1.1                          A bill for an act 
  1.2             relating to the operation of state government; 
  1.3             modifying provisions relating to health; health 
  1.4             department; health care; human services; human 
  1.5             services department; continuing care; consumer 
  1.6             information; long-term care; mental health and civil 
  1.7             commitment; assistance programs; nursing services 
  1.8             agencies; workforce and recruitment; child welfare and 
  1.9             foster care; child support licensing and licensing 
  1.10            background studies; vital statistics; patient 
  1.11            protection; criminal justice; driving while impaired; 
  1.12            appropriating money for health and human services and 
  1.13            criminal justice; amending Minnesota Statutes 2000, 
  1.14            sections 13.46, subdivision 4; 13.461, subdivision 17; 
  1.15            13B.06, subdivision 7; 15A.083, subdivision 4; 45.027, 
  1.16            subdivision 6; 62A.095, subdivision 1; 62A.48, 
  1.17            subdivision 4, by adding subdivisions; 62D.17, 
  1.18            subdivision 1; 62J.152, subdivision 8; 62J.38; 
  1.19            62J.451, subdivision 5; 62J.692, subdivision 7, by 
  1.20            adding a subdivision; 62M.02, subdivision 21; 62Q.56; 
  1.21            62Q.58; 62S.01, by adding subdivisions; 62S.26; 
  1.22            103I.101, subdivision 6; 103I.112; 103I.208, 
  1.23            subdivisions 1, 2; 103I.235, subdivision 1; 103I.525, 
  1.24            subdivisions 2, 6, 8, 9; 103I.531, subdivisions 2, 6, 
  1.25            8, 9; 103I.535, subdivisions 2, 6, 8, 9; 103I.541, 
  1.26            subdivisions 2b, 4, 5; 103I.545; 116L.11, subdivision 
  1.27            4; 116L.12, subdivisions 4, 5; 116L.13, subdivision 1; 
  1.28            121A.15, by adding subdivisions; 135A.14, by adding a 
  1.29            subdivision; 137.38, subdivision 1; 144.057; 144.0721, 
  1.30            subdivision 1; 144.1202, subdivision 4; 144.122; 
  1.31            144.1464; 144.148, subdivision 2; 144.1491, 
  1.32            subdivision 1; 144.212, subdivisions 2a, 3, 5, 7, 8, 
  1.33            9, 11; 144.214, subdivisions 1, 3, 4; 144.215, 
  1.34            subdivisions 1, 3, 4, 6, 7; 144.217; 144.218; 144.221, 
  1.35            subdivisions 1, 3; 144.222, subdivision 2; 144.223; 
  1.36            144.225, subdivisions 1, 2, 2a, 3, 7, as amended; 
  1.37            144.226, subdivisions 1, 3, 4; 144.227; 144.395, 
  1.38            subdivision 2; 144.551, subdivision 1; 144.98, 
  1.39            subdivision 3; 144A.071, subdivisions 1, 1a, 2, 4a; 
  1.40            144A.073, subdivisions 2, as amended, 4; 144A.44, 
  1.41            subdivision 1; 144A.4605, subdivision 4; 144D.03, 
  1.42            subdivision 2; 144D.04, subdivisions 2, 3; 144D.06; 
  1.43            145.881, subdivision 2; 145A.15, subdivision 1, by 
  1.44            adding a subdivision; 145A.16, subdivision 1, by 
  1.45            adding a subdivision; 148.212; 148.284; 148B.21, 
  1.46            subdivision 6a; 148B.22, subdivision 3; 150A.10, by 
  2.1             adding a subdivision; 157.16, subdivision 3; 157.22, 
  2.2             as amended; 169A.07; 169A.20, subdivision 3; 169A.25; 
  2.3             169A.26; 169A.27; 169A.275; 169A.283, subdivision 1; 
  2.4             169A.40, subdivision 3; 169A.63, subdivision 1; 
  2.5             171.29, subdivision 2; 214.104; 241.272, subdivision 
  2.6             6; 241.32, by adding a subdivision; 241.45; 242.192; 
  2.7             243.51, subdivisions 1, 3; 245.462, subdivisions 8, 
  2.8             18, by adding subdivisions; 245.474, by adding a 
  2.9             subdivision; 245.4871, subdivisions 10, 27, by adding 
  2.10            a subdivision; 245.4875, subdivision 2; 245.4876, 
  2.11            subdivision 1, by adding a subdivision; 245.488, by 
  2.12            adding a subdivision; 245.4885, subdivision 1; 
  2.13            245.4886, subdivision 1; 245.814, subdivision 1; 
  2.14            245.99, subdivision 4; 245A.02, subdivisions 1, 9, by 
  2.15            adding a subdivision; 245A.03, subdivisions 2, 2b, by 
  2.16            adding a subdivision; 245A.035, subdivision 1; 
  2.17            245A.04, subdivisions 3, 3a, 3b, 3c, 3d, 6, 11, by 
  2.18            adding a subdivision; 245A.05; 245A.06; 245A.07; 
  2.19            245A.08; 245A.13, subdivisions 7, 8; 245A.16, 
  2.20            subdivision 1; 245B.08, subdivision 3; 252.275, 
  2.21            subdivision 4b; 252A.02, subdivisions 12, 13, by 
  2.22            adding a subdivision; 252A.111, subdivision 6; 
  2.23            252A.16, subdivision 1; 252A.19, subdivision 2; 
  2.24            252A.20, subdivision 1; 253B.02, subdivisions 10, 13; 
  2.25            253B.03, subdivisions 5, 10, by adding a subdivision; 
  2.26            253B.04, subdivisions 1, 1a, by adding a subdivision; 
  2.27            253B.045, subdivision 6; 253B.05, subdivision 1; 
  2.28            253B.065, subdivision 5; 253B.066, subdivision 1; 
  2.29            253B.07, subdivisions 1, 2, 7; 253B.09, subdivision 1; 
  2.30            253B.10, subdivision 4; 254B.02, subdivision 3; 
  2.31            254B.03, subdivision 1; 254B.04, subdivision 1; 
  2.32            254B.09, by adding a subdivision; 256.01, subdivisions 
  2.33            2, as amended, 18, by adding a subdivision; 256.045, 
  2.34            subdivisions 3, 3b, 4; 256.476, subdivisions 1, 2, 3, 
  2.35            4, 5, 8, by adding a subdivision; 256.741, 
  2.36            subdivisions 1, 5, 8; 256.955, subdivisions 2a, 2b; 
  2.37            256.9657, subdivision 2; 256.969, subdivision 3a, by 
  2.38            adding a subdivision; 256.975, by adding subdivisions; 
  2.39            256.979, subdivisions 5, 6; 256.98, subdivision 8; 
  2.40            256B.04, by adding a subdivision; 256B.055, 
  2.41            subdivision 3a; 256B.056, subdivisions 1a, 3, 4, 4b, 
  2.42            5, by adding subdivisions; 256B.057, subdivisions 2, 
  2.43            3, 7, 9, by adding a subdivision; 256B.0625, 
  2.44            subdivisions 3b, 7, 13, 13a, 17, 17a, 18a, 19a, 19c, 
  2.45            20, 30, 34, by adding subdivisions; 256B.0627, 
  2.46            subdivisions 1, 2, 4, 5, 7, 8, 10, 11, by adding 
  2.47            subdivisions; 256B.0635, subdivisions 1, 2; 256B.0644; 
  2.48            256B.0911, subdivisions 1, 3, 5, 6, 7, by adding 
  2.49            subdivisions; 256B.0913, subdivisions 1, 2, 4, 5, 6, 
  2.50            7, 8, 9, 10, 11, 12, 13, 14; 256B.0915, subdivisions 
  2.51            1d, 3, 5; 256B.0916, subdivisions 7, 9, by adding a 
  2.52            subdivision; 256B.0917, subdivision 7, by adding a 
  2.53            subdivision; 256B.092, subdivision 5; 256B.093, 
  2.54            subdivision 3; 256B.095; 256B.0951, subdivisions 1, 3, 
  2.55            4, 5, 7, by adding subdivisions; 256B.0952, 
  2.56            subdivisions 1, 4; 256B.19, subdivision 1c; 256B.431, 
  2.57            subdivisions 2e, 17, by adding subdivisions; 256B.433, 
  2.58            subdivision 3a; 256B.434, subdivision 4, by adding 
  2.59            subdivisions; 256B.49, by adding subdivisions; 
  2.60            256B.5012, by adding a subdivision; 256B.69, 
  2.61            subdivisions 4, 5c, 23, by adding a subdivision; 
  2.62            256B.75; 256B.76; 256D.03, subdivision 3; 256D.053, 
  2.63            subdivision 1; 256D.35, by adding subdivisions; 
  2.64            256D.425, subdivision 1; 256D.44, subdivision 5; 
  2.65            256I.05, subdivisions 1d, 1e, by adding a subdivision; 
  2.66            256J.08, subdivision 55a, by adding a subdivision; 
  2.67            256J.09, subdivisions 1, 2, 3, by adding subdivisions; 
  2.68            256J.21, subdivision 2; 256J.24, subdivisions 2, 9, 
  2.69            10; 256J.26, subdivision 1; 256J.31, subdivisions 4, 
  2.70            12; 256J.32, subdivisions 4, 7a; 256J.37, subdivision 
  2.71            9; 256J.39, subdivision 2; 256J.42, subdivisions 1, 3, 
  3.1             4, by adding a subdivision; 256J.45, subdivisions 1, 
  3.2             2; 256J.46, subdivisions 1, 2a; 256J.48, by adding a 
  3.3             subdivision; 256J.49, subdivisions 2, 13, by adding a 
  3.4             subdivision; 256J.50, subdivisions 1, 7, 10, by adding 
  3.5             a subdivision; 256J.515; 256J.52, subdivisions 2, 6; 
  3.6             256J.53, subdivision 1; 256J.56; 256J.57, subdivision 
  3.7             2; 256J.62, subdivisions 2a, 9; 256J.625, subdivisions 
  3.8             1, 2, 4; 256J.645; 256J.751; 256K.03, subdivision 1; 
  3.9             256K.07; 256K.25, subdivisions 1, 3, 4, 5, 6; 256L.03, 
  3.10            by adding a subdivision; 256L.05, subdivision 2; 
  3.11            256L.06, subdivision 3; 256L.07, subdivision 2; 
  3.12            256L.12, by adding a subdivision; 256L.15, subdivision 
  3.13            1; 256L.16; 256L.17, subdivision 2; 257.0725; 
  3.14            260C.201, subdivision 1, as amended; 260C.301, 
  3.15            subdivision 3, as amended; 260C.317, subdivision 4; 
  3.16            261.062; 268.0122, subdivision 2; 326.38; 357.021, 
  3.17            subdivisions 6, 7; 393.07, by adding a subdivision; 
  3.18            518.5513, subdivision 5; 518.575, subdivision 1; 
  3.19            518.5851, by adding a subdivision; 518.5853, by adding 
  3.20            a subdivision; 518.6111, subdivision 5; 518.6195; 
  3.21            518.64, subdivision 2, as amended; 518.641, 
  3.22            subdivisions 1, 2, 3, by adding a subdivision; 
  3.23            548.091, subdivision 1a; 611.23; 626.556, subdivisions 
  3.24            10, as amended, 10b, 10d, as amended, 10e, 10f, 10i, 
  3.25            as amended, 11, 12; 626.557, subdivisions 3, 9d, 12b; 
  3.26            626.5572, subdivision 17; 626.559, subdivision 2; Laws 
  3.27            1995, chapter 178, article 2, section 36; Laws 1995, 
  3.28            chapter 207, article 3, section 21, as amended; Laws 
  3.29            1997, chapter 203, article 9, section 21, as amended; 
  3.30            Laws 1999, chapter 152, section 1; Laws 1999, chapter 
  3.31            152, section 4; Laws 1999, chapter 245, article 3, 
  3.32            section 45, as amended; Laws 1999, chapter 245, 
  3.33            article 4, section 110; Laws 1999, chapter 245, 
  3.34            article 10, section 10, as amended; Laws 2000, chapter 
  3.35            364, section 2; Laws 2001, chapter 154, section 1, 
  3.36            subdivision 1; Laws 2001, chapter 161, section 45; 
  3.37            proposing coding for new law in Minnesota Statutes, 
  3.38            chapters 62D; 62Q; 62S; 116L; 144; 144A; 145; 145A; 
  3.39            169A; 214; 244; 245A; 246; 256; 256B; 256I; 256J; 
  3.40            299A; 325F; repealing Minnesota Statutes 2000, 
  3.41            sections 116L.12, subdivisions 2, 7; 121A.15, 
  3.42            subdivision 6; 144.148, subdivision 8; 144.1761; 
  3.43            144.217, subdivision 4; 144.219; 144A.16; 145.9245; 
  3.44            145.927; 252A.111, subdivision 3; 256.476, subdivision 
  3.45            7; 256B.0635, subdivision 3; 256B.0911, subdivisions 
  3.46            2, 2a, 4, 9; 256B.0912; 256B.0913, subdivisions 3, 
  3.47            15a, 15b, 15c, 16; 256B.0915, subdivisions 3a, 3b, 3c; 
  3.48            256B.0951, subdivision 6; 256B.19, subdivision 1b; 
  3.49            256B.434, subdivision 5; 256B.49, subdivisions 1, 2, 
  3.50            3, 4, 5, 6, 7, 8, 9, 10; 256D.066; 256J.08, 
  3.51            subdivision 50a; 256J.12, subdivision 3; 256J.43; 
  3.52            256J.44; 256J.46, subdivision 1a; 256J.49, subdivision 
  3.53            11; 256J.53, subdivision 4; 256L.02, subdivision 4; 
  3.54            518.641, subdivisions 4, 5; Laws 1995, chapter 178, 
  3.55            article 2, section 48, subdivision 6; Minnesota Rules, 
  3.56            parts 4655.6810; 4655.6820; 4655.6830; 4658.1600; 
  3.57            4658.1605; 4658.1610; 4658.1690; 9505.2390; 9505.2395; 
  3.58            9505.2396; 9505.2400; 9505.2405; 9505.2410; 9505.2413; 
  3.59            9505.2415; 9505.2420; 9505.2425; 9505.2426; 9505.2430; 
  3.60            9505.2435; 9505.2440; 9505.2445; 9505.2450; 9505.2455; 
  3.61            9505.2458; 9505.2460; 9505.2465; 9505.2470; 9505.2473; 
  3.62            9505.2475; 9505.2480; 9505.2485; 9505.2486; 9505.2490; 
  3.63            9505.2495; 9505.2496; 9505.2500; 9505.3010; 9505.3015; 
  3.64            9505.3020; 9505.3025; 9505.3030; 9505.3035; 9505.3040; 
  3.65            9505.3065; 9505.3085; 9505.3135; 9505.3500; 9505.3510; 
  3.66            9505.3520; 9505.3530; 9505.3535; 9505.3540; 9505.3545; 
  3.67            9505.3550; 9505.3560; 9505.3570; 9505.3575; 9505.3580; 
  3.68            9505.3585; 9505.3600; 9505.3610; 9505.3620; 9505.3622; 
  3.69            9505.3624; 9505.3626; 9505.3630; 9505.3635; 9505.3640; 
  3.70            9505.3645; 9505.3650; 9505.3660; 9505.3670; 9543.3000; 
  3.71            9543.3010; 9543.3020; 9543.3030; 9543.3040; 9543.3050; 
  4.1             9543.3060; 9543.3080; 9543.3090; 9546.0010; 9546.0020; 
  4.2             9546.0030; 9546.0040; 9546.0050; 9546.0060. 
