121.29 	(2) in transferring permanent legal and physical custody to a relative, the juvenile 
121.30 	court shall follow the standards applicable under this chapter and chapter 260, and the 
121.31 	procedures in the Minnesota Rules of Juvenile Protection Procedure;
121.32 	(3) a transfer of legal and physical custody includes responsibility for the protection, 
121.33 	education, care, and control of the child and decision making on behalf of the child;
122.1 	(4) a permanent legal and physical custodian may not return a child to the permanent 
122.2 	care of a parent from whom the court removed custody without the court's approval and 
122.3 	without notice to the responsible social services agency;
122.4 	(5) the social services agency may file a petition naming a fit and willing relative as 
122.5 	a proposed permanent legal and physical custodian. A petition for transfer of permanent 
122.6 	legal and physical custody to a relative who is not a parent shall be accompanied by a 
122.7 	kinship placement agreement under section 256N.22, subdivision 2, between the agency 
122.8 	and proposed permanent legal and physical custodian;
122.9 	(6) another party to the permanency proceeding regarding the child may file a 
122.10 	petition to transfer permanent legal and physical custody to a relative, but the. The petition 
122.11 	must include facts upon which the court can make the determination required under clause 
122.12 	(7) and must be filed not later than the date for the required admit-deny hearing under 
122.13 	section 260C.507; or if the agency's petition is filed under section 260C.503, subdivision 
122.14 	2, the petition must be filed not later than 30 days prior to the trial required under section 
122.15 	260C.509; and
122.16 	(7) where a petition is for transfer of permanent legal and physical custody to a 
122.17 	relative who is not a parent, the court must find that:
122.18 	(i) transfer of permanent legal and physical custody and receipt of Northstar kinship 
122.19 	assistance under chapter 256N, when requested and the child is eligible, is in the child's 
122.20 	best interests;
122.21 	(ii) adoption is not in the child's best interests based on the determinations in the 
122.22 	kinship placement agreement required under section 256N.22, subdivision 2;
122.23 	(iii) the agency made efforts to discuss adoption with the child's parent or parents, 
122.24 	or the agency did not make efforts to discuss adoption and the reasons why efforts were 
122.25 	not made; and
122.26 	(iv) there are reasons to separate siblings during placement, if applicable;
122.27 	(8) the court may defer finalization of an order transferring permanent legal and 
122.28 	physical custody to a relative when deferring finalization is necessary to determine 
122.29 	eligibility for Northstar kinship assistance under chapter 256N; and
122.30 	(7) (9) the juvenile court may maintain jurisdiction over the responsible social 
122.31 	services agency, the parents or guardian of the child, the child, and the permanent legal 
122.32 	and physical custodian for purposes of ensuring appropriate services are delivered to the 
122.33 	child and permanent legal custodian for the purpose of ensuring conditions ordered by the 
122.34 	court related to the care and custody of the child are met.

123.1 	Sec. 24. Minnesota Statutes 2012, section 260C.611, is amended to read:
123.2 	260C.611 ADOPTION STUDY REQUIRED.
123.3 	(a) An adoption study under section 259.41 approving placement of the child in the 
123.4 	home of the prospective adoptive parent shall be completed before placing any child under 
123.5 	the guardianship of the commissioner in a home for adoption. If a prospective adoptive 
123.6 	parent has a current child foster care license under chapter 245A and is seeking to adopt 
123.7 	a foster child who is placed in the prospective adoptive parent's home and is under the 
123.8 	guardianship of the commissioner according to section 260C.325, subdivision 1, the child 
123.9 	foster care home study meets the requirements of this section for an approved adoption 
123.10 	home study if:
123.11 	(1) the written home study on which the foster care license was based is completed 
123.12 	in the commissioner's designated format, consistent with the requirements in sections 
123.13 	260C.215, subdivision 4, clause (5); and 259.41, subdivision 2; and Minnesota Rules, 
123.14 	part 2960.3060, subpart 4;
123.15 	(2) the background studies on each prospective adoptive parent and all required 
123.16 	household members were completed according to section 245C.33;
123.17 	(3) the commissioner has not issued, within the last three years, a sanction on the 
123.18 	license under section 245A.07 or an order of a conditional license under section 245A.06; 
123.19 	and
123.20 	(4) the legally responsible agency determines that the individual needs of the child 
123.21 	are being met by the prospective adoptive parent through an assessment under section 
123.22 	256N.24, subdivision 2, or a documented placement decision consistent with section 
123.23 	260C.212, subdivision 2.
123.24 	(b) If a prospective adoptive parent has previously held a foster care license or 
123.25 	adoptive home study, any update necessary to the foster care license, or updated or new 
123.26 	adoptive home study, if not completed by the licensing authority responsible for the 
123.27 	previous license or home study, shall include collateral information from the previous 
123.28 	licensing or approving agency, if available.

123.29 	Sec. 25. REVISOR'S INSTRUCTION.
 123.30 	The revisor of statutes shall change the term "guardianship assistance" to "Northstar 
123.31 	kinship assistance" wherever it appears in Minnesota Statutes and Minnesota Rules to 
123.32 	refer to the program components related to Northstar Care for Children under Minnesota 
123.33 	Statutes, chapter 256N.

123.34 	Sec. 26.  REPEALER.
 124.1 	Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7, is repealed.

124.2 	ARTICLE 18
124.3 	COMMUNITY FIRST SERVICES AND SUPPORTS

124.4 	Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a 
124.5 	subdivision to read:
124.6 		Subd. 8.Community first services and supports organizations. The 
124.7 	commissioner shall conduct background studies on any individual required under section 
124.8 	256B.85 to have a background study completed under this chapter.

124.9 	Sec. 2. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision 
124.10 	to read:
124.11 		Subd. 7.Community first services and supports organizations. (a) The 
124.12 	commissioner shall conduct a background study of an individual required to be studied 
124.13 	under section 245C.03, subdivision 8, at least upon application for initial enrollment 
124.14 	under section 256B.85.
124.15 	(b) Before an individual described in section 245C.03, subdivision 8, begins a 
124.16 	position allowing direct contact with a person served by an organization required to initiate 
124.17 	a background study under section 256B.85, the organization must receive a notice from 
124.18 	the commissioner that the support worker is:
124.19 	(1) not disqualified under section 245C.14; or
124.20 	(2) disqualified, but the individual has received a set-aside of the disqualification 
124.21 	under section 245C.22.

124.22 	Sec. 3. Minnesota Statutes 2012, section 245C.10, is amended by adding a subdivision 
124.23 	to read:
124.24 		Subd. 10.Community first services and supports organizations. The 
124.25 	commissioner shall recover the cost of background studies initiated by an agency-provider 
124.26 	delivering services under section 256B.85, subdivision 11, or a financial management 
124.27 	services contractor providing service functions under section 256B.85, subdivision 13, 
124.28 	through a fee of no more than $20 per study, charged to the organization responsible for 
124.29 	submitting the background study form. The fees collected under this subdivision are 
124.30 	appropriated to the commissioner for the purpose of conducting background studies.

124.31 	Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is 
124.32 	amended to read:
125.1 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in 
125.2 	this subdivision have the meanings given.
125.3 	(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming, 
125.4 	dressing, bathing, mobility, positioning, and transferring.
125.5 	(c) "Agency-provider model" means a method of CFSS under which a qualified 
125.6 	agency provides services and supports through the agency's own employees and policies. 
125.7 	The agency must allow the participant to have a significant role in the selection and 
125.8 	dismissal of support workers of their choice for the delivery of their specific services 
125.9 	and supports.
125.10 	(d) "Behavior" means a description of a need for services and supports used to 
125.11 	determine the home care rating and additional service units. The presence of Level I 
125.12 	behavior is used to determine the home care rating. "Level I behavior" means physical 
125.13 	aggression towards self or others or destruction of property that requires the immediate 
125.14 	response of another person. If qualified for a home care rating as described in subdivision 
125.15 	8, additional service units can be added as described in subdivision 8, paragraph (f), for 
125.16 	the following behaviors:
125.17 	(1) Level I behavior;
125.18 	(2) increased vulnerability due to cognitive deficits or socially inappropriate 
125.19 	behavior; or
125.20 	(3) increased need for assistance for recipients participants who are verbally 
125.21 	aggressive or resistive to care so that time needed to perform activities of daily living is 
125.22 	increased.
125.23 	(e) "Budget model" means a service delivery method of CFSS that allows the 
125.24 	use of a service budget and assistance from a vendor fiscal/employer agent financial 
125.25 	management services (FMS) contractor for a participant to directly employ support 
125.26 	workers and purchase supports and goods.
125.27 	(e) (f) "Complex health-related needs" means an intervention listed in clauses (1) 
125.28 	to (8) that has been ordered by a physician, and is specified in a community support 
125.29 	plan, including:
125.30 	(1) tube feedings requiring:
125.31 	(i) a gastrojejunostomy tube; or
125.32 	(ii) continuous tube feeding lasting longer than 12 hours per day;
125.33 	(2) wounds described as:
125.34 	(i) stage III or stage IV;
125.35 	(ii) multiple wounds;
125.36 	(iii) requiring sterile or clean dressing changes or a wound vac; or
126.1 	(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require 
126.2 	specialized care;
126.3 	(3) parenteral therapy described as:
126.4 	(i) IV therapy more than two times per week lasting longer than four hours for 
126.5 	each treatment; or
126.6 	(ii) total parenteral nutrition (TPN) daily;
126.7 	(4) respiratory interventions, including:
126.8 	(i) oxygen required more than eight hours per day;
126.9 	(ii) respiratory vest more than one time per day;
126.10 	(iii) bronchial drainage treatments more than two times per day;
126.11 	(iv) sterile or clean suctioning more than six times per day;
126.12 	(v) dependence on another to apply respiratory ventilation augmentation devices 
126.13 	such as BiPAP and CPAP; and
126.14 	(vi) ventilator dependence under section 256B.0652;
126.15 	(5) insertion and maintenance of catheter, including:
126.16 	(i) sterile catheter changes more than one time per month;
126.17 	(ii) clean intermittent catheterization, and including self-catheterization more than 
126.18 	six times per day; or
126.19 	(iii) bladder irrigations;
126.20 	(6) bowel program more than two times per week requiring more than 30 minutes to 
126.21 	perform each time;
126.22 	(7) neurological intervention, including:
126.23 	(i) seizures more than two times per week and requiring significant physical 
126.24 	assistance to maintain safety; or
126.25 	(ii) swallowing disorders diagnosed by a physician and requiring specialized 
126.26 	assistance from another on a daily basis; and
126.27 	(8) other congenital or acquired diseases creating a need for significantly increased 
126.28 	direct hands-on assistance and interventions in six to eight activities of daily living.
126.29 	(f) (g) "Community first services and supports" or "CFSS" means the assistance and 
126.30 	supports program under this section needed for accomplishing activities of daily living, 
126.31 	instrumental activities of daily living, and health-related tasks through hands-on assistance 
126.32 	to accomplish the task or constant supervision and cueing to accomplish the task, or the 
126.33 	purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace 
126.34 	the need for human assistance.
126.35 	(g) (h) "Community first services and supports service delivery plan" or "service 
126.36 	delivery plan" means a written summary of document detailing the services and supports 
127.1 	chosen by the participant to meet assessed needs that is are within the approved CFSS 
127.2 	service authorization amount. Services and supports are based on the community support 
127.3 	plan identified in section 256B.0911 and coordinated services and support plan and budget 
127.4 	identified in section 256B.0915, subdivision 6, if applicable, that is determined by the 
127.5 	participant to meet the assessed needs, using a person-centered planning process.
127.6 	(i) "Consultation services" means a Minnesota health care program enrolled provider 
127.7 	organization that is under contract with the department and has the knowledge, skills, 
127.8 	and ability to assist CFSS participants in using either the agency-provider model under 
127.9 	subdivision 11 or the budget model under subdivision 13.
127.10 	(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and 
127.11 	toileting.
127.12 	(i) (k) "Dependency" in activities of daily living means a person requires hands-on 
127.13 	assistance or constant supervision and cueing to accomplish one or more of the activities 
127.14 	of daily living every day or on the days during the week that the activity is performed; 
127.15 	however, a child may not be found to be dependent in an activity of daily living if, 
127.16 	because of the child's age, an adult would either perform the activity for the child or assist 
127.17 	the child with the activity and the assistance needed is the assistance appropriate for 
127.18 	a typical child of the same age.
127.19 	(j) (l) "Extended CFSS" means CFSS services and supports under the 
127.20 	agency-provider model included in a service plan through one of the home and 
127.21 	community-based services waivers and approved and authorized under sections 
127.22 	256B.0915; 256B.092, subdivision 5; and 256B.49, which exceed the amount, duration, 
127.23 	and frequency of the state plan CFSS services for participants.
127.24 	(k) (m) "Financial management services contractor or vendor" or "FMS contractor"
127.25 	 means a qualified organization having necessary to use the budget model under subdivision 
127.26 	13 that has a written contract with the department to provide vendor fiscal/employer agent 
127.27 	financial management services necessary to use the budget model under subdivision 13 
127.28 	that (FMS). Services include but are not limited to: participant education and technical 
127.29 	assistance; CFSS service delivery planning and budgeting;filing and payment of federal 
127.30 	and state payroll taxes on behalf of the participant; initiating criminal background 
127.31 	checks; billing, making payments, and for approved CFSS funds; monitoring of 
127.32 	spending expenditures; accounting and disbursing CFSS funds; providing assistance in 
127.33 	obtaining liability, workers' compensation, and unemployment coverage and filings; and 
127.34 	assisting participant instruction and technical assistance to the participant in fulfilling 
127.35 	employer-related requirements in accordance with Section 3504 of the Internal Revenue 
128.1 	Code and the Internal Revenue Service Revenue Procedure 70-6 related regulations and 
128.2 	interpretations, including Code of Federal Regulations, title 26, section 31.3504-1.
128.3 	(l) "Budget model" means a service delivery method of CFSS that allows the use of 
128.4 	an individualized CFSS service delivery plan and service budget and provides assistance 
128.5 	from the financial management services contractor to facilitate participant employment of 
128.6 	support workers and the acquisition of supports and goods.
128.7 	(m) (n) "Health-related procedures and tasks" means procedures and tasks related 
128.8 	to the specific needs of an individual that can be delegated taught or assigned by a 
128.9 	state-licensed healthcare or mental health professional and performed by a support worker.
128.10 	(n) (o) "Instrumental activities of daily living" means activities related to 
128.11 	living independently in the community, including but not limited to: meal planning, 
128.12 	preparation, and cooking; shopping for food, clothing, or other essential items; laundry; 
128.13 	housecleaning; assistance with medications; managing finances; communicating needs 
128.14 	and preferences during activities; arranging supports; and assistance with traveling around 
128.15 	and participating in the community.
128.16 	(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian, 
128.17 	or another representative with legal authority to make decisions about services and 
128.18 	supports for the participant. Other representatives with legal authority to make decisions 
128.19 	include but are not limited to a health care agent or an attorney-in-fact authorized through 
128.20 	a health care directive or power of attorney.
128.21 	(p) (q) "Medication assistance" means providing verbal or visual reminders to take 
128.22 	regularly scheduled medication, and includes any of the following supports listed in clauses 
128.23 	(1) to (3) and other types of assistance, except that a support worker may not determine 
128.24 	medication dose or time for medication or inject medications into veins, muscles, or skin:
128.25 	(1) under the direction of the participant or the participant's representative, bringing 
128.26 	medications to the participant including medications given through a nebulizer, opening a 
128.27 	container of previously set-up medications, emptying the container into the participant's 
128.28 	hand, opening and giving the medication in the original container to the participant, or 
128.29 	bringing to the participant liquids or food to accompany the medication;
128.30 	(2) organizing medications as directed by the participant or the participant's 
128.31 	representative; and
128.32 	(3) providing verbal or visual reminders to perform regularly scheduled medications.
128.33 	(q) (r) "Participant's representative" means a parent, family member, advocate, 
128.34 	or other adult authorized by the participant to serve as a representative in connection 
128.35 	with the provision of CFSS. This authorization must be in writing or by another method 
128.36 	that clearly indicates the participant's free choice. The participant's representative must 
129.1 	have no financial interest in the provision of any services included in the participant's 
129.2 	service delivery plan and must be capable of providing the support necessary to assist 
129.3 	the participant in the use of CFSS. If through the assessment process described in 
129.4 	subdivision 5 a participant is determined to be in need of a participant's representative, one 
129.5 	must be selected. If the participant is unable to assist in the selection of a participant's 
129.6 	representative, the legal representative shall appoint one. Two persons may be designated 
129.7 	as a participant's representative for reasons such as divided households and court-ordered 
129.8 	custodies. Duties of a participant's representatives may include:
129.9 	(1) being available while care is services are provided in a method agreed upon by 
129.10 	the participant or the participant's legal representative and documented in the participant's 
129.11 	CFSS service delivery plan;
129.12 	(2) monitoring CFSS services to ensure the participant's CFSS service delivery 
129.13 	plan is being followed; and
129.14 	(3) reviewing and signing CFSS time sheets after services are provided to provide 
129.15 	verification of the CFSS services.
129.16 	(r) (s) "Person-centered planning process" means a process that is directed by the 
129.17 	participant to plan for services and supports. The person-centered planning process must:
129.18 	(1) include people chosen by the participant;
129.19 	(2) provide necessary information and support to ensure that the participant directs 
129.20 	the process to the maximum extent possible, and is enabled to make informed choices 
129.21 	and decisions;
129.22 	(3) be timely and occur at time and locations of convenience to the participant;
129.23 	(4) reflect cultural considerations of the participant;
129.24 	(5) include strategies for solving conflict or disagreement within the process, 
129.25 	including clear conflict-of-interest guidelines for all planning;
129.26 	(6) provide the participant choices of the services and supports they receive and the 
129.27 	staff providing those services and supports;
129.28 	(7) include a method for the participant to request updates to the plan; and
129.29 	(8) record the alternative home and community-based settings that were considered 
129.30 	by the participant.
129.31 	(s) (t) "Shared services" means the provision of CFSS services by the same CFSS 
129.32 	support worker to two or three participants who voluntarily enter into an agreement 
129.33 	to receive services at the same time and in the same setting by the same provider
129.34 	 agency-provider.
129.35 	(t) "Support specialist" means a professional with the skills and ability to assist the 
129.36 	participant using either the agency-provider model under subdivision 11 or the flexible 
130.1 	spending model under subdivision 13, in services including but not limited to assistance 
130.2 	regarding:
130.3 	(1) the development, implementation, and evaluation of the CFSS service delivery 
130.4 	plan under subdivision 6;
130.5 	(2) recruitment, training, or supervision, including supervision of health-related tasks 
130.6 	or behavioral supports appropriately delegated or assigned by a health care professional, 
130.7 	and evaluation of support workers; and
130.8 	(3) facilitating the use of informal and community supports, goods, or resources.
130.9 	(u) "Support worker" means an a qualified and trained employee of the agency 
130.10 	provider agency-provider or of the participant employer under the budget model who 
130.11 	has direct contact with the participant and provides services as specified within the 
130.12 	participant's service delivery plan.
130.13 	(v) "Wages and benefits" means the hourly wages and salaries, the employer's 
130.14 	share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' 
130.15 	compensation, mileage reimbursement, health and dental insurance, life insurance, 
130.16 	disability insurance, long-term care insurance, uniform allowance, contributions to 
130.17 	employee retirement accounts, or other forms of employee compensation and benefits.
130.18 	(w) "Worker training and development" means services for developing workers' 
130.19 	skills as required by the participant's individual CFSS delivery plan that are arranged for 
130.20 	or provided by the agency-provider or purchased by the participant employer. These 
130.21 	services include training, education, direct observation and supervision, and evaluation 
130.22 	and coaching of job skills and tasks, including supervision of health-related tasks or 
130.23 	behavioral supports.

130.24 	Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is 
130.25 	amended to read:
130.26 		Subd. 3.Eligibility. (a) CFSS is available to a person who meets one of the 
130.27 	following:
130.28 	(1) is a recipient an enrollee of medical assistance as determined under section 
130.29 	256B.055, 256B.056, or 256B.057, subdivisions 5 and 9;
130.30 	(2) is a recipient of participant in the alternative care program under section 
130.31 	256B.0913;
130.32 	(3) is a waiver recipient participant as defined under section 256B.0915, 256B.092, 
130.33 	256B.093, or 256B.49; or
130.34 	(4) has medical services identified in a participant's individualized education 
130.35 	program and is eligible for services as determined in section 256B.0625, subdivision 26.
131.1 	(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also 
131.2 	meet all of the following:
131.3 	(1) require assistance and be determined dependent in one activity of daily living or 
131.4 	Level I behavior based on assessment under section 256B.0911; and
131.5 	(2) is not a recipient of participant under a family support grant under section 252.32;.
131.6 	(3) lives in the person's own apartment or home including a family foster care setting 
131.7 	licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a 
131.8 	noncertified boarding care home or a boarding and lodging establishment under chapter 
131.9 	157.

131.10 	Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is 
131.11 	amended to read:
131.12 		Subd. 5.Assessment requirements. (a) The assessment of functional need must:
131.13 	(1) be conducted by a certified assessor according to the criteria established in 
131.14 	section 256B.0911, subdivision 3a;
131.15 	(2) be conducted face-to-face, initially and at least annually thereafter, or when there 
131.16 	is a significant change in the participant's condition or a change in the need for services 
131.17 	and supports, or at the request of the participant; and
131.18 	(3) be completed using the format established by the commissioner.
131.19 	(b) A participant who is residing in a facility may be assessed and choose CFSS for 
131.20 	the purpose of using CFSS to return to the community as described in subdivisions 3 
131.21 	and 7, paragraph (a), clause (5).
131.22 	(c) (b) The results of the assessment and any recommendations and authorizations 
131.23 	for CFSS must be determined and communicated in writing by the lead agency's certified 
131.24 	assessor as defined in section 256B.0911 to the participant and the agency-provider or 
131.25 	financial management services provider FMS contractor chosen by the participant within 
131.26 	40 calendar days and must include the participant's right to appeal under section 256.045, 
131.27 	subdivision 3.
131.28 	(d) (c) The lead agency assessor may request authorize a temporary authorization 
131.29 	for CFSS services to be provided under the agency-provider model. Authorization for 
131.30 	a temporary level of CFSS services under the agency-provider model is limited to the 
131.31 	time specified by the commissioner, but shall not exceed 45 days. The level of services 
131.32 	authorized under this provision paragraph shall have no bearing on a future authorization.

131.33 	Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is 
131.34 	amended to read:
132.1 		Subd. 6.Community first services and support service delivery plan. (a) The 
132.2 	CFSS service delivery plan must be developed, implemented, and evaluated through a 
132.3 	person-centered planning process by the participant, or the participant's representative 
132.4 	or legal representative who may be assisted by a support specialist consultation services 
132.5 	provider. The CFSS service delivery plan must reflect the services and supports that 
132.6 	are important to the participant and for the participant to meet the needs assessed 
132.7 	by the certified assessor and identified in the community support plan under section 
132.8 	256B.0911, subdivision 3, or the coordinated services and support plan identified in 
132.9 	section 256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be 
132.10 	reviewed by the participant, the consultation services provider, and the agency-provider 
132.11 	or financial management services FMS contractor prior to starting services and at least 
132.12 	annually upon reassessment, or when there is a significant change in the participant's 
132.13 	condition, or a change in the need for services and supports.
132.14 	(b) The commissioner shall establish the format and criteria for the CFSS service 
132.15 	delivery plan.
132.16 	(c) The CFSS service delivery plan must be person-centered and:
132.17 	(1) specify the consultation services provider, agency-provider, or financial 
132.18 	management services FMS contractor selected by the participant;
132.19 	(2) reflect the setting in which the participant resides that is chosen by the participant;
132.20 	(3) reflect the participant's strengths and preferences;
132.21 	(4) include the means to address the clinical and support needs as identified through 
132.22 	an assessment of functional needs;
132.23 	(5) include individually identified goals and desired outcomes;
132.24 	(6) reflect the services and supports, paid and unpaid, that will assist the participant 
132.25 	to achieve identified goals, including the costs of the services and supports, and the 
132.26 	providers of those services and supports, including natural supports;
132.27 	(7) identify the amount and frequency of face-to-face supports and amount and 
132.28 	frequency of remote supports and technology that will be used;
132.29 	(8) identify risk factors and measures in place to minimize them, including 
132.30 	individualized backup plans;
132.31 	(9) be understandable to the participant and the individuals providing support;
132.32 	(10) identify the individual or entity responsible for monitoring the plan;
132.33 	(11) be finalized and agreed to in writing by the participant and signed by all 
132.34 	individuals and providers responsible for its implementation;
132.35 	(12) be distributed to the participant and other people involved in the plan; and
132.36 	(13) prevent the provision of unnecessary or inappropriate care.;
133.1 	(14) include a detailed budget for expenditures for budget model participants or 
133.2 	participants under the agency-provider model if purchasing goods; and
133.3 	(15) include a plan for worker training and development detailing what service 
133.4 	components will be used, when the service components will be used, how they will be 
133.5 	provided, and how these service components relate to the participant's individual needs 
133.6 	and CFSS support worker services.
133.7 	(d) The total units of agency-provider services or the service budget allocation
133.8 	 amount for the budget model include both annual totals and a monthly average amount 
133.9 	that cover the number of months of the service authorization. The amount used each 
133.10 	month may vary, but additional funds must not be provided above the annual service 
133.11 	authorization amount unless a change in condition is assessed and authorized by the 
133.12 	certified assessor and documented in the community support plan, coordinated services 
133.13 	and supports plan, and CFSS service delivery plan.
133.14 	(e) In assisting with the development or modification of the plan during the 
133.15 	authorization time period, the consultation services provider shall:
133.16 	(1) consult with the FMS contractor on the spending budget when applicable; and
133.17 	(2) consult with the participant or participant's representative, agency-provider, and 
133.18 	case manager/care coordinator.
133.19 	(f) The service plan must be approved by the consultation services provider for 
133.20 	participants without a case manager/care coordinator. A case manager/care coordinator 
133.21 	must approve the plan for a waiver or alternative care program participant.

133.22 	Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 7, is 
133.23 	amended to read:
133.24 		Subd. 7.Community first services and supports; covered services. Within the 
133.25 	service unit authorization or service budget allocation amount, services and supports 
133.26 	covered under CFSS include:
133.27 	(1) assistance to accomplish activities of daily living (ADLs), instrumental activities 
133.28 	of daily living (IADLs), and health-related procedures and tasks through hands-on 
133.29 	assistance to accomplish the task or constant supervision and cueing to accomplish the task;
133.30 	(2) assistance to acquire, maintain, or enhance the skills necessary for the participant 
133.31 	to accomplish activities of daily living, instrumental activities of daily living, or 
133.32 	health-related tasks;
133.33 	(3) expenditures for items, services, supports, environmental modifications, or 
133.34 	goods, including assistive technology. These expenditures must:
133.35 	(i) relate to a need identified in a participant's CFSS service delivery plan;
134.1 	(ii) increase independence or substitute for human assistance to the extent that 
134.2 	expenditures would otherwise be made for human assistance for the participant's assessed 
134.3 	needs;
134.4 	(4) observation and redirection for behavior or symptoms where there is a need for 
134.5 	assistance. An assessment of behaviors must meet the criteria in this clause. A recipient
134.6 	 participant qualifies as having a need for assistance due to behaviors if the recipient's
134.7 	 participant's behavior requires assistance at least four times per week and shows one or 
134.8 	more of the following behaviors:
134.9 	(i) physical aggression towards self or others, or destruction of property that requires 
134.10 	the immediate response of another person;
134.11 	(ii) increased vulnerability due to cognitive deficits or socially inappropriate 
134.12 	behavior; or
134.13 	(iii) increased need for assistance for recipients participants who are verbally 
134.14 	aggressive or resistive to care so that time needed to perform activities of daily living is 
134.15 	increased;
134.16 	(5) back-up systems or mechanisms, such as the use of pagers or other electronic 
134.17 	devices, to ensure continuity of the participant's services and supports;
134.18 	(6) transition costs, including:
134.19 	(i) deposits for rent and utilities;
134.20 	(ii) first month's rent and utilities;
134.21 	(iii) bedding;
134.22 	(iv) basic kitchen supplies;
134.23 	(v) other necessities, to the extent that these necessities are not otherwise covered 
134.24 	under any other funding that the participant is eligible to receive; and
134.25 	(vi) other required necessities for an individual to make the transition from a nursing 
134.26 	facility, institution for mental diseases, or intermediate care facility for persons with 
134.27 	developmental disabilities to a community-based home setting where the participant 
134.28 	resides; and
134.29 	(7) (6) services provided by a support specialist consultation services provider 
134.30 	under contract with the department and defined under subdivision 2 that are chosen by 
134.31 	the participant. 17;
134.32 	(7) services provided by an FMS contractor under contract with the department 
134.33 	as defined under subdivision 13;
134.34 	(8) CFSS services that may be provided by a qualified support worker who is 
134.35 	a parent, stepparent, or legal guardian of a participant under age 18, or who is the 
134.36 	participant's spouse. These support workers shall not provide any medical assistance home 
135.1 	and community-based services in excess of 40 hours per seven-day period regardless of 
135.2 	the number of parents, combination of parents and spouses, or number of children who 
135.3 	receive medical assistance services; and
135.4 	(9) worker training and development services as defined in subdivision 2, paragraph 
135.5 	(w), and described in subdivision 18a.

135.6 	Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is 
135.7 	amended to read:
135.8 		Subd. 8.Determination of CFSS service methodology. (a) All community first 
135.9 	services and supports must be authorized by the commissioner or the commissioner's 
135.10 	designee before services begin, except for the assessments established in section 
135.11 	256B.0911. The authorization for CFSS must be completed as soon as possible following 
135.12 	an assessment but no later than 40 calendar days from the date of the assessment.
135.13 	(b) The amount of CFSS authorized must be based on the recipient's participant's
135.14 	 home care rating described in paragraphs (d) and (e) and any additional service units for 
135.15 	which the person participant qualifies as described in paragraph (f).
135.16 	(c) The home care rating shall be determined by the commissioner or the 
135.17 	commissioner's designee based on information submitted to the commissioner identifying 
135.18 	the following for a recipient participant:
135.19 	(1) the total number of dependencies of activities of daily living as defined in 
135.20 	subdivision 2, paragraph (b);
135.21 	(2) the presence of complex health-related needs as defined in subdivision 2, 
135.22 	paragraph (e); and
135.23 	(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d), 
135.24 	clause (1).
135.25 	(d) The methodology to determine the total service units for CFSS for each home 
135.26 	care rating is based on the median paid units per day for each home care rating from 
135.27 	fiscal year 2007 data for the PCA program.
135.28 	(e) Each home care rating is designated by the letters P through Z and EN and has 
135.29 	the following base number of service units assigned:
135.30 	(1) P home care rating requires Level I behavior or one to three dependencies in 
135.31 	ADLs and qualifies one for five service units;
135.32 	(2) Q home care rating requires Level I behavior and one to three dependencies in 
135.33 	ADLs and qualifies one for six service units;
135.34 	(3) R home care rating requires a complex health-related need and one to three 
135.35 	dependencies in ADLs and qualifies one for seven service units;
136.1 	(4) S home care rating requires four to six dependencies in ADLs and qualifies 
136.2 	one for ten service units;
136.3 	(5) T home care rating requires four to six dependencies in ADLs and Level I 
136.4 	behavior and qualifies one for 11 service units;
136.5 	(6) U home care rating requires four to six dependencies in ADLs and a complex 
136.6 	health-related need and qualifies one for 14 service units;
136.7 	(7) V home care rating requires seven to eight dependencies in ADLs and qualifies 
136.8 	one for 17 service units;
136.9 	(8) W home care rating requires seven to eight dependencies in ADLs and Level I 
136.10 	behavior and qualifies one for 20 service units;
136.11 	(9) Z home care rating requires seven to eight dependencies in ADLs and a complex 
136.12 	health-related need and qualifies one for 30 service units; and
136.13 	(10) EN home care rating includes ventilator dependency as defined in section 
136.14 	256B.0651, subdivision 1, paragraph (g). Recipients Participants who meet the definition 
136.15 	of ventilator-dependent and the EN home care rating and utilize a combination of 
136.16 	CFSS and other home care services are limited to a total of 96 service units per day for 
136.17 	those services in combination. Additional units may be authorized when a recipient's
136.18 	 participant's assessment indicates a need for two staff to perform activities. Additional 
136.19 	time is limited to 16 service units per day.
136.20 	(f) Additional service units are provided through the assessment and identification of 
136.21 	the following:
136.22 	(1) 30 additional minutes per day for a dependency in each critical activity of daily 
136.23 	living as defined in subdivision 2, paragraph (h) (j);
136.24 	(2) 30 additional minutes per day for each complex health-related function as 
136.25 	defined in subdivision 2, paragraph (e) (f); and
136.26 	(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2, 
136.27 	paragraph (d).
136.28 	(g) The service budget for budget model participants shall be based on:
136.29 	(1) assessed units as determined by the home care rating; and
136.30 	(2) a multiplier established by the commissioner for administrative expenses.

136.31 	Sec. 10. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 9, is 
136.32 	amended to read:
136.33 		Subd. 9.Noncovered services. (a) Services or supports that are not eligible for 
136.34 	payment under this section include those that:
137.1 	(1) are not authorized by the certified assessor or included in the written service 
137.2 	delivery plan;
137.3 	(2) are provided prior to the authorization of services and the approval of the written 
137.4 	CFSS service delivery plan;
137.5 	(3) are duplicative of other paid services in the written service delivery plan;
137.6 	(4) supplant natural unpaid supports that appropriately meet a need in the service 
137.7 	plan, are provided voluntarily to the participant, and are selected by the participant in lieu 
137.8 	of other services and supports;
137.9 	(5) are not effective means to meet the participant's needs; and
137.10 	(6) are available through other funding sources, including, but not limited to, funding 
137.11 	through title IV-E of the Social Security Act.
137.12 	(b) Additional services, goods, or supports that are not covered include:
137.13 	(1) those that are not for the direct benefit of the participant, except that services for 
137.14 	caregivers such as training to improve the ability to provide CFSS are considered to directly 
137.15 	benefit the participant if chosen by the participant and approved in the support plan;
137.16 	(2) any fees incurred by the participant, such as Minnesota health care programs fees 
137.17 	and co-pays, legal fees, or costs related to advocate agencies;
137.18 	(3) insurance, except for insurance costs related to employee coverage;
137.19 	(4) room and board costs for the participant with the exception of allowable 
137.20 	transition costs in subdivision 7, clause (6);
137.21 	(5) services, supports, or goods that are not related to the assessed needs;
137.22 	(6) special education and related services provided under the Individuals with 
137.23 	Disabilities Education Act and vocational rehabilitation services provided under the 
137.24 	Rehabilitation Act of 1973;
137.25 	(7) assistive technology devices and assistive technology services other than those 
137.26 	for back-up systems or mechanisms to ensure continuity of service and supports listed in 
137.27 	subdivision 7;
137.28 	(8) medical supplies and equipment;
137.29 	(9) environmental modifications, except as specified in subdivision 7;
137.30 	(10) expenses for travel, lodging, or meals related to training the participant, or the 
137.31 	participant's representative,or legal representative, or paid or unpaid caregivers that 
137.32 	exceed $500 in a 12-month period;
137.33 	(11) experimental treatments;
137.34 	(12) any service or good covered by other medical assistance state plan services, 
137.35 	including prescription and over-the-counter medications, compounds, and solutions and 
137.36 	related fees, including premiums and co-payments;
138.1 	(13) membership dues or costs, except when the service is necessary and appropriate 
138.2 	to treat a physical condition or to improve or maintain the participant's physical condition. 
138.3 	The condition must be identified in the participant's CFSS plan and monitored by a 
138.4 	physician enrolled in a Minnesota health care program;
138.5 	(14) vacation expenses other than the cost of direct services;
138.6 	(15) vehicle maintenance or modifications not related to the disability, health 
138.7 	condition, or physical need; and
138.8 	(16) tickets and related costs to attend sporting or other recreational or entertainment 
138.9 	events.;
138.10 	(17) instrumental activities of daily living for children under the age of 18, except 
138.11 	when immediate attention is needed for health or hygiene reasons integral to CFSS 
138.12 	services and the assessor has listed the need in the service plan;
138.13 	(18) services provided and billed by a provider who is not an enrolled CFSS provider;
138.14 	(19) CFSS provided by a participant's representative or paid legal guardian;
138.15 	(20) services that are used solely as a child care or babysitting service;
138.16 	(21) services that are the responsibility or in the daily rate of a residential or program 
138.17 	license holder under the terms of a service agreement and administrative rules;
138.18 	(22) sterile procedures;
138.19 	(23) giving of injections into veins, muscles, or skin;
138.20 	(24) homemaker services that are not an integral part of the assessed CFSS service;
138.21 	(25) home maintenance or chore services;
138.22 	(26) home care services, including hospice services if elected by the participant, 
138.23 	covered by Medicare or any other insurance held by the participant;
138.24 	(27) services to other members of the participant's household;
138.25 	(28) services not specified as covered under medical assistance as CFSS;
138.26 	(29) application of restraints or implementation of deprivation procedures;
138.27 	(30) assessments by CFSS provider organizations or by independently enrolled 
138.28 	registered nurses;
138.29 	(31) services provided in lieu of legally required staffing in a residential or child 
138.30 	care setting; and
138.31 	(32) services provided by the residential or program license holder in a residence for 
138.32 	more than four persons.

138.33 	Sec. 11. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 10, 
138.34 	is amended to read:
139.1 		Subd. 10.Provider Agency-provider and FMS contractor qualifications and,
139.2 	 general requirements, and duties. (a) Agency-providers delivering services under the 
139.3 	agency-provider model under subdivision 11 or financial management service (FMS)
139.4 	 FMS contractors under subdivision 13 shall:
139.5 	(1) enroll as a medical assistance Minnesota health care programs provider and meet 
139.6 	all applicable provider standards and requirements;
139.7 	(2) comply with medical assistance provider enrollment requirements;
139.8 	(3) (2) demonstrate compliance with law federal and state laws and policies of for
139.9 	 CFSS as determined by the commissioner;
139.10 	(4) (3) comply with background study requirements under chapter 245C and 
139.11 	maintain documentation of background study requests and results;
139.12 	(5) (4) verify and maintain records of all services and expenditures by the participant, 
139.13 	including hours worked by support workers and support specialists;
139.14 	(6) (5) not engage in any agency-initiated direct contact or marketing in person, by 
139.15 	telephone, or other electronic means to potential participants, guardians, family members, 
139.16 	or participants' representatives;
139.17 	(6) directly provide services and not use a subcontractor or reporting agent;
139.18 	(7) meet the financial requirements established by the commissioner for financial 
139.19 	solvency;
139.20 	(8) have never had a lead agency contract or provider agreement discontinued due to 
139.21 	fraud, or have never had an owner, board member, or manager fail a state or FBI-based 
139.22 	criminal background check while enrolled or seeking enrollment as a Minnesota health 
139.23 	care programs provider;
139.24 	(9) have established business practices that include written policies and procedures, 
139.25 	internal controls, and a system that demonstrates the organization's ability to deliver 
139.26 	quality CFSS; and
139.27 	(10) have an office located in Minnesota.
139.28 	(b) In conducting general duties, agency-providers and VF/EA financial management 
139.29 	services contractors shall:
139.30 	(7) (1) pay support workers and support specialists based upon actual hours of 
139.31 	services provided;
139.32 	(2) pay for worker training and development services based upon actual hours of 
139.33 	services provided or the unit cost of the training session purchased;
139.34 	(8) (3) withhold and pay all applicable federal and state payroll taxes;
139.35 	(9) (4) make arrangements and pay unemployment insurance, taxes, workers' 
139.36 	compensation, liability insurance, and other benefits, if any;
140.1 	(10) (5) enter into a written agreement with the participant, participant's 
140.2 	representative, or legal representative that assigns roles and responsibilities to be 
140.3 	performed before services, supports, or goods are provided using a format established by 
140.4 	the commissioner;
140.5 	(11) (6) report maltreatment as required under sections 626.556 and 626.557; and
140.6 	(12) (7) provide the participant with a copy of the service-related rights under 
140.7 	subdivision 20 at the start of services and supports.; and
140.8 	(8) comply with any data requests from the department.

140.9 	Sec. 12. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 11, 
140.10 	is amended to read:
140.11 		Subd. 11.Agency-provider model. (a) The agency-provider model is limited to 
140.12 	the includes services provided by support workers and support specialists staff providing 
140.13 	worker training and development services who are employed by an agency-provider 
140.14 	that is licensed according to chapter 245A or meets other criteria established by the 
140.15 	commissioner, including required training.
140.16 	(b) The agency-provider shall allow the participant to have a significant role in the 
140.17 	selection and dismissal of the support workers for the delivery of the services and supports 
140.18 	specified in the participant's service delivery plan.
140.19 	(c) A participant may use authorized units of CFSS services as needed within a 
140.20 	service authorization that is not greater than 12 months. Using authorized units in a 
140.21 	flexible manner in either the agency-provider model or the budget model does not increase 
140.22 	the total amount of services and supports authorized for a participant or included in the 
140.23 	participant's service delivery plan.
140.24 	(d) A participant may share CFSS services. Two or three CFSS participants may 
140.25 	share services at the same time provided by the same support worker.
140.26 	(e) The agency-provider must use a minimum of 72.5 percent of the revenue 
140.27 	generated by the medical assistance payment for CFSS for support worker wages and 
140.28 	benefits. The agency-provider must document how this requirement is being met. The 
140.29 	revenue generated by the support specialist worker training and development services
140.30 	 and the reasonable costs associated with the support specialist worker training and 
140.31 	development services must not be used in making this calculation.
140.32 	(f) The agency-provider model must be used by individuals who have been restricted 
140.33 	by the Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160 
140.34 	to 9505.2245.
141.1 	(g) Participants purchasing goods under this model, along with support worker 
141.2 	services, must:
141.3 	(1) specify the goods in the service delivery plan and detailed budget for 
141.4 	expenditures that must be approved by the consultation services provider or the case 
141.5 	manager/care coordinator; and
141.6 	(2) use the FMS contractor for the billing and payment of such goods.

141.7 	Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12, 
141.8 	is amended to read:
141.9 		Subd. 12.Requirements for enrollment of CFSS provider agency-provider
141.10 	 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of 
141.11 	enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in 
141.12 	a format determined by the commissioner, information and documentation that includes, 
141.13 	but is not limited to, the following:
141.14 	(1) the CFSS provider agency's agency-provider's current contact information 
141.15 	including address, telephone number, and e-mail address;
141.16 	(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's
141.17 	 agency-provider's Medicaid revenue in the previous calendar year is less than or equal 
141.18 	to $300,000, the provider agency agency-provider must purchase a performance bond of 
141.19 	$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous 
141.20 	calendar year is greater than $300,000, the provider agency agency-provider must 
141.21 	purchase a performance bond of $100,000. The performance bond must be in a form 
141.22 	approved by the commissioner, must be renewed annually, and must allow for recovery of 
141.23 	costs and fees in pursuing a claim on the bond;
141.24 	(3) proof of fidelity bond coverage in the amount of $20,000;
141.25 	(4) proof of workers' compensation insurance coverage;
141.26 	(5) proof of liability insurance;
141.27 	(6) a description of the CFSS provider agency's agency-provider's organization 
141.28 	identifying the names of all owners, managing employees, staff, board of directors, and 
141.29 	the affiliations of the directors, and owners, or staff to other service providers;
141.30 	(7) a copy of the CFSS provider agency's agency-provider's written policies and 
141.31 	procedures including: hiring of employees; training requirements; service delivery; 
141.32 	and employee and consumer safety including process for notification and resolution 
141.33 	of consumer grievances, identification and prevention of communicable diseases, and 
141.34 	employee misconduct;
142.1 	(8) copies of all other forms the CFSS provider agency agency-provider uses in the 
142.2 	course of daily business including, but not limited to:
142.3 	(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time 
142.4 	sheet varies from the standard time sheet for CFSS services approved by the commissioner, 
142.5 	and a letter requesting approval of the CFSS provider agency's agency-provider's
142.6 	 nonstandard time sheet; and
142.7 	(ii) the a copy of the participant's individual CFSS provider agency's template for the 
142.8 	CFSS care service delivery plan;
142.9 	(9) a list of all training and classes that the CFSS provider agency agency-provider
142.10 	 requires of its staff providing CFSS services;
142.11 	(10) documentation that the CFSS provider agency agency-provider and staff have 
142.12 	successfully completed all the training required by this section;
142.13 	(11) documentation of the agency's agency-provider's marketing practices;
142.14 	(12) disclosure of ownership, leasing, or management of all residential properties 
142.15 	that are used or could be used for providing home care services;
142.16 	(13) documentation that the agency agency-provider will use at least the following 
142.17 	percentages of revenue generated from the medical assistance rate paid for CFSS services 
142.18 	for employee personal care assistant CFSS support worker wages and benefits: 72.5 
142.19 	percent of revenue from CFSS providers. The revenue generated by the support specialist
142.20 	 worker training and development services and the reasonable costs associated with the 
142.21 	support specialist worker training and development services shall not be used in making 
142.22 	this calculation; and
142.23 	(14) documentation that the agency agency-provider does not burden recipients'
142.24 	 participants' free exercise of their right to choose service providers by requiring personal 
142.25 	care assistants CFSS support workers to sign an agreement not to work with any particular 
142.26 	CFSS recipient participant or for another CFSS provider agency agency-provider after 
142.27 	leaving the agency and that the agency is not taking action on any such agreements or 
142.28 	requirements regardless of the date signed.
142.29 	(b) CFSS provider agencies agency-providers shall provide to the commissioner 
142.30 	the information specified in paragraph (a).
142.31 	(c) All CFSS provider agencies agency-providers shall require all employees in 
142.32 	management and supervisory positions and owners of the agency who are active in the 
142.33 	day-to-day management and operations of the agency to complete mandatory training as 
142.34 	determined by the commissioner. Employees in management and supervisory positions 
142.35 	and owners who are active in the day-to-day operations of an agency who have completed 
142.36 	the required training as an employee with a CFSS provider agency agency-provider do 
143.1 	not need to repeat the required training if they are hired by another agency, if they have 
143.2 	completed the training within the past three years. CFSS provider agency agency-provider
143.3 	 billing staff shall complete training about CFSS program financial management. Any new 
143.4 	owners or employees in management and supervisory positions involved in the day-to-day 
143.5 	operations are required to complete mandatory training as a requisite of working for the 
143.6 	agency. CFSS provider agencies certified for participation in Medicare as home health 
143.7 	agencies are exempt from the training required in this subdivision.
143.8 	(d) The commissioner shall send annual review notifications to agency-providers 30 
143.9 	days prior to renewal. The notification must:
143.10 	(1) list the materials and information the agency-provider is required to submit;
143.11 	(2) provide instructions on submitting information to the commissioner; and
143.12 	(3) provide a due date by which the commissioner must receive the requested 
143.13 	information.
143.14 	Agency-providers shall submit the required documentation for annual review within 
143.15 	30 days of notification from the commissioner. If no documentation is submitted, the 
143.16 	agency-provider enrollment number must be terminated or suspended.