  4.3   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  4.4                              ARTICLE 1 
  4.5                         DEPARTMENT OF HEALTH 
  4.6      Section 1.  Minnesota Statutes 2000, section 62J.152, 
  4.7   subdivision 8, is amended to read: 
  4.8      Subd. 8.  [REPEALER.] This section and sections 62J.15 and 
  4.9   62J.156 are repealed effective July 1, 2001 2005. 
  4.10     Sec. 2.  Minnesota Statutes 2000, section 62J.451, 
  4.11  subdivision 5, is amended to read: 
  4.12     Subd. 5.  [HEALTH CARE ELECTRONIC DATA INTERCHANGE 
  4.13  SYSTEM.] (a) The health data institute shall establish an 
  4.14  electronic data interchange system that electronically 
  4.15  transmits, collects, archives, and provides users of data with 
  4.16  the data necessary for their specific interests, in order to 
  4.17  promote a high quality, cost-effective, consumer-responsive 
  4.18  health care system.  This public-private information system 
  4.19  shall be developed to make health care claims processing and 
  4.20  financial settlement transactions more efficient and to provide 
  4.21  an efficient, unobtrusive method for meeting the shared 
  4.22  electronic data interchange needs of consumers, group 
  4.23  purchasers, providers, and the state. 
  4.24     (b) The health data institute shall operate the Minnesota 
  4.25  center for health care electronic data interchange established 
  4.26  in section 62J.57, and shall integrate the goals, objectives, 
  4.27  and activities of the center with those of the health data 
  4.28  institute's electronic data interchange system. 
  4.29     Sec. 3.  Minnesota Statutes 2000, section 103I.101, 
  4.30  subdivision 6, is amended to read: 
  4.31     Subd. 6.  [FEES FOR VARIANCES.] The commissioner shall 
  4.32  charge a nonrefundable application fee of $120 $150 to cover the 
  4.33  administrative cost of processing a request for a variance or 
  4.34  modification of rules adopted by the commissioner under this 
  4.35  chapter. 
  4.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
  5.1      Sec. 4.  Minnesota Statutes 2000, section 103I.112, is 
  5.2   amended to read: 
  5.3      103I.112 [FEE EXEMPTIONS FOR STATE AND LOCAL GOVERNMENT.] 
  5.4      (a) The commissioner of health may not charge fees required 
  5.5   under this chapter to a federal agency, state agency, or a local 
  5.6   unit of government or to a subcontractor performing work for the 
  5.7   state agency or local unit of government.  
  5.8      (b) "Local unit of government" means a statutory or home 
  5.9   rule charter city, town, county, or soil and water conservation 
  5.10  district, watershed district, an organization formed for the 
  5.11  joint exercise of powers under section 471.59, a board of health 
  5.12  or community health board, or other special purpose district or 
  5.13  authority with local jurisdiction in water and related land 
  5.14  resources management. 
  5.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
  5.16     Sec. 5.  Minnesota Statutes 2000, section 103I.208, 
  5.17  subdivision 1, is amended to read: 
  5.18     Subdivision 1.  [WELL NOTIFICATION FEE.] The well 
  5.19  notification fee to be paid by a property owner is:  
  5.20     (1) for a new well, $120 $150, which includes the state 
  5.21  core function fee; 
  5.22     (2) for a well sealing, $20 $30 for each well, which 
  5.23  includes the state core function fee, except that for monitoring 
  5.24  wells constructed on a single property, having depths within a 
  5.25  25 foot range, and sealed within 48 hours of start of 
  5.26  construction, a single fee of $20 $30; and 
  5.27     (3) for construction of a dewatering well, $120 $150, which 
  5.28  includes the state core function fee, for each well except a 
  5.29  dewatering project comprising five or more wells shall be 
  5.30  assessed a single fee of $600 $750 for the wells recorded on the 
  5.31  notification. 
  5.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
  5.33     Sec. 6.  Minnesota Statutes 2000, section 103I.208, 
  5.34  subdivision 2, is amended to read: 
  5.35     Subd. 2.  [PERMIT FEE.] The permit fee to be paid by a 
  5.36  property owner is:  
  6.1      (1) for a well that is not in use under a maintenance 
  6.2   permit, $100 $125 annually; 
  6.3      (2) for construction of a monitoring well, $120 $150, which 
  6.4   includes the state core function fee; 
  6.5      (3) for a monitoring well that is unsealed under a 
  6.6   maintenance permit, $100 $125 annually; 
  6.7      (4) for monitoring wells used as a leak detection device at 
  6.8   a single motor fuel retail outlet, a single petroleum bulk 
  6.9   storage site excluding tank farms, or a single agricultural 
  6.10  chemical facility site, the construction permit fee 
  6.11  is $120 $150, which includes the state core function fee, per 
  6.12  site regardless of the number of wells constructed on the site, 
  6.13  and the annual fee for a maintenance permit for unsealed 
  6.14  monitoring wells is $100 $125 per site regardless of the number 
  6.15  of monitoring wells located on site; 
  6.16     (5) for a groundwater thermal exchange device, in addition 
  6.17  to the notification fee for wells, $120 $150, which includes the 
  6.18  state core function fee; 
  6.19     (6) for a vertical heat exchanger, $120 $150; 
  6.20     (7) for a dewatering well that is unsealed under a 
  6.21  maintenance permit, $100 $125 annually for each well, except a 
  6.22  dewatering project comprising more than five wells shall be 
  6.23  issued a single permit for $500 $625 annually for wells recorded 
  6.24  on the permit; and 
  6.25     (8) for excavating holes for the purpose of installing 
  6.26  elevator shafts, $120 $150 for each hole. 
  6.27     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
  6.28     Sec. 7.  Minnesota Statutes 2000, section 103I.235, 
  6.29  subdivision 1, is amended to read: 
  6.30     Subdivision 1.  [DISCLOSURE OF WELLS TO BUYER.] (a) Before 
  6.31  signing an agreement to sell or transfer real property, the 
  6.32  seller must disclose in writing to the buyer information about 
  6.33  the status and location of all known wells on the property, by 
  6.34  delivering to the buyer either a statement by the seller that 
  6.35  the seller does not know of any wells on the property, or a 
  6.36  disclosure statement indicating the legal description and 
  7.1   county, and a map drawn from available information showing the 
  7.2   location of each well to the extent practicable.  In the 
  7.3   disclosure statement, the seller must indicate, for each well, 
  7.4   whether the well is in use, not in use, or sealed.  
  7.5      (b) At the time of closing of the sale, the disclosure 
  7.6   statement information, name and mailing address of the buyer, 
  7.7   and the quartile, section, township, and range in which each 
  7.8   well is located must be provided on a well disclosure 
  7.9   certificate signed by the seller or a person authorized to act 
  7.10  on behalf of the seller. 
  7.11     (c) A well disclosure certificate need not be provided if 
  7.12  the seller does not know of any wells on the property and the 
  7.13  deed or other instrument of conveyance contains the statement:  
  7.14  "The Seller certifies that the Seller does not know of any wells 
  7.15  on the described real property."  
  7.16     (d) If a deed is given pursuant to a contract for deed, the 
  7.17  well disclosure certificate required by this subdivision shall 
  7.18  be signed by the buyer or a person authorized to act on behalf 
  7.19  of the buyer.  If the buyer knows of no wells on the property, a 
  7.20  well disclosure certificate is not required if the following 
  7.21  statement appears on the deed followed by the signature of the 
  7.22  grantee or, if there is more than one grantee, the signature of 
  7.23  at least one of the grantees:  "The Grantee certifies that the 
  7.24  Grantee does not know of any wells on the described real 
  7.25  property."  The statement and signature of the grantee may be on 
  7.26  the front or back of the deed or on an attached sheet and an 
  7.27  acknowledgment of the statement by the grantee is not required 
  7.28  for the deed to be recordable. 
  7.29     (e) This subdivision does not apply to the sale, exchange, 
  7.30  or transfer of real property:  
  7.31     (1) that consists solely of a sale or transfer of severed 
  7.32  mineral interests; or 
  7.33     (2) that consists of an individual condominium unit as 
  7.34  described in chapters 515 and 515B. 
  7.35     (f) For an area owned in common under chapter 515 or 515B 
  7.36  the association or other responsible person must report to the 
  8.1   commissioner by July 1, 1992, the location and status of all 
  8.2   wells in the common area.  The association or other responsible 
  8.3   person must notify the commissioner within 30 days of any change 
  8.4   in the reported status of wells. 
  8.5      (g) For real property sold by the state under section 
  8.6   92.67, the lessee at the time of the sale is responsible for 
  8.7   compliance with this subdivision. 
  8.8      (h) If the seller fails to provide a required well 
  8.9   disclosure certificate, the buyer, or a person authorized to act 
  8.10  on behalf of the buyer, may sign a well disclosure certificate 
  8.11  based on the information provided on the disclosure statement 
  8.12  required by this section or based on other available information.
  8.13     (i) A county recorder or registrar of titles may not record 
  8.14  a deed or other instrument of conveyance dated after October 31, 
  8.15  1990, for which a certificate of value is required under section 
  8.16  272.115, or any deed or other instrument of conveyance dated 
  8.17  after October 31, 1990, from a governmental body exempt from the 
  8.18  payment of state deed tax, unless the deed or other instrument 
  8.19  of conveyance contains the statement made in accordance with 
  8.20  paragraph (c) or (d) or is accompanied by the well disclosure 
  8.21  certificate containing all the information required by paragraph 
  8.22  (b) or (d).  The county recorder or registrar of titles must not 
  8.23  accept a certificate unless it contains all the required 
  8.24  information.  The county recorder or registrar of titles shall 
  8.25  note on each deed or other instrument of conveyance accompanied 
  8.26  by a well disclosure certificate that the well disclosure 
  8.27  certificate was received.  The notation must include the 
  8.28  statement "No wells on property" if the disclosure certificate 
  8.29  states there are no wells on the property.  The well disclosure 
  8.30  certificate shall not be filed or recorded in the records 
  8.31  maintained by the county recorder or registrar of titles.  After 
  8.32  noting "No wells on property" on the deed or other instrument of 
  8.33  conveyance, the county recorder or registrar of titles shall 
  8.34  destroy or return to the buyer the well disclosure certificate.  
  8.35  The county recorder or registrar of titles shall collect from 
  8.36  the buyer or the person seeking to record a deed or other 
  9.1   instrument of conveyance, a fee of $20 $30 for receipt of a 
  9.2   completed well disclosure certificate.  By the tenth day of each 
  9.3   month, the county recorder or registrar of titles shall transmit 
  9.4   the well disclosure certificates to the commissioner of health.  
  9.5   By the tenth day after the end of each calendar quarter, the 
  9.6   county recorder or registrar of titles shall transmit to the 
  9.7   commissioner of health $17.50 $27.50 of the fee for each well 
  9.8   disclosure certificate received during the quarter.  The 
  9.9   commissioner shall maintain the well disclosure certificate for 
  9.10  at least six years.  The commissioner may store the certificate 
  9.11  as an electronic image.  A copy of that image shall be as valid 
  9.12  as the original. 
  9.13     (j) No new well disclosure certificate is required under 
  9.14  this subdivision if the buyer or seller, or a person authorized 
  9.15  to act on behalf of the buyer or seller, certifies on the deed 
  9.16  or other instrument of conveyance that the status and number of 
  9.17  wells on the property have not changed since the last previously 
  9.18  filed well disclosure certificate.  The following statement, if 
  9.19  followed by the signature of the person making the statement, is 
  9.20  sufficient to comply with the certification requirement of this 
  9.21  paragraph:  "I am familiar with the property described in this 
  9.22  instrument and I certify that the status and number of wells on 
  9.23  the described real property have not changed since the last 
  9.24  previously filed well disclosure certificate."  The 
  9.25  certification and signature may be on the front or back of the 
  9.26  deed or on an attached sheet and an acknowledgment of the 
  9.27  statement is not required for the deed or other instrument of 
  9.28  conveyance to be recordable. 
  9.29     (k) The commissioner in consultation with county recorders 
  9.30  shall prescribe the form for a well disclosure certificate and 
  9.31  provide well disclosure certificate forms to county recorders 
  9.32  and registrars of titles and other interested persons. 
  9.33     (l) Failure to comply with a requirement of this 
  9.34  subdivision does not impair: 
  9.35     (1) the validity of a deed or other instrument of 
  9.36  conveyance as between the parties to the deed or instrument or 
 10.1   as to any other person who otherwise would be bound by the deed 
 10.2   or instrument; or 
 10.3      (2) the record, as notice, of any deed or other instrument 
 10.4   of conveyance accepted for filing or recording contrary to the 
 10.5   provisions of this subdivision. 
 10.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 10.7      Sec. 8.  Minnesota Statutes 2000, section 103I.525, 
 10.8   subdivision 2, is amended to read: 
 10.9      Subd. 2.  [APPLICATION FEE.] The application fee for a well 
 10.10  contractor's license is $50 $75.  The commissioner may not act 
 10.11  on an application until the application fee is paid.  
 10.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 10.13     Sec. 9.  Minnesota Statutes 2000, section 103I.525, 
 10.14  subdivision 6, is amended to read: 
 10.15     Subd. 6.  [LICENSE FEE.] The fee for a well contractor's 
 10.16  license is $250, except the fee for an individual well 
 10.17  contractor's license is $50 $75. 
 10.18     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 10.19     Sec. 10.  Minnesota Statutes 2000, section 103I.525, 
 10.20  subdivision 8, is amended to read: 
 10.21     Subd. 8.  [RENEWAL.] (a) A licensee must file an 
 10.22  application and a renewal application fee to renew the license 
 10.23  by the date stated in the license.  
 10.24     (b) The renewal application fee shall be set by the 
 10.25  commissioner under section 16A.1285 for a well contractor's 
 10.26  license is $250.  
 10.27     (c) The renewal application must include information that 
 10.28  the applicant has met continuing education requirements 
 10.29  established by the commissioner by rule.  
 10.30     (d) At the time of the renewal, the commissioner must have 
 10.31  on file all properly completed well reports, well sealing 
 10.32  reports, reports of excavations to construct elevator shafts, 
 10.33  well permits, and well notifications for work conducted by the 
 10.34  licensee since the last license renewal. 
 10.35     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 10.36     Sec. 11.  Minnesota Statutes 2000, section 103I.525, 
 11.1   subdivision 9, is amended to read: 
 11.2      Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
 11.3   to submit all information required for renewal in subdivision 8 
 11.4   or submits the application and information after the required 
 11.5   renewal date: 
 11.6      (1) the licensee must include an additional a late fee set 
 11.7   by the commissioner of $75; and 
 11.8      (2) the licensee may not conduct activities authorized by 
 11.9   the well contractor's license until the renewal application, 
 11.10  renewal application fee, late fee, and all other information 
 11.11  required in subdivision 8 are submitted. 
 11.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 11.13     Sec. 12.  Minnesota Statutes 2000, section 103I.531, 
 11.14  subdivision 2, is amended to read: 
 11.15     Subd. 2.  [APPLICATION FEE.] The application fee for a 
 11.16  limited well/boring contractor's license is $50 $75.  The 
 11.17  commissioner may not act on an application until the application 
 11.18  fee is paid.  
 11.19     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 11.20     Sec. 13.  Minnesota Statutes 2000, section 103I.531, 
 11.21  subdivision 6, is amended to read: 
 11.22     Subd. 6.  [LICENSE FEE.] The fee for a limited well/boring 
 11.23  contractor's license is $50 $75.  
 11.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 11.25     Sec. 14.  Minnesota Statutes 2000, section 103I.531, 
 11.26  subdivision 8, is amended to read: 
 11.27     Subd. 8.  [RENEWAL.] (a) A person must file an application 
 11.28  and a renewal application fee to renew the limited well/boring 
 11.29  contractor's license by the date stated in the license.  
 11.30     (b) The renewal application fee shall be set by the 
 11.31  commissioner under section 16A.1285 for a limited well/boring 
 11.32  contractor's license is $75.  
 11.33     (c) The renewal application must include information that 
 11.34  the applicant has met continuing education requirements 
 11.35  established by the commissioner by rule.  
 11.36     (d) At the time of the renewal, the commissioner must have 
 12.1   on file all properly completed well sealing reports, well 
 12.2   permits, vertical heat exchanger permits, and well notifications 
 12.3   for work conducted by the licensee since the last license 
 12.4   renewal. 
 12.5      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 12.6      Sec. 15.  Minnesota Statutes 2000, section 103I.531, 
 12.7   subdivision 9, is amended to read: 
 12.8      Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
 12.9   to submit all information required for renewal in subdivision 8 
 12.10  or submits the application and information after the required 
 12.11  renewal date: 
 12.12     (1) the licensee must include an additional a late fee set 
 12.13  by the commissioner of $75; and 
 12.14     (2) the licensee may not conduct activities authorized by 
 12.15  the limited well/boring contractor's license until the renewal 
 12.16  application, renewal application fee, and late fee, and all 
 12.17  other information required in subdivision 8 are submitted. 
 12.18     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 12.19     Sec. 16.  Minnesota Statutes 2000, section 103I.535, 
 12.20  subdivision 2, is amended to read: 
 12.21     Subd. 2.  [APPLICATION FEE.] The application fee for an 
 12.22  elevator shaft contractor's license is $50 $75.  The 
 12.23  commissioner may not act on an application until the application 
 12.24  fee is paid. 
 12.25     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 12.26     Sec. 17.  Minnesota Statutes 2000, section 103I.535, 
 12.27  subdivision 6, is amended to read: 
 12.28     Subd. 6.  [LICENSE FEE.] The fee for an elevator shaft 
 12.29  contractor's license is $50 $75.  
 12.30     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 12.31     Sec. 18.  Minnesota Statutes 2000, section 103I.535, 
 12.32  subdivision 8, is amended to read: 
 12.33     Subd. 8.  [RENEWAL.] (a) A person must file an application 
 12.34  and a renewal application fee to renew the license by the date 
 12.35  stated in the license.  
 12.36     (b) The renewal application fee shall be set by the 
 13.1   commissioner under section 16A.1285 for an elevator shaft 
 13.2   contractor's license is $75.  
 13.3      (c) The renewal application must include information that 
 13.4   the applicant has met continuing education requirements 
 13.5   established by the commissioner by rule.  
 13.6      (d) At the time of renewal, the commissioner must have on 
 13.7   file all reports and permits for elevator shaft work conducted 
 13.8   by the licensee since the last license renewal. 
 13.9      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 13.10     Sec. 19.  Minnesota Statutes 2000, section 103I.535, 
 13.11  subdivision 9, is amended to read: 
 13.12     Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
 13.13  to submit all information required for renewal in subdivision 8 
 13.14  or submits the application and information after the required 
 13.15  renewal date: 
 13.16     (1) the licensee must include an additional a late fee set 
 13.17  by the commissioner of $75; and 
 13.18     (2) the licensee may not conduct activities authorized by 
 13.19  the elevator shaft contractor's license until the renewal 
 13.20  application, renewal application fee, and late fee, and all 
 13.21  other information required in subdivision 8 are submitted. 
 13.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 13.23     Sec. 20.  Minnesota Statutes 2000, section 103I.541, 
 13.24  subdivision 2b, is amended to read: 
 13.25     Subd. 2b.  [APPLICATION FEE.] The application fee for a 
 13.26  monitoring well contractor registration is $50 $75.  The 
 13.27  commissioner may not act on an application until the application 
 13.28  fee is paid.  
 13.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 13.30     Sec. 21.  Minnesota Statutes 2000, section 103I.541, 
 13.31  subdivision 4, is amended to read: 
 13.32     Subd. 4.  [RENEWAL.] (a) A person must file an application 
 13.33  and a renewal application fee to renew the registration by the 
 13.34  date stated in the registration.  
 13.35     (b) The renewal application fee shall be set by the 
 13.36  commissioner under section 16A.1285 for a monitoring well 
 14.1   contractor's registration is $75.  
 14.2      (c) The renewal application must include information that 
 14.3   the applicant has met continuing education requirements 
 14.4   established by the commissioner by rule.  
 14.5      (d) At the time of the renewal, the commissioner must have 
 14.6   on file all well reports, well sealing reports, well permits, 
 14.7   and notifications for work conducted by the registered person 
 14.8   since the last registration renewal. 
 14.9      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 14.10     Sec. 22.  Minnesota Statutes 2000, section 103I.541, 
 14.11  subdivision 5, is amended to read: 
 14.12     Subd. 5.  [INCOMPLETE OR LATE RENEWAL.] If a registered 
 14.13  person submits a renewal application after the required renewal 
 14.14  date: 
 14.15     (1) the registered person must include an additional a late 
 14.16  fee set by the commissioner of $75; and 
 14.17     (2) the registered person may not conduct activities 
 14.18  authorized by the monitoring well contractor's registration 
 14.19  until the renewal application, renewal application fee, late 
 14.20  fee, and all other information required in subdivision 4 are 
 14.21  submitted. 
 14.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 14.23     Sec. 23.  Minnesota Statutes 2000, section 103I.545, is 
 14.24  amended to read: 
 14.25     103I.545 [REGISTRATION OF DRILLING MACHINES REQUIRED.] 
 14.26     Subdivision 1.  [DRILLING MACHINE.] (a) A person may not 
 14.27  use a drilling machine such as a cable tool, rotary tool, hollow 
 14.28  rod tool, or auger for a drilling activity requiring a license 
 14.29  or registration under this chapter unless the drilling machine 
 14.30  is registered with the commissioner.  
 14.31     (b) A person must apply for the registration on forms 
 14.32  prescribed by the commissioner and submit a $50 $75 registration 
 14.33  fee. 
 14.34     (c) A registration is valid for one year.  
 14.35     Subd. 2.  [PUMP HOIST.] (a) A person may not use a machine 
 14.36  such as a pump hoist for an activity requiring a license or 
 15.1   registration under this chapter to repair wells or borings, seal 
 15.2   wells or borings, or install pumps unless the machine is 
 15.3   registered with the commissioner.  
 15.4      (b) A person must apply for the registration on forms 
 15.5   prescribed by the commissioner and submit a $50 $75 registration 
 15.6   fee. 
 15.7      (c) A registration is valid for one year. 
 15.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 15.9      Sec. 24.  Minnesota Statutes 2000, section 121A.15, is 
 15.10  amended by adding a subdivision to read: 
 15.11     Subd. 3a.  [DISCLOSURES REQUIRED.] (a) This paragraph 
 15.12  applies to any written information about immunization 
 15.13  requirements for enrollment in a school or child care facility 
 15.14  that: 
 15.15     (1) is provided to a person to be immunized or enrolling or 
 15.16  enrolled in a school or child care facility, or to the person's 
 15.17  parent or guardian if the person is under 18 years of age and 
 15.18  not emancipated; and 
 15.19     (2) is provided by the department of health; the department 
 15.20  of children, families, and learning; the department of human 
 15.21  services; an immunization provider; or a school or child care 
 15.22  facility.  
 15.23  Such written information must describe the exemptions from 
 15.24  immunizations permitted under subdivision 3, paragraphs (c) and 
 15.25  (d).  The information on exemptions from immunizations provided 
 15.26  according to this paragraph must be in a font size at least 
 15.27  equal to the font size of the immunization requirements, in the 
 15.28  same font style as the immunization requirements, and on the 
 15.29  same page of the written document as the immunization 
 15.30  requirements. 
 15.31     (b) Before immunizing a person, an immunization provider 
 15.32  must provide the person, or the person's parent or guardian if 
 15.33  the person is under 18 years of age and not emancipated, with 
 15.34  the following information in writing:  
 15.35     (1) a list of the immunizations required for enrollment in 
 15.36  a school or child care facility; 
 16.1      (2) a description of the exemptions from immunizations 
 16.2   permitted under subdivision 3, paragraphs (c) and (d); 
 16.3      (3) a list of additional immunizations currently 
 16.4   recommended by the commissioner; and 
 16.5      (4) in accordance with federal law, a copy of the vaccine 
 16.6   information sheet from the federal Department of Health and 
 16.7   Human Services that lists possible adverse reactions to the 
 16.8   immunization to be provided.  
 16.9      Sec. 25.  Minnesota Statutes 2000, section 121A.15, is 
 16.10  amended by adding a subdivision to read: 
 16.11     Subd. 12.  [MODIFICATIONS TO SCHEDULE.] (a) The 
 16.12  commissioner of health may adopt modifications to the 
 16.13  immunization requirements of this section.  A proposed 
 16.14  modification made under this subdivision must be part of the 
 16.15  current immunization recommendations of each of the following 
 16.16  organizations:  the United States Public Health Service's 
 16.17  Advisory Committee on Immunization Practices, the American 
 16.18  Academy of Family Physicians, and the American Academy of 
 16.19  Pediatrics.  In proposing a modification to the immunization 
 16.20  schedule, the commissioner must: 
 16.21     (1) consult with the commissioner of children, families, 
 16.22  and learning; the commissioner of human services; the chancellor 
 16.23  of the Minnesota state colleges and universities; and the 
 16.24  president of the University of Minnesota; and 
 16.25     (2) consider the following criteria:  the epidemiology of 
 16.26  the disease, the morbidity and mortality rates for the disease, 
 16.27  the safety and efficacy of the vaccine, the cost of a 
 16.28  vaccination program, the cost of enforcing vaccination 
 16.29  requirements, and a cost-benefit analysis of the vaccination. 
 16.30     (b) Before a proposed modification may be adopted, the 
 16.31  commissioner must notify the chairs of the house and senate 
 16.32  committees with jurisdiction over health policy issues.  If the 
 16.33  chairs of the relevant standing committees determine a public 
 16.34  hearing regarding the proposed modifications is in order, the 
 16.35  hearing must be scheduled within 60 days of receiving notice 
 16.36  from the commissioner.  If a hearing is scheduled, the 
 17.1   commissioner may not adopt any proposed modifications until 
 17.2   after the hearing is held.  
 17.3      (c) The commissioner shall comply with the requirements of 
 17.4   chapter 14 regarding the adoption of any proposed modifications 
 17.5   to the immunization schedule.  
 17.6      (d) In addition to the publication requirements of chapter 
 17.7   14, the commissioner of health must inform all immunization 
 17.8   providers of any adopted modifications to the immunization 
 17.9   schedule in a timely manner.  
 17.10     Sec. 26.  Minnesota Statutes 2000, section 135A.14, is 
 17.11  amended by adding a subdivision to read: 
 17.12     Subd. 7.  [MODIFICATIONS TO SCHEDULE.] (a) The commissioner 
 17.13  of health may adopt modifications to the immunization 
 17.14  requirements of this section.  A proposed modification made 
 17.15  under this subdivision must be part of the current immunization 
 17.16  recommendations of each of the following organizations:  the 
 17.17  United States Public Health Service's Advisory Committee on 
 17.18  Immunization Practices, the American Academy of Family 
 17.19  Physicians, and the American Academy of Pediatrics.  In 
 17.20  proposing a modification to the immunization schedule, the 
 17.21  commissioner must: 
 17.22     (1) consult with the commissioner of children, families, 
 17.23  and learning; the commissioner of human services; the chancellor 
 17.24  of the Minnesota state colleges and universities; and the 
 17.25  president of the University of Minnesota; and 
 17.26     (2) consider the following criteria:  the epidemiology of 
 17.27  the disease, the morbidity and mortality rates for the disease, 
 17.28  the safety and efficacy of the vaccine, the cost of a 
 17.29  vaccination program, the cost of enforcing vaccination 
 17.30  requirements, and a cost-benefit analysis of the vaccination. 
 17.31     (b) Before a proposed modification may be adopted, the 
 17.32  commissioner must notify the chairs of the house and senate 
 17.33  committees with jurisdiction over health policy issues.  If the 
 17.34  chairs of the relevant standing committees determine a public 
 17.35  hearing regarding the proposed modifications is in order, the 
 17.36  hearing must be scheduled within 60 days of receiving notice 
 18.1   from the commissioner.  If a hearing is scheduled, the 
 18.2   commissioner may not adopt any proposed modifications until 
 18.3   after the hearing is held.  
 18.4      (c) The commissioner shall comply with the requirements of 
 18.5   chapter 14 regarding the adoption of any proposed modifications 
 18.6   to the immunization schedule.  
 18.7      (d) In addition to the publication requirements of chapter 
 18.8   14, the commissioner of health must inform all immunization 
 18.9   providers of any adopted modifications to the immunization 
 18.10  schedule in a timely manner. 
 18.11     Sec. 27.  [144.0751] [HEALTH STANDARDS.] 
 18.12     (a) Safe drinking water or air quality standards 
 18.13  established or revised by the commissioner of health must: 
 18.14     (1) be based on scientifically acceptable, peer-reviewed 
 18.15  information; and 
 18.16     (2) include a reasonable margin of safety to adequately 
 18.17  protect the health of infants, children, and adults by taking 
 18.18  into consideration risks to each of the following health 
 18.19  outcomes:  reproductive development and function, respiratory 
 18.20  function, immunologic suppression or hypersensitization, 
 18.21  development of the brain and nervous system, endocrine 
 18.22  (hormonal) function, cancer, general infant and child 
 18.23  development, and any other important health outcomes identified 
 18.24  by the commissioner. 
 18.25     (b) For purposes of this section, "peer-reviewed" means a 
 18.26  scientifically based review conducted by individuals with 
 18.27  substantial knowledge and experience in toxicology, health risk 
 18.28  assessment, or other related fields as determined by the 
 18.29  commissioner. 
 18.30     Sec. 28.  Minnesota Statutes 2000, section 144.1202, 
 18.31  subdivision 4, is amended to read: 
 18.32     Subd. 4.  [AGREEMENT; CONDITIONS OF IMPLEMENTATION.] (a) An 
 18.33  agreement entered into before August 2, 2002 2003, must remain 
 18.34  in effect until terminated under the Atomic Energy Act of 1954, 
 18.35  United States Code, title 42, section 2021, paragraph (j).  The 
 18.36  governor may not enter into an initial agreement with the 
 19.1   Nuclear Regulatory Commission after August 1, 2002 2003.  If an 
 19.2   agreement is not entered into by August 1, 2002 2003, any rules 
 19.3   adopted under this section are repealed effective August 1, 2002 
 19.4   2003. 
 19.5      (b) An agreement authorized under subdivision 1 must be 
 19.6   approved by law before it may be implemented. 