143.17 	Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13, 
143.18 	is amended to read:
143.19 		Subd. 13.Budget model. (a) Under the budget model participants can may exercise 
143.20 	more responsibility and control over the services and supports described and budgeted 
143.21 	within the CFSS service delivery plan. Participants must use services provided by an FMS 
143.22 	contractor as defined in subdivision 2, paragraph (m). Under this model, participants may 
143.23 	use their approved service budget allocation to:
143.24 	(1) directly employ support workers, and pay wages, federal and state payroll taxes, 
143.25 	and premiums for workers' compensation, liability, and health insurance coverage; and
143.26 	(2) obtain supports and goods as defined in subdivision 7; and.
143.27 	(3) choose a range of support assistance services from the financial management 
143.28 	services (FMS) contractor related to:
143.29 	(i) assistance in managing the budget to meet the service delivery plan needs, 
143.30 	consistent with federal and state laws and regulations;
143.31 	(ii) the employment, training, supervision, and evaluation of workers by the 
143.32 	participant;
143.33 	(iii) acquisition and payment for supports and goods; and
143.34 	(iv) evaluation of individual service outcomes as needed for the scope of the 
143.35 	participant's degree of control and responsibility.
144.1 	(b) Participants who are unable to fulfill any of the functions listed in paragraph (a) 
144.2 	may authorize a legal representative or participant's representative to do so on their behalf.
144.3 	(c) The commissioner shall disenroll or exclude participants from the budget model 
144.4 	and transfer them to the agency-provider model under the following circumstances that 
144.5 	include but are not limited to:
144.6 	(1) when a participant has been restricted by the Minnesota restricted recipient 
144.7 	program, in which case the participant may be excluded for a specified time period under 
144.8 	Minnesota Rules, parts 9505.2160 to 9505.2245;
144.9 	(2) when a participant exits the budget model during the participant's service plan 
144.10 	year. Upon transfer, the participant shall not access the budget model for the remainder of 
144.11 	that service plan year; or
144.12 	(3) when the department determines that the participant or participant's representative 
144.13 	or legal representative cannot manage participant responsibilities under the budget model. 
144.14 	The commissioner must develop policies for determining if a participant is unable to 
144.15 	manage responsibilities under the budget model.
144.16 	(d) A participant may appeal in writing to the department under section 256.045, 
144.17 	subdivision 3, to contest the department's decision under paragraph (c), clause (3), to 
144.18 	disenroll or exclude the participant from the budget model.
144.19 	(c) (e) The FMS contractor shall not provide CFSS services and supports under the 
144.20 	agency-provider service model. 
144.21 	(f) The FMS contractor shall provide service functions as determined by the 
144.22 	commissioner for budget model participants that include but are not limited to:
144.23 	(1) information and consultation about CFSS;
144.24 	(2) (1) assistance with the development of the detailed budget for expenditures 
144.25 	portion of the service delivery plan and budget model as requested by the consultation 
144.26 	services provider or participant;
144.27 	(3) (2) billing and making payments for budget model expenditures;
144.28 	(4) (3) assisting participants in fulfilling employer-related requirements according to 
144.29 	Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax 
144.30 	Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related 
144.31 	regulations and interpretations, including Code of Federal Regulations, title 26, section 
144.32 	31.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining 
144.33 	worker compensation coverage;
144.34 	(5) (4) data recording and reporting of participant spending; and
144.35 	(6) (5) other duties established in the contract with the department, including with 
144.36 	respect to providing assistance to the participant, participant's representative, or legal 
145.1 	representative in performing their employer responsibilities regarding support workers. 
145.2 	The support worker shall not be considered the employee of the financial management 
145.3 	services FMS contractor.; and
145.4 	(6) billing, payment, and accounting of approved expenditures for goods for 
145.5 	agency-provider participants.
145.6 	(d) A participant who requests to purchase goods and supports along with support 
145.7 	worker services under the agency-provider model must use the budget model with 
145.8 	a service delivery plan that specifies the amount of services to be authorized to the 
145.9 	agency-provider and the expenditures to be paid by the FMS contractor.
145.10 	(e) (g) The FMS contractor shall:
145.11 	(1) not limit or restrict the participant's choice of service or support providers or 
145.12 	service delivery models consistent with any applicable state and federal requirements;
145.13 	(2) provide the participant, consultation services provider, and the targeted case 
145.14 	manager, if applicable, with a monthly written summary of the spending for services and 
145.15 	supports that were billed against the spending budget;
145.16 	(3) be knowledgeable of state and federal employment regulations, including those 
145.17 	under the Fair Labor Standards Act of 1938, and comply with the requirements under the 
145.18 	Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the 
145.19 	Internal Revenue Code and related regulations and interpretations, including Code of 
145.20 	Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability 
145.21 	for vendor or fiscal employer agent, and any requirements necessary to process employer 
145.22 	and employee deductions, provide appropriate and timely submission of employer tax 
145.23 	liabilities, and maintain documentation to support medical assistance claims;
145.24 	(4) have current and adequate liability insurance and bonding and sufficient cash 
145.25 	flow as determined by the commissioner and have on staff or under contract a certified 
145.26 	public accountant or an individual with a baccalaureate degree in accounting;
145.27 	(5) assume fiscal accountability for state funds designated for the program and be 
145.28 	held liable for any overpayments or violations of applicable statutes or rules, including 
145.29 	but not limited to the Minnesota False Claims Act; and
145.30 	(6) maintain documentation of receipts, invoices, and bills to track all services and 
145.31 	supports expenditures for any goods purchased and maintain time records of support 
145.32 	workers. The documentation and time records must be maintained for a minimum of 
145.33 	five years from the claim date and be available for audit or review upon request by the 
145.34 	commissioner. Claims submitted by the FMS contractor to the commissioner for payment 
145.35 	must correspond with services, amounts, and time periods as authorized in the participant's 
146.1 	spending service budget and service plan and must contain specific identifying information 
146.2 	as determined by the commissioner.
146.3 	(f) (h) The commissioner of human services shall:
146.4 	(1) establish rates and payment methodology for the FMS contractor;
146.5 	(2) identify a process to ensure quality and performance standards for the FMS 
146.6 	contractor and ensure statewide access to FMS contractors; and
146.7 	(3) establish a uniform protocol for delivering and administering CFSS services 
146.8 	to be used by eligible FMS contractors.
146.9 	(g) The commissioner of human services shall disenroll or exclude participants from 
146.10 	the budget model and transfer them to the agency-provider model under the following 
146.11 	circumstances that include but are not limited to:
146.12 	(1) when a participant has been restricted by the Minnesota restricted recipient 
146.13 	program, the participant may be excluded for a specified time period under Minnesota 
146.14 	Rules, parts 9505.2160 to 9505.2245;
146.15 	(2) when a participant exits the budget model during the participant's service plan 
146.16 	year. Upon transfer, the participant shall not access the budget model for the remainder of 
146.17 	that service plan year; or
146.18 	(3) when the department determines that the participant or participant's representative 
146.19 	or legal representative cannot manage participant responsibilities under the budget model. 
146.20 	The commissioner must develop policies for determining if a participant is unable to 
146.21 	manage responsibilities under a budget model.
146.22 	(h) A participant may appeal under section 256.045, subdivision 3, in writing to the 
146.23 	department to contest the department's decision under paragraph (c), clause (3), to remove 
146.24 	or exclude the participant from the budget model.

146.25 	Sec. 15. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 15, 
146.26 	is amended to read:
146.27 		Subd. 15.Documentation of support services provided. (a) Support services 
146.28 	provided to a participant by a support worker employed by either an agency-provider 
146.29 	or the participant acting as the employer must be documented daily by each support 
146.30 	worker, on a time sheet form approved by the commissioner. All documentation may be 
146.31 	Web-based, electronic, or paper documentation. The completed form must be submitted 
146.32 	on a monthly regular basis to the provider or the participant and the FMS contractor 
146.33 	selected by the participant to provide assistance with meeting the participant's employer 
146.34 	obligations and kept in the recipient's health participant's record.
147.1 	(b) The activity documentation must correspond to the written service delivery plan 
147.2 	and be reviewed by the agency-provider or the participant and the FMS contractor when 
147.3 	the participant is acting as the employer of the support worker.
147.4 	(c) The time sheet must be on a form approved by the commissioner documenting 
147.5 	time the support worker provides services in the home to the participant. The following 
147.6 	criteria must be included in the time sheet:
147.7 	(1) full name of the support worker and individual provider number;
147.8 	(2) provider agency-provider name and telephone numbers, if an agency-provider is
147.9 	 responsible for delivery services under the written service plan;
147.10 	(3) full name of the participant;
147.11 	(4) consecutive dates, including month, day, and year, and arrival and departure 
147.12 	times with a.m. or p.m. notations;
147.13 	(5) signatures of the participant or the participant's representative;
147.14 	(6) personal signature of the support worker;
147.15 	(7) any shared care provided, if applicable;
147.16 	(8) a statement that it is a federal crime to provide false information on CFSS 
147.17 	billings for medical assistance payments; and
147.18 	(9) dates and location of recipient participant stays in a hospital, care facility, or 
147.19 	incarceration.

147.20 	Sec. 16. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 16, 
147.21 	is amended to read:
147.22 		Subd. 16.Support workers requirements. (a) Support workers shall:
147.23 	(1) enroll with the department as a support worker after a background study under 
147.24 	chapter 245C has been completed and the support worker has received a notice from the 
147.25 	commissioner that:
147.26 	(i) the support worker is not disqualified under section 245C.14; or
147.27 	(ii) is disqualified, but the support worker has received a set-aside of the 
147.28 	disqualification under section 245C.22;
147.29 	(2) have the ability to effectively communicate with the participant or the 
147.30 	participant's representative;
147.31 	(3) have the skills and ability to provide the services and supports according to 
147.32 	the person's participant's CFSS service delivery plan and respond appropriately to the 
147.33 	participant's needs;
147.34 	(4) not be a participant of CFSS, unless the support services provided by the support 
147.35 	worker differ from those provided to the support worker;
148.1 	(5) complete the basic standardized training as determined by the commissioner 
148.2 	before completing enrollment. The training must be available in languages other than 
148.3 	English and to those who need accommodations due to disabilities. Support worker 
148.4 	training must include successful completion of the following training components: basic 
148.5 	first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles 
148.6 	and responsibilities of support workers including information about basic body mechanics, 
148.7 	emergency preparedness, orientation to positive behavioral practices, orientation to 
148.8 	responding to a mental health crisis, fraud issues, time cards and documentation, and an 
148.9 	overview of person-centered planning and self-direction. Upon completion of the training 
148.10 	components, the support worker must pass the certification test to provide assistance 
148.11 	to participants;
148.12 	(6) complete training and orientation on the participant's individual needs; and
148.13 	(7) maintain the privacy and confidentiality of the participant, and not independently 
148.14 	determine the medication dose or time for medications for the participant.
148.15 	(b) The commissioner may deny or terminate a support worker's provider enrollment 
148.16 	and provider number if the support worker:
148.17 	(1) lacks the skills, knowledge, or ability to adequately or safely perform the 
148.18 	required work;
148.19 	(2) fails to provide the authorized services required by the participant employer;
148.20 	(3) has been intoxicated by alcohol or drugs while providing authorized services to 
148.21 	the participant or while in the participant's home;
148.22 	(4) has manufactured or distributed drugs while providing authorized services to the 
148.23 	participant or while in the participant's home; or
148.24 	(5) has been excluded as a provider by the commissioner of human services, or the 
148.25 	United States Department of Health and Human Services, Office of Inspector General, 
148.26 	from participation in Medicaid, Medicare, or any other federal health care program.
148.27 	(c) A support worker may appeal in writing to the commissioner to contest the 
148.28 	decision to terminate the support worker's provider enrollment and provider number.
148.29 	(d) A support worker must not provide or be paid for more than 275 hours of 
148.30 	CFSS per month, regardless of the number of participants the support worker serves or 
148.31 	the number of agency-providers or participant employers by which the support worker 
148.32 	is employed. The department shall not disallow the number of hours per day a support 
148.33 	worker works unless it violates other law.

148.34 	Sec. 17. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
148.35 	a subdivision to read:
149.1 		Subd. 16a.Exception to support worker requirements. The support worker for a 
149.2 	participant may be allowed to enroll with a different CFSS agency-provider or FMS 
149.3 	contractor upon initiation of a new background study according to chapter 245C, if the 
149.4 	following conditions are met:
149.5 	(1) the commissioner determines that the support worker's change in enrollment or 
149.6 	affiliation is needed to ensure continuity of services and protect the health and safety 
149.7 	of the participant;
149.8 	(2) the chosen agency-provider or FMS contractor has been continuously enrolled as 
149.9 	a CFSS agency-provider or FMS contractor for at least two years or since the inception of 
149.10 	the CFSS program, whichever is shorter;
149.11 	(3) the participant served by the support worker chooses to transfer to the CFSS 
149.12 	agency-provider or the FMS contractor to which the support worker is transferring;
149.13 	(4) the support worker has been continuously enrolled with the former CFSS 
149.14 	agency-provider or FMS contractor since the support worker's last background study 
149.15 	was completed; and
149.16 	(5) the support worker continues to meet requirements of subdivision 16, excluding 
149.17 	paragraph (a), clause (1). 

149.18 	Sec. 18. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 17, 
149.19 	is amended to read:
149.20 		Subd. 17.Support specialist requirements and payments Consultation services 
149.21 	description and duties. The commissioner shall develop qualifications, scope of 
149.22 	functions, and payment rates and service limits for a support specialist that may provide 
149.23 	additional or specialized assistance necessary to plan, implement, arrange, augment, or 
149.24 	evaluate services and supports.
149.25 	(a) Consultation services means providing assistance to the participant in making 
149.26 	informed choices regarding CFSS services in general and self-directed tasks in particular 
149.27 	and in developing a person-centered service delivery plan to achieve quality service 
149.28 	outcomes.
149.29 	(b) Consultation services is a required service that may include but is not limited to:
149.30 	(1) an initial and annual orientation to CFSS information and policies, including 
149.31 	selecting a service model;
149.32 	(2) assistance with the development, implementation, management, and evaluation 
149.33 	of the person-centered service delivery plan;
149.34 	(3) consultation on recruiting, selecting, training, managing, directing, evaluating, 
149.35 	and supervising support workers;
150.1 	(4) reviewing the use of and access to informal and community supports, goods, or 
150.2 	resources;
150.3 	(5) remediation support; and
150.4 	(6) assistance with accessing FMS contractors or agency-providers.
150.5 	(c) Duties of a consultation services provider shall include but are not limited to:
150.6 	(1) review and finalization of the CFSS service delivery plan by the consultation 
150.7 	services provider organization;
150.8 	(2) distribution of copies of the final service delivery plan to the participant and 
150.9 	to the agency-provider or FMS contractor, case manager/care coordinator, and other 
150.10 	designated parties;
150.11 	(3) an evaluation of services upon receiving information from an FMS contractor 
150.12 	indicating spending or participant employer concerns;
150.13 	(4) a biannual review of services if the participant does not have a case manager/care 
150.14 	coordinator and when the support worker is a paid parent of a minor participant or the 
150.15 	participant's spouse;
150.16 	(5) collection and reporting of data as required by the department; and
150.17 	(6) providing the participant with a copy of the service-related rights under 
150.18 	subdivision 20 at the start of consultation services.

150.19 	Sec. 19. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
150.20 	a subdivision to read:
150.21 		Subd. 17a.Consultation service provider qualifications and requirements.
 150.22 	The commissioner shall develop the qualifications and requirements for providers of 
150.23 	consultation services under subdivision 17. These providers must satisfy at least the 
150.24 	following qualifications and requirements:
150.25 	(1) are under contract with the department;
150.26 	(2) are not the FMS contractor as defined in subdivision 2, paragraph (m), the CFSS 
150.27 	or HCBS waiver agency-provider or vendor to the participant, or a lead agency;
150.28 	(3) meet the service standards as established by the commissioner;
150.29 	(4) employ lead professional staff with a minimum of three years' experience 
150.30 	in providing support planning, support broker, or consultation services and consumer 
150.31 	education to participants using a self-directed program using FMS under medical 
150.32 	assistance;
150.33 	(5) are knowledgeable about CFSS roles and responsibilities including those of the 
150.34 	certified assessor, FMS contractor, agency-provider, and case manager/care coordinator;
150.35 	(6) comply with medical assistance provider requirements;
151.1 	(7) understand the CFSS program and its policies;
151.2 	(8) are knowledgeable about self-directed principles and the application of the 
151.3 	person-centered planning process;
151.4 	(9) have general knowledge of the FMS contractor duties and participant 
151.5 	employment model, including all applicable federal, state, and local laws and regulations 
151.6 	regarding tax, labor, employment, and liability and workers' compensation coverage for 
151.7 	household workers; and
151.8 	(10) have all employees, including lead professional staff, staff in management 
151.9 	and supervisory positions, and owners of the agency who are active in the day-to-day 
151.10 	management and operations of the agency, complete training as specified in the contract 
151.11 	with the department.

151.12 	Sec. 20. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
151.13 	a subdivision to read:
151.14 		Subd. 17b.Financial management services and consultation services payment 
151.15 	methodology. The commissioner shall establish a cost-neutral funding mechanism for 
151.16 	FMS and consultation services.

151.17 	Sec. 21. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 18, 
151.18 	is amended to read:
151.19 		Subd. 18.Service unit and budget allocation requirements and limits. (a) For the 
151.20 	agency-provider model, services will be authorized in units of service. The total service 
151.21 	unit amount must be established based upon the assessed need for CFSS services, and must 
151.22 	not exceed the maximum number of units available as determined under subdivision 8.
151.23 	(b) For the budget model, the service budget allocation allowed for services and 
151.24 	supports is established by multiplying the number of units authorized under subdivision 8 
151.25 	by the payment rate established by the commissioner defined in subdivision 8, paragraph 
151.26 	(g).

151.27 	Sec. 22. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
151.28 	a subdivision to read:
151.29 		Subd. 18a.Worker training and development services. (a) The commissioner 
151.30 	shall develop the scope of tasks and functions, service standards, and service limits for 
151.31 	worker training and development services.
152.1 	(b) Worker training and development services are in addition to the participant's 
152.2 	assessed service units or service budget. Services provided according to this subdivision 
152.3 	must:
152.4 	(1) help support workers obtain and expand the skills and knowledge necessary to 
152.5 	ensure competency in providing quality services as needed and defined in the participant's 
152.6 	service delivery plan;
152.7 	(2) be provided or arranged for by the agency-provider under subdivision 11 or 
152.8 	purchased by the participant employer under the budget model under subdivision 13; and
152.9 	(3) be described in the participant's CFSS service delivery plan and documented in 
152.10 	the participant's file.
152.11 	(c) Services covered under worker training and development shall include:
152.12 	(1) support worker training on the participant's individual assessed needs, condition, 
152.13 	or both, provided individually or in a group setting by a skilled and knowledgeable trainer 
152.14 	beyond any training the participant or participant's representative provides;
152.15 	(2) tuition for professional classes and workshops for the participant's support 
152.16 	workers that relate to the participant's assessed needs, condition, or both;
152.17 	(3) direct observation, monitoring, coaching, and documentation of support worker 
152.18 	job skills and tasks, beyond any training the participant or participant's representative 
152.19 	provides, including supervision of health-related tasks or behavioral supports that is 
152.20 	conducted by an appropriate professional based on the participant's assessed needs. These 
152.21 	services must be provided within 14 days of the start of services or the start of a new 
152.22 	support worker and must be specified in the participant's service delivery plan; and
152.23 	(4) reporting service and support concerns to the appropriate provider.
152.24 	(d) Worker training and development services shall not include:
152.25 	(1) general agency training, worker orientation, or training on CFSS self-directed 
152.26 	models;
152.27 	(2) payment for preparation or development time for the trainer or presenter;
152.28 	(3) payment of the support worker's salary or compensation during the training;
152.29 	(4) training or supervision provided by the participant, the participant's support 
152.30 	worker, or the participant's informal supports, including the participant's representative; or
152.31 	(5) services in excess of 96 units per annual service authorization, unless approved 
152.32 	by the department.

152.33 	Sec. 23. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 23, 
152.34 	is amended to read:
153.1 		Subd. 23.Commissioner's access. When the commissioner is investigating a 
153.2 	possible overpayment of Medicaid funds, the commissioner must be given immediate 
153.3 	access without prior notice to the agency provider agency-provider or FMS contractor's 
153.4 	office during regular business hours and to documentation and records related to services 
153.5 	provided and submission of claims for services provided. Denying the commissioner 
153.6 	access to records is cause for immediate suspension of payment and terminating the agency 
153.7 	provider's enrollment according to section 256B.064 or terminating the FMS contract.

153.8 	Sec. 24. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 24, 
153.9 	is amended to read:
153.10 		Subd. 24.CFSS agency-providers; background studies. CFSS agency-providers 
153.11 	enrolled to provide personal care assistance CFSS services under the medical assistance 
153.12 	program shall comply with the following:
153.13 	(1) owners who have a five percent interest or more and all managing employees 
153.14 	are subject to a background study as provided in chapter 245C. This applies to currently 
153.15 	enrolled CFSS agency-providers and those agencies seeking enrollment as a CFSS 
153.16 	agency-provider. "Managing employee" has the same meaning as Code of Federal 
153.17 	Regulations, title 42, section 455. An organization is barred from enrollment if:
153.18 	(i) the organization has not initiated background studies on owners managing 
153.19 	employees; or
153.20 	(ii) the organization has initiated background studies on owners and managing 
153.21 	employees, but the commissioner has sent the organization a notice that an owner or 
153.22 	managing employee of the organization has been disqualified under section 245C.14, and 
153.23 	the owner or managing employee has not received a set-aside of the disqualification 
153.24 	under section 245C.22;
153.25 	(2) a background study must be initiated and completed for all support specialists
153.26 	 staff providing worker training and development employed by the agency-provider; and
153.27 	(3) a background study must be initiated and completed for all support workers.

153.28 	Sec. 25. Laws 2013, chapter 108, article 7, section 49, the effective date, is amended to 
153.29 	read:

153.30 	EFFECTIVE DATE. This section is effective upon federal approval but no earlier 
153.31 	than April 1, 2014. The service will begin 90 days after federal approval or April 1, 
153.32 	2014, whichever is later. The commissioner of human services shall notify the revisor of 
153.33 	statutes when this occurs.