 19.7      Sec. 29.  [144.1205] [RADIOACTIVE MATERIAL; SOURCE AND 
 19.8   SPECIAL NUCLEAR MATERIAL; FEES; INSPECTION.] 
 19.9      Subdivision 1.  [APPLICATION AND LICENSE RENEWAL FEE.] When 
 19.10  a license is required for radioactive material or source or 
 19.11  special nuclear material by a rule adopted under section 
 19.12  144.1202, subdivision 2, an application fee according to 
 19.13  subdivision 4 must be paid upon initial application for a 
 19.14  license.  The licensee must renew the license 60 days before the 
 19.15  expiration date of the license by paying a license renewal fee 
 19.16  equal to the application fee under subdivision 4.  The 
 19.17  expiration date of a license is the date set by the United 
 19.18  States Nuclear Regulatory Commission before transfer of the 
 19.19  licensing program under section 144.1202 and thereafter as 
 19.20  specified by rule of the commissioner of health. 
 19.21     Subd. 2.  [ANNUAL FEE.] A licensee must pay an annual fee 
 19.22  at least 60 days before the anniversary date of the issuance of 
 19.23  the license.  The annual fee is an amount equal to 80 percent of 
 19.24  the application fee under subdivision 4, rounded to the nearest 
 19.25  whole dollar. 
 19.26     Subd. 3.  [FEE CATEGORIES; INCORPORATION OF FEDERAL 
 19.27  LICENSING CATEGORIES.] (a) Fee categories under this section are 
 19.28  equivalent to the licensing categories used by the United States 
 19.29  Nuclear Regulatory Commission under Code of Federal Regulations, 
 19.30  title 10, parts 30 to 36, 39, 40, 70, 71, and 150, except as 
 19.31  provided in paragraph (b). 
 19.32     (b) The category of "Academic, small" is the type of 
 19.33  license required for the use of radioactive materials in a 
 19.34  teaching institution.  Radioactive materials are limited to ten 
 19.35  radionuclides not to exceed a total activity amount of one curie.
 19.36     Subd. 4.  [APPLICATION FEE.] A licensee must pay an 
 20.1   application fee as follows: 
 20.2   Radioactive material,  Application    U.S. Nuclear Regulatory
 20.3   source and             fee            Commission licensing
 20.4   special material                      category as reference
 20.6   Type A broadscope      $20,000        Medical institution type A
 20.7   Type B broadscope      $15,000        Research and development
 20.8                                         type B
 20.9   Type C broadscope      $10,000        Academic type C
 20.10  Medical use            $4,000         Medical
 20.11                                        Medical institution
 20.12                                        Medical private practice
 20.13  Mobile nuclear                                                 
 20.14  medical laboratory     $4,000         Mobile medical laboratory
 20.15  Medical special use                                     
 20.16  sealed sources         $6,000         Teletherapy
 20.17                                        High dose rate remote
 20.18                                        afterloaders
 20.19                                        Stereotactic
 20.20                                        radiosurgery devices
 20.21  In vitro testing       $2,300         In vitro testing
 20.22                                        laboratories
 20.23  Measuring gauge,
 20.24  sealed sources         $2,000         Fixed gauges
 20.25                                        Portable gauges
 20.26                                        Analytical instruments
 20.27                                        Measuring systems - other
 20.28  Gas chromatographs     $1,200         Gas chromatographs
 20.29  Manufacturing and 
 20.30  distribution           $14,700        Manufacturing and 
 20.31                                        distribution - other
 20.32  Distribution only      $8,800         Distribution of
 20.33                                        radioactive material
 20.34                                        for commercial use only
 20.35  Other services         $1,500         Other services
 20.36  Nuclear medicine 
 21.1   pharmacy               $4,100         Nuclear pharmacy
 21.2   Waste disposal         $9,400         Waste disposal service
 21.3                                         prepackage
 21.4                                         Waste disposal service
 21.5                                         processing/repackage
 21.6   Waste storage only     $7,000         To receive and store
 21.7                                         radioactive material waste
 21.8   Industrial
 21.9   radiography            $8,400         Industrial radiography
 21.10                                        fixed location
 21.11                                        Industrial radiography
 21.12                                        portable/temporary sites
 21.13  Irradiator - 
 21.14  self-shielded          $4,100         Irradiators self-shielded
 21.15                                        less than 10,000 curies
 21.16  Irradiator - 
 21.17  less than 10,000 Ci    $7,500         Irradiators less than
 21.18                                        10,000 curies
 21.19  Irradiator - 
 21.20  more than 10,000 Ci    $11,500        Irradiators greater than
 21.21                                        10,000 curies
 21.22  Research and
 21.23  development,
 21.24  no distribution        $4,100         Research and development
 21.25  Radioactive material 
 21.26  possession only        $1,000         Byproduct possession only
 21.27  Source material        $1,000         Source material shielding
 21.28  Special nuclear 
 21.29  material, less than 
 21.30  200 grams              $1,000         Special nuclear material
 21.31                                        plutonium-neutron sources
 21.32                                        less than 200 grams
 21.33  Pacemaker
 21.34  manufacturing          $1,000         Pacemaker byproduct
 21.35                                        and/or special nuclear
 21.36                                        material - medical
 22.1                                         institution
 22.2   General license
 22.3   distribution           $2,100         General license
 22.4                                         distribution
 22.5   General license 
 22.6   distribution, exempt   $1,500         General license 
 22.7                                         distribution -
 22.8                                         certain exempt items
 22.9   Academic, small        $1,000         Possession limit of ten
 22.10                                        radionuclides, not to
 22.11                                        exceed a total of one curie
 22.12                                        of activity
 22.13  Veterinary             $2,000         Veterinary use
 22.14  Well logging           $5,000         Well logging
 22.15     Subd. 5.  [PENALTY FOR LATE PAYMENT.] An annual fee or a 
 22.16  license renewal fee submitted to the commissioner after the due 
 22.17  date specified by rule must be accompanied by an additional 
 22.18  amount equal to 25 percent of the fee due. 
 22.19     Subd. 6.  [INSPECTIONS.] The commissioner of health shall 
 22.20  make periodic safety inspections of the radioactive material and 
 22.21  source and special nuclear material of a licensee.  The 
 22.22  commissioner shall prescribe the frequency of safety inspections 
 22.23  by rule. 
 22.24     Subd. 7.  [RECOVERY OF REINSPECTION COST.] If the 
 22.25  commissioner finds serious violations of public health standards 
 22.26  during an inspection under subdivision 6, the licensee must pay 
 22.27  all costs associated with subsequent reinspection of the 
 22.28  source.  The costs shall be the actual costs incurred by the 
 22.29  commissioner and include, but are not limited to, labor, 
 22.30  transportation, per diem, materials, legal fees, testing, and 
 22.31  monitoring costs. 
 22.32     Subd. 8.  [RECIPROCITY FEE.] A licensee submitting an 
 22.33  application for reciprocal recognition of a materials license 
 22.34  issued by another agreement state or the United States Nuclear 
 22.35  Regulatory Commission for a period of 180 days or less during a 
 22.36  calendar year must pay one-half of the application fee specified 
 23.1   under subdivision 4.  For a period of 181 days or more, the 
 23.2   licensee must pay the entire application fee under subdivision 4.
 23.3      Subd. 9.  [FEES FOR LICENSE AMENDMENTS.] A licensee must 
 23.4   pay a fee to amend a license as follows: 
 23.5      (1) to amend a license requiring no license review 
 23.6   including, but not limited to, facility name change or removal 
 23.7   of a previously authorized user, no fee; 
 23.8      (2) to amend a license requiring review including, but not 
 23.9   limited to, addition of isotopes, procedure changes, new 
 23.10  authorized users, or a new radiation safety officer, $200; and 
 23.11     (3) to amend a license requiring review and a site visit 
 23.12  including, but not limited to, facility move or addition of 
 23.13  processes, $400. 
 23.14     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 23.15     Sec. 30.  Minnesota Statutes 2000, section 144.122, is 
 23.16  amended to read: 
 23.17     144.122 [LICENSE, PERMIT, AND SURVEY FEES.] 
 23.18     (a) The state commissioner of health, by rule, may 
 23.19  prescribe reasonable procedures and fees for filing with the 
 23.20  commissioner as prescribed by statute and for the issuance of 
 23.21  original and renewal permits, licenses, registrations, and 
 23.22  certifications issued under authority of the commissioner.  The 
 23.23  expiration dates of the various licenses, permits, 
 23.24  registrations, and certifications as prescribed by the rules 
 23.25  shall be plainly marked thereon.  Fees may include application 
 23.26  and examination fees and a penalty fee for renewal applications 
 23.27  submitted after the expiration date of the previously issued 
 23.28  permit, license, registration, and certification.  The 
 23.29  commissioner may also prescribe, by rule, reduced fees for 
 23.30  permits, licenses, registrations, and certifications when the 
 23.31  application therefor is submitted during the last three months 
 23.32  of the permit, license, registration, or certification period.  
 23.33  Fees proposed to be prescribed in the rules shall be first 
 23.34  approved by the department of finance.  All fees proposed to be 
 23.35  prescribed in rules shall be reasonable.  The fees shall be in 
 23.36  an amount so that the total fees collected by the commissioner 
 24.1   will, where practical, approximate the cost to the commissioner 
 24.2   in administering the program.  All fees collected shall be 
 24.3   deposited in the state treasury and credited to the state 
 24.4   government special revenue fund unless otherwise specifically 
 24.5   appropriated by law for specific purposes. 
 24.6      (b) The commissioner may charge a fee for voluntary 
 24.7   certification of medical laboratories and environmental 
 24.8   laboratories, and for environmental and medical laboratory 
 24.9   services provided by the department, without complying with 
 24.10  paragraph (a) or chapter 14.  Fees charged for environment and 
 24.11  medical laboratory services provided by the department must be 
 24.12  approximately equal to the costs of providing the services.  
 24.13     (c) The commissioner may develop a schedule of fees for 
 24.14  diagnostic evaluations conducted at clinics held by the services 
 24.15  for children with handicaps program.  All receipts generated by 
 24.16  the program are annually appropriated to the commissioner for 
 24.17  use in the maternal and child health program. 
 24.18     (d) The commissioner, for fiscal years 1996 and beyond, 
 24.19  shall set license fees for hospitals and nursing homes that are 
 24.20  not boarding care homes at the following levels: 
 24.21  Joint Commission on Accreditation of Healthcare 
 24.22  Organizations (JCAHO hospitals)      $1,017
 24.23                                       $7,055
 24.24  Non-JCAHO hospitals                  $762 plus $34 per bed
 24.25                                       $4,680 plus $234 per bed
 24.26  Nursing home                         $78 plus $19 per bed
 24.27                                       $183 plus $91 per bed
 24.28     For fiscal years 1996 and beyond, The commissioner shall 
 24.29  set license fees for outpatient surgical centers, boarding care 
 24.30  homes, and supervised living facilities at the following levels: 
 24.31  Outpatient surgical centers          $517
 24.32                                       $1,512
 24.33  Boarding care homes                  $78 plus $19 per bed
 24.34                                       $183 plus $91 per bed
 24.35  Supervised living facilities         $78 plus $19 per bed
 24.36                                       $183 plus $91 per bed.
 25.1      (e) Unless prohibited by federal law, the commissioner of 
 25.2   health shall charge applicants the following fees to cover the 
 25.3   cost of any initial certification surveys required to determine 
 25.4   a provider's eligibility to participate in the Medicare or 
 25.5   Medicaid program: 
 25.6   Prospective payment surveys for          $  900
 25.7   hospitals
 25.9   Swing bed surveys for nursing homes      $1,200
 25.11  Psychiatric hospitals                    $1,400
 25.13  Rural health facilities                  $1,100
 25.15  Portable X-ray providers                 $  500
 25.17  Home health agencies                     $1,800
 25.19  Outpatient therapy agencies              $  800
 25.21  End stage renal dialysis providers       $2,100
 25.23  Independent therapists                   $  800
 25.25  Comprehensive rehabilitation             $1,200
 25.26  outpatient facilities
 25.28  Hospice providers                        $1,700
 25.30  Ambulatory surgical providers            $1,800
 25.32  Hospitals                                $4,200
 25.34  Other provider categories or             Actual surveyor costs:
 25.35  additional resurveys required            average surveyor cost x
 25.36  to complete initial certification        number of hours for the
 25.37                                           survey process.
 25.38     These fees shall be submitted at the time of the 
 25.39  application for federal certification and shall not be 
 25.40  refunded.  All fees collected after the date that the imposition 
 25.41  of fees is not prohibited by federal law shall be deposited in 
 25.42  the state treasury and credited to the state government special 
 25.43  revenue fund. 
 25.44     Sec. 31.  Minnesota Statutes 2000, section 144.1464, is 
 25.45  amended to read: 
 25.46     144.1464 [SUMMER HEALTH CARE INTERNS.] 
 25.47     Subdivision 1.  [SUMMER INTERNSHIPS.] The commissioner of 
 25.48  health, through a contract with a nonprofit organization as 
 25.49  required by subdivision 4, shall award grants to hospitals and, 
 25.50  clinics, nursing facilities, and home care providers to 
 25.51  establish a secondary and post-secondary summer health care 
 26.1   intern program.  The purpose of the program is to expose 
 26.2   interested secondary and post-secondary pupils to various 
 26.3   careers within the health care profession. 
 26.4      Subd. 2.  [CRITERIA.] (a) The commissioner, through the 
 26.5   organization under contract, shall award grants to 
 26.6   hospitals and, clinics, nursing facilities, and home care 
 26.7   providers that agree to:  
 26.8      (1) provide secondary and post-secondary summer health care 
 26.9   interns with formal exposure to the health care profession; 
 26.10     (2) provide an orientation for the secondary and 
 26.11  post-secondary summer health care interns; 
 26.12     (3) pay one-half the costs of employing the secondary and 
 26.13  post-secondary summer health care intern, based on an overall 
 26.14  hourly wage that is at least the minimum wage but does not 
 26.15  exceed $6 an hour; 
 26.16     (4) interview and hire secondary and post-secondary pupils 
 26.17  for a minimum of six weeks and a maximum of 12 weeks; and 
 26.18     (5) employ at least one secondary student for each 
 26.19  post-secondary student employed, to the extent that there are 
 26.20  sufficient qualifying secondary student applicants. 
 26.21     (b) In order to be eligible to be hired as a secondary 
 26.22  summer health intern by a hospital or, clinic, nursing facility, 
 26.23  or home care provider, a pupil must: 
 26.24     (1) intend to complete high school graduation requirements 
 26.25  and be between the junior and senior year of high school; and 
 26.26     (2) be from a school district in proximity to the facility; 
 26.27  and 
 26.28     (3) provide the facility with a letter of recommendation 
 26.29  from a health occupations or science educator. 
 26.30     (c) In order to be eligible to be hired as a post-secondary 
 26.31  summer health care intern by a hospital or clinic, a pupil must: 
 26.32     (1) intend to complete a health care training program or a 
 26.33  two-year or four-year degree program and be planning on 
 26.34  enrolling in or be enrolled in that training program or degree 
 26.35  program; and 
 26.36     (2) be enrolled in a Minnesota educational institution or 
 27.1   be a resident of the state of Minnesota; priority must be given 
 27.2   to applicants from a school district or an educational 
 27.3   institution in proximity to the facility; and 
 27.4      (3) provide the facility with a letter of recommendation 
 27.5   from a health occupations or science educator. 
 27.6      (d) Hospitals and, clinics, nursing facilities, and home 
 27.7   care providers awarded grants may employ pupils as secondary and 
 27.8   post-secondary summer health care interns beginning on or after 
 27.9   June 15, 1993, if they agree to pay the intern, during the 
 27.10  period before disbursement of state grant money, with money 
 27.11  designated as the facility's 50 percent contribution towards 
 27.12  internship costs.  
 27.13     Subd. 3.  [GRANTS.] The commissioner, through the 
 27.14  organization under contract, shall award separate grants to 
 27.15  hospitals and, clinics, nursing facilities, and home care 
 27.16  providers meeting the requirements of subdivision 2.  The grants 
 27.17  must be used to pay one-half of the costs of employing secondary 
 27.18  and post-secondary pupils in a hospital or, clinic, nursing 
 27.19  facility, or home care setting during the course of the 
 27.20  program.  No more than 50 percent of the participants may be 
 27.21  post-secondary students, unless the program does not receive 
 27.22  enough qualified secondary applicants per fiscal year.  No more 
 27.23  than five pupils may be selected from any secondary or 
 27.24  post-secondary institution to participate in the program and no 
 27.25  more than one-half of the number of pupils selected may be from 
 27.26  the seven-county metropolitan area. 
 27.27     Subd. 4.  [CONTRACT.] The commissioner shall contract with 
 27.28  a statewide, nonprofit organization representing facilities at 
 27.29  which secondary and post-secondary summer health care interns 
 27.30  will serve, to administer the grant program established by this 
 27.31  section.  Grant funds that are not used in one fiscal year may 
 27.32  be carried over to the next fiscal year.  The organization 
 27.33  awarded the grant shall provide the commissioner with any 
 27.34  information needed by the commissioner to evaluate the program, 
 27.35  in the form and at the times specified by the commissioner. 
 27.36     Sec. 32.  Minnesota Statutes 2000, section 144.148, 
 28.1   subdivision 2, is amended to read: 
 28.2      Subd. 2.  [PROGRAM.] (a) The commissioner of health shall 
 28.3   award rural hospital capital improvement grants to eligible 
 28.4   rural hospitals.  Except as provided in paragraph (b), a grant 
 28.5   shall not exceed $300,000 $500,000 per hospital. Prior to the 
 28.6   receipt of any grant, the hospital must certify to the 
 28.7   commissioner that at least one-quarter of the grant amount, 
 28.8   which may include in-kind services, is available for the same 
 28.9   purposes from nonstate resources.  
 28.10     (b) A grant shall not exceed $1,500,000 per eligible rural 
 28.11  hospital that also satisfies the following criteria: 
 28.12     (1) is the only hospital in a county; 
 28.13     (2) has 25 or fewer licensed hospital beds with a net 
 28.14  hospital operating margin not greater than an average of two 
 28.15  percent over the three fiscal years prior to application; 
 28.16     (3) is located in a medically underserved community (MUC) 
 28.17  or a health professional shortage area (HPSA); 
 28.18     (4) is located near a migrant worker employment site and 
 28.19  regularly treats significant numbers of migrant workers and 
 28.20  their families; and 
 28.21     (5) has not previously received a grant under this section 
 28.22  prior to July 1, 1999. 
 28.23     Sec. 33.  [144.1499] [PROMOTION OF HEALTH CARE AND 
 28.24  LONG-TERM CARE CAREERS.] 
 28.25     The commissioner of health, in consultation with an 
 28.26  organization representing health care employers, long-term care 
 28.27  employers, and educational institutions, may make grants to 
 28.28  qualifying consortia as defined in section 116L.11, subdivision 
 28.29  4, for intergenerational programs to encourage middle and high 
 28.30  school students to work and volunteer in health care and 
 28.31  long-term care settings.  To qualify for a grant under this 
 28.32  section, a consortium shall:  
 28.33     (1) develop a health and long-term care careers curriculum 
 28.34  that provides career exploration and training in national skill 
 28.35  standards for health care and long-term care and that is 
 28.36  consistent with Minnesota graduation standards and other related 
 29.1   requirements; 
 29.2      (2) offer programs for high school students that provide 
 29.3   training in health and long-term care careers with credits that 
 29.4   articulate into post-secondary programs; and 
 29.5      (3) provide technical support to the participating health 
 29.6   care and long-term care employer to enable the use of the 
 29.7   employer's facilities and programs for kindergarten to grade 12 
 29.8   health and long-term care careers education.  
 29.9      Sec. 34.  [144.1502] [DENTISTS LOAN FORGIVENESS.] 
 29.10     Subdivision 1.  [DEFINITION.] For purposes of this section, 
 29.11  "qualifying educational loans" means government, commercial, and 
 29.12  foundation loans for actual costs paid for tuition, reasonable 
 29.13  education expenses, and reasonable living expenses related to 
 29.14  the graduate or undergraduate education of a dentist. 
 29.15     Subd. 2.  [CREATION OF ACCOUNT; LOAN FORGIVENESS 
 29.16  PROGRAM.] A dentist education account is established in the 
 29.17  general fund.  The commissioner of health shall use money from 
 29.18  the account to establish a loan forgiveness program for dentists 
 29.19  who agree to care for substantial numbers of state public 
 29.20  program participants and other low- to moderate-income uninsured 
 29.21  patients. 
 29.22     Subd. 3.  [ELIGIBILITY.] To be eligible to participate in 
 29.23  the loan forgiveness program, a dental student must submit an 
 29.24  application to the commissioner of health while attending a 
 29.25  program of study designed to prepare the individual to become a 
 29.26  licensed dentist.  For fiscal year 2002, applicants may have 
 29.27  graduated from a dentistry program in calendar year 2001.  A 
 29.28  dental student who is accepted into the loan forgiveness program 
 29.29  must sign a contract to agree to serve a minimum three-year 
 29.30  service obligation during which at least 25 percent of the 
 29.31  dentist's yearly patient encounters are delivered to state 
 29.32  public program enrollees or patients receiving sliding fee 
 29.33  schedule discounts through a formal sliding fee schedule meeting 
 29.34  the standards established by the United States Department of 
 29.35  Health and Human Services under Code of Federal Regulations, 
 29.36  title 42, section 51, chapter 303.  The service obligation shall 
 30.1   begin no later than March 31 of the first year following 
 30.2   completion of training.  If fewer applications are submitted by 
 30.3   dental students than there are participant slots available, the 
 30.4   commissioner may consider applications submitted by dental 
 30.5   program graduates who are licensed dentists.  Dentists selected 
 30.6   for loan forgiveness must comply with all terms and conditions 
 30.7   of this section.  
 30.8      Subd. 4.  [LOAN FORGIVENESS.] The commissioner of health 
 30.9   may accept up to 14 applicants per year for participation in the 
 30.10  loan forgiveness program.  Applicants are responsible for 
 30.11  securing their own loans.  The commissioner shall select 
 30.12  participants based on their suitability for practice serving 
 30.13  public program patients, as indicated by experience or 
 30.14  training.  The commissioner shall give preference to applicants 
 30.15  who have attended a Minnesota dentistry educational institution 
 30.16  and to applicants closest to completing their training.  For 
 30.17  each year that a participant meets the service obligation 
 30.18  required under subdivision 3, up to a maximum of four years, the 
 30.19  commissioner shall make annual disbursements directly to the 
 30.20  participant equivalent to $10,000 per year of service, not to 
 30.21  exceed $40,000 or the balance of the qualifying educational 
 30.22  loans, whichever is less.  Before receiving loan repayment 
 30.23  disbursements and as requested, the participant must complete 
 30.24  and return to the commissioner an affidavit of practice form 
 30.25  provided by the commissioner verifying that the participant is 
 30.26  practicing as required under subdivision 3.  The participant 
 30.27  must provide the commissioner with verification that the full 
 30.28  amount of loan repayment disbursement received by the 
 30.29  participant has been applied toward the designated loans.  After 
 30.30  each disbursement, verification must be received by the 
 30.31  commissioner and approved before the next loan repayment 
 30.32  disbursement is made.  Participants who move their practice 
 30.33  remain eligible for loan repayment as long as they practice as 
 30.34  required under subdivision 3. 
 30.35     Subd. 5.  [PENALTY FOR NONFULFILLMENT.] If a participant 
 30.36  does not fulfill the service commitment under subdivision 3, the 
 31.1   commissioner of health shall collect from the participant 100 
 31.2   percent of any payments made for qualified educational loans and 
 31.3   interest at a rate established according to section 270.75.  The 
 31.4   commissioner shall deposit the money collected in the dentist 
 31.5   education account established under subdivision 2. 
 31.6      Subd. 6.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
 31.7   service obligations cancel in the event of a participant's 
 31.8   death.  The commissioner of health may waive or suspend payment 
 31.9   or service obligations in cases of total and permanent 
 31.10  disability or long-term temporary disability lasting for more 
 31.11  than two years.  The commissioner shall evaluate all other 
 31.12  requests for suspension or waivers on a case-by-case basis and 
 31.13  may grant a waiver of all or part of the money owed as a result 
 31.14  of a nonfulfillment penalty if emergency circumstances prevented 
 31.15  fulfillment of the required service commitment. 
 31.16     Sec. 35.  Minnesota Statutes 2000, section 144.226, 
 31.17  subdivision 4, is amended to read: 
 31.18     Subd. 4.  [VITAL RECORDS SURCHARGE.] In addition to any fee 
 31.19  prescribed under subdivision 1, there is a nonrefundable 
 31.20  surcharge of $3 $2 for each certified and noncertified birth or 
 31.21  death record, and for a certification that the record cannot be 
 31.22  found.  The local or state registrar shall forward this amount 
 31.23  to the state treasurer to be deposited into the state government 
 31.24  special revenue fund.  This surcharge shall not be charged under 
 31.25  those circumstances in which no fee for a birth or death record 
 31.26  is permitted under subdivision 1, paragraph (a).  This surcharge 
 31.27  requirement expires June 30, 2002. 
 31.28     Sec. 36.  Minnesota Statutes 2000, section 144.395, 
 31.29  subdivision 2, is amended to read: 
 31.30     Subd. 2.  [EXPENDITURES.] (a) Up to five percent of the 
 31.31  fair market value of the fund on the preceding July 1, must be 
 31.32  spent to reduce the human and economic consequences of tobacco 
 31.33  use among the youth of this state through state and local 
 31.34  tobacco prevention measures and efforts, and for other public 
 31.35  health initiatives. 
 31.36     (b) Notwithstanding paragraph (a), on January 1, 2000, up 
 32.1   to five percent of the fair market value of the fund is 
 32.2   appropriated to the commissioner of health to distribute as 
 32.3   grants under section 144.396, subdivisions 5 and 6, in 
 32.4   accordance with allocations in paragraph (c), clauses (1) and 
 32.5   (2).  Up to $200,000 of this appropriation is available to the 
 32.6   commissioner to conduct the statewide assessments described in 
 32.7   section 144.396, subdivision 3. 
 32.8      (c) Beginning July 1, 2000, and on July 1 of each year 
 32.9   thereafter, the money in paragraph (a) is appropriated as 
 32.10  follows, except as provided in paragraphs (d) and (e):  
 32.11     (1) 67 percent to the commissioner of health to distribute 
 32.12  as grants under section 144.396, subdivision 5, to fund 
 32.13  statewide tobacco use prevention initiatives aimed at youth; 
 32.14     (2) 16.5 percent to the commissioner of health to 
 32.15  distribute as grants under section 144.396, subdivision 6, to 
 32.16  fund local public health initiatives aimed at tobacco use 
 32.17  prevention in coordination with other local health-related 
 32.18  efforts to achieve measurable improvements in health among 
 32.19  youth; and 
 32.20     (3) 16.5 percent to the commissioner of health to 
 32.21  distribute in accordance with section 144.396, subdivision 7.  
 32.22     (d) A maximum of $150,000 of each annual appropriation to 
 32.23  the commissioner of health in paragraphs (b) and (c) may be used 
 32.24  by the commissioner for administrative expenses associated with 
 32.25  implementing this section. 
 32.26     (e) Beginning July 1, 2001, $1,100,000 $1,250,000 of each 
 32.27  annual appropriation to the commissioner under paragraph (c), 
 32.28  clause (1), may be used to provide base level funding for the 
 32.29  commissioner's tobacco prevention and control programs and 
 32.30  activities.  This appropriation must occur before any other 
 32.31  appropriation under this subdivision. 
 32.32     Sec. 37.  Minnesota Statutes 2000, section 144.551, 
 32.33  subdivision 1, is amended to read: 
 32.34     Subdivision 1.  [RESTRICTED CONSTRUCTION OR MODIFICATION.] 
 32.35  (a) The following construction or modification may not be 
 32.36  commenced:  
 33.1      (1) any erection, building, alteration, reconstruction, 
 33.2   modernization, improvement, extension, lease, or other 
 33.3   acquisition by or on behalf of a hospital that increases the bed 
 33.4   capacity of a hospital, relocates hospital beds from one 
 33.5   physical facility, complex, or site to another, or otherwise 
 33.6   results in an increase or redistribution of hospital beds within 
 33.7   the state; and 
 33.8      (2) the establishment of a new hospital.  
 33.9      (b) This section does not apply to:  
 33.10     (1) construction or relocation within a county by a 
 33.11  hospital, clinic, or other health care facility that is a 
 33.12  national referral center engaged in substantial programs of 
 33.13  patient care, medical research, and medical education meeting 
 33.14  state and national needs that receives more than 40 percent of 
 33.15  its patients from outside the state of Minnesota; 
 33.16     (2) a project for construction or modification for which a 
 33.17  health care facility held an approved certificate of need on May 
 33.18  1, 1984, regardless of the date of expiration of the 
 33.19  certificate; 
 33.20     (3) a project for which a certificate of need was denied 
 33.21  before July 1, 1990, if a timely appeal results in an order 
 33.22  reversing the denial; 
 33.23     (4) a project exempted from certificate of need 
 33.24  requirements by Laws 1981, chapter 200, section 2; 
 33.25     (5) a project involving consolidation of pediatric 
 33.26  specialty hospital services within the Minneapolis-St. Paul 
 33.27  metropolitan area that would not result in a net increase in the 
 33.28  number of pediatric specialty hospital beds among the hospitals 
 33.29  being consolidated; 
 33.30     (6) a project involving the temporary relocation of 
 33.31  pediatric-orthopedic hospital beds to an existing licensed 
 33.32  hospital that will allow for the reconstruction of a new 
 33.33  philanthropic, pediatric-orthopedic hospital on an existing site 
 33.34  and that will not result in a net increase in the number of 
 33.35  hospital beds.  Upon completion of the reconstruction, the 
 33.36  licenses of both hospitals must be reinstated at the capacity 
 34.1   that existed on each site before the relocation; 
 34.2      (7) the relocation or redistribution of hospital beds 
 34.3   within a hospital building or identifiable complex of buildings 
 34.4   provided the relocation or redistribution does not result in: 
 34.5   (i) an increase in the overall bed capacity at that site; (ii) 
 34.6   relocation of hospital beds from one physical site or complex to 
 34.7   another; or (iii) redistribution of hospital beds within the 
 34.8   state or a region of the state; 
 34.9      (8) relocation or redistribution of hospital beds within a 
 34.10  hospital corporate system that involves the transfer of beds 
 34.11  from a closed facility site or complex to an existing site or 
 34.12  complex provided that:  (i) no more than 50 percent of the 
 34.13  capacity of the closed facility is transferred; (ii) the 
 34.14  capacity of the site or complex to which the beds are 
 34.15  transferred does not increase by more than 50 percent; (iii) the 
 34.16  beds are not transferred outside of a federal health systems 
 34.17  agency boundary in place on July 1, 1983; and (iv) the 
 34.18  relocation or redistribution does not involve the construction 
 34.19  of a new hospital building; 
 34.20     (9) a construction project involving up to 35 new beds in a 
 34.21  psychiatric hospital in Rice county that primarily serves 
 34.22  adolescents and that receives more than 70 percent of its 
 34.23  patients from outside the state of Minnesota; 
 34.24     (10) a project to replace a hospital or hospitals with a 
 34.25  combined licensed capacity of 130 beds or less if:  (i) the new 
 34.26  hospital site is located within five miles of the current site; 
 34.27  and (ii) the total licensed capacity of the replacement 
 34.28  hospital, either at the time of construction of the initial 
 34.29  building or as the result of future expansion, will not exceed 
 34.30  70 licensed hospital beds, or the combined licensed capacity of 
 34.31  the hospitals, whichever is less; 
 34.32     (11) the relocation of licensed hospital beds from an 
 34.33  existing state facility operated by the commissioner of human 
 34.34  services to a new or existing facility, building, or complex 
 34.35  operated by the commissioner of human services; from one 
 34.36  regional treatment center site to another; or from one building 
 35.1   or site to a new or existing building or site on the same 
 35.2   campus; 
 35.3      (12) the construction or relocation of hospital beds 
 35.4   operated by a hospital having a statutory obligation to provide 
 35.5   hospital and medical services for the indigent that does not 
 35.6   result in a net increase in the number of hospital beds; or 
 35.7      (13) a construction project involving the addition of up to 
 35.8   31 new beds in an existing nonfederal hospital in Beltrami 
 35.9   county; or 
 35.10     (14) a construction project involving the addition of up to 
 35.11  eight new beds in an existing nonfederal hospital in Otter Tail 
 35.12  county with 100 licensed acute care beds. 