154.1 	ARTICLE 19
154.2 	CONTINUING CARE

154.3 	Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
154.4 		Subd. 4.Licensing data. (a) As used in this subdivision:
154.5 	(1) "licensing data" are all data collected, maintained, used, or disseminated by the 
154.6 	welfare system pertaining to persons licensed or registered or who apply for licensure 
154.7 	or registration or who formerly were licensed or registered under the authority of the 
154.8 	commissioner of human services;
154.9 	(2) "client" means a person who is receiving services from a licensee or from an 
154.10 	applicant for licensure; and
154.11 	(3) "personal and personal financial data" are Social Security numbers, identity 
154.12 	of and letters of reference, insurance information, reports from the Bureau of Criminal 
154.13 	Apprehension, health examination reports, and social/home studies.
154.14 	(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, 
154.15 	license holders, and former licensees are public: name, address, telephone number of 
154.16 	licensees, date of receipt of a completed application, dates of licensure, licensed capacity, 
154.17 	type of client preferred, variances granted, record of training and education in child care 
154.18 	and child development, type of dwelling, name and relationship of other family members, 
154.19 	previous license history, class of license, the existence and status of complaints, and the 
154.20 	number of serious injuries to or deaths of individuals in the licensed program as reported 
154.21 	to the commissioner of human services, the local social services agency, or any other 
154.22 	county welfare agency. For purposes of this clause, a serious injury is one that is treated 
154.23 	by a physician.
154.24 	(ii) When a correction order, an order to forfeit a fine, an order of license suspension, 
154.25 	an order of temporary immediate suspension, an order of license revocation, an order 
154.26 	of license denial, or an order of conditional license has been issued, or a complaint is 
154.27 	resolved, the following data on current and former licensees and applicants are public: the 
154.28 	substance and investigative findings of the licensing or maltreatment complaint, licensing 
154.29 	violation, or substantiated maltreatment; the record of informal resolution of a licensing 
154.30 	violation; orders of hearing; findings of fact; conclusions of law; specifications of the final 
154.31 	correction order, fine, suspension, temporary immediate suspension, revocation, denial, or 
154.32 	conditional license contained in the record of licensing action; whether a fine has been 
154.33 	paid; and the status of any appeal of these actions.
154.34 	(iii) When a license denial under section 245A.05 or a sanction under section 
154.35 	245A.07 is based on a determination that the license holder or applicant is responsible for 
155.1 	maltreatment under section 626.556 or 626.557, the identity of the applicant or license 
155.2 	holder as the individual responsible for maltreatment is public data at the time of the 
155.3 	issuance of the license denial or sanction.
155.4 	(iv) When a license denial under section 245A.05 or a sanction under section 
155.5 	245A.07 is based on a determination that the license holder or applicant is disqualified 
155.6 	under chapter 245C, the identity of the license holder or applicant as the disqualified 
155.7 	individual and the reason for the disqualification are public data at the time of the 
155.8 	issuance of the licensing sanction or denial. If the applicant or license holder requests 
155.9 	reconsideration of the disqualification and the disqualification is affirmed, the reason for 
155.10 	the disqualification and the reason to not set aside the disqualification are public data.
155.11 	(2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b, 
155.12 	when any person subject to disqualification under section 245C.14 in connection with a 
155.13 	license to provide family day care for children, child care center services, foster care for 
155.14 	children in the provider's home, or foster care or day care services for adults in the provider's 
155.15 	home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is 
155.16 	a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment 
155.17 	is public data. For purposes of this clause, a person is a substantiated perpetrator if the 
155.18 	maltreatment determination has been upheld under section 256.045; 626.556, subdivision 
155.19 	10i; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely 
155.20 	exercised appeal rights under these sections, except as provided under clause (1).
155.21 	(3) For applicants who withdraw their application prior to licensure or denial of a 
155.22 	license, the following data are public: the name of the applicant, the city and county in 
155.23 	which the applicant was seeking licensure, the dates of the commissioner's receipt of the 
155.24 	initial application and completed application, the type of license sought, and the date 
155.25 	of withdrawal of the application.
155.26 	(4) For applicants who are denied a license, the following data are public: the name 
155.27 	and address of the applicant, the city and county in which the applicant was seeking 
155.28 	licensure, the dates of the commissioner's receipt of the initial application and completed 
155.29 	application, the type of license sought, the date of denial of the application, the nature of 
155.30 	the basis for the denial, the record of informal resolution of a denial, orders of hearings, 
155.31 	findings of fact, conclusions of law, specifications of the final order of denial, and the 
155.32 	status of any appeal of the denial.
155.33 	(5) The following data on persons subject to disqualification under section 245C.14 in 
155.34 	connection with a license to provide family day care for children, child care center services, 
155.35 	foster care for children in the provider's home, or foster care or day care services for adults 
155.36 	in the provider's home, are public: the nature of any disqualification set aside under section 
156.1 	245C.22, subdivisions 2 and 4, and the reasons for setting aside the disqualification; the 
156.2 	nature of any disqualification for which a variance was granted under sections 245A.04, 
156.3 	subdivision 9; and 245C.30, and the reasons for granting any variance under section 
156.4 	245A.04, subdivision 9; and, if applicable, the disclosure that any person subject to 
156.5 	a background study under section 245C.03, subdivision 1, has successfully passed a 
156.6 	background study. If a licensing sanction under section 245A.07, or a license denial under 
156.7 	section 245A.05, is based on a determination that an individual subject to disqualification 
156.8 	under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction 
156.9 	or denial is public data. As specified in clause (1), item (iv), if the disqualified individual 
156.10 	is the license holder or applicant, the identity of the license holder or applicant and the 
156.11 	reason for the disqualification are public data; and, if the license holder or applicant 
156.12 	requested reconsideration of the disqualification and the disqualification is affirmed, the 
156.13 	reason for the disqualification and the reason to not set aside the disqualification are 
156.14 	public data. If the disqualified individual is an individual other than the license holder or 
156.15 	applicant, the identity of the disqualified individual shall remain private data.
156.16 	(6) When maltreatment is substantiated under section 626.556 or 626.557 and the 
156.17 	victim and the substantiated perpetrator are affiliated with a program licensed under 
156.18 	chapter 245A, the commissioner of human services, local social services agency, or 
156.19 	county welfare agency may inform the license holder where the maltreatment occurred of 
156.20 	the identity of the substantiated perpetrator and the victim.
156.21 	(7) Notwithstanding clause (1), for child foster care, only the name of the license 
156.22 	holder and the status of the license are public if the county attorney has requested that data 
156.23 	otherwise classified as public data under clause (1) be considered private data based on the 
156.24 	best interests of a child in placement in a licensed program.
156.25 	(c) The following are private data on individuals under section 13.02, subdivision 
156.26 	12, or nonpublic data under section 13.02, subdivision 9: personal and personal financial 
156.27 	data on family day care program and family foster care program applicants and licensees 
156.28 	and their family members who provide services under the license.
156.29 	(d) The following are private data on individuals: the identity of persons who have 
156.30 	made reports concerning licensees or applicants that appear in inactive investigative data, 
156.31 	and the records of clients or employees of the licensee or applicant for licensure whose 
156.32 	records are received by the licensing agency for purposes of review or in anticipation of a 
156.33 	contested matter. The names of reporters of complaints or alleged violations of licensing 
156.34 	standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged 
156.35 	maltreatment under sections 626.556 and 626.557, are confidential data and may be 
156.36 	disclosed only as provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
157.1 	(e) Data classified as private, confidential, nonpublic, or protected nonpublic under 
157.2 	this subdivision become public data if submitted to a court or administrative law judge as 
157.3 	part of a disciplinary proceeding in which there is a public hearing concerning a license 
157.4 	which has been suspended, immediately suspended, revoked, or denied.
157.5 	(f) Data generated in the course of licensing investigations that relate to an alleged 
157.6 	violation of law are investigative data under subdivision 3.
157.7 	(g) Data that are not public data collected, maintained, used, or disseminated under 
157.8 	this subdivision that relate to or are derived from a report as defined in section 626.556, 
157.9 	subdivision 2, or 626.5572, subdivision 18, are subject to the destruction provisions of 
157.10 	sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
157.11 	(h) Upon request, not public data collected, maintained, used, or disseminated under 
157.12 	this subdivision that relate to or are derived from a report of substantiated maltreatment as 
157.13 	defined in section 626.556 or 626.557 may be exchanged with the Department of Health 
157.14 	for purposes of completing background studies pursuant to section 144.057 and with 
157.15 	the Department of Corrections for purposes of completing background studies pursuant 
157.16 	to section 241.021.
157.17 	(i) Data on individuals collected according to licensing activities under chapters 
157.18 	245A and 245C, data on individuals collected by the commissioner of human services 
157.19 	according to investigations under chapters 245A, 245B, and 245C, and 245D, and 
157.20 	sections 626.556 and 626.557 may be shared with the Department of Human Rights, the 
157.21 	Department of Health, the Department of Corrections, the ombudsman for mental health 
157.22 	and developmental disabilities, and the individual's professional regulatory board when 
157.23 	there is reason to believe that laws or standards under the jurisdiction of those agencies may 
157.24 	have been violated or the information may otherwise be relevant to the board's regulatory 
157.25 	jurisdiction. Background study data on an individual who is the subject of a background 
157.26 	study under chapter 245C for a licensed service for which the commissioner of human 
157.27 	services is the license holder may be shared with the commissioner and the commissioner's 
157.28 	delegate by the licensing division. Unless otherwise specified in this chapter, the identity 
157.29 	of a reporter of alleged maltreatment or licensing violations may not be disclosed.
157.30 	(j) In addition to the notice of determinations required under section 626.556, 
157.31 	subdivision 10f, if the commissioner or the local social services agency has determined 
157.32 	that an individual is a substantiated perpetrator of maltreatment of a child based on sexual 
157.33 	abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social 
157.34 	services agency knows that the individual is a person responsible for a child's care in 
157.35 	another facility, the commissioner or local social services agency shall notify the head 
157.36 	of that facility of this determination. The notification must include an explanation of the 
158.1 	individual's available appeal rights and the status of any appeal. If a notice is given under 
158.2 	this paragraph, the government entity making the notification shall provide a copy of the 
158.3 	notice to the individual who is the subject of the notice.
158.4 	(k) All not public data collected, maintained, used, or disseminated under this 
158.5 	subdivision and subdivision 3 may be exchanged between the Department of Human 
158.6 	Services, Licensing Division, and the Department of Corrections for purposes of 
158.7 	regulating services for which the Department of Human Services and the Department 
158.8 	of Corrections have regulatory authority.

158.9 	Sec. 2. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:
158.10 	245.8251 POSITIVE SUPPORT STRATEGIES AND EMERGENCY 
158.11 	MANUAL RESTRAINT; LICENSED FACILITIES AND PROGRAMS.
158.12 		Subdivision 1.Rules governing the use of positive support strategies and 
158.13 	restricting or prohibiting aversive and deprivation procedures. The commissioner 
158.14 	of human services shall, within 24 months of May 23, 2013 by August 31, 2015, adopt 
158.15 	rules governing the use of positive support strategies, safety interventions, and emergency 
158.16 	use of manual restraint, and restricting or prohibiting the use of aversive and deprivation 
158.17 	procedures,  in all facilities and services licensed under chapter 245D. and in all licensed 
158.18 	facilities and licensed services serving persons with a developmental disability or related 
158.19 	condition. For the purposes of this section, "developmental disability or related condition" 
158.20 	has the meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.
158.21 		Subd. 2.Data collection. (a) The commissioner shall, with stakeholder input, 
158.22 	develop identify data collection elements specific to incidents of emergency use of 
158.23 	manual restraint and positive support transition plans for persons receiving services from 
158.24 	providers governed licensed facilities and licensed services  under chapter 245D and in 
158.25 	licensed facilities and licensed services serving persons with a developmental disability 
158.26 	or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective 
158.27 	January 1, 2014. Providers Licensed facilities and licensed services shall report the data in 
158.28 	a format and at a frequency determined by the commissioner of human services. Providers 
158.29 	shall submit the data to the commissioner and the Office of the Ombudsman for Mental 
158.30 	Health and Developmental Disabilities.
158.31 	(b) Beginning July 1, 2013, providers licensed facilities and licensed services
158.32 	 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data 
158.33 	regarding the use of all controlled procedures identified in Minnesota Rules, part 
158.34 	9525.2740, in a format and at a frequency determined by the commissioner. Providers 
159.1 	shall submit the data to the commissioner and the Office of the Ombudsman for Mental 
159.2 	Health and Developmental Disabilities.
159.3 		Subd. 3.External program review committee. Rules adopted according to this 
159.4 	section shall establish requirements for an external program review committee appointed 
159.5 	by the commissioner to monitor the rules after adoption of the rules.
159.6 		Subd. 4.Interim review panel. (a) The commissioner shall establish an interim 
159.7 	review panel by August 15, 2014, for the purpose of reviewing requests for emergency 
159.8 	use of procedures that have been part of an approved positive support transition plan 
159.9 	when necessary to protect a person from imminent risk of serious injury as defined in 
159.10 	section 245.91, subdivision 6, due to self-injurious behavior. The panel must make 
159.11 	recommendations to the commissioner to approve or deny these requests based on criteria 
159.12 	to be established by the interim review panel. The interim review panel shall operate until 
159.13 	the external program review committee is established as required under subdivision 3.
159.14 	(b) Members of the interim review panel shall be selected based on their expertise 
159.15 	and knowledge related to the use of positive support strategies as alternatives to 
159.16 	the use of aversive or deprivation procedures. The commissioner shall seek input 
159.17 	and recommendations from the Office of the Ombudsman for Mental Health and 
159.18 	Developmental Disabilities and the Minnesota Governor's Council on Developmental 
159.19 	Disabilities in establishing the interim review panel. Members of the interim review panel 
159.20 	shall include the following representatives:
159.21 	(1) an expert in positive supports;
159.22 	(2) a mental health professional, as defined in section 245.462;
159.23 	(3) a licensed health professional as defined in section 245D.02, subdivision 14;
159.24 	(4) a representative of the Department of Health;
159.25 	(5) a representative of the Office of the Ombudsman for Mental Health and 
159.26 	Developmental Disabilities; and
159.27 	(6) a representative of the Minnesota Disability Law Center.

159.28 	Sec. 3. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is 
159.29 	amended to read:
159.30 		Subd. 3.Implementation. (a) The commissioner shall implement the 
159.31 	responsibilities of this chapter according to the timelines in paragraphs (b) and (c) 
159.32 	only within the limits of available appropriations or other administrative cost recovery 
159.33 	methodology.
159.34 	(b) The licensure of home and community-based services according to this section 
159.35 	shall be implemented January 1, 2014. License applications shall be received and 
160.1 	processed on a phased-in schedule as determined by the commissioner beginning July 
160.2 	1, 2013. Licenses will be issued thereafter upon the commissioner's determination that 
160.3 	the application is complete according to section 245A.04.
160.4 	(c) Within the limits of available appropriations or other administrative cost recovery 
160.5 	methodology, implementation of compliance monitoring must be phased in after January 
160.6 	1, 2014.
160.7 	(1) Applicants who do not currently hold a license issued under chapter 245B must 
160.8 	receive an initial compliance monitoring visit after 12 months of the effective date of the 
160.9 	initial license for the purpose of providing technical assistance on how to achieve and 
160.10 	maintain compliance with the applicable law or rules governing the provision of home and 
160.11 	community-based services under chapter 245D. If during the review the commissioner 
160.12 	finds that the license holder has failed to achieve compliance with an applicable law or 
160.13 	rule and this failure does not imminently endanger the health, safety, or rights of the 
160.14 	persons served by the program, the commissioner may issue a licensing review report with 
160.15 	recommendations for achieving and maintaining compliance.
160.16 	(2) Applicants who do currently hold a license issued under this chapter must receive 
160.17 	a compliance monitoring visit after 24 months of the effective date of the initial license.
160.18 	(d) Nothing in this subdivision shall be construed to limit the commissioner's 
160.19 	authority to suspend or revoke a license or issue a fine at any time under section 245A.07, 
160.20 	or issue correction orders and make a license conditional for failure to comply with 
160.21 	applicable laws or rules under section 245A.06, based on the nature, chronicity, or severity 
160.22 	of the violation of law or rule and the effect of the violation on the health, safety, or 
160.23 	rights of persons served by the program.
160.24 	(e) License holders governed under chapter 245D must ensure compliance with the 
160.25 	following requirements within the stated timelines:
160.26 	(1) service initiation and service planning requirements must be met at the next 
160.27 	annual meeting of the person's support team or by January 1, 2015, whichever is later, 
160.28 	for the following:
160.29 	(i) provision of a written notice that identifies the service recipient rights and an 
160.30 	explanation of those rights as required under section 245D.04, subdivision 1;
160.31 	(ii) service planning for basic support services as required under section 245D.07, 
160.32 	subdivision 2; and
160.33 	(iii) service planning for intensive support services under section 245D.071, 
160.34 	subdivisions 3 and 4;
160.35 	(2) staff orientation to program requirements as required under section 245D.09, 
160.36 	subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015. 
161.1 	The license holder may otherwise provide documentation verifying these requirements 
161.2 	were met before January 1, 2014;
161.3 	(3) development of policy and procedures as required under section 245D.11, must 
161.4 	be completed no later than August 31, 2014;
161.5 	(4) written notice and copies of policies and procedures must be provided to 
161.6 	all persons or their legal representatives and case managers as required under section 
161.7 	245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within 30 days 
161.8 	of development of the required policies and procedures, whichever is earlier; and
161.9 	(5) all employees must be informed of the revisions and training must be provided on 
161.10 	implementation of the revised policies and procedures as required under section 245D.10, 
161.11 	subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of 
161.12 	the required policies and procedures, whichever is earlier.

161.13 	Sec. 4. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 3, is 
161.14 	amended to read:
161.15 		Subd. 3.Case manager. "Case manager" means the individual designated 
161.16 	to provide waiver case management services, care coordination, or long-term care 
161.17 	consultation, as specified in sections 256B.0913, 256B.0915, 256B.092, and 256B.49, 
161.18 	or successor provisions. For purposes of this chapter, "case manager" includes case 
161.19 	management services as defined in Minnesota Rules, part 9520.0902, subpart 3.

161.20 	Sec. 5. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 4b, is 
161.21 	amended to read:
161.22 		Subd. 4b.Coordinated service and support plan. "Coordinated service and 
161.23 	support plan" has the meaning given in sections 256B.0913, subdivision 8; 256B.0915, 
161.24 	subdivision 6; 256B.092, subdivision 1b; and 256B.49, subdivision 15, or successor 
161.25 	provisions. For purposes of this chapter, "coordinated service and support plan" includes 
161.26 	the individual program plan or individual treatment plan as defined in Minnesota Rules, 
161.27 	part 9520.0510, subpart 12.

161.28 	Sec. 6. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 8b, is 
161.29 	amended to read:
161.30 		Subd. 8b.Expanded support team. "Expanded support team" means the members 
161.31 	of the support team defined in subdivision 46 34 and a licensed health or mental health 
161.32 	professional or other licensed, certified, or qualified professionals or consultants working 
162.1 	with the person and included in the team at the request of the person or the person's legal 
162.2 	representative.

162.3 	Sec. 7. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11, is 
162.4 	amended to read:
162.5 		Subd. 11.Incident. "Incident" means an occurrence which involves a person and 
162.6 	requires the program to make a response that is not a part of the program's ordinary 
162.7 	provision of services to that person, and includes:
162.8 	(1) serious injury of a person as determined by section 245.91, subdivision 6;
162.9 	(2) a person's death;
162.10 	(3) any medical emergency, unexpected serious illness, or significant unexpected 
162.11 	change in an illness or medical condition of a person that requires the program to call 
162.12 	911, physician treatment, or hospitalization;
162.13 	(4) any mental health crisis that requires the program to call 911 or, a mental 
162.14 	health crisis intervention team, or a similar mental health response team or service when 
162.15 	available and appropriate;
162.16 	(5) an act or situation involving a person that requires the program to call 911, 
162.17 	law enforcement, or the fire department;
162.18 	(6) a person's unauthorized or unexplained absence from a program;
162.19 	(7) conduct by a person receiving services against another person receiving services 
162.20 	that:
162.21 	(i) is so severe, pervasive, or objectively offensive that it substantially interferes with 
162.22 	a person's opportunities to participate in or receive service or support;
162.23 	(ii) places the person in actual and reasonable fear of harm;
162.24 	(iii) places the person in actual and reasonable fear of damage to property of the 
162.25 	person; or
162.26 	(iv) substantially disrupts the orderly operation of the program;
162.27 	(8) any sexual activity between persons receiving services involving force or 
162.28 	coercion as defined under section 609.341, subdivisions 3 and 14;
162.29 	(9) any emergency use of manual restraint as identified in section 245D.061; or
162.30 	(10) a report of alleged or suspected child or vulnerable adult maltreatment under 
162.31 	section 626.556 or 626.557.

162.32 	Sec. 8. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 15b, 
162.33 	is amended to read:
163.1 		Subd. 15b.Mechanical restraint. (a) Except for devices worn by the person that 
163.2 	trigger electronic alarms to warn staff that a person is leaving a room or area, which 
163.3 	do not, in and of themselves, restrict freedom of movement, or the use of adaptive aids 
163.4 	or equipment or orthotic devices ordered by a health care professional used to treat or 
163.5 	manage a medical condition, "Mechanical restraint" means the use of devices, materials, 
163.6 	or equipment attached or adjacent to the person's body, or the use of practices that are 
163.7 	intended to restrict freedom of movement or normal access to one's body or body parts, 
163.8 	or limits a person's voluntary movement or holds a person immobile as an intervention 
163.9 	precipitated by a person's behavior. The term applies to the use of mechanical restraint 
163.10 	used to prevent injury with persons who engage in self-injurious behaviors, such as 
163.11 	head-banging, gouging, or other actions resulting in tissue damage that have caused or 
163.12 	could cause medical problems resulting from the self-injury.
163.13 	(b) Mechanical restraint does not include the following:
163.14 	(1) devices worn by the person that trigger electronic alarms to warn staff that a 
163.15 	person is leaving a room or area, which do not, in and of themselves, restrict freedom of 
163.16 	movement; or
163.17 	(2) the use of adaptive aids or equipment or orthotic devices ordered by a health care 
163.18 	professional used to treat or manage a medical condition.

163.19 	Sec. 9. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 29, is 
163.20 	amended to read:
163.21 		Subd. 29.Seclusion. "Seclusion" means the placement of a person alone in: (1) 
163.22 	removing a person involuntarily to a room from which exit is prohibited by a staff person 
163.23 	or a mechanism such as a lock, a device, or an object positioned to hold the door closed 
163.24 	or otherwise prevent the person from leaving the room.; or (2) otherwise involuntarily 
163.25 	removing or separating a person from an area, activity, situation, or social contact with 
163.26 	others and blocking or preventing the person's return.

163.27 	Sec. 10. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34, 
163.28 	is amended to read:
163.29 		Subd. 34.Support team. "Support team" means the service planning team 
163.30 	identified in section 256B.49, subdivision 15, or; the interdisciplinary team identified in 
163.31 	Minnesota Rules, part 9525.0004, subpart 14; or the case management team as defined in 
163.32 	Minnesota Rules, part 9520.0902, subpart 6.

164.1 	Sec. 11. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34a, 
164.2 	is amended to read:
164.3 		Subd. 34a.Time out. "Time out" means removing a person involuntarily from an 
164.4 	ongoing activity to a room, either locked or unlocked, or otherwise separating a person 
164.5 	from others in a way that prevents social contact and prevents the person from leaving the 
164.6 	situation if the person chooses the involuntary removal of a person for a period of time to 
164.7 	a designated area from which the person is not prevented from leaving. For the purpose of 
164.8 	this chapter, "time out" does not mean voluntary removal or self-removal for the purpose 
164.9 	of calming, prevention of escalation, or de-escalation of behavior for a period of up to 15 
164.10 	minutes. "Time out" does not include a person voluntarily moving from an ongoing activity 
164.11 	to an unlocked room or otherwise separating from a situation or social contact with others 
164.12 	if the person chooses. For the purposes of this definition, "voluntarily" means without 
164.13 	being forced, compelled, or coerced.; nor does it mean taking a brief "break" or "rest" from 
164.14 	an activity for the purpose of providing the person an opportunity to regain self-control. 
164.15 	For the purpose of this subdivision, "brief" means a duration of three minutes or less.

164.16 	Sec. 12. Minnesota Statutes 2013 Supplement, section 245D.02, is amended by adding 
164.17 	a subdivision to read:
164.18 		Subd. 35b.Unlicensed staff. "Unlicensed staff" means individuals not otherwise 
164.19 	licensed or certified by a governmental health board or agency.

164.20 	Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is 
164.21 	amended to read:
164.22 		Subdivision 1.Applicability.  (a) The commissioner shall regulate the provision of 
164.23 	home and community-based services to persons with disabilities and persons age 65 and 
164.24 	older pursuant to this chapter. The licensing standards in this chapter govern the provision 
164.25 	of basic support services and intensive support services.
164.26 	(b) Basic support services provide the level of assistance, supervision, and care that 
164.27 	is necessary to ensure the health and safety of the person and do not include services that 
164.28 	are specifically directed toward the training, treatment, habilitation, or rehabilitation of 
164.29 	the person. Basic support services include:
164.30 	(1) in-home and out-of-home respite care services as defined in section 245A.02, 
164.31 	subdivision 15, and under the brain injury, community alternative care, community 
164.32 	alternatives for disabled individuals, developmental disability, and elderly waiver plans;
164.33 	(2) adult companion services as defined under the brain injury, community 
164.34 	alternatives for disabled individuals, and elderly waiver plans, excluding adult companion 
165.1 	services provided under the Corporation for National and Community Services Senior 
165.2 	Companion Program established under the Domestic Volunteer Service Act of 1973, 
165.3 	Public Law 98-288;
165.4 	(3) personal support as defined under the developmental disability waiver plan;
165.5 	(4) 24-hour emergency assistance, personal emergency response as defined under the 
165.6 	community alternatives for disabled individuals and developmental disability waiver plans;
165.7 	(5) night supervision services as defined under the brain injury waiver plan; and
165.8 	(6) homemaker services as defined under the community alternatives for disabled 
165.9 	individuals, brain injury, community alternative care, developmental disability, and elderly 
165.10 	waiver plans, excluding providers licensed by the Department of Health under chapter 
165.11 	144A and those providers providing cleaning services only.
165.12 	(c) Intensive support services provide assistance, supervision, and care that is 
165.13 	necessary to ensure the health and safety of the person and services specifically directed 
165.14 	toward the training, habilitation, or rehabilitation of the person. Intensive support services 
165.15 	include:
165.16 	(1) intervention services, including:
165.17 	(i) behavioral support services as defined under the brain injury and community 
165.18 	alternatives for disabled individuals waiver plans;
165.19 	(ii) in-home or out-of-home crisis respite services as defined under the developmental 
165.20 	disability waiver plan; and
165.21 	(iii) specialist services as defined under the current developmental disability waiver 
165.22 	plan;
165.23 	(2) in-home support services, including:
165.24 	(i) in-home family support and supported living services as defined under the 
165.25 	developmental disability waiver plan;
165.26 	(ii) independent living services training as defined under the brain injury and 
165.27 	community alternatives for disabled individuals waiver plans; and
165.28 	(iii) semi-independent living services;
165.29 	(3) residential supports and services, including:
165.30 	(i) supported living services as defined under the developmental disability waiver 
165.31 	plan provided in a family or corporate child foster care residence, a family adult foster 
165.32 	care residence, a community residential setting, or a supervised living facility;
165.33 	(ii) foster care services as defined in the brain injury, community alternative care, 
165.34 	and community alternatives for disabled individuals waiver plans provided in a family or 
165.35 	corporate child foster care residence, a family adult foster care residence, or a community 
165.36 	residential setting; and
166.1 	(iii) residential services provided to more than four persons with developmental 
166.2 	disabilities in a supervised living facility that is certified by the Department of Health as 
166.3 	an ICF/DD, including ICFs/DD;
166.4 	(4) day services, including:
166.5 	(i) structured day services as defined under the brain injury waiver plan;
166.6 	(ii) day training and habilitation services under sections 252.40 to 252.46, and as 
166.7 	defined under the developmental disability waiver plan; and
166.8 	(iii) prevocational services as defined under the brain injury and community 
166.9 	alternatives for disabled individuals waiver plans; and
166.10 	(5) supported employment as defined under the brain injury, developmental 
166.11 	disability, and community alternatives for disabled individuals waiver plans.