 35.13     Sec. 38.  Minnesota Statutes 2000, section 144.98, 
 35.14  subdivision 3, is amended to read: 
 35.15     Subd. 3.  [FEES.] (a) An application for certification 
 35.16  under subdivision 1 must be accompanied by the biennial fee 
 35.17  specified in this subdivision.  The fees are for: 
 35.18     (1) nonrefundable base certification fee, $500 $1,200; and 
 35.19     (2) test category certification fees: 
 35.20  Test Category                                  Certification Fee
 35.21  Clean water program bacteriology                      $200 $600
 35.22  Safe drinking water program bacteriology                   $600
 35.23  Clean water program inorganic chemistry, 
 35.24    fewer than four constituents                        $100 $600
 35.25  Safe drinking water program inorganic chemistry, 
 35.26    four or more constituents                           $300 $600
 35.27  Clean water program chemistry metals, 
 35.28    fewer than four constituents                        $200 $800
 35.29  Safe drinking water program chemistry metals, 
 35.30    four or more constituents                           $500 $800
 35.31  Resource conservation and recovery program 
 35.32    chemistry metals                                         $800
 35.33  Clean water program volatile organic compounds      $600 $1,200
 35.34  Safe drinking water program 
 35.35    volatile organic compounds                             $1,200
 35.36  Resource conservation and recovery program 
 36.1     volatile organic compounds                             $1,200
 36.2   Underground storage tank program
 36.3     volatile organic compounds                             $1,200
 36.4   Clean water program other organic compounds         $600 $1,200
 36.5   Safe drinking water program other organic compounds      $1,200
 36.6   Resource conservation and recovery program
 36.7     other organic compounds                                $1,200
 36.8      (b) The total biennial certification fee is the base fee 
 36.9   plus the applicable test category fees.  The biennial 
 36.10  certification fee for a contract laboratory is 1.5 times the 
 36.11  total certification fee. 
 36.12     (c) Laboratories located outside of this state that require 
 36.13  an on-site survey will be assessed an additional $1,200 $2,500 
 36.14  fee. 
 36.15     (d) Fees must be set so that the total fees support the 
 36.16  laboratory certification program.  Direct costs of the 
 36.17  certification service include program administration, 
 36.18  inspections, the agency's general support costs, and attorney 
 36.19  general costs attributable to the fee function. 
 36.20     (e) A change fee shall be assessed if a laboratory requests 
 36.21  additional analytes or methods at any time other than when 
 36.22  applying for or renewing its certification.  The change fee is 
 36.23  equal to the test category certification fee for the analyte.  
 36.24     (f) A variance fee shall be assessed if a laboratory 
 36.25  requests and is granted a variance from a rule adopted under 
 36.26  this section.  The variance fee is $500 per variance. 
 36.27     (g) Refunds or credits shall not be made for analytes or 
 36.28  methods requested but not approved.  
 36.29     (h) Certification of a laboratory shall not be awarded 
 36.30  until all fees are paid. 
 36.31     Sec. 39.  Minnesota Statutes 2000, section 144A.44, 
 36.32  subdivision 1, is amended to read: 
 36.33     Subdivision 1.  [STATEMENT OF RIGHTS.] A person who 
 36.34  receives home care services has these rights: 
 36.35     (1) the right to receive written information about rights 
 36.36  in advance of receiving care or during the initial evaluation 
 37.1   visit before the initiation of treatment, including what to do 
 37.2   if rights are violated; 
 37.3      (2) the right to receive care and services according to a 
 37.4   suitable and up-to-date plan, and subject to accepted medical or 
 37.5   nursing standards, to take an active part in creating and 
 37.6   changing the plan and evaluating care and services; 
 37.7      (3) the right to be told in advance of receiving care about 
 37.8   the services that will be provided, the disciplines that will 
 37.9   furnish care, the frequency of visits proposed to be furnished, 
 37.10  other choices that are available, and the consequences of these 
 37.11  choices including the consequences of refusing these services; 
 37.12     (4) the right to be told in advance of any change in the 
 37.13  plan of care and to take an active part in any change; 
 37.14     (5) the right to refuse services or treatment; 
 37.15     (6) the right to know, in advance, any limits to the 
 37.16  services available from a provider, and the provider's grounds 
 37.17  for a termination of services; 
 37.18     (7) the right to know in advance of receiving care whether 
 37.19  the services are covered by health insurance, medical 
 37.20  assistance, or other health programs, the charges for services 
 37.21  that will not be covered by Medicare, and the charges that the 
 37.22  individual may have to pay; 
 37.23     (8) the right to know what the charges are for services, no 
 37.24  matter who will be paying the bill; 
 37.25     (9) the right to know that there may be other services 
 37.26  available in the community, including other home care services 
 37.27  and providers, and to know where to go for information about 
 37.28  these services; 
 37.29     (10) the right to choose freely among available providers 
 37.30  and to change providers after services have begun, within the 
 37.31  limits of health insurance, medical assistance, or other health 
 37.32  programs; 
 37.33     (11) the right to have personal, financial, and medical 
 37.34  information kept private, and to be advised of the provider's 
 37.35  policies and procedures regarding disclosure of such 
 37.36  information; 
 38.1      (12) the right to be allowed access to records and written 
 38.2   information from records in accordance with section 144.335; 
 38.3      (13) the right to be served by people who are properly 
 38.4   trained and competent to perform their duties; 
 38.5      (14) the right to be treated with courtesy and respect, and 
 38.6   to have the patient's property treated with respect; 
 38.7      (15) the right to be free from physical and verbal abuse; 
 38.8      (16) the right to reasonable, advance notice of changes in 
 38.9   services or charges, including at least ten days' advance notice 
 38.10  of the termination of a service by a provider, except in cases 
 38.11  where: 
 38.12     (i) the recipient of services engages in conduct that 
 38.13  alters the conditions of employment as specified in the 
 38.14  employment contract between the home care provider and the 
 38.15  individual providing home care services, or creates an abusive 
 38.16  or unsafe work environment for the individual providing home 
 38.17  care services; or 
 38.18     (ii) an emergency for the informal caregiver or a 
 38.19  significant change in the recipient's condition has resulted in 
 38.20  service needs that exceed the current service provider agreement 
 38.21  and that cannot be safely met by the home care provider; 
 38.22     (17) the right to a coordinated transfer when there will be 
 38.23  a change in the provider of services; 
 38.24     (18) the right to voice grievances regarding treatment or 
 38.25  care that is, or fails to be, furnished, or regarding the lack 
 38.26  of courtesy or respect to the patient or the patient's property; 
 38.27     (19) the right to know how to contact an individual 
 38.28  associated with the provider who is responsible for handling 
 38.29  problems and to have the provider investigate and attempt to 
 38.30  resolve the grievance or complaint; 
 38.31     (20) the right to know the name and address of the state or 
 38.32  county agency to contact for additional information or 
 38.33  assistance; and 
 38.34     (21) the right to assert these rights personally, or have 
 38.35  them asserted by the patient's family or guardian when the 
 38.36  patient has been judged incompetent, without retaliation. 
 39.1      Sec. 40.  Minnesota Statutes 2000, section 144A.4605, 
 39.2   subdivision 4, is amended to read: 
 39.3      Subd. 4.  [LICENSE REQUIRED.] (a) A housing with services 
 39.4   establishment registered under chapter 144D that is required to 
 39.5   obtain a home care license must obtain an assisted living home 
 39.6   care license according to this section or a class A or class E 
 39.7   license according to rule.  A housing with services 
 39.8   establishment that obtains a class E license under this 
 39.9   subdivision remains subject to the payment limitations in 
 39.10  sections 256B.0913, subdivision 5, paragraph (h), and 256B.0915, 
 39.11  subdivision 3, paragraph (g). 
 39.12     (b) A board and lodging establishment registered for 
 39.13  special services as of December 31, 1996, and also registered as 
 39.14  a housing with services establishment under chapter 144D, must 
 39.15  deliver home care services according to sections 144A.43 to 
 39.16  144A.48, and may apply for a waiver from requirements under 
 39.17  Minnesota Rules, parts 4668.0002 to 4668.0240, to operate a 
 39.18  licensed agency under the standards of section 157.17.  Such 
 39.19  waivers as may be granted by the department will expire upon 
 39.20  promulgation of home care rules implementing section 144A.4605. 
 39.21     (c) An adult foster care provider licensed by the 
 39.22  department of human services and registered under chapter 144D 
 39.23  may continue to provide health-related services under its foster 
 39.24  care license until the promulgation of home care rules 
 39.25  implementing this section. 
 39.26     (d) An assisted living home care provider licensed under 
 39.27  this section must comply with the disclosure provisions of 
 39.28  section 325F.691 to the extent they are applicable. 
 39.29     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
 39.30     Sec. 41.  Minnesota Statutes 2000, section 144D.03, 
 39.31  subdivision 2, is amended to read: 
 39.32     Subd. 2.  [REGISTRATION INFORMATION.] The establishment 
 39.33  shall provide the following information to the commissioner in 
 39.34  order to be registered: 
 39.35     (1) the business name, street address, and mailing address 
 39.36  of the establishment; 
 40.1      (2) the name and mailing address of the owner or owners of 
 40.2   the establishment and, if the owner or owners are not natural 
 40.3   persons, identification of the type of business entity of the 
 40.4   owner or owners, and the names and addresses of the officers and 
 40.5   members of the governing body, or comparable persons for 
 40.6   partnerships, limited liability corporations, or other types of 
 40.7   business organizations of the owner or owners; 
 40.8      (3) the name and mailing address of the managing agent, 
 40.9   whether through management agreement or lease agreement, of the 
 40.10  establishment, if different from the owner or owners, and the 
 40.11  name of the on-site manager, if any; 
 40.12     (4) verification that the establishment has entered into an 
 40.13  elderly housing with services contract, as required in section 
 40.14  144D.04, with each resident or resident's representative; 
 40.15     (5) verification that the establishment is complying with 
 40.16  the requirements of section 325F.691, if applicable; 
 40.17     (5) (6) the name and address of at least one natural person 
 40.18  who shall be responsible for dealing with the commissioner on 
 40.19  all matters provided for in sections 144D.01 to 144D.06, and on 
 40.20  whom personal service of all notices and orders shall be made, 
 40.21  and who shall be authorized to accept service on behalf of the 
 40.22  owner or owners and the managing agent, if any; and 
 40.23     (6) (7) the signature of the authorized representative of 
 40.24  the owner or owners or, if the owner or owners are not natural 
 40.25  persons, signatures of at least two authorized representatives 
 40.26  of each owner, one of which shall be an officer of the owner. 
 40.27     Personal service on the person identified under clause (5) 
 40.28  (6) by the owner or owners in the registration shall be 
 40.29  considered service on the owner or owners, and it shall not be a 
 40.30  defense to any action that personal service was not made on each 
 40.31  individual or entity.  The designation of one or more 
 40.32  individuals under this subdivision shall not affect the legal 
 40.33  responsibility of the owner or owners under sections 144D.01 to 
 40.34  144D.06. 
 40.35     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
 40.36     Sec. 42.  Minnesota Statutes 2000, section 144D.04, 
 41.1   subdivision 2, is amended to read: 
 41.2      Subd. 2.  [CONTENTS OF CONTRACT.] An elderly housing with 
 41.3   services contract, which need not be entitled as such to comply 
 41.4   with this section, shall include at least the following elements 
 41.5   in itself or through supporting documents or attachments: 
 41.6      (1) name, street address, and mailing address of the 
 41.7   establishment; 
 41.8      (2) the name and mailing address of the owner or owners of 
 41.9   the establishment and, if the owner or owners is not a natural 
 41.10  person, identification of the type of business entity of the 
 41.11  owner or owners; 
 41.12     (3) the name and mailing address of the managing agent, 
 41.13  through management agreement or lease agreement, of the 
 41.14  establishment, if different from the owner or owners; 
 41.15     (4) the name and address of at least one natural person who 
 41.16  is authorized to accept service on behalf of the owner or owners 
 41.17  and managing agent; 
 41.18     (5) statement describing the registration and licensure 
 41.19  status of the establishment and any provider providing 
 41.20  health-related or supportive services under an arrangement with 
 41.21  the establishment; 
 41.22     (6) term of the contract; 
 41.23     (7) description of the services to be provided to the 
 41.24  resident in the base rate to be paid by resident; 
 41.25     (8) description of any additional services available for an 
 41.26  additional fee from the establishment directly or through 
 41.27  arrangements with the establishment; 
 41.28     (9) fee schedules outlining the cost of any additional 
 41.29  services; 
 41.30     (10) description of the process through which the contract 
 41.31  may be modified, amended, or terminated; 
 41.32     (11) description of the establishment's complaint 
 41.33  resolution process available to residents including the 
 41.34  toll-free complaint line for the office of ombudsman for older 
 41.35  Minnesotans; 
 41.36     (12) the resident's designated representative, if any; 
 42.1      (13) the establishment's referral procedures if the 
 42.2   contract is terminated; 
 42.3      (14) criteria used by the establishment to determine who 
 42.4   may continue to reside in the elderly housing with services 
 42.5   establishment; 
 42.6      (15) billing and payment procedures and requirements; 
 42.7      (16) statement regarding the ability of residents to 
 42.8   receive services from service providers with whom the 
 42.9   establishment does not have an arrangement; and 
 42.10     (17) statement regarding the availability of public funds 
 42.11  for payment for residence or services in the establishment. 