166.12 	Sec. 14. Minnesota Statutes 2013 Supplement, section 245D.03, is amended by adding 
166.13 	a subdivision to read:
166.14 		Subd. 1a.Effect. The home and community-based services standards establish 
166.15 	health, safety, welfare, and rights protections for persons receiving services governed by 
166.16 	this chapter. The standards recognize the diversity of persons receiving these services and 
166.17 	require that these services are provided in a manner that meets each person's individual 
166.18 	needs and ensures continuity in service planning, care, and coordination between the 
166.19 	license holder and members of each person's support team or expanded support team.

166.20 	Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is 
166.21 	amended to read:
166.22 		Subd. 2.Relationship to other standards governing home and community-based 
166.23 	services. (a) A license holder governed by this chapter is also subject to the licensure 
166.24 	requirements under chapter 245A.
166.25 	(b) A corporate or family child foster care site controlled by a license holder and 
166.26 	providing services governed by this chapter is exempt from compliance with section 
166.27 	245D.04. This exemption applies to foster care homes where at least one resident is 
166.28 	receiving residential supports and services licensed according to this chapter. This chapter 
166.29 	does not apply to corporate or family child foster care homes that do not provide services 
166.30 	licensed under this chapter.
166.31 	(c) A family adult foster care site controlled by a license holder and providing 
166.32 	services governed by this chapter is exempt from compliance with Minnesota Rules, 
166.33 	parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These 
166.34 	exemptions apply to family adult foster care homes where at least one resident is receiving 
167.1 	residential supports and services licensed according to this chapter. This chapter does 
167.2 	not apply to family adult foster care homes that do not provide services licensed under 
167.3 	this chapter.
167.4 	(d) A license holder providing services licensed according to this chapter in a 
167.5 	supervised living facility is exempt from compliance with sectionssection 245D.04; 
167.6 	245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).
167.7 	(e) A license holder providing residential services to persons in an ICF/DD is exempt 
167.8 	from compliance with sections 245D.04; 245D.05, subdivision 1b; 245D.06, subdivision 
167.9 	2, clauses (4) and (5); 245D.071, subdivisions 4 and 5; 245D.081, subdivision 2; 245D.09, 
167.10 	subdivision 7; 245D.095, subdivision 2; and 245D.11, subdivision 3.
167.11 	(f) A license holder providing homemaker services licensed according to this chapter 
167.12 	and registered according to chapter 144A is exempt from compliance with section 245D.04.
167.13 	(g) Nothing in this chapter prohibits a license holder from concurrently serving 
167.14 	persons without disabilities or people who are or are not age 65 and older, provided this 
167.15 	chapter's standards are met as well as other relevant standards.
167.16 	(h) The documentation required under sections 245D.07 and 245D.071 must meet 
167.17 	the individual program plan requirements identified in section 256B.092 or successor 
167.18 	provisions.

167.19 	Sec. 16. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 3, is 
167.20 	amended to read:
167.21 		Subd. 3.Variance. If the conditions in section 245A.04, subdivision 9, are met, 
167.22 	the commissioner may grant a variance to any of the requirements in this chapter, except 
167.23 	sections 245D.04; 245D.06, subdivision 4, paragraph (b), and subdivision 6; and 245D.061, 
167.24 	subdivision 3, or provisions governing data practices and information rights of persons.

167.25 	Sec. 17. Minnesota Statutes 2013 Supplement, section 245D.04, subdivision 3, is 
167.26 	amended to read:
167.27 		Subd. 3.Protection-related rights. (a) A person's protection-related rights include 
167.28 	the right to:
167.29 	(1) have personal, financial, service, health, and medical information kept private, 
167.30 	and be advised of disclosure of this information by the license holder;
167.31 	(2) access records and recorded information about the person in accordance with 
167.32 	applicable state and federal law, regulation, or rule;
167.33 	(3) be free from maltreatment;
168.1 	(4) be free from restraint, time out, or seclusion, or any aversive, deprivation, or 
168.2 	other prohibited procedure identified in section 245D.06, subdivision 5, except for: (i)
168.3 	 emergency use of manual restraint to protect the person from imminent danger to self or 
168.4 	others according to the requirements in section 245D.06; 245D.061; or (ii) the use of 
168.5 	safety interventions as part of a positive support transition plan under section 245D.06, 
168.6 	subdivision 8;
168.7 	(5) receive services in a clean and safe environment when the license holder is the 
168.8 	owner, lessor, or tenant of the service site;
168.9 	(6) be treated with courtesy and respect and receive respectful treatment of the 
168.10 	person's property;
168.11 	(7) reasonable observance of cultural and ethnic practice and religion;
168.12 	(8) be free from bias and harassment regarding race, gender, age, disability, 
168.13 	spirituality, and sexual orientation;
168.14 	(9) be informed of and use the license holder's grievance policy and procedures, 
168.15 	including knowing how to contact persons responsible for addressing problems and to 
168.16 	appeal under section 256.045;
168.17 	(10) know the name, telephone number, and the Web site, e-mail, and street 
168.18 	addresses of protection and advocacy services, including the appropriate state-appointed 
168.19 	ombudsman, and a brief description of how to file a complaint with these offices;
168.20 	(11) assert these rights personally, or have them asserted by the person's family, 
168.21 	authorized representative, or legal representative, without retaliation;
168.22 	(12) give or withhold written informed consent to participate in any research or 
168.23 	experimental treatment;
168.24 	(13) associate with other persons of the person's choice;
168.25 	(14) personal privacy; and
168.26 	(15) engage in chosen activities.
168.27 	(b) For a person residing in a residential site licensed according to chapter 245A, 
168.28 	or where the license holder is the owner, lessor, or tenant of the residential service site, 
168.29 	protection-related rights also include the right to:
168.30 	(1) have daily, private access to and use of a non-coin-operated telephone for local 
168.31 	calls and long-distance calls made collect or paid for by the person;
168.32 	(2) receive and send, without interference, uncensored, unopened mail or electronic 
168.33 	correspondence or communication;
168.34 	(3) have use of and free access to common areas in the residence; and
169.1 	(4) privacy for visits with the person's spouse, next of kin, legal counsel, religious 
169.2 	advisor, or others, in accordance with section 363A.09 of the Human Rights Act, including 
169.3 	privacy in the person's bedroom.
169.4 	(c) Restriction of a person's rights under subdivision 2, clause (10), or paragraph (a), 
169.5 	clauses (13) to (15), or paragraph (b) is allowed only if determined necessary to ensure 
169.6 	the health, safety, and well-being of the person. Any restriction of those rights must be 
169.7 	documented in the person's coordinated service and support plan or coordinated service 
169.8 	and support plan addendum. The restriction must be implemented in the least restrictive 
169.9 	alternative manner necessary to protect the person and provide support to reduce or 
169.10 	eliminate the need for the restriction in the most integrated setting and inclusive manner. 
169.11 	The documentation must include the following information:
169.12 	(1) the justification for the restriction based on an assessment of the person's 
169.13 	vulnerability related to exercising the right without restriction;
169.14 	(2) the objective measures set as conditions for ending the restriction;
169.15 	(3) a schedule for reviewing the need for the restriction based on the conditions 
169.16 	for ending the restriction to occur semiannually from the date of initial approval, at a 
169.17 	minimum, or more frequently if requested by the person, the person's legal representative, 
169.18 	if any, and case manager; and
169.19 	(4) signed and dated approval for the restriction from the person, or the person's 
169.20 	legal representative, if any. A restriction may be implemented only when the required 
169.21 	approval has been obtained. Approval may be withdrawn at any time. If approval is 
169.22 	withdrawn, the right must be immediately and fully restored.

169.23 	Sec. 18. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1, is 
169.24 	amended to read:
169.25 		Subdivision 1.Health needs. (a) The license holder is responsible for meeting 
169.26 	health service needs assigned in the coordinated service and support plan or the 
169.27 	coordinated service and support plan addendum, consistent with the person's health needs. 
169.28 	The license holder is responsible for promptly notifying the person's legal representative, 
169.29 	if any, and the case manager of changes in a person's physical and mental health needs 
169.30 	affecting health service needs assigned to the license holder in the coordinated service and 
169.31 	support plan or the coordinated service and support plan addendum, when discovered by 
169.32 	the license holder, unless the license holder has reason to know the change has already 
169.33 	been reported. The license holder must document when the notice is provided.
169.34 	(b) If responsibility for meeting the person's health service needs has been assigned 
169.35 	to the license holder in the coordinated service and support plan or the coordinated service 
170.1 	and support plan addendum, the license holder must maintain documentation on how the 
170.2 	person's health needs will be met, including a description of the procedures the license 
170.3 	holder will follow in order to:
170.4 	(1) provide medication setup, assistance, or medication administration according 
170.5 	to this chapter. Unlicensed staff responsible for medication setup or medication 
170.6 	administration under this section must complete training according to section 245D.09, 
170.7 	subdivision 4a, paragraph (d);
170.8 	(2) monitor health conditions according to written instructions from a licensed 
170.9 	health professional;
170.10 	(3) assist with or coordinate medical, dental, and other health service appointments; or
170.11 	(4) use medical equipment, devices, or adaptive aides or technology safely and 
170.12 	correctly according to written instructions from a licensed health professional.

170.13 	Sec. 19. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1a, 
170.14 	is amended to read:
170.15 		Subd. 1a.Medication setup. (a) For the purposes of this subdivision, "medication 
170.16 	setup" means the arranging of medications according to instructions from the pharmacy, 
170.17 	the prescriber, or a licensed nurse, for later administration when the license holder 
170.18 	is assigned responsibility for medication assistance or medication administration in 
170.19 	the coordinated service and support plan or the coordinated service and support plan 
170.20 	addendum. A prescription label or the prescriber's written or electronically recorded order 
170.21 	for the prescription is sufficient to constitute written instructions from the prescriber.
170.22 	(b) If responsibility for medication setup is assigned to the license holder in 
170.23 	the coordinated service and support plan or the coordinated service and support plan 
170.24 	addendum, or if the license holder provides it as part of medication assistance or 
170.25 	medication administration, the license holder must document in the person's medication 
170.26 	administration record: dates of setup, name of medication, quantity of dose, times to be 
170.27 	administered, and route of administration at time of setup; and, when the person will be 
170.28 	away from home, to whom the medications were given.

170.29 	Sec. 20. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1b, 
170.30 	is amended to read:
170.31 		Subd. 1b.Medication assistance. (a) For purposes of this subdivision, "medication 
170.32 	assistance" means any of the following:
171.1 	(1) bringing to the person and opening a container of previously set up medications, 
171.2 	emptying the container into the person's hand, or opening and giving the medications in 
171.3 	the original container to the person under the direction of the person;
171.4 	(2) bringing to the person liquids or food to accompany the medication; or
171.5 	(3) providing reminders to take regularly scheduled medication or perform regularly 
171.6 	scheduled treatments and exercises.
171.7 	(b) If responsibility for medication assistance is assigned to the license holder 
171.8 	in the coordinated service and support plan or the coordinated service and support 
171.9 	plan addendum, the license holder must ensure that the requirements of subdivision 2, 
171.10 	paragraph (b), have been met when staff provides medication assistance to enableis 
171.11 	provided in a manner that enables a person to self-administer medication or treatment 
171.12 	when the person is capable of directing the person's own care, or when the person's legal 
171.13 	representative is present and able to direct care for the person. For the purposes of this 
171.14 	subdivision, "medication assistance" means any of the following:
171.15 	(1) bringing to the person and opening a container of previously set up medications, 
171.16 	emptying the container into the person's hand, or opening and giving the medications in 
171.17 	the original container to the person;
171.18 	(2) bringing to the person liquids or food to accompany the medication; or
171.19 	(3) providing reminders to take regularly scheduled medication or perform regularly 
171.20 	scheduled treatments and exercises.

171.21 	Sec. 21. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 2, is 
171.22 	amended to read:
171.23 		Subd. 2.Medication administration. (a) If responsibility for medication 
171.24 	administration is assigned to the license holder in the coordinated service and support 
171.25 	plan or the coordinated service and support plan addendum, the license holder must 
171.26 	implement the following medication administration procedures to ensure a person takes 
171.27 	medications and treatments as prescribed For purposes of this subdivision, "medication 
171.28 	administration" means:
171.29 	(1) checking the person's medication record;
171.30 	(2) preparing the medication as necessary;
171.31 	(3) administering the medication or treatment to the person;
171.32 	(4) documenting the administration of the medication or treatment or the reason for 
171.33 	not administering the medication or treatment; and
171.34 	(5) reporting to the prescriber or a nurse any concerns about the medication or 
171.35 	treatment, including side effects, effectiveness, or a pattern of the person refusing to 
172.1 	take the medication or treatment as prescribed. Adverse reactions must be immediately 
172.2 	reported to the prescriber or a nurse.
172.3 	(b)(1) If responsibility for medication administration is assigned to the license holder 
172.4 	in the coordinated service and support plan or the coordinated service and support plan 
172.5 	addendum, the license holder must implement medication administration procedures 
172.6 	to ensure a person takes medications and treatments as prescribed. The license holder 
172.7 	must ensure that the requirements in clauses (2) to (4) and (3) have been met before 
172.8 	administering medication or treatment.
172.9 	(2) The license holder must obtain written authorization from the person or the 
172.10 	person's legal representative to administer medication or treatment and must obtain 
172.11 	reauthorization annually as needed. This authorization shall remain in effect unless it is 
172.12 	withdrawn in writing and may be withdrawn at any time. If the person or the person's 
172.13 	legal representative refuses to authorize the license holder to administer medication, the 
172.14 	medication must not be administered. The refusal to authorize medication administration 
172.15 	must be reported to the prescriber as expediently as possible.
172.16 	(3) The staff person responsible for administering the medication or treatment must 
172.17 	complete medication administration training according to section 245D.09, subdivision
172.18 	 4a, paragraphs (a) and (c), and, as applicable to the person, paragraph (d).
172.19 	(4) (3) For a license holder providing intensive support services, the medication or 
172.20 	treatment must be administered according to the license holder's medication administration 
172.21 	policy and procedures as required under section 245D.11, subdivision 2, clause (3).
172.22 	(c) The license holder must ensure the following information is documented in the 
172.23 	person's medication administration record:
172.24 	(1) the information on the current prescription label or the prescriber's current 
172.25 	written or electronically recorded order or prescription that includes the person's name, 
172.26 	description of the medication or treatment to be provided, and the frequency and other 
172.27 	information needed to safely and correctly administer the medication or treatment to 
172.28 	ensure effectiveness;
172.29 	(2) information on any risks or other side effects that are reasonable to expect, and 
172.30 	any contraindications to its use. This information must be readily available to all staff 
172.31 	administering the medication;
172.32 	(3) the possible consequences if the medication or treatment is not taken or 
172.33 	administered as directed;
172.34 	(4) instruction on when and to whom to report the following:
172.35 	(i) if a dose of medication is not administered or treatment is not performed as 
172.36 	prescribed, whether by error by the staff or the person or by refusal by the person; and
173.1 	(ii) the occurrence of possible adverse reactions to the medication or treatment;
173.2 	(5) notation of any occurrence of a dose of medication not being administered or 
173.3 	treatment not performed as prescribed, whether by error by the staff or the person or by 
173.4 	refusal by the person, or of adverse reactions, and when and to whom the report was 
173.5 	made; and
173.6 	(6) notation of when a medication or treatment is started, administered, changed, or 
173.7 	discontinued.

173.8 	Sec. 22. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 4, is 
173.9 	amended to read:
173.10 		Subd. 4.Reviewing and reporting medication and treatment issues. (a) When 
173.11 	assigned responsibility for medication administration, the license holder must ensure 
173.12 	that the information maintained in the medication administration record is current and 
173.13 	is regularly reviewed to identify medication administration errors. At a minimum, the 
173.14 	review must be conducted every three months, or more frequently as directed in the 
173.15 	coordinated service and support plan or coordinated service and support plan addendum 
173.16 	or as requested by the person or the person's legal representative. Based on the review, 
173.17 	the license holder must develop and implement a plan to correct patterns of medication 
173.18 	administration errors when identified.
173.19 	(b) If assigned responsibility for medication assistance or medication administration, 
173.20 	the license holder must report the following to the person's legal representative and case 
173.21 	manager as they occur or as otherwise directed in the coordinated service and support plan 
173.22 	or the coordinated service and support plan addendum:
173.23 	(1) any reports made to the person's physician or prescriber required under 
173.24 	subdivision 2, paragraph (c), clause (4);
173.25 	(2) a person's refusal or failure to take or receive medication or treatment as 
173.26 	prescribed; or
173.27 	(3) concerns about a person's self-administration of medication or treatment.

173.28 	Sec. 23. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 5, is 
173.29 	amended to read:
173.30 		Subd. 5.Injectable medications. Injectable medications may be administered 
173.31 	according to a prescriber's order and written instructions when one of the following 
173.32 	conditions has been met:
173.33 	(1) a registered nurse or licensed practical nurse will administer the subcutaneous or 
173.34 	intramuscular injection;
174.1 	(2) a supervising registered nurse with a physician's order has delegated the 
174.2 	administration of subcutaneous injectable medication to an unlicensed staff member 
174.3 	and has provided the necessary training; or
174.4 	(3) there is an agreement signed by the license holder, the prescriber, and the 
174.5 	person or the person's legal representative specifying what subcutaneous injections may 
174.6 	be given, when, how, and that the prescriber must retain responsibility for the license 
174.7 	holder's giving the injections. A copy of the agreement must be placed in the person's 
174.8 	service recipient record.
174.9 	Only licensed health professionals are allowed to administer psychotropic 
174.10 	medications by injection.

174.11 	Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:
174.12 	245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.
174.13 		Subdivision 1.Conditions for psychotropic medication administration. (a) 
174.14 	When a person is prescribed a psychotropic medication and the license holder is assigned 
174.15 	responsibility for administration of the medication in the person's coordinated service 
174.16 	and support plan or the coordinated service and support plan addendum, the license 
174.17 	holder must ensure that the requirements in paragraphs (b) to (d) and section 245D.05, 
174.18 	subdivision 2, are met.
174.19 	(b) Use of the medication must be included in the person's coordinated service and 
174.20 	support plan or in the coordinated service and support plan addendum and based on a 
174.21 	prescriber's current written or electronically recorded prescription.
174.22 	(c) (b) The license holder must develop, implement, and maintain the following 
174.23 	documentation in the person's coordinated service and support plan addendum according 
174.24 	to the requirements in sections 245D.07 and 245D.071:
174.25 	(1) a description of the target symptoms that the psychotropic medication is to 
174.26 	alleviate; and
174.27 	(2) documentation methods the license holder will use to monitor and measure 
174.28 	changes in the target symptoms that are to be alleviated by the psychotropic medication if 
174.29 	required by the prescriber. The license holder must collect and report on medication and 
174.30 	symptom-related data as instructed by the prescriber. The license holder must provide 
174.31 	the monitoring data to the expanded support team for review every three months, or as 
174.32 	otherwise requested by the person or the person's legal representative.
174.33 	For the purposes of this section, "target symptom" refers to any perceptible 
174.34 	diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic 
175.1 	and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or 
175.2 	successive editions, that has been identified for alleviation.
175.3 		Subd. 2.Refusal to authorize psychotropic medication. If the person or the 
175.4 	person's legal representative refuses to authorize the administration of a psychotropic 
175.5 	medication as ordered by the prescriber, the license holder must follow the requirement in 
175.6 	section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication. 
175.7 	The refusal to authorize medication administration must be reported to the prescriber as 
175.8 	expediently as possible. After reporting the refusal to the prescriber, the license holder 
175.9 	must follow any directives or orders given by the prescriber. A court order must be 
175.10 	obtained to override the refusal.A refusal may not be overridden without a court order. 
175.11 	Refusal to authorize administration of a specific psychotropic medication is not grounds 
175.12 	for service termination and does not constitute an emergency. A decision to terminate 
175.13 	services must be reached in compliance with section 245D.10, subdivision 3.

175.14 	Sec. 25. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 2, is 
175.15 	amended to read:
175.16 		Subd. 2.Environment and safety. The license holder must:
175.17 	(1) ensure the following when the license holder is the owner, lessor, or tenant 
175.18 	of the service site:
175.19 	(i) the service site is a safe and hazard-free environment;
175.20 	(ii) that toxic substances or dangerous items are inaccessible to persons served by 
175.21 	the program only to protect the safety of a person receiving services when a known safety 
175.22 	threat exists and not as a substitute for staff supervision or interactions with a person who 
175.23 	is receiving services. If toxic substances or dangerous items are made inaccessible, the 
175.24 	license holder must document an assessment of the physical plant, its environment, and its 
175.25 	population identifying the risk factors which require toxic substances or dangerous items 
175.26 	to be inaccessible and a statement of specific measures to be taken to minimize the safety 
175.27 	risk to persons receiving services and to restore accessibility to all persons receiving 
175.28 	services at the service site;
175.29 	(iii) doors are locked from the inside to prevent a person from exiting only when 
175.30 	necessary to protect the safety of a person receiving services and not as a substitute for 
175.31 	staff supervision or interactions with the person. If doors are locked from the inside, the 
175.32 	license holder must document an assessment of the physical plant, the environment and 
175.33 	the population served, identifying the risk factors which require the use of locked doors, 
175.34 	and a statement of specific measures to be taken to minimize the safety risk to persons 
175.35 	receiving services at the service site; and
176.1 	(iv) a staff person is available at the service site who is trained in basic first aid and, 
176.2 	when required in a person's coordinated service and support plan or coordinated service 
176.3 	and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are 
176.4 	present and staff are required to be at the site to provide direct support service. The CPR 
176.5 	training must include in-person instruction, hands-on practice, and an observed skills 
176.6 	assessment under the direct supervision of a CPR instructor;
176.7 	(2) maintain equipment, vehicles, supplies, and materials owned or leased by the 
176.8 	license holder in good condition when used to provide services;
176.9 	(3) follow procedures to ensure safe transportation, handling, and transfers of the 
176.10 	person and any equipment used by the person, when the license holder is responsible for 
176.11 	transportation of a person or a person's equipment;
176.12 	(4) be prepared for emergencies and follow emergency response procedures to 
176.13 	ensure the person's safety in an emergency; and
176.14 	(5) follow universal precautions and sanitary practices, including hand washing, for 
176.15 	infection prevention and control, and to prevent communicable diseases.

176.16 	Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is 
176.17 	amended to read:
176.18 		Subd. 4.Funds and property. (a) Whenever the license holder assists a person 
176.19 	with the safekeeping of funds or other property according to section 245A.04, subdivision 
176.20 	13, the license holder must obtain written authorization to do so from the person or the 
176.21 	person's legal representative and the case manager. Authorization must be obtained within 
176.22 	five working days of service initiation and renewed annually thereafter. At the time initial 
176.23 	authorization is obtained, the license holder must survey, document, and implement the 
176.24 	preferences of the person or the person's legal representative and the case manager for 
176.25 	frequency of receiving a statement that itemizes receipts and disbursements of funds or 
176.26 	other property. The license holder must document changes to these preferences when 
176.27 	they are requested.
176.28 	(b) A license holder or staff person may not accept powers-of-attorney from a person 
176.29 	receiving services from the license holder for any purpose. This does not apply to license 
176.30 	holders that are Minnesota counties or other units of government or to staff persons 
176.31 	employed by license holders who were acting as attorney-in-fact for specific individuals 
176.32 	prior to implementation of this chapter. The license holder must maintain documentation 
176.33 	of the power-of-attorney in the service recipient record.
176.34 	(c) A license holder or staff person is restricted from accepting an appointment 
176.35 	as a guardian as follows:
177.1 	(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency 
177.2 	that provides residence, custodial care, medical care, employment training, or other care 
177.3 	or services for which the individual or agency receives a fee may not be appointed as 
177.4 	guardian unless related to the respondent by blood, marriage, or adoption; and
177.5 	(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related 
177.6 	individual as defined under section 245A.02, subdivision 13, is excluded from licensure. 
177.7 	Services provided by a license holder to a person under the license holder's guardianship 
177.8 	are not licensed services.
177.9 	(c) (d) Upon the transfer or death of a person, any funds or other property of the 
177.10 	person must be surrendered to the person or the person's legal representative, or given to 
177.11 	the executor or administrator of the estate in exchange for an itemized receipt.

177.12 	Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is 
177.13 	amended to read:
177.14 		Subd. 6.Restricted procedures. (a) The following procedures are allowed when 
177.15 	the procedures are implemented in compliance with the standards governing their use as 
177.16 	identified in clauses (1) to (3). Allowed but restricted procedures include:
177.17 	(1) permitted actions and procedures subject to the requirements in subdivision 7;
177.18 	(2) procedures identified in a positive support transition plan subject to the 
177.19 	requirements in subdivision 8; or
177.20 	(3) emergency use of manual restraint subject to the requirements in section 
177.21 	245D.061.
177.22 	For purposes of this chapter, this section supersedes the requirements identified in 
177.23 	Minnesota Rules, part 9525.2740.
177.24 	(b) A restricted procedure identified in paragraph (a) must not:
177.25 	(1) be implemented with a child in a manner that constitutes sexual abuse, neglect, 
177.26 	physical abuse, or mental injury, as defined in section 626.556, subdivision 2;
177.27 	(2) be implemented with an adult in a manner that constitutes abuse or neglect as 
177.28 	defined in section 626.5572, subdivision 2 or 17;
177.29 	(3) be implemented in a manner that violates a person's rights identified in section 
177.30 	245D.04;
177.31 	(4) restrict a person's normal access to a nutritious diet, drinking water, adequate 
177.32 	ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping 
177.33 	conditions, necessary clothing, or any protection required by state licensing standards or 
177.34 	federal regulations governing the program;
178.1 	(5) deny the person visitation or ordinary contact with legal counsel, a legal 
178.2 	representative, or next of kin;
178.3 	(6) be used for the convenience of staff, as punishment, as a substitute for adequate 
178.4 	staffing, or as a consequence if the person refuses to participate in the treatment or services 
178.5 	provided by the program;
178.6 	(7) use prone restraint. For purposes of this section, "prone restraint" means use 
178.7 	of manual restraint that places a person in a face-down position. Prone restraint does 
178.8 	not include brief physical holding of a person who, during an emergency use of manual 
178.9 	restraint, rolls into a prone position, if the person is restored to a standing, sitting, or 
178.10 	side-lying position as quickly as possible;
178.11 	(8) apply back or chest pressure while a person is in a prone position as identified in 
178.12 	clause (7), supine position, or side-lying position; or
178.13 	(9) be implemented in a manner that is contraindicated for any of the person's known 
178.14 	medical or psychological limitations.

178.15 	Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is 
178.16 	amended to read:
178.17 		Subd. 7.Permitted actions and procedures. (a) Use of the instructional techniques 
178.18 	and intervention procedures as identified in paragraphs (b) and (c) is permitted when used 
178.19 	on an intermittent or continuous basis. When used on a continuous basis, it must be 
178.20 	addressed in a person's coordinated service and support plan addendum as identified in 
178.21 	sections 245D.07 and 245D.071. For purposes of this chapter, the requirements of this 
178.22 	subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.
178.23 	(b) Physical contact or instructional techniques must use the least restrictive 
178.24 	alternative possible to meet the needs of the person and may be used:
178.25 	(1) to calm or comfort a person by holding that person with no resistance from 
178.26 	that person;
178.27 	(2) to protect a person known to be at risk or of  injury due to frequent falls as a result 
178.28 	of a medical condition;
178.29 	(3) to facilitate the person's completion of a task or response when the person does 
178.30 	not resist or the person's resistance is minimal in intensity and duration; or
178.31 	(4) to briefly block or redirect a person's limbs or body without holding the person or 
178.32 	limiting the person's movement to interrupt the person's behavior that may result in injury 
178.33 	to self or others. with less than 60 seconds of physical contact by staff; or
179.1 	(5) to redirect a person's behavior when the behavior does not pose a serious threat 
179.2 	to the person or others and the behavior is effectively redirected with less than 60 seconds 
179.3 	of physical contact by staff.
179.4 	(c) Restraint may be used as an intervention procedure to:
179.5 	(1) allow a licensed health care professional to safely conduct a medical examination 
179.6 	or to provide medical treatment ordered by a licensed health care professional to a person 
179.7 	necessary to promote healing or recovery from an acute, meaning short-term, medical 
179.8 	condition;
179.9 	(2) assist in the safe evacuation or redirection of a person in the event of an 
179.10 	emergency and the person is at imminent risk of harm.; or
179.11 	Any use of manual restraint as allowed in this paragraph must comply with the restrictions 
179.12 	identified in section 245D.061, subdivision 3; or
179.13 	(3) position a person with physical disabilities in a manner specified in the person's 
179.14 	coordinated service and support plan addendum.
179.15 	Any use of manual restraint as allowed in this paragraph must comply with the restrictions 
179.16 	identified in subdivision 6, paragraph (b).
179.17 	(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment 
179.18 	ordered by a licensed health professional to treat a diagnosed medical condition do not in 
179.19 	and of themselves constitute the use of mechanical restraint.
179.20 	(e) Use of an auxiliary device to ensure a person does not unfasten a seat belt when 
179.21 	being transported in a vehicle in accordance with seat belt use requirements in section 
179.22 	169.686 does not constitute the use of mechanical restraint.

179.23 	Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is 
179.24 	amended to read:
179.25 		Subd. 8.Positive support transition plan. (a) License holders must develop 
179.26 	a positive support transition plan on the forms and in the manner prescribed by the 
179.27 	commissioner for a person who requires intervention in order to maintain safety when 
179.28 	it is known that the person's behavior poses an immediate risk of physical harm to self 
179.29 	or others. The positive support transition plan forms and instructions will supersede the 
179.30 	requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The 
179.31 	positive support transition plan must phase out any existing plans for the emergency or 
179.32 	programmatic use of aversive or deprivation procedures prohibited under this chapter 
179.33 	within the following timelines:
180.1 	(1) for persons receiving services from the license holder before January 1, 2014, 
180.2 	the plan must be developed and implemented by February 1, 2014, and phased out no 
180.3 	later than December 31, 2014; and
180.4 	(2) for persons admitted to the program on or after January 1, 2014, the plan must be 
180.5 	developed and implemented within 30 calendar days of service initiation and phased out 
180.6 	no later than 11 months from the date of plan implementation.
180.7 	(b) The commissioner has limited authority to grant approval for the emergency use 
180.8 	of procedures identified in subdivision 6 that had been part of an approved positive support 
180.9 	transition plan when a person is at imminent risk of serious injury as defined in section 
180.10 	245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:
180.11 	(1) the person's expanded support team approves the emergency use of the 
180.12 	procedures; and
180.13 	(2) the interim review panel established in section 245.8251, subdivision 4, 
180.14 	recommends commissioner approval of the emergency use of the procedures.
180.15 	(c) Written requests for the emergency use of the procedures must be developed 
180.16 	and submitted to the commissioner by the designated coordinator with input from the 
180.17 	person's expanded support team in accordance with the requirements set by the interim 
180.18 	review panel, in addition to the following:
180.19 	(1) a copy of the person's current positive support transition plan and copies of 
180.20 	each positive support transition plan review containing data on the progress of the plan 
180.21 	from the previous year;
180.22 	(2) documentation of a good faith effort to eliminate the use of the procedures that 
180.23 	had been part of an approved positive support transition plan;
180.24 	(3) justification for the continued use of the procedures that identifies the imminent 
180.25 	risk of serious injury due to the person's self-injurious behavior if the procedures were 
180.26 	eliminated;
180.27 	(4) documentation of the clinicians consulted in creating and maintaining the 
180.28 	positive support transition plan; and
180.29 	(5) documentation of the expanded support team's approval and the recommendation 
180.30 	from the interim panel required under paragraph (b).
180.31 	(d) A copy of the written request, supporting documentation, and the commissioner's 
180.32 	final determination on the request must be maintained in the person's service recipient 
180.33 	record.

180.34 	Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3, 
180.35 	is amended to read:
181.1 		Subd. 3.Assessment and initial service planning. (a) Within 15 days of service 
181.2 	initiation the license holder must complete a preliminary coordinated service and support 
181.3 	plan addendum based on the coordinated service and support plan.
181.4 	(b) Within 45 days of service initiation the license holder must meet with the person, 
181.5 	the person's legal representative, the case manager, and other members of the support team 
181.6 	or expanded support team to assess and determine the following based on the person's 
181.7 	coordinated service and support plan and the requirements in subdivision 4 and section 
181.8 	245D.07, subdivision 1a:
181.9 	(1) the scope of the services to be provided to support the person's daily needs 
181.10 	and activities;
181.11 	(2) the person's desired outcomes and the supports necessary to accomplish the 
181.12 	person's desired outcomes;
181.13 	(3) the person's preferences for how services and supports are provided;
181.14 	(4) whether the current service setting is the most integrated setting available and 
181.15 	appropriate for the person; and
181.16 	(5) how services must be coordinated across other providers licensed under this 
181.17 	chapter serving the same person to ensure continuity of care for the person.
181.18 	(c) Within the scope of services, the license holder must, at a minimum, assess 
181.19 	the following areas:
181.20 	(1) the person's ability to self-manage health and medical needs to maintain or 
181.21 	improve physical, mental, and emotional well-being, including, when applicable, allergies, 
181.22 	seizures, choking, special dietary needs, chronic medical conditions, self-administration 
181.23 	of medication or treatment orders, preventative screening, and medical and dental 
181.24 	appointments;
181.25 	(2) the person's ability to self-manage personal safety to avoid injury or accident in 
181.26 	the service setting, including, when applicable, risk of falling, mobility, regulating water 
181.27 	temperature, community survival skills, water safety skills, and sensory disabilities; and
181.28 	(3) the person's ability to self-manage symptoms or behavior that may otherwise 
181.29 	result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to 
181.30 	(7), suspension or termination of services by the license holder, or other symptoms 
181.31 	or behaviors that may jeopardize the health and safety of the person or others. The 
181.32 	assessments must produce information about the person that is descriptive of the person's 
181.33 	overall strengths, functional skills and abilities, and behaviors or symptoms.
181.34 	(b) Within the scope of services, the license holder must, at a minimum, complete 
181.35 	assessments in the following areas before the 45-day planning meeting:
182.1 	(1) the person's ability to self-manage health and medical needs to maintain or 
182.2 	improve physical, mental, and emotional well-being, including, when applicable, allergies, 
182.3 	seizures, choking, special dietary needs, chronic medical conditions, self-administration 
182.4 	of medication or treatment orders, preventative screening, and medical and dental 
182.5 	appointments;
182.6 	(2) the person's ability to self-manage personal safety to avoid injury or accident in 
182.7 	the service setting, including, when applicable, risk of falling, mobility, regulating water 
182.8 	temperature, community survival skills, water safety skills, and sensory disabilities; and
182.9 	(3) the person's ability to self-manage symptoms or behavior that may otherwise 
182.10 	result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7), 
182.11 	suspension or termination of services by the license holder, or other symptoms or 
182.12 	behaviors that may jeopardize the health and safety of the person or others.
182.13 	Assessments must produce information about the person that describes the person's overall 
182.14 	strengths, functional skills and abilities, and behaviors or symptoms. Assessments must 
182.15 	be based on the person's status within the last 12 months at the time of service initiation. 
182.16 	Assessments based on older information must be documented and justified. Assessments 
182.17 	must be conducted annually at a minimum or within 30 days of a written request from the 
182.18 	person or the person's legal representative or case manager. The results must be reviewed 
182.19 	by the support team or expanded support team as part of a service plan review.
182.20 	(c) Within 45 days of service initiation, the license holder must meet with the 
182.21 	person, the person's legal representative, the case manager, and other members of the 
182.22 	support team or expanded support team to determine the following based on information 
182.23 	obtained from the assessments identified in paragraph (b), the person's identified needs 
182.24 	in the coordinated service and support plan, and the requirements in subdivision 4 and 
182.25 	section 245D.07, subdivision 1a:
182.26 	(1) the scope of the services to be provided to support the person's daily needs 
182.27 	and activities;
182.28 	(2) the person's desired outcomes and the supports necessary to accomplish the 
182.29 	person's desired outcomes;
182.30 	(3) the person's preferences for how services and supports are provided;
182.31 	(4) whether the current service setting is the most integrated setting available and 
182.32 	appropriate for the person; and
182.33 	(5) how services must be coordinated across other providers licensed under this 
182.34 	chapter serving the person and members of the support team or expanded support team to 
182.35 	ensure continuity of care and coordination of services for the person.

183.1 	Sec. 31. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 4, 
183.2 	is amended to read:
183.3 		Subd. 4.Service outcomes and supports. (a) Within ten working days of the 
183.4 	45-day planning meeting, the license holder must develop and document a service plan that 
183.5 	documents the service outcomes and supports based on the assessments completed under 
183.6 	subdivision 3 and the requirements in section 245D.07, subdivision 1a. The outcomes and 
183.7 	supports must be included in the coordinated service and support plan addendum.
183.8 	(b) The license holder must document the supports and methods to be implemented 
183.9 	to support the accomplishment of person and accomplish outcomes related to acquiring, 
183.10 	retaining, or improving skills and physical, mental, and emotional health and well-being. 
183.11 	The documentation must include:
183.12 	(1) the methods or actions that will be used to support the person and to accomplish 
183.13 	the service outcomes, including information about:
183.14 	(i) any changes or modifications to the physical and social environments necessary 
183.15 	when the service supports are provided;
183.16 	(ii) any equipment and materials required; and
183.17 	(iii) techniques that are consistent with the person's communication mode and 
183.18 	learning style;
183.19 	(2) the measurable and observable criteria for identifying when the desired outcome 
183.20 	has been achieved and how data will be collected;
183.21 	(3) the projected starting date for implementing the supports and methods and 
183.22 	the date by which progress towards accomplishing the outcomes will be reviewed and 
183.23 	evaluated; and
183.24 	(4) the names of the staff or position responsible for implementing the supports 
183.25 	and methods.
183.26 	(c) Within 20 working days of the 45-day meeting, the license holder must obtain 
183.27 	dated signatures from the person or the person's legal representative and case manager 
183.28 	to document completion and approval of the assessment and coordinated service and 
183.29 	support plan addendum.

183.30 	Sec. 32. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 5, 
183.31 	is amended to read:
183.32 		Subd. 5.Progress reviews Service plan review and evaluation. (a) The license 
183.33 	holder must give the person or the person's legal representative and case manager an 
183.34 	opportunity to participate in the ongoing review and development of the service plan 
183.35 	and the methods used to support the person and accomplish outcomes identified in 
184.1 	subdivisions 3 and 4. The license holder, in coordination with the person's support team 
184.2 	or expanded support team, must meet with the person, the person's legal representative, 
184.3 	and the case manager, and participate in progress service plan review meetings following 
184.4 	stated timelines established in the person's coordinated service and support plan or 
184.5 	coordinated service and support plan addendum or within 30 days of a written request 
184.6 	by the person, the person's legal representative, or the case manager, at a minimum of 
184.7 	once per year. The purpose of the service plan review is to determine whether changes 
184.8 	are needed to the service plan based on the assessment information, the license holder's 
184.9 	evaluation of progress towards accomplishing outcomes, or other information provided by 
184.10 	the support team or expanded support team.
184.11 	(b) The license holder must summarize the person's status and progress toward 
184.12 	achieving the identified outcomes and make recommendations and identify the rationale 
184.13 	for changing, continuing, or discontinuing implementation of supports and methods 
184.14 	identified in subdivision 4 in a written report sent to the person or the person's legal 
184.15 	representative and case manager five working days prior to the review meeting, unless 
184.16 	the person, the person's legal representative, or the case manager requests to receive the 
184.17 	report at the time of the meeting.
184.18 	(c) Within ten working days of the progress review meeting, the license holder 
184.19 	must obtain dated signatures from the person or the person's legal representative and 
184.20 	the case manager to document approval of any changes to the coordinated service and 
184.21 	support plan addendum.

184.22 	Sec. 33. Minnesota Statutes 2013 Supplement, section 245D.081, subdivision 2, 
184.23 	is amended to read:
184.24 		Subd. 2.Coordination and evaluation of individual service delivery. (a) Delivery 
184.25 	and evaluation of services provided by the license holder must be coordinated by a 
184.26 	designated staff person. The designated coordinator must provide supervision, support, 
184.27 	and evaluation of activities that include:
184.28 	(1) oversight of the license holder's responsibilities assigned in the person's 
184.29 	coordinated service and support plan and the coordinated service and support plan 
184.30 	addendum;
184.31 	(2) taking the action necessary to facilitate the accomplishment of the outcomes 
184.32 	according to the requirements in section 245D.07;
184.33 	(3) instruction and assistance to direct support staff implementing the coordinated 
184.34 	service and support plan and the service outcomes, including direct observation of service 
184.35 	delivery sufficient to assess staff competency; and
185.1 	(4) evaluation of the effectiveness of service delivery, methodologies, and progress on 
185.2 	the person's outcomes based on the measurable and observable criteria for identifying when 
185.3 	the desired outcome has been achieved according to the requirements in section 245D.07.
185.4 	(b) The license holder must ensure that the designated coordinator is competent to 
185.5 	perform the required duties identified in paragraph (a) through education and, training 
185.6 	in human services and disability-related fields, and work experience in providing direct 
185.7 	care services and supports to persons with disabilities relevant to the needs of the general 
185.8 	population of persons served by the license holder and the individual persons for whom 
185.9 	the designated coordinator is responsible. The designated coordinator must have the 
185.10 	skills and ability necessary to develop effective plans and to design and use data systems 
185.11 	to measure effectiveness of services and supports. The license holder must verify and 
185.12 	document competence according to the requirements in section 245D.09, subdivision 3. 
185.13 	The designated coordinator must minimally have:
185.14 	(1) a baccalaureate degree in a field related to human services, and one year of 
185.15 	full-time work experience providing direct care services to persons with disabilities or 
185.16 	persons age 65 and older;
185.17 	(2) an associate degree in a field related to human services, and two years of 
185.18 	full-time work experience providing direct care services to persons with disabilities or 
185.19 	persons age 65 and older;
185.20 	(3) a diploma in a field related to human services from an accredited postsecondary 
185.21 	institution and three years of full-time work experience providing direct care services to 
185.22 	persons with disabilities or persons age 65 and older; or
185.23 	(4) a minimum of 50 hours of education and training related to human services 
185.24 	and disabilities; and
185.25 	(5) four years of full-time work experience providing direct care services to persons 
185.26 	with disabilities or persons age 65 and older under the supervision of a staff person who 
185.27 	meets the qualifications identified in clauses (1) to (3).

185.28 	Sec. 34. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 3, is 
185.29 	amended to read:
185.30 		Subd. 3.Staff qualifications. (a) The license holder must ensure that staff providing 
185.31 	direct support, or staff who have responsibilities related to supervising or managing the 
185.32 	provision of direct support service, are competent as demonstrated through skills and 
185.33 	knowledge training, experience, and education to meet the person's needs and additional 
185.34 	requirements as written in the coordinated service and support plan or coordinated 
185.35 	service and support plan addendum, or when otherwise required by the case manager or 
186.1 	the federal waiver plan. The license holder must verify and maintain evidence of staff 
186.2 	competency, including documentation of:
186.3 	(1) education and experience qualifications relevant to the job responsibilities 
186.4 	assigned to the staff and to the needs of the general population of persons served by the 
186.5 	program, including a valid degree and transcript, or a current license, registration, or 
186.6 	certification, when a degree or licensure, registration, or certification is required by this 
186.7 	chapter or in the coordinated service and support plan or coordinated service and support 
186.8 	plan addendum;
186.9 	(2) demonstrated competency in the orientation and training areas required under 
186.10 	this chapter, and when applicable, completion of continuing education required to 
186.11 	maintain professional licensure, registration, or certification requirements. Competency in 
186.12 	these areas is determined by the license holder through knowledge testing and or observed 
186.13 	skill assessment conducted by the trainer or instructor; and
186.14 	(3) except for a license holder who is the sole direct support staff, periodic 
186.15 	performance evaluations completed by the license holder of the direct support staff 
186.16 	person's ability to perform the job functions based on direct observation.
186.17 	(b) Staff under 18 years of age may not perform overnight duties or administer 
186.18 	medication.

186.19 	Sec. 35. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 4a, 
186.20 	is amended to read:
186.21 		Subd. 4a.Orientation to individual service recipient needs. (a) Before having 
186.22 	unsupervised direct contact with a person served by the program, or for whom the staff 
186.23 	person has not previously provided direct support, or any time the plans or procedures 
186.24 	identified in paragraphs (b) to (f) (g) are revised, the staff person must review and receive 
186.25 	instruction on the requirements in paragraphs (b) to (f) (g) as they relate to the staff 
186.26 	person's job functions for that person.
186.27 	(b) Training and competency evaluations must include the following:
186.28 	(1) appropriate and safe techniques in personal hygiene and grooming, including 
186.29 	hair care; bathing; care of teeth, gums, and oral prosthetic devices; and other activities of 
186.30 	daily living (ADLs) as defined under section 256B.0659, subdivision 1;
186.31 	(2) an understanding of what constitutes a healthy diet according to data from the 
186.32 	Centers for Disease Control and Prevention and the skills necessary to prepare that diet;
186.33 	(3) skills necessary to provide appropriate support in instrumental activities of daily 
186.34 	living (IADLs) as defined under section 256B.0659, subdivision 1; and
186.35 	(4) demonstrated competence in providing first aid.
187.1 	(c) The staff person must review and receive instruction on the person's coordinated 
187.2 	service and support plan or coordinated service and support plan addendum as it relates 
187.3 	to the responsibilities assigned to the license holder, and when applicable, the person's 
187.4 	individual abuse prevention plan, to achieve and demonstrate an understanding of the 
187.5 	person as a unique individual, and how to implement those plans.
187.6 	(d) The staff person must review and receive instruction on medication setup, 
187.7 	assistance, or administration procedures established for the person when medication 
187.8 	administration is assigned to the license holder according to section 245D.05, subdivision 
187.9 	1, paragraph (b). Unlicensed staff may administer medications perform medication setup 
187.10 	or medication administration only after successful completion of a medication setup or 
187.11 	medication administration training, from a training curriculum developed by a registered 
187.12 	nurse, clinical nurse specialist in psychiatric and mental health nursing, certified nurse 
187.13 	practitioner, physician's assistant, or physician or appropriate licensed health professional. 
187.14 	The training curriculum must incorporate an observed skill assessment conducted by the 
187.15 	trainer to ensure unlicensed staff demonstrate the ability to safely and correctly follow 
187.16 	medication procedures.
187.17 	Medication administration must be taught by a registered nurse, clinical nurse 
187.18 	specialist, certified nurse practitioner, physician's assistant, or physician if, at the time of 
187.19 	service initiation or any time thereafter, the person has or develops a health care condition 
187.20 	that affects the service options available to the person because the condition requires:
187.21 	(1) specialized or intensive medical or nursing supervision; and
187.22 	(2) nonmedical service providers to adapt their services to accommodate the health 
187.23 	and safety needs of the person.
187.24 	(e) The staff person must review and receive instruction on the safe and correct 
187.25 	operation of medical equipment used by the person to sustain life, including but not 
187.26 	limited to ventilators, feeding tubes, or endotracheal tubes. The training must be provided 
187.27 	by a licensed health care professional or a manufacturer's representative and incorporate 
187.28 	an observed skill assessment to ensure staff demonstrate the ability to safely and correctly 
187.29 	operate the equipment according to the treatment orders and the manufacturer's instructions.
187.30 	(f) The staff person must review and receive instruction on what constitutes use of 
187.31 	restraints, time out, and seclusion, including chemical restraint, and staff responsibilities 
187.32 	related to the prohibitions of their use according to the requirements in section 245D.06, 
187.33 	subdivision 5, why such procedures are not effective for reducing or eliminating symptoms 
187.34 	or undesired behavior and why they are not safe, and the safe and correct use of manual 
187.35 	restraint on an emergency basis according to the requirements in section 245D.061.
188.1 	(g) The staff person must review and receive instruction on mental health crisis 
188.2 	response, de-escalation techniques, and suicide intervention when providing direct support 
188.3 	to a person with a serious mental illness.
188.4 	(g)(h) In the event of an emergency service initiation, the license holder must ensure 
188.5 	the training required in this subdivision occurs within 72 hours of the direct support staff 
188.6 	person first having unsupervised contact with the person receiving services. The license 
188.7 	holder must document the reason for the unplanned or emergency service initiation and 
188.8 	maintain the documentation in the person's service recipient record.
188.9 	(h)(i) License holders who provide direct support services themselves must 
188.10 	complete the orientation required in subdivision 4, clauses (3) to (7).