 42.12     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
 42.13     Sec. 43.  Minnesota Statutes 2000, section 144D.04, 
 42.14  subdivision 3, is amended to read: 
 42.15     Subd. 3.  [CONTRACTS IN PERMANENT FILES.] Elderly housing 
 42.16  with services contracts and related documents executed by each 
 42.17  resident or resident's representative shall be maintained by the 
 42.18  establishment in files from the date of execution until three 
 42.19  years after the contract is terminated.  The contracts and the 
 42.20  written disclosures required under section 325F.691, if 
 42.21  applicable, shall be made available for on-site inspection by 
 42.22  the commissioner upon request at any time. 
 42.23     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
 42.24     Sec. 44.  Minnesota Statutes 2000, section 144D.06, is 
 42.25  amended to read: 
 42.26     144D.06 [OTHER LAWS.] 
 42.27     A housing with services establishment shall obtain and 
 42.28  maintain all other licenses, permits, registrations, or other 
 42.29  governmental approvals required of it in addition to 
 42.30  registration under this chapter.  A housing with services 
 42.31  establishment is subject to the provisions of section 325F.691 
 42.32  and chapter 504B. 
 42.33     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
 42.34     Sec. 45.  [145.56] [SUICIDE PREVENTION.] 
 42.35     Subdivision 1.  [SUICIDE PREVENTION PLAN.] The commissioner 
 42.36  of health shall refine, coordinate, and implement the state's 
 43.1   suicide prevention plan using an evidence-based, public health 
 43.2   approach focused on prevention, in collaboration with the 
 43.3   commissioner of human services; the commissioner of public 
 43.4   safety; the commissioner of children, families, and learning; 
 43.5   and appropriate agencies, organizations, and institutions in the 
 43.6   community.  
 43.7      Subd. 2.  [COMMUNITY-BASED PROGRAMS.] (a) The commissioner 
 43.8   shall establish a grant program to fund: 
 43.9      (1) community-based programs to provide education, 
 43.10  outreach, and advocacy services to populations who may be at 
 43.11  risk for suicide; 
 43.12     (2) community-based programs that educate community helpers 
 43.13  and gatekeepers, such as family members, spiritual leaders, 
 43.14  coaches, and business owners, employers, and coworkers on how to 
 43.15  prevent suicide by encouraging help-seeking behaviors; 
 43.16     (3) community-based programs that educate populations at 
 43.17  risk for suicide and community helpers and gatekeepers that must 
 43.18  include information on the symptoms of depression and other 
 43.19  psychiatric illnesses, the warning signs of suicide, skills for 
 43.20  preventing suicides, and making or seeking effective referrals 
 43.21  to intervention and community resources; and 
 43.22     (4) community-based programs to provide evidence-based 
 43.23  suicide prevention and intervention education to school staff, 
 43.24  parents, and students in grades kindergarten through 12.  
 43.25     Subd. 3.  [WORKPLACE AND PROFESSIONAL EDUCATION.] (a) The 
 43.26  commissioner shall promote the use of employee assistance and 
 43.27  workplace programs to support employees with depression and 
 43.28  other psychiatric illnesses and substance abuse disorders, and 
 43.29  refer them to services.  In promoting these programs, the 
 43.30  commissioner shall collaborate with employer and professional 
 43.31  associations, unions, and safety councils. 
 43.32     (b) The commissioner shall provide training and technical 
 43.33  assistance to local public health and other community-based 
 43.34  professionals to provide for integrated implementation of best 
 43.35  practices for preventing suicides. 
 43.36     Subd. 4.  [COLLECTION AND REPORTING SUICIDE DATA.] The 
 44.1   commissioner shall coordinate with federal, regional, local, and 
 44.2   other state agencies to collect, analyze, and annually issue a 
 44.3   public report on Minnesota-specific data on suicide and suicidal 
 44.4   behaviors.  
 44.5      Subd. 5.  [PERIODIC EVALUATIONS; BIENNIAL REPORTS.] The 
 44.6   commissioner shall conduct periodic evaluations of the impact of 
 44.7   and outcomes from implementation of the state's suicide 
 44.8   prevention plan and each of the activities specified in this 
 44.9   section.  By July 1, 2002, and July 1 of each even-numbered year 
 44.10  thereafter, the commissioner shall report the results of these 
 44.11  evaluations to the chairs of the policy and finance committees 
 44.12  in the house and senate with jurisdiction over health and human 
 44.13  services issues. 
 44.14     Sec. 46.  Minnesota Statutes 2000, section 145.881, 
 44.15  subdivision 2, is amended to read: 
 44.16     Subd. 2.  [DUTIES.] The advisory task force shall meet on a 
 44.17  regular basis to perform the following duties:  
 44.18     (a) review and report on the health care needs of mothers 
 44.19  and children throughout the state of Minnesota; 
 44.20     (b) review and report on the type, frequency and impact of 
 44.21  maternal and child health care services provided to mothers and 
 44.22  children under existing maternal and child health care programs, 
 44.23  including programs administered by the commissioner of health; 
 44.24     (c) establish, review, and report to the commissioner a 
 44.25  list of program guidelines and criteria which the advisory task 
 44.26  force considers essential to providing an effective maternal and 
 44.27  child health care program to low income populations and high 
 44.28  risk persons and fulfilling the purposes defined in section 
 44.29  145.88; 
 44.30     (d) review staff recommendations of the department of 
 44.31  health regarding maternal and child health grant awards before 
 44.32  the awards are made; 
 44.33     (e) make recommendations to the commissioner for the use of 
 44.34  other federal and state funds available to meet maternal and 
 44.35  child health needs; 
 44.36     (f) make recommendations to the commissioner of health on 
 45.1   priorities for funding the following maternal and child health 
 45.2   services:  (1) prenatal, delivery and postpartum care, (2) 
 45.3   comprehensive health care for children, especially from birth 
 45.4   through five years of age, (3) adolescent health services, (4) 
 45.5   family planning services, (5) preventive dental care, (6) 
 45.6   special services for chronically ill and handicapped children 
 45.7   and (7) any other services which promote the health of mothers 
 45.8   and children; and 
 45.9      (g) make recommendations to the commissioner of health on 
 45.10  the process to distribute, award and administer the maternal and 
 45.11  child health block grant funds; and 
 45.12     (h) review the measures that are used to define the 
 45.13  variables of the funding distribution formula in section 
 45.14  145.882, subdivision 4, every two years and make recommendations 
 45.15  to the commissioner of health for changes based upon principles 
 45.16  established by the advisory task force for this purpose.  
 45.17     Sec. 47.  [145.9268] [COMMUNITY CLINIC GRANTS.] 
 45.18     Subdivision 1.  [DEFINITION.] For purposes of this section, 
 45.19  "eligible community clinic" means: 
 45.20     (1) a clinic that provides services under conditions as 
 45.21  defined in Minnesota Rules, part 9505.0255, and utilizes a 
 45.22  sliding fee scale to determine eligibility for charity care; 
 45.23     (2) an Indian tribal government or Indian health service 
 45.24  unit; or 
 45.25     (3) a consortium of clinics comprised of entities under 
 45.26  clause (1) or (2). 
 45.27     Subd. 2.  [GRANTS AUTHORIZED.] The commissioner of health 
 45.28  shall award grants to eligible community clinics to improve the 
 45.29  ongoing viability of Minnesota's clinic-based safety net 
 45.30  providers.  Grants shall be awarded to support the capacity of 
 45.31  eligible community clinics to serve low-income populations, 
 45.32  reduce current or future uncompensated care burdens, or provide 
 45.33  for improved care delivery infrastructure.  The commissioner 
 45.34  shall award grants to community clinics in metropolitan and 
 45.35  rural areas of the state, and shall ensure geographic 
 45.36  representation in grant awards among all regions of the state. 
 46.1      Subd. 3.  [ALLOCATION OF GRANTS.] (a) To receive a grant 
 46.2   under this section, an eligible community clinic must submit an 
 46.3   application to the commissioner of health by the deadline 
 46.4   established by the commissioner.  A grant may be awarded upon 
 46.5   the signing of a grant contract.  Community clinics may apply 
 46.6   for and the commissioner may award grants for one-year or 
 46.7   two-year periods. 
 46.8      (b) An application must be on a form and contain 
 46.9   information as specified by the commissioner but at a minimum 
 46.10  must contain: 
 46.11     (1) a description of the purpose or project for which grant 
 46.12  funds will be used; 
 46.13     (2) a description of the problem or problems the grant 
 46.14  funds will be used to address; and 
 46.15     (3) a description of achievable objectives, a workplan, and 
 46.16  a timeline for implementation and completion of processes or 
 46.17  projects enabled by the grant. 
 46.18     (c) The commissioner shall review each application to 
 46.19  determine whether the application is complete and whether the 
 46.20  applicant and the project are eligible for a grant.  In 
 46.21  evaluating applications according to paragraph (d), the 
 46.22  commissioner shall establish criteria including, but not limited 
 46.23  to:  the priority level of the project; the applicant's 
 46.24  thoroughness and clarity in describing the problem grant funds 
 46.25  are intended to address; a description of the applicant's 
 46.26  proposed project; the manner in which the applicant will 
 46.27  demonstrate the effectiveness of any projects undertaken; and 
 46.28  evidence of efficiencies and effectiveness gained through 
 46.29  collaborative efforts.  The commissioner may also take into 
 46.30  account other relevant factors, including, but not limited to, 
 46.31  the percentage for which uninsured patients represent the 
 46.32  applicant's patient base and the degree to which grant funds 
 46.33  will be used to support services increasing access to health 
 46.34  care services.  During application review, the commissioner may 
 46.35  request additional information about a proposed project, 
 46.36  including information on project cost.  Failure to provide the 
 47.1   information requested disqualifies an applicant.  The 
 47.2   commissioner has discretion over the number of grants awarded. 
 47.3      (d) In determining which eligible community clinics will 
 47.4   receive grants under this section, the commissioner shall give 
 47.5   preference to those grant applications that show evidence of 
 47.6   collaboration with other eligible community clinics, hospitals, 
 47.7   health care providers, or community organizations.  In addition, 
 47.8   the commissioner shall give priority, in declining order, to 
 47.9   grant applications for projects that: 
 47.10     (1) provide a direct offset to expenses incurred for 
 47.11  services provided to the clinic's target population; 
 47.12     (2) establish, update, or improve information, data 
 47.13  collection, or billing systems; 
 47.14     (3) procure, modernize, remodel, or replace equipment used 
 47.15  an the delivery of direct patient care at a clinic; 
 47.16     (4) provide improvements for care delivery, such as 
 47.17  increased translation and interpretation services; or 
 47.18     (5) other projects determined by the commissioner to 
 47.19  improve the ability of applicants to provide care to the 
 47.20  vulnerable populations they serve. 
 47.21     (e) A grant awarded to an eligible community clinic may not 
 47.22  exceed $300,000 per eligible community clinic.  For an applicant 
 47.23  applying as a consortium of clinics, a grant may not exceed 
 47.24  $300,000 per clinic included in the consortium.  The 
 47.25  commissioner has discretion over the number of grants awarded.  
 47.26     Subd. 4.  [EVALUATION AND REPORT.] The commissioner of 
 47.27  health shall evaluate the overall effectiveness of the grant 
 47.28  program.  The commissioner shall collect progress reports to 
 47.29  evaluate the grant program from the eligible community clinics 
 47.30  receiving grants.  Every two years, as part of this evaluation, 
 47.31  the commissioner shall report to the legislature on priority 
 47.32  areas for grants set under subdivision 3 and provide any 
 47.33  recommendations for adding or changing priority areas. 
 47.34     Sec. 48.  [145.928] [ELIMINATING HEALTH DISPARITIES.] 
 47.35     Subdivision 1.  [GOAL; ESTABLISHMENT.] It is the goal of 
 47.36  the state, by 2010, to decrease by 50 percent the disparities in 
 48.1   infant mortality rates and adult and child immunization rates 
 48.2   for American Indians and populations of color, as compared with 
 48.3   rates for whites.  To do so and to achieve other measurable 
 48.4   outcomes, the commissioner of health shall establish a program 
 48.5   to close the gap in the health status of American Indians and 
 48.6   populations of color as compared with whites in the following 
 48.7   priority areas:  infant mortality, breast and cervical cancer 
 48.8   screening, HIV/AIDS and sexually transmitted infections, adult 
 48.9   and child immunizations, cardiovascular disease, diabetes, and 
 48.10  accidental injuries and violence.  
 48.11     Subd. 2.  [STATE-COMMUNITY PARTNERSHIPS; PLAN.] The 
 48.12  commissioner, in partnership with culturally-based community 
 48.13  organizations; the Indian affairs council under section 3.922; 
 48.14  the council on affairs of Chicano/Latino people under section 
 48.15  3.9223; the council on Black Minnesotans under section 3.9225; 
 48.16  the council on Asian-Pacific Minnesotans under section 3.9226; 
 48.17  community health boards as defined in section 145A.02; and 
 48.18  tribal governments, shall develop and implement a comprehensive, 
 48.19  coordinated plan to reduce health disparities in the health 
 48.20  disparity priority areas identified in subdivision 1. 
 48.21     Subd. 3.  [MEASURABLE OUTCOMES.] The commissioner, in 
 48.22  consultation with the community partners listed in subdivision 
 48.23  2, shall establish measurable outcomes to achieve the goal 
 48.24  specified in subdivision 1 and to determine the effectiveness of 
 48.25  the grants and other activities funded under this section in 
 48.26  reducing health disparities in the priority areas identified in 
 48.27  subdivision 1.  The development of measurable outcomes must be 
 48.28  completed before any funds are distributed under this section. 
 48.29     Subd. 4.  [STATEWIDE ASSESSMENT.] The commissioner shall 
 48.30  enhance current data tools to ensure a statewide assessment of 
 48.31  the risk behaviors associated with the health disparity priority 
 48.32  areas identified in subdivision 1.  The statewide assessment 
 48.33  must be used to establish a baseline to measure the effect of 
 48.34  activities funded under this section.  To the extent feasible, 
 48.35  the commissioner shall conduct the assessment so that the 
 48.36  results may be compared to national data. 
 49.1      Subd. 5.  [TECHNICAL ASSISTANCE.] The commissioner shall 
 49.2   provide the necessary expertise to grant applicants to ensure 
 49.3   that submitted proposals are likely to be successful in reducing 
 49.4   the health disparities identified in subdivision 1.  The 
 49.5   commissioner shall provide grant recipients with guidance and 
 49.6   training on best or most promising strategies to use to reduce 
 49.7   the health disparities identified in subdivision 1.  The 
 49.8   commissioner shall also assist grant recipients in the 
 49.9   development of materials and procedures to evaluate local 
 49.10  community activities. 
 49.11     Subd. 6.  [PROCESS.] (a) The commissioner, in consultation 
 49.12  with the community partners listed in subdivision 2, shall 
 49.13  develop the criteria and procedures used to allocate grants 
 49.14  under this section.  In developing the criteria, the 
 49.15  commissioner shall establish an administrative cost limit for 
 49.16  grant recipients.  At the time a grant is awarded, the 
 49.17  commissioner must provide a grant recipient with information on 
 49.18  the outcomes established according to subdivision 3. 