188.11 	Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2, 
188.12 	is amended to read:
188.13 		Subd. 2.Behavior professional qualifications. A behavior professional providing 
188.14 	behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 
188.15 	clause (1), item (i), as defined in the brain injury and community alternatives for disabled 
188.16 	individuals waiver plans or successor plans, must have competencies in the following 
188.17 	areas related to as required under the brain injury and community alternatives for disabled 
188.18 	individuals waiver plans or successor plans:
188.19 	(1) ethical considerations;
188.20 	(2) functional assessment;
188.21 	(3) functional analysis;
188.22 	(4) measurement of behavior and interpretation of data;
188.23 	(5) selecting intervention outcomes and strategies;
188.24 	(6) behavior reduction and elimination strategies that promote least restrictive 
188.25 	approved alternatives;
188.26 	(7) data collection;
188.27 	(8) staff and caregiver training;
188.28 	(9) support plan monitoring;
188.29 	(10) co-occurring mental disorders or neurocognitive disorder;
188.30 	(11) demonstrated expertise with populations being served; and
188.31 	(12) must be a:
188.32 	(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the 
188.33 	Board of Psychology competencies in the above identified areas;
188.34 	(ii) clinical social worker licensed as an independent clinical social worker under 
188.35 	chapter 148D, or a person with a master's degree in social work from an accredited college 
189.1 	or university, with at least 4,000 hours of post-master's supervised experience in the 
189.2 	delivery of clinical services in the areas identified in clauses (1) to (11);
189.3 	(iii) physician licensed under chapter 147 and certified by the American Board 
189.4 	of Psychiatry and Neurology or eligible for board certification in psychiatry with 
189.5 	competencies in the areas identified in clauses (1) to (11);
189.6 	(iv) licensed professional clinical counselor licensed under sections 148B.29 to 
189.7 	148B.39 with at least 4,000 hours of post-master's supervised experience in the delivery 
189.8 	of clinical services who has demonstrated competencies in the areas identified in clauses 
189.9 	(1) to (11);
189.10 	(v) person with a master's degree from an accredited college or university in one 
189.11 	of the behavioral sciences or related fields, with at least 4,000 hours of post-master's 
189.12 	supervised experience in the delivery of clinical services with demonstrated competencies 
189.13 	in the areas identified in clauses (1) to (11); or
189.14 	(vi) registered nurse who is licensed under sections 148.171 to 148.285, and who is 
189.15 	certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and 
189.16 	mental health nursing by a national nurse certification organization, or who has a master's 
189.17 	degree in nursing or one of the behavioral sciences or related fields from an accredited 
189.18 	college or university or its equivalent, with at least 4,000 hours of post-master's supervised 
189.19 	experience in the delivery of clinical services.

189.20 	Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3, 
189.21 	is amended to read:
189.22 		Subd. 3.Behavior analyst qualifications. (a) A behavior analyst providing 
189.23 	behavioral support services as identified in section 245D.03, subdivision 1, paragraph 
189.24 	(c), clause (1), item (i), as defined in the brain injury and community alternatives for 
189.25 	disabled individuals waiver plans or successor plans, must have competencies in the 
189.26 	following areas as required under the brain injury and community alternatives for disabled 
189.27 	individuals waiver plans or successor plans:
189.28 	(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services 
189.29 	discipline; or
189.30 	(2) meet the qualifications of a mental health practitioner as defined in section 
189.31 	245.462, subdivision 17.
189.32 	(b) In addition, a behavior analyst must:
189.33 	(1) have four years of supervised experience working with individuals who exhibit 
189.34 	challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;
190.1 	(2) have received ten hours of instruction in functional assessment and functional 
190.2 	analysis;
190.3 	(3) have received 20 hours of instruction in the understanding of the function of 
190.4 	behavior;
190.5 	(4) have received ten hours of instruction on design of positive practices behavior 
190.6 	support strategies;
190.7 	(5) have received 20 hours of instruction on the use of behavior reduction approved 
190.8 	strategies used only in combination with behavior positive practices strategies;
190.9 	(6) be determined by a behavior professional to have the training and prerequisite 
190.10 	skills required to provide positive practice strategies as well as behavior reduction 
190.11 	approved and permitted intervention to the person who receives behavioral support; and
190.12 	(7) be under the direct supervision of a behavior professional.

190.13 	Sec. 38. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 4, 
190.14 	is amended to read:
190.15 		Subd. 4.Behavior specialist qualifications. (a) A behavior specialist providing 
190.16 	behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 
190.17 	clause (1), item (i), as defined in the brain injury and community alternatives for disabled 
190.18 	individuals waiver plans or successor plans, must meet the following qualifications have 
190.19 	competencies in the following areas as required under the brain injury and community 
190.20 	alternatives for disabled individuals waiver plans or successor plans:
190.21 	(1) have an associate's degree in a social services discipline; or
190.22 	(2) have two years of supervised experience working with individuals who exhibit 
190.23 	challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.
190.24 	(b) In addition, a behavior specialist must:
190.25 	(1) have received a minimum of four hours of training in functional assessment;
190.26 	(2) have received 20 hours of instruction in the understanding of the function of 
190.27 	behavior;
190.28 	(3) have received ten hours of instruction on design of positive practices behavioral 
190.29 	support strategies;
190.30 	(4) be determined by a behavior professional to have the training and prerequisite 
190.31 	skills required to provide positive practices strategies as well as behavior reduction 
190.32 	approved intervention to the person who receives behavioral support; and
190.33 	(5) be under the direct supervision of a behavior professional.

191.1 	Sec. 39. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 3, is 
191.2 	amended to read:
191.3 		Subd. 3.Service suspension and service termination. (a) The license holder must 
191.4 	establish policies and procedures for temporary service suspension and service termination 
191.5 	that promote continuity of care and service coordination with the person and the case 
191.6 	manager and with other licensed caregivers, if any, who also provide support to the person.
191.7 	(b) The policy must include the following requirements:
191.8 	(1) the license holder must notify the person or the person's legal representative and 
191.9 	case manager in writing of the intended termination or temporary service suspension, and 
191.10 	the person's right to seek a temporary order staying the termination of service according to 
191.11 	the procedures in section 256.045, subdivision 4a, or 6, paragraph (c);
191.12 	(2) notice of the proposed termination of services, including those situations that 
191.13 	began with a temporary service suspension, must be given at least 60 days before the 
191.14 	proposed termination is to become effective when a license holder is providing intensive 
191.15 	supports and services identified in section 245D.03, subdivision 1, paragraph (c), and 30 
191.16 	days prior to termination for all other services licensed under this chapter. This notice 
191.17 	may be given in conjunction with a notice of temporary service suspension;
191.18 	(3) notice of temporary service suspension must be given on the first day of the 
191.19 	service suspension;
191.20 	(3) (4) the license holder must provide information requested by the person or case 
191.21 	manager when services are temporarily suspended or upon notice of termination;
191.22 	(4) (5) prior to giving notice of service termination or temporary service suspension, 
191.23 	the license holder must document actions taken to minimize or eliminate the need for 
191.24 	service suspension or termination;
191.25 	(5) (6) during the temporary service suspension or service termination notice period, 
191.26 	the license holder will must work with the appropriate county agency support team or 
191.27 	expanded support team to develop reasonable alternatives to protect the person and others;
191.28 	(6) (7) the license holder must maintain information about the service suspension or 
191.29 	termination, including the written termination notice, in the service recipient record; and
191.30 	(7) (8) the license holder must restrict temporary service suspension to situations in 
191.31 	which the person's conduct poses an imminent risk of physical harm to self or others and 
191.32 	less restrictive or positive support strategies would not achieve and maintain safety.

191.33 	Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is 
191.34 	amended to read:
192.1 		Subd. 2.Health and safety. The license holder must establish policies and 
192.2 	procedures that promote health and safety by ensuring:
192.3 	(1) use of universal precautions and sanitary practices in compliance with section 
192.4 	245D.06, subdivision 2, clause (5);
192.5 	(2) if the license holder operates a residential program, health service coordination 
192.6 	and care according to the requirements in section 245D.05, subdivision 1;
192.7 	(3) safe medication assistance and administration according to the requirements 
192.8 	in sections 245D.05, subdivisions 1a, 2, and 5, and 245D.051, that are established in 
192.9 	consultation with a registered nurse, nurse practitioner, physician's assistant, or medical 
192.10 	doctor and require completion of medication administration training according to the 
192.11 	requirements in section 245D.09, subdivision 4a, paragraph (d). Medication assistance 
192.12 	and administration includes, but is not limited to:
192.13 	(i) providing medication-related services for a person;
192.14 	(ii) medication setup;
192.15 	(iii) medication administration;
192.16 	(iv) medication storage and security;
192.17 	(v) medication documentation and charting;
192.18 	(vi) verification and monitoring of effectiveness of systems to ensure safe medication 
192.19 	handling and administration;
192.20 	(vii) coordination of medication refills;
192.21 	(viii) handling changes to prescriptions and implementation of those changes;
192.22 	(ix) communicating with the pharmacy; and
192.23 	(x) coordination and communication with prescriber;
192.24 	(4) safe transportation, when the license holder is responsible for transportation of 
192.25 	persons, with provisions for handling emergency situations according to the requirements 
192.26 	in section 245D.06, subdivision 2, clauses (2) to (4);
192.27 	(5) a plan for ensuring the safety of persons served by the program in emergencies as 
192.28 	defined in section 245D.02, subdivision 8, and procedures for staff to report emergencies 
192.29 	to the license holder. A license holder with a community residential setting or a day service 
192.30 	facility license must ensure the policy and procedures comply with the requirements in 
192.31 	section 245D.22, subdivision 4;
192.32 	(6) a plan for responding to all incidents as defined in section 245D.02, subdivision 
192.33 	11; and reporting all incidents required to be reported according to section 245D.06, 
192.34 	subdivision 1. The plan must:
192.35 	(i) provide the contact information of a source of emergency medical care and 
192.36 	transportation; and
193.1 	(ii) require staff to first call 911 when the staff believes a medical emergency may 
193.2 	be life threatening, or to call the mental health crisis intervention team or similar mental 
193.3 	health response team or service when such a team is available and appropriate when the 
193.4 	person is experiencing a mental health crisis; and
193.5 	(7) a procedure for the review of incidents and emergencies to identify trends or 
193.6 	patterns, and corrective action if needed. The license holder must establish and maintain 
193.7 	a record-keeping system for the incident and emergency reports. Each incident and 
193.8 	emergency report file must contain a written summary of the incident. The license holder 
193.9 	must conduct a review of incident reports for identification of incident patterns, and 
193.10 	implementation of corrective action as necessary to reduce occurrences. Each incident 
193.11 	report must include:
193.12 	(i) the name of the person or persons involved in the incident. It is not necessary 
193.13 	to identify all persons affected by or involved in an emergency unless the emergency 
193.14 	resulted in an incident;
193.15 	(ii) the date, time, and location of the incident or emergency;
193.16 	(iii) a description of the incident or emergency;
193.17 	(iv) a description of the response to the incident or emergency and whether a person's 
193.18 	coordinated service and support plan addendum or program policies and procedures were 
193.19 	implemented as applicable;
193.20 	(v) the name of the staff person or persons who responded to the incident or 
193.21 	emergency; and
193.22 	(vi) the determination of whether corrective action is necessary based on the results 
193.23 	of the review.

193.24 	Sec. 41. Minnesota Statutes 2012, section 252.451, subdivision 2, is amended to read:
193.25 		Subd. 2.Vendor participation and reimbursement. Notwithstanding requirements 
193.26 	in chapter chapters 245A and 245D, and sections 252.28, 252.40 to 252.46, and 256B.501, 
193.27 	vendors of day training and habilitation services may enter into written agreements with 
193.28 	qualified businesses to provide additional training and supervision needed by individuals 
193.29 	to maintain their employment.

193.30 	Sec. 42. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1, 
193.31 	is amended to read:
193.32 		Subdivision 1.Development and implementation of quality profiles. (a) The 
193.33 	commissioner of human services, in cooperation with the commissioner of health, shall 
193.34 	develop and implement quality profiles for nursing facilities and, beginning not later than 
194.1 	July 1, 2014, for home and community-based services providers, except when the quality 
194.2 	profile system would duplicate requirements under section 256B.5011, 256B.5012, or 
194.3 	256B.5013. For purposes of this section, home and community-based services providers 
194.4 	are defined as providers of home and community-based services under sections 256B.0625, 
194.5 	subdivisions 6a, 7, and 19a; 256B.0913,;256B.0915,;256B.092, and;256B.49,; and 
194.6 	256B.85, and intermediate care facilities for persons with developmental disabilities 
194.7 	providers under section 256B.5013. To the extent possible, quality profiles must be 
194.8 	developed for providers of services to older adults and people with disabilities, regardless 
194.9 	of payor source, for the purposes of providing information to consumers. The quality 
194.10 	profiles must be developed using existing data sets maintained by the commissioners of 
194.11 	health and human services to the extent possible. The profiles must incorporate or be 
194.12 	coordinated with information on quality maintained by area agencies on aging, long-term 
194.13 	care trade associations, the ombudsman offices, counties, tribes, health plans, and other 
194.14 	entities and the long-term care database maintained under section 256.975, subdivision 7. 
194.15 	The profiles must be designed to provide information on quality to:
194.16 	(1) consumers and their families to facilitate informed choices of service providers;
194.17 	(2) providers to enable them to measure the results of their quality improvement 
194.18 	efforts and compare quality achievements with other service providers; and
194.19 	(3) public and private purchasers of long-term care services to enable them to 
194.20 	purchase high-quality care.
194.21 	(b) The profiles must be developed in consultation with the long-term care task 
194.22 	force, area agencies on aging, and representatives of consumers, providers, and labor 
194.23 	unions. Within the limits of available appropriations, the commissioners may employ 
194.24 	consultants to assist with this project.

194.25 	EFFECTIVE DATE. This section is effective retroactively from February 1, 2014.

194.26 	Sec. 43. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 7, 
194.27 	is amended to read:
194.28 		Subd. 7.Calculation of home and community-based services quality add-on. 
 194.29 	Effective On July 1, 2015, the commissioner shall determine the quality add-on rate 
194.30 	change and adjust payment rates for participating all home and community-based services 
194.31 	providers for services rendered on or after that date. The adjustment to a provider payment 
194.32 	rate determined under this subdivision shall become part of the ongoing rate paid to that 
194.33 	provider. The payment rate for the quality add-on shall be a variable amount based on 
194.34 	each provider's quality score as determined in subdivisions 1 and 2a. All home and 
194.35 	community-based services providers shall receive a minimum rate increase under this 
195.1 	subdivision. In addition to a minimum rate increase, a home and community-based 
195.2 	services provider shall receive a quality add-on payment. The commissioner shall limit 
195.3 	the types of home and community-based services providers that may receive the quality 
195.4 	add-on and based on availability of quality measures and outcome data. The commissioner 
195.5 	shall limit the amount of the minimum rate increase and quality add-on payments to 
195.6 	operate the quality add-on within funds appropriated for this purpose and based on the 
195.7 	availability of the quality measures the equivalent of a one percent rate increase for all 
195.8 	home and community-based services providers.

195.9 	Sec. 44. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1, 
195.10 	is amended to read:
195.11 		Subdivision 1.Provider qualifications. (a) For the home and community-based 
195.12 	waivers providing services to seniors and individuals with disabilities under sections 
195.13 	256B.0913, 256B.0915, 256B.092, and 256B.49, the commissioner shall establish:
195.14 	(1) agreements with enrolled waiver service providers to ensure providers meet 
195.15 	Minnesota health care program requirements;
195.16 	(2) regular reviews of provider qualifications, and including requests of proof of 
195.17 	documentation; and
195.18 	(3) processes to gather the necessary information to determine provider qualifications.
195.19 	(b) Beginning July 1, 2012, staff that provide direct contact, as defined in section 
195.20 	245C.02, subdivision 11, for services specified in the federally approved waiver plans 
195.21 	must meet the requirements of chapter 245C prior to providing waiver services and as 
195.22 	part of ongoing enrollment. Upon federal approval, this requirement must also apply to 
195.23 	consumer-directed community supports.
195.24 	(c) Beginning January 1, 2014, service owners and managerial officials overseeing 
195.25 	the management or policies of services that provide direct contact as specified in the 
195.26 	federally approved waiver plans must meet the requirements of chapter 245C prior to 
195.27 	reenrollment or revalidation or, for new providers, prior to initial enrollment if they have 
195.28 	not already done so as a part of service licensure requirements.

195.29 	Sec. 45. Minnesota Statutes 2012, section 256B.5012, is amended by adding a 
195.30 	subdivision to read:
195.31 		Subd. 16.ICF/DD rate increases effective July 1, 2014. (a) For each facility 
195.32 	reimbursed under this section, for the rate period beginning July 1, 2014, the commissioner 
195.33 	shall increase operating payments equal to four percent of the operating payment rates in 
195.34 	effect on July 1, 2014. For each facility, the commissioner shall apply the rate increase 
196.1 	based on occupied beds, using the percentage specified in this subdivision multiplied by 
196.2 	the total payment rate, including the variable rate but excluding the property-related 
196.3 	payment rate in effect on the preceding date.
196.4 	(b) To receive the rate increase under paragraph (a), each facility reimbursed under 
196.5 	this section must submit to the commissioner documentation that identifies a quality 
196.6 	improvement project the facility will implement by June 30, 2015. Documentation must 
196.7 	be provided in a format specified by the commissioner. Projects must:
196.8 	(1) improve the quality of life of intermediate care facility residents in a meaningful 
196.9 	way;
196.10 	(2) improve the quality of services in a measurable way; or
196.11 	(3) deliver good quality service more efficiently.
196.12 	(c) For a facility that fails to submit the documentation described in paragraph (b) 
196.13 	by a date or in a format specified by the commissioner, the commissioner shall reduce 
196.14 	the facility's rate by one percent effective January 1, 2015.
196.15 	(d) Facilities that receive a rate increase under this subdivision shall use 75 percent 
196.16 	of the rate increase to increase compensation-related costs for employees directly 
196.17 	employed by the facility on or after the effective date of the rate adjustments, except:
196.18 	(1) persons employed in the central office of a corporation or entity that has an 
196.19 	ownership interest in the facility or exercises control over the facility; and
196.20 	(2) persons paid by the facility under a management contract.
196.21 	This requirement is subject to audit by the commissioner.
196.22 	(e) Compensation-related costs include:
196.23 	(1) wages and salaries;
196.24 	(2) the employer's share of FICA taxes, Medicare taxes, state and federal 
196.25 	unemployment taxes, workers' compensation, and mileage reimbursement;
196.26 	(3) the employer's share of health and dental insurance, life insurance, disability 
196.27 	insurance, long-term care insurance, uniform allowance, pensions, and contributions to 
196.28 	employee retirement accounts; and
196.29 	(4) other benefits provided and workforce needs, including the recruiting and 
196.30 	training of employees as specified in the distribution plan required under paragraph (f).
196.31 	(f) A facility that receives a rate adjustment under paragraph (a) that is subject to 
196.32 	paragraphs (d) and (e) shall prepare and produce for the commissioner, upon request, a 
196.33 	plan that specifies the amount of money the provider expects to receive that is subject to 
196.34 	the requirements of paragraphs (d) and (e), as well as how that money will be distributed 
196.35 	to increase compensation for employees. The commissioner may recover funds from a 
196.36 	facility that fails to comply with this requirement.
197.1 	(g) Within six months after the effective date of the rate adjustment, the facility shall 
197.2 	post the distribution plan required under paragraph (f) for a period of at least six weeks in 
197.3 	an area of the facility's operation to which all eligible employees have access, and shall 
197.4 	provide instructions for employees who believe they have not received the wage and other 
197.5 	compensation-related increases specified in the distribution plan. These instructions must 
197.6 	include a mailing address, e-mail address, and telephone number that an employee may 
197.7 	use to contact the commissioner or the commissioner's representative. Facilities shall 
197.8 	make assurances to the commissioner of compliance with this subdivision using forms 
197.9 	prescribed by the commissioner.
197.10 	(h) For public employees, the increase for wages and benefits for certain staff is 
197.11 	available and pay rates must be increased only to the extent that the increases comply with 
197.12 	laws governing public employees' collective bargaining. Money received by a provider for 
197.13 	pay increases for public employees under this subdivision may be used only for increases 
197.14 	implemented within one month of the effective date of the rate increase and must not be 
197.15 	used for increases implemented prior to that date.

197.16 	Sec. 46. Laws 2013, chapter 108, article 14, section 2, subdivision 6, is amended to read:

197.17	Subd. 6.Grant Programs
 					
197.18 	The amounts that may be spent from this 
197.19 	appropriation for each purpose are as follows:

197.20	(a) Support Services Grants

197.21	Appropriations by Fund
	
197.22	General
	8,915,000
	13,333,000
	
197.23	Federal TANF
	94,611,000
	94,611,000
	
197.24 	Paid Work Experience. $2,168,000 
197.25 	each year in fiscal years 2015 and 2016 
197.26 	is from the general fund for paid work 
197.27 	experience for long-term MFIP recipients. 
197.28 	Paid work includes full and partial wage 
197.29 	subsidies and other related services such as 
197.30 	job development, marketing, preworksite 
197.31 	training, job coaching, and postplacement 
197.32 	services. These are onetime appropriations. 
197.33 	Unexpended funds for fiscal year 2015 do not 
198.1 	cancel, but are available to the commissioner 
198.2 	for this purpose in fiscal year 2016.
198.3 	Work Study Funding for MFIP 
198.4 	Participants. $250,000 each year in fiscal 
198.5 	years 2015 and 2016 is from the general fund 
198.6 	to pilot work study jobs for MFIP recipients 
198.7 	in approved postsecondary education 
198.8 	programs. This is a onetime appropriation. 
198.9 	Unexpended funds for fiscal year 2015 do 
198.10 	not cancel, but are available for this purpose 
198.11 	in fiscal year 2016.
198.12 	Local Strategies to Reduce Disparities.
198.13 	$2,000,000 each year in fiscal years 2015 
198.14 	and 2016 is from the general fund for 
198.15 	local projects that focus on services for 
198.16 	subgroups within the MFIP caseload 
198.17 	who are experiencing poor employment 
198.18 	outcomes. These are onetime appropriations. 
198.19 	Unexpended funds for fiscal year 2015 do not 
198.20 	cancel, but are available to the commissioner 
198.21 	for this purpose in fiscal year 2016.
198.22 	Home Visiting Collaborations for MFIP 
198.23 	Teen Parents. $200,000 per year in fiscal 
198.24 	years 2014 and 2015 is from the general fund 
198.25 	and $200,000 in fiscal year 2016 is from the 
198.26 	federal TANF fund for technical assistance 
198.27 	and training to support local collaborations 
198.28 	that provide home visiting services for 
198.29 	MFIP teen parents. The general fund 
198.30 	appropriation is onetime. The federal TANF 
198.31 	fund appropriation is added to the base.
198.32 	Performance Bonus Funds for Counties.
198.33 	The TANF fund base is increased by 
198.34 	$1,500,000 each year in fiscal years 2016 
198.35 	and 2017. The commissioner must allocate 
199.1 	this amount each year to counties that exceed 
199.2 	their expected range of performance on the 
199.3 	annualized three-year self-support index 
199.4 	as defined in Minnesota Statutes, section 
199.5 	256J.751, subdivision 2, clause (6). This is a 
199.6 	permanent base adjustment. Notwithstanding 
199.7 	any contrary provisions in this article, this 
199.8 	provision expires June 30, 2016.
199.9 	Base Adjustment. The general fund base is 
199.10 	decreased by $200,000 in fiscal year 2016 
199.11 	and $4,618,000 in fiscal year 2017. The 
199.12 	TANF fund base is increased by $1,700,000 
199.13 	in fiscal years 2016 and 2017.

199.14
199.15	(b) Basic Sliding Fee Child Care Assistance 
Grants
		36,836,000
		42,318,000
	
199.16 	Base Adjustment. The general fund base is 
199.17 	increased by $3,778,000 in fiscal year 2016 
199.18 	and by $3,849,000 in fiscal year 2017.

199.19	(c) Child Care Development Grants
		1,612,000
		1,737,000

199.20	(d) Child Support Enforcement Grants
		50,000
		50,000
	
199.21 	Federal Child Support Demonstration 
199.22 	Grants. Federal administrative 
199.23 	reimbursement resulting from the federal 
199.24 	child support grant expenditures authorized 
199.25 	under United States Code, title 42, section 
199.26 	1315, is appropriated to the commissioner 
199.27 	for this activity.

199.28	(e) Children's Services Grants

199.29	Appropriations by Fund
	
199.30	General
	49,760,000
	52,961,000
	
199.31	Federal TANF
	140,000
	140,000
	
199.32 	Adoption Assistance and Relative Custody 
199.33 	Assistance. $37,453,000 in fiscal year 2014 
199.34 	and $37,453,000 in fiscal year 2015 is for 
200.1 	the adoption assistance and relative custody 
200.2 	assistance programs. The commissioner 
200.3 	shall determine with the commissioner of 
200.4 	Minnesota Management and Budget the 
200.5 	appropriation for Northstar Care for Children 
200.6 	effective January 1, 2015. The commissioner 
200.7 	may transfer appropriations for adoption 
200.8 	assistance, relative custody assistance, and 
200.9 	Northstar Care for Children between fiscal 
200.10 	years and among programs to adjust for 
200.11 	transfers across the programs.
200.12 	Title IV-E Adoption Assistance. Additional 
200.13 	federal reimbursements to the state as a result 
200.14 	of the Fostering Connections to Success 
200.15 	and Increasing Adoptions Act's expanded 
200.16 	eligibility for Title IV-E adoption assistance 
200.17 	are appropriated for postadoption services, 
200.18 	including a parent-to-parent support network.
200.19 	Privatized Adoption Grants. Federal 
200.20 	reimbursement for privatized adoption grant 
200.21 	and foster care recruitment grant expenditures 
200.22 	is appropriated to the commissioner for 
200.23 	adoption grants and foster care and adoption 
200.24 	administrative purposes.
200.25 	Adoption Assistance Incentive Grants.
200.26 	Federal funds available during fiscal years 
200.27 	2014 and 2015 for adoption incentive grants 
200.28 	are appropriated for postadoption services, 
200.29 	including a parent-to-parent support network.
200.30 	Base Adjustment. The general fund base is 
200.31 	increased by $5,913,000 in fiscal year 2016 
200.32 	and by $10,297,000 in fiscal year 2017.

200.33	(f) Child and Community Service Grants
		53,301,000
		53,301,000

200.34	(g) Child and Economic Support Grants
		21,047,000
		20,848,000
	
201.1 	Minnesota Food Assistance Program. 
201.2 	Unexpended funds for the Minnesota food 
201.3 	assistance program for fiscal year 2014 do 
201.4 	not cancel but are available for this purpose 
201.5 	in fiscal year 2015.
201.6 	Transitional Housing. $250,000 each year 
201.7 	is for the transitional housing programs under 
201.8 	Minnesota Statutes, section 256E.33.
201.9 	Emergency Services. $250,000 each year 
201.10 	is for emergency services grants under 
201.11 	Minnesota Statutes, section 256E.36.
201.12 	Family Assets for Independence. $250,000 
201.13 	each year is for the Family Assets for 
201.14 	Independence Minnesota program. This 
201.15 	appropriation is available in either year of the 
201.16 	biennium and may be transferred between 
201.17 	fiscal years.
201.18 	Food Shelf Programs. $375,000 in fiscal 
201.19 	year 2014 and $375,000 in fiscal year 
201.20 	2015 are for food shelf programs under 
201.21 	Minnesota Statutes, section 256E.34. If the 
201.22 	appropriation for either year is insufficient, 
201.23 	the appropriation for the other year is 
201.24 	available for it. Notwithstanding Minnesota 
201.25 	Statutes, section 256E.34, subdivision 4, no 
201.26 	portion of this appropriation may be used 
201.27 	by Hunger Solutions for its administrative 
201.28 	expenses, including but not limited to rent 
201.29 	and salaries.
201.30 	Homeless Youth Act. $2,000,000 in fiscal 
201.31 	year 2014 and $2,000,000 in fiscal year 2015 
201.32 	is for purposes of Minnesota Statutes, section 
201.33 	256K.45.
201.34 	Safe Harbor Shelter and Housing. 
201.35 	$500,000 in fiscal year 2014 and $500,000 in 
202.1 	fiscal year 2015 is for a safe harbor shelter 
202.2 	and housing fund for housing and supportive 
202.3 	services for youth who are sexually exploited. 

202.4	(h) Health Care Grants

202.5	Appropriations by Fund
	
202.6	General
	190,000
	190,000
	
202.7	Health Care Access
	190,000
	190,000
	
202.8 	Emergency Medical Assistance Referral 
202.9 	and Assistance Grants. (a) The 
202.10 	commissioner of human services shall 
202.11 	award grants to nonprofit programs that 
202.12 	provide immigration legal services based 
202.13 	on indigency to provide legal services for 
202.14 	immigration assistance to individuals with 
202.15 	emergency medical conditions or complex 
202.16 	and chronic health conditions who are not 
202.17 	currently eligible for medical assistance 
202.18 	or other public health care programs, but 
202.19 	who may meet eligibility requirements with 
202.20 	immigration assistance.
202.21 	(b) The grantees, in collaboration with 
202.22 	hospitals and safety net providers, shall 
202.23 	provide referral assistance to connect 
202.24 	individuals identified in paragraph (a) with 
202.25 	alternative resources and services to assist in 
202.26 	meeting their health care needs. $100,000 
202.27 	is appropriated in fiscal year 2014 and 
202.28 	$100,000 in fiscal year 2015. This is a 
202.29 	onetime appropriation.
202.30 	Base Adjustment. The general fund is 
202.31 	decreased by $100,000 in fiscal year 2016 
202.32 	and $100,000 in fiscal year 2017.

202.33
202.34	(i) Aging and Adult Services Grants
		14,827,000
14,812,000
		15,010,000
14,936,000
	
203.1 	Base Adjustment. The general fund base 
203.2 	is increased by $1,150,000 $1,077,000 in 
203.3 	fiscal year 2016 and $1,151,000 $1,077,000
203.4 	 in fiscal year 2017.
203.5 	Community Service Development 
203.6 	Grants and Community Services Grants.
203.7 	Community service development grants and 
203.8 	community services grants are reduced by 
203.9 	$1,150,000 each year. This is a onetime 
203.10 	reduction.

203.11	(j) Deaf and Hard-of-Hearing Grants
		1,771,000
		1,785,000

203.12	(k) Disabilities Grants
		18,605,000
		18,823,000
	
203.13 	Advocating Change Together. $310,000 in 
203.14 	fiscal year 2014 is for a grant to Advocating 
203.15 	Change Together (ACT) to maintain and 
203.16 	promote services for persons with intellectual 
203.17 	and developmental disabilities throughout 
203.18 	the state. This appropriation is onetime. Of 
203.19 	this appropriation:
203.20 	(1) $120,000 is for direct costs associated 
203.21 	with the delivery and evaluation of 
203.22 	peer-to-peer training programs administered 
203.23 	throughout the state, focusing on education, 
203.24 	employment, housing, transportation, and 
203.25 	voting;
203.26 	(2) $100,000 is for delivery of statewide 
203.27 	conferences focusing on leadership and 
203.28 	skill development within the disability 
203.29 	community; and
203.30 	(3) $90,000 is for administrative and general 
203.31 	operating costs associated with managing 
203.32 	or maintaining facilities, program delivery, 
203.33 	staff, and technology.
204.1 	Base Adjustment. The general fund base 
204.2 	is increased by $535,000 in fiscal year 2016 
204.3 	and by $709,000 in fiscal year 2017.

204.4	(l) Adult Mental Health Grants

204.5	Appropriations by Fund
	
204.6	General
	71,199,000
	69,530,000
	
204.7	Health Care Access
	750,000
	750,000
	
204.8	Lottery Prize
	1,733,000
	1,733,000
	
204.9 	Problem Gambling. $225,000 in fiscal year 
204.10 	2014 and $225,000 in fiscal year 2015 is 
204.11 	appropriated from the lottery prize fund for a 
204.12 	grant to the state affiliate recognized by the 
204.13 	National Council on Problem Gambling. The 
204.14 	affiliate must provide services to increase 
204.15 	public awareness of problem gambling, 
204.16 	education and training for individuals and 
204.17 	organizations providing effective treatment 
204.18 	services to problem gamblers and their 
204.19 	families, and research relating to problem 
204.20 	gambling. 
204.21 	Funding Usage. Up to 75 percent of a fiscal 
204.22 	year's appropriations for adult mental health 
204.23 	grants may be used to fund allocations in that 
204.24 	portion of the fiscal year ending December 
204.25 	31.
204.26 	Base Adjustment. The general fund base is 
204.27 	decreased by $4,427,000 in fiscal years 2016 
204.28 	and 2017.
204.29 	Mental Health Pilot Project. $230,000 
204.30 	each year is for a grant to the Zumbro 
204.31 	Valley Mental Health Center. The grant 
204.32 	shall be used to implement a pilot project 
204.33 	to test an integrated behavioral health care 
204.34 	coordination model. The grant recipient must 
204.35 	report measurable outcomes and savings 
205.1 	to the commissioner of human services 
205.2 	by January 15, 2016. This is a onetime 
205.3 	appropriation.
205.4 	High-risk adults. $200,000 in fiscal 
205.5 	year 2014 is for a grant to the nonprofit 
205.6 	organization selected to administer the 
205.7 	demonstration project for high-risk adults 
205.8 	under Laws 2007, chapter 54, article 1, 
205.9 	section 19, in order to complete the project. 
205.10 	This is a onetime appropriation.

205.11	(m) Child Mental Health Grants
		18,246,000
		20,636,000
	
205.12 	Text Message Suicide Prevention 
205.13 	Program. $625,000 in fiscal year 2014 and 
205.14 	$625,000 in fiscal year 2015 is for a grant 
205.15 	to a nonprofit organization to establish and 
205.16 	implement a statewide text message suicide 
205.17 	prevention program. The program shall 
205.18 	implement a suicide prevention counseling 
205.19 	text line designed to use text messaging to 
205.20 	connect with crisis counselors and to obtain 
205.21 	emergency information and referrals to 
205.22 	local resources in the local community. The 
205.23 	program shall include training within schools 
205.24 	and communities to encourage the use of the 
205.25 	program.
205.26 	Mental Health First Aid Training. $22,000 
205.27 	in fiscal year 2014 and $23,000 in fiscal 
205.28 	year 2015 is to train teachers, social service 
205.29 	personnel, law enforcement, and others who 
205.30 	come into contact with children with mental 
205.31 	illnesses, in children and adolescents mental 
205.32 	health first aid training.
205.33 	Funding Usage. Up to 75 percent of a fiscal 
205.34 	year's appropriation for child mental health 
205.35 	grants may be used to fund allocations in that 
206.1 	portion of the fiscal year ending December 
206.2 	31.

206.3	(n) CD Treatment Support Grants
		1,816,000
		1,816,000
	
206.4 	SBIRT Training. (1) $300,000 each year is 
206.5 	for grants to train primary care clinicians to 
206.6 	provide substance abuse brief intervention 
206.7 	and referral to treatment (SBIRT). This is a 
206.8 	onetime appropriation. The commissioner of 
206.9 	human services shall apply to SAMHSA for 
206.10 	an SBIRT professional training grant.
206.11 	(2) If the commissioner of human services 
206.12 	receives a grant under clause (1) funds 
206.13 	appropriated under this clause, equal to 
206.14 	the grant amount, up to the available 
206.15 	appropriation, shall be transferred to the 
206.16 	Minnesota Organization on Fetal Alcohol 
206.17 	Syndrome (MOFAS). MOFAS must use 
206.18 	the funds for grants. Grant recipients must 
206.19 	be selected from communities that are 
206.20 	not currently served by federal Substance 
206.21 	Abuse Prevention and Treatment Block 
206.22 	Grant funds. Grant money must be used to 
206.23 	reduce the rates of fetal alcohol syndrome 
206.24 	and fetal alcohol effects, and the number of 
206.25 	drug-exposed infants. Grant money may be 
206.26 	used for prevention and intervention services 
206.27 	and programs, including, but not limited to, 
206.28 	community grants, professional eduction, 
206.29 	public awareness, and diagnosis.
206.30 	Fetal Alcohol Syndrome Grant. $180,000 
206.31 	each year from the general fund is for a 
206.32 	grant to the Minnesota Organization on Fetal 
206.33 	Alcohol Syndrome (MOFAS) to support 
206.34 	nonprofit Fetal Alcohol Spectrum Disorders 
206.35 	(FASD) outreach prevention programs 
207.1 	in Olmsted County. This is a onetime 
207.2 	appropriation.
207.3 	Base Adjustment. The general fund base is 
207.4 	decreased by $480,000 in fiscal year 2016 
207.5 	and $480,000 in fiscal year 2017.

207.6 	Sec. 47. PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY 
207.7 	1, 2014.
 207.8 	(a) The commissioner of human services shall increase reimbursement rates, grants, 
207.9 	allocations, individual limits, and rate limits, as applicable, by four percent for the rate 
207.10 	period beginning July 1, 2014, for services rendered on or after that date. County or tribal 
207.11 	contracts for services specified in this section must be amended to pass through these rate 
207.12 	increases within 60 days of the effective date.
207.13 	(b) The rate changes described in this section must be provided to:
207.14 	(1) home and community-based waiver services for persons with developmental 
207.15 	disabilities, including consumer-directed community supports, under Minnesota Statutes, 
207.16 	section 256B.092;
207.17 	(2) waiver services under community alternatives for disabled individuals, including 
207.18 	consumer-directed community supports, under Minnesota Statutes, section 256B.49;
207.19 	(3) community alternative care waiver services, including consumer-directed 
207.20 	community supports, under Minnesota Statutes, section 256B.49;
207.21 	(4) brain injury waiver services, including consumer-directed community supports, 
207.22 	under Minnesota Statutes, section 256B.49;
207.23 	(5) home and community-based waiver services for the elderly under Minnesota 
207.24 	Statutes, section 256B.0915;
207.25 	(6) nursing services and home health services under Minnesota Statutes, section 
207.26 	256B.0625, subdivision 6a;
207.27 	(7) personal care services and qualified professional supervision of personal care 
207.28 	services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
207.29 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
207.30 	subdivision 7;
207.31 	(9) community first services and supports under Minnesota Statutes, section 256B.85;
207.32 	(10) essential community supports under Minnesota Statutes, section 256B.0922;
207.33 	(11) day training and habilitation services for adults with developmental disabilities 
207.34 	or related conditions under Minnesota Statutes, sections 252.41 to 252.46, including the 
208.1 	additional cost to counties for rate adjustments to day training and habilitation services 
208.2 	provided as a social service;
208.3 	(12) alternative care services under Minnesota Statutes, section 256B.0913;
208.4 	(13) living skills training programs for persons with intractable epilepsy who need 
208.5 	assistance in the transition to independent living under Laws 1988, chapter 689;
208.6 	(14) consumer support grants under Minnesota Statutes, section 256.476;
208.7 	(15) semi-independent living services under Minnesota Statutes, section 252.275;
208.8 	(16) family support grants under Minnesota Statutes, section 252.32;
208.9 	(17) housing access grants under Minnesota Statutes, section 256B.0658;
208.10 	(18) self-advocacy grants under Laws 2009, chapter 101;
208.11 	(19) technology grants under Laws 2009, chapter 79;
208.12 	(20) aging grants under Minnesota Statutes, sections 256.975 to 256.977 and 
208.13 	256B.0917;
208.14 	(21) deaf and hard-of-hearing grants, including community support services for deaf 
208.15 	and hard-of-hearing adults with mental illness who use or wish to use sign language as their 
208.16 	primary means of communication under Minnesota Statutes, section 256.01, subdivision 2;
208.17 	(22) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233, 
208.18 	256C.25, and 256C.261;
208.19 	(23) Disability Linkage Line grants under Minnesota Statutes, section 256.01, 
208.20 	subdivision 24;
208.21 	(24) transition initiative grants under Minnesota Statutes, section 256.478;
208.22 	(25) employment support grants under Minnesota Statutes, section 256B.021, 
208.23 	subdivision 6; and
208.24 	(26) grants provided to people who are eligible for the Housing Opportunities for 
208.25 	Persons with AIDS program under Minnesota Statutes, section 256B.492.
208.26 	(c) A managed care plan receiving state payments for the services in paragraph (b) 
208.27 	must include the increases in paragraph (a) in payments to providers. To implement the 
208.28 	rate increase in this section, capitation rates paid by the commissioner to managed care 
208.29 	organizations under Minnesota Statutes, section 256B.69, shall reflect a four percent 
208.30 	increase for the specified services for the period beginning July 1, 2014.
208.31 	(d) Counties shall increase the budget for each recipient of consumer-directed 
208.32 	community supports by the amounts in paragraph (a) on the effective dates in paragraph (a).
208.33 	(e) To implement this section, the commissioner shall increase service rates in the 
208.34 	disability waiver payment system authorized in Minnesota Statutes, sections 256B.4913 
208.35 	and 256B.4914.
209.1 	(f) To receive the rate increase described in this section, providers under paragraphs 
209.2 	(a) and (b) must submit to the commissioner documentation that identifies a quality 
209.3 	improvement project that the provider will implement by June 30, 2015. Documentation 
209.4 	must be provided in a format specified by the commissioner. Projects must:
209.5 	(1) improve the quality of life of home and community-based services recipients in 
209.6 	a meaningful way;
209.7 	(2) improve the quality of services in a measurable way; or
209.8 	(3) deliver good quality service more efficiently.
209.9 	Providers listed in paragraph (b), clauses (7), (9), (10), and (13) to (26), are not subject 
209.10 	to this requirement.
209.11 	(g) For a provider that fails to submit documentation described in paragraph (f) by 
209.12 	a date or in a format specified by the commissioner, the commissioner shall reduce the 
209.13 	provider's rate by one percent effective January 1, 2015.
209.14 	(h) Providers that receive a rate increase under this subdivision shall use 75 percent 
209.15 	of the rate increase to increase compensation-related costs for employees directly 
209.16 	employed by the facility on or after the effective date of the rate adjustments, except:
209.17 	(1) persons employed in the central office of a corporation or entity that has an 
209.18 	ownership interest in the facility or exercises control over the facility; and
209.19 	(2) persons paid by the facility under a management contract.
209.20 	This requirement is subject to audit by the commissioner.
209.21 	(i) Compensation-related costs include:
209.22 	(1) wages and salaries;
209.23 	(2) the employer's share of FICA taxes, Medicare taxes, state and federal 
209.24 	unemployment taxes, workers' compensation, and mileage reimbursement;
209.25 	(3) the employer's share of health and dental insurance, life insurance, disability 
209.26 	insurance, long-term care insurance, uniform allowance, pensions, and contributions to 
209.27 	employee retirement accounts; and
209.28 	(4) other benefits provided and workforce needs, including the recruiting and 
209.29 	training of employees as specified in the distribution plan required under paragraph (k).
209.30 	(j) For public employees, the increase for wages and benefits for certain staff is 
209.31 	available and pay rates must be increased only to the extent that the increases comply with 
209.32 	laws governing public employees' collective bargaining. Money received by a provider 
209.33 	for pay increases for public employees under this section may be used only for increases 
209.34 	implemented within one month of the effective date of the rate increase and must not be 
209.35 	used for increases implemented prior to that date.
210.1 	(k) A provider that receives a rate adjustment under paragraph (b) that is subject to 
210.2 	paragraphs (h) and (i) shall prepare and produce for the commissioner, upon request, a 
210.3 	plan that specifies the amount of money the provider expects to receive that is subject to 
210.4 	the requirements of paragraphs (h) and (i), as well as how that money will be distributed 
210.5 	to increase compensation for employees. The commissioner may recover funds from a 
210.6 	facility that fails to comply with this requirement.
210.7 	(l) Within six months after the effective date of the rate adjustment, the provider 
210.8 	shall post the distribution plan required under paragraph (k) for a period of at least six 
210.9 	weeks in an area of the provider's operation to which all eligible employees have access, 
210.10 	and shall provide instructions for employees who believe they have not received the 
210.11 	wage and other compensation-related increases specified in the distribution plan. These 
210.12 	instructions must include a mailing address, e-mail address, and telephone number that 
210.13 	an employee may use to contact the commissioner or the commissioner's representative. 
210.14 	Providers shall make assurances to the commissioner of compliance with this section 
210.15 	using forms prescribed by the commissioner.

210.16 	Sec. 48. REVISOR'S INSTRUCTION.
 210.17 	In each section of Minnesota Statutes or part of Minnesota Rules referred to in 
210.18 	column A, the revisor of statutes shall delete the word or phrase in column B and insert 
210.19 	the phrase in column C. The revisor shall also make related grammatical changes and 
210.20 	changes in headnotes.

210.21	Column A
	Column B
	Column C
	
210.22
210.23	section 158.13
	defective persons
	persons with intellectual 
disabilities
	
210.24
210.25	section 158.14
	defective persons
	persons with intellectual 
disabilities
	
210.26
210.27	section 158.17
	defective persons
	persons with intellectual 
disabilities
	
210.28
210.29	section 158.18
	persons not defective
	persons without intellectual 
disabilities
	
210.30
210.31		defective person
	person with intellectual 
disabilities
	
210.32
210.33		defective persons
	persons with intellectual 
disabilities
	
210.34
210.35	section 158.19
	defective
	person with intellectual 
disabilities
	
210.36
210.37	section 256.94
	defective
	children with intellectual 
disabilities and
	
210.38
210.39	section 257.175
	defective
	children with intellectual 
disabilities and
	
210.40	part 2911.1350
	retardation
	developmental disability

211.1 	Sec. 49.  REPEALER.
 211.2 	(a) Minnesota Statutes 2013 Supplement, section 245D.061, subdivision 3, is 
211.3 	repealed.
211.4 	(b) Minnesota Statutes 2012, section 245.825, subdivisions 1 and 1b, are repealed 
211.5 	upon the effective date of rules adopted according to Minnesota Statutes, section 245.8251. 
211.6 	The commissioner of human services shall notify the revisor of statutes when this occurs.
211.7 	(c) Minnesota Statutes 2013 Supplement, sections 245D.02, subdivisions 2b, 2c, 
211.8 	3b, 5a, 8a, 15a, 15b, 23b, 28, 29, and 34a; 245D.06, subdivisions 5, 6, 7, and 8; and 
211.9 	245D.061, subdivisions 1, 2, 4, 5, 6, 7, 8, and 9, are repealed upon the effective date of 
211.10 	rules adopted according to Minnesota Statutes, section 245.8251. The commissioner of 
211.11 	human services shall notify the revisor of statutes when this occurs.
211.12 	(d) Minnesota Rules, parts 9525.2700; and 9525.2810, are repealed upon the 
211.13 	effective date of rules adopted according to Minnesota Statutes, section 245.8251. The 
211.14 	commissioner of human services shall notify the revisor of statutes when this occurs.

211.15 	ARTICLE 20
211.16 	MISCELLANEOUS

211.17 	Section 1. Minnesota Statutes 2012, section 254B.12, is amended to read:
211.18 	254B.12 RATE METHODOLOGY.
211.19 		Subdivision 1.CCDTF rate methodology established. The commissioner shall 
211.20 	establish a new rate methodology for the consolidated chemical dependency treatment 
211.21 	fund. The new methodology must replace county-negotiated rates with a uniform 
211.22 	statewide methodology that must include a graduated reimbursement scale based on the 
211.23 	patients' level of acuity and complexity. At least biennially, the commissioner shall review 
211.24 	the financial information provided by vendors to determine the need for rate adjustments.
211.25 		Subd. 2.Payment methodology for state-operated vendors. (a) Notwithstanding 
211.26 	subdivision 1, the commissioner shall seek federal authority to develop a separate 
211.27 	payment methodology for chemical dependency treatment services provided under the 
211.28 	consolidated chemical dependency treatment fund by a state-operated vendor. This 
211.29 	payment methodology is effective for services provided on or after October 1, 2015, or on 
211.30 	or after the receipt of federal approval, whichever is later.
211.31 	(b) Before implementing an approved payment methodology under paragraph 
211.32 	(a), the commissioner must also receive any necessary legislative approval of required 
211.33 	changes to state law or funding.

212.1 	Sec. 2. Minnesota Statutes 2012, section 256I.05, subdivision 2, is amended to read:
212.2 		Subd. 2.Monthly rates; exemptions. The maximum group residential housing rate 
212.3 	does not apply This subdivision applies to a residence that on August 1, 1984, was licensed 
212.4 	by the commissioner of health only as a boarding care home, certified by the commissioner 
212.5 	of health as an intermediate care facility, and licensed by the commissioner of human 
212.6 	services under Minnesota Rules, parts 9520.0500 to 9520.0690. Notwithstanding the 
212.7 	provisions of subdivision 1c, the rate paid to a facility reimbursed under this subdivision 
212.8 	shall be determined under section 256B.431, or under section 256B.434 if the facility is 
212.9 	accepted by the commissioner for participation in the alternative payment demonstration 
212.10 	project. The rate paid to this facility shall also include adjustments to the group residential 
212.11 	housing rate according to subdivision 1, and any adjustments applicable to supplemental 
212.12 	service rates statewide.