 49.19     (b) A grant recipient must coordinate its activities to 
 49.20  reduce health disparities with other entities receiving funds 
 49.21  under this section that are in the grant recipient's service 
 49.22  area. 
 49.23     Subd. 7.  [COMMUNITY GRANT PROGRAM; IMMUNIZATION RATES AND 
 49.24  INFANT MORTALITY RATES.] (a) The commissioner shall award grants 
 49.25  to eligible applicants for local or regional projects and 
 49.26  initiatives directed at reducing health disparities in one or 
 49.27  both of the following priority areas: 
 49.28     (1) decreasing racial and ethnic disparities in infant 
 49.29  mortality rates; or 
 49.30     (2) increasing adult and child immunization rates in 
 49.31  nonwhite racial and ethnic populations. 
 49.32     (b) The commissioner may award up to 20 percent of the 
 49.33  funds available as planning grants.  Planning grants must be 
 49.34  used to address such areas as community assessment, coordination 
 49.35  activities, and development of community supported strategies. 
 49.36     (c) Eligible applicants may include, but are not limited 
 50.1   to, faith-based organizations, social service organizations, 
 50.2   community nonprofit organizations, community health boards, 
 50.3   tribal governments, and community clinics.  Applicants must 
 50.4   submit proposals to the commissioner.  A proposal must specify 
 50.5   the strategies to be implemented to address one or both of the 
 50.6   priority areas listed in paragraph (a) and must be targeted to 
 50.7   achieve the outcomes established according to subdivision 3. 
 50.8      (d) The commissioner shall give priority to applicants who 
 50.9   demonstrate that their proposed project or initiative: 
 50.10     (1) is supported by the community the applicant will serve; 
 50.11     (2) is research-based or based on promising strategies; 
 50.12     (3) is designed to complement other related community 
 50.13  activities; 
 50.14     (4) utilizes strategies that positively impact both 
 50.15  priority areas; 
 50.16     (5) reflects racially and ethnically appropriate 
 50.17  approaches; and 
 50.18     (6) will be implemented through or with community-based 
 50.19  organizations that reflect the race or ethnicity of the 
 50.20  population to be reached. 
 50.21     Subd. 8.  [COMMUNITY GRANT PROGRAM; OTHER HEALTH 
 50.22  DISPARITIES.] (a) The commissioner shall award grants to 
 50.23  eligible applicants for local or regional projects and 
 50.24  initiatives directed at reducing health disparities in one or 
 50.25  more of the following priority areas: 
 50.26     (1) decreasing racial and ethnic disparities in morbidity 
 50.27  and mortality rates from breast and cervical cancer; 
 50.28     (2) decreasing racial and ethnic disparities in morbidity 
 50.29  and mortality rates from HIV/AIDS and sexually transmitted 
 50.30  infections; 
 50.31     (3) decreasing racial and ethnic disparities in morbidity 
 50.32  and mortality rates from cardiovascular disease; 
 50.33     (4) decreasing racial and ethnic disparities in morbidity 
 50.34  and mortality rates from diabetes; or 
 50.35     (5) decreasing racial and ethnic disparities in morbidity 
 50.36  and mortality rates from accidental injuries or violence. 
 51.1      (b) The commissioner may award up to 20 percent of the 
 51.2   funds available as planning grants.  Planning grants must be 
 51.3   used to address such areas as community assessment, determining 
 51.4   community priority areas, coordination activities, and 
 51.5   development of community supported strategies. 
 51.6      (c) Eligible applicants may include, but are not limited 
 51.7   to, faith-based organizations, social service organizations, 
 51.8   community nonprofit organizations, community health boards, and 
 51.9   community clinics.  Applicants shall submit proposals to the 
 51.10  commissioner.  A proposal must specify the strategies to be 
 51.11  implemented to address one or more of the priority areas listed 
 51.12  in paragraph (a) and must be targeted to achieve the outcomes 
 51.13  established according to subdivision 3. 
 51.14     (d) The commissioner shall give priority to applicants who 
 51.15  demonstrate that their proposed project or initiative: 
 51.16     (1) is supported by the community the applicant will serve; 
 51.17     (2) is research-based or based on promising strategies; 
 51.18     (3) is designed to complement other related community 
 51.19  activities; 
 51.20     (4) utilizes strategies that positively impact more than 
 51.21  one priority area; 
 51.22     (5) reflects racially and ethnically appropriate 
 51.23  approaches; and 
 51.24     (6) will be implemented through or with community-based 
 51.25  organizations that reflect the race or ethnicity of the 
 51.26  population to be reached. 
 51.27     Subd. 9.  [HEALTH OF FOREIGN-BORN PERSONS.] (a) The 
 51.28  commissioner shall distribute funds to community health boards 
 51.29  for health screening and follow-up services for tuberculosis for 
 51.30  foreign-born persons.  Funds shall be distributed based on the 
 51.31  following formula: 
 51.32     (1) $1,500 per foreign-born person with pulmonary 
 51.33  tuberculosis in the community health board's service area; 
 51.34     (2) $500 per foreign-born person with extrapulmonary 
 51.35  tuberculosis in the community health board's service area; 
 51.36     (3) $500 per month of directly observed therapy provided by 
 52.1   the community health board for each uninsured foreign-born 
 52.2   person with pulmonary or extrapulmonary tuberculosis; and 
 52.3      (4) $50 per foreign-born person in the community health 
 52.4   board's service area. 
 52.5      (b) Payments must be made at the end of each state fiscal 
 52.6   year.  The amount paid per tuberculosis case, per month of 
 52.7   directly observed therapy, and per foreign-born person must be 
 52.8   proportionately increased or decreased to fit the actual amount 
 52.9   appropriated for that fiscal year. 
 52.10     Subd. 10.  [TRIBAL GOVERNMENTS.] The commissioner shall 
 52.11  award grants to American Indian tribal governments for 
 52.12  implementation of community interventions to reduce health 
 52.13  disparities for the priority areas listed in subdivisions 7 and 
 52.14  8.  A community intervention must be targeted to achieve the 
 52.15  outcomes established according to subdivision 3.  Tribal 
 52.16  governments must submit proposals to the commissioner and must 
 52.17  demonstrate partnerships with local public health entities.  The 
 52.18  distribution formula shall be determined by the commissioner, in 
 52.19  consultation with the tribal governments. 
 52.20     Subd. 11.  [COORDINATION.] The commissioner shall 
 52.21  coordinate the projects and initiatives funded under this 
 52.22  section with other efforts at the local, state, or national 
 52.23  level to avoid duplication and promote complementary efforts. 
 52.24     Subd. 12.  [EVALUATION.] Using the outcomes established 
 52.25  according to subdivision 3, the commissioner shall conduct a 
 52.26  biennial evaluation of the community grant programs, community 
 52.27  health board activities, and tribal government activities funded 
 52.28  under this section.  Grant recipients, tribal governments, and 
 52.29  community health boards shall cooperate with the commissioner in 
 52.30  the evaluation and shall provide the commissioner with the 
 52.31  information needed to conduct the evaluation. 
 52.32     Subd. 13.  [REPORT.] The commissioner shall submit a 
 52.33  biennial report to the legislature on the local community 
 52.34  projects, tribal government, and community health board 
 52.35  prevention activities funded under this section.  These reports 
 52.36  must include information on grant recipients, activities that 
 53.1   were conducted using grant funds, evaluation data, and outcome 
 53.2   measures, if available.  These reports are due by January 15 of 
 53.3   every other year, beginning in the year 2003.  
 53.4      Subd. 14.  [SUPPLANTATION OF EXISTING FUNDS.] Funds 
 53.5   received under this section must be used to develop new programs 
 53.6   or expand current programs that reduce health disparities.  
 53.7   Funds must not be used to supplant current county or tribal 
 53.8   expenditures. 
 53.9      Sec. 49.  Minnesota Statutes 2000, section 145A.15, 
 53.10  subdivision 1, is amended to read: 
 53.11     Subdivision 1.  [ESTABLISHMENT.] (a) The commissioner of 
 53.12  health shall expand the current grant program to fund additional 
 53.13  projects designed to prevent child abuse and neglect and reduce 
 53.14  juvenile delinquency by promoting positive parenting, resiliency 
 53.15  in children, and a healthy beginning for children by providing 
 53.16  early intervention services for families in need.  Grant dollars 
 53.17  shall be available to train paraprofessionals to provide in-home 
 53.18  intervention services and to allow public health nurses to do 
 53.19  case management of services.  The grant program shall provide 
 53.20  early intervention services for families in need and will 
 53.21  include: 
 53.22     (1) expansion of current public health nurse and family 
 53.23  aide home visiting programs and public health home visiting 
 53.24  projects which prevent child abuse and neglect, prevent juvenile 
 53.25  delinquency, and build resiliency in children; 
 53.26     (2) early intervention to promote a healthy and nurturing 
 53.27  beginning; 
 53.28     (3) distribution of educational and public information 
 53.29  programs and materials in hospital maternity divisions, 
 53.30  well-baby clinics, obstetrical clinics, and community clinics; 
 53.31  and 
 53.32     (4) training of home visitors in skills necessary for 
 53.33  comprehensive home visiting which promotes a healthy and 
 53.34  nurturing beginning for the child. 
 53.35     (b) No new grants shall be awarded under this section after 
 53.36  June 30, 2001.  Grant contracts awarded and in effect under this 
 54.1   section as of July 1, 2001, shall continue until their 
 54.2   expiration date. 
 54.3      Sec. 50.  Minnesota Statutes 2000, section 145A.15, is 
 54.4   amended by adding a subdivision to read: 
 54.5      Subd. 5.  [EXPIRATION.] This section expires June 30, 2003. 
 54.6      Sec. 51.  Minnesota Statutes 2000, section 145A.16, 
 54.7   subdivision 1, is amended to read: 
 54.8      Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
 54.9   establish a grant program to fund universally offered home 
 54.10  visiting programs designed to serve all live births in 
 54.11  designated geographic areas.  The commissioner shall designate 
 54.12  the geographic area to be served by each program.  At least one 
 54.13  program must provide home visiting services to families within 
 54.14  the seven-county metropolitan area, and at least one program 
 54.15  must provide home visiting services to families outside the 
 54.16  metropolitan area.  The purpose of the program is to strengthen 
 54.17  families and to promote positive parenting and healthy child 
 54.18  development.  No new grants shall be awarded under this section 
 54.19  after June 30, 2001.  Competitive grant contracts awarded and in 
 54.20  effect under this section as of July 1, 2001, shall expire 
 54.21  December 31, 2003. 
 54.22     Sec. 52.  Minnesota Statutes 2000, section 145A.16, is 
 54.23  amended by adding a subdivision to read: 
 54.24     Subd. 10.  [EXPIRATION.] This section expires December 31, 
 54.25  2003. 
 54.26     Sec. 53.  [145A.17] [FAMILY HOME VISITING PROGRAMS.] 
 54.27     Subdivision 1.  [ESTABLISHMENT; GOALS.] The commissioner 
 54.28  shall establish a program to fund family home visiting programs 
 54.29  designed to foster a healthy beginning for children in families 
 54.30  at or below 200 percent of the federal poverty guidelines, 
 54.31  prevent child abuse and neglect, reduce juvenile delinquency, 
 54.32  promote positive parenting and resiliency in children, and 
 54.33  promote family health and economic self-sufficiency.  A program 
 54.34  funded under this section must serve families at or below 200 
 54.35  percent of the federal poverty guidelines, and other families 
 54.36  determined to be at risk, including but not limited to being at 
 55.1   risk for child abuse, child neglect, or juvenile delinquency.  
 55.2   Programs must give priority for services to families considered 
 55.3   to be in need of services, including but not limited to families 
 55.4   with: 
 55.5      (1) adolescent parents; 
 55.6      (2) a history of alcohol or other drug abuse; 
 55.7      (3) a history of child abuse, domestic abuse, or other 
 55.8   types of violence; 
 55.9      (4) a history of domestic abuse, rape, or other forms of 
 55.10  victimization; 
 55.11     (5) reduced cognitive functioning; 
 55.12     (6) a lack of knowledge of child growth and development 
 55.13  stages; 
 55.14     (7) low resiliency to adversities and environmental 
 55.15  stresses; or 
 55.16     (8) insufficient financial resources to meet family needs. 
 55.17     Subd. 2.  [ALLOCATION OF FUNDS.] The commissioner shall 
 55.18  distribute funds available under this section to community 
 55.19  health boards, as defined in section 145A.02, and to tribal 
 55.20  governments.  Funds shall be distributed to community health 
 55.21  boards as follows:  (1) each community health board shall 
 55.22  receive an allocation of $25,000 per year; and (2) remaining 
 55.23  funds available to community health boards shall be distributed 
 55.24  according to the formula in section 256J.625, subdivision 3.  
 55.25  The commissioner, in consultation with tribal governments, shall 
 55.26  establish a formula for distributing funds to tribal governments.
 55.27     Subd. 3.  [REQUIREMENTS FOR PROGRAMS; PROCESS.] (a) Before 
 55.28  a community health board or tribal government may receive an 
 55.29  allocation under subdivision 2, a community health board or 
 55.30  tribal government must submit a proposal to the commissioner 
 55.31  that includes identification, based on a community assessment, 
 55.32  of the populations at or below 200 percent of the federal 
 55.33  poverty guidelines that will be served and the other populations 
 55.34  that will be served.  Each program that receives funds must: 
 55.35     (1) use either a broad community-based or selective 
 55.36  community-based strategy to provide preventive and early 
 56.1   intervention home visiting services; 
 56.2      (2) offer a home visit by a trained home visitor.  If a 
 56.3   home visit is accepted, the first home visit must occur 
 56.4   prenatally or as soon after birth as possible and must include a 
 56.5   public health nursing assessment by a public health nurse; 
 56.6      (3) offer, at a minimum, information on infant care, child 
 56.7   growth and development, positive parenting, preventing diseases, 
 56.8   preventing exposure to environmental hazards, and support 
 56.9   services available in the community; 
 56.10     (4) provide information on and referrals to health care 
 56.11  services, if needed, including information on health care 
 56.12  coverage for which the child or family may be eligible; and 
 56.13  provide information on preventive services, developmental 
 56.14  assessments, and the availability of public assistance programs 
 56.15  as appropriate; 
 56.16     (5) provide youth development programs; 
 56.17     (6) recruit home visitors who will represent, to the extent 
 56.18  possible, the races, cultures, and languages spoken by families 
 56.19  that may be served; 
 56.20     (7) train and supervise home visitors in accordance with 
 56.21  the requirements established under subdivision 4; 
 56.22     (8) maximize resources and minimize duplication by 
 56.23  coordinating activities with local social and human services 
 56.24  organizations, education organizations, and other appropriate 
 56.25  governmental entities and community-based organizations and 
 56.26  agencies; and 
 56.27     (9) utilize appropriate racial and ethnic approaches to 
 56.28  providing home visiting services. 
 56.29     (b) Funds available under this section shall not be used 
 56.30  for medical services.  The commissioner shall establish an 
 56.31  administrative cost limit for recipients of funds.  The outcome 
 56.32  measures established under subdivision 6 must be specified to 
 56.33  recipients of funds at the time the funds are distributed. 
 56.34     (c) Data collected on individuals served by the home 
 56.35  visiting programs must remain confidential and must not be 
 56.36  disclosed by providers of home visiting services without a 
 57.1   specific informed written consent that identifies disclosures to 
 57.2   be made.  Upon request, agencies providing home visiting 
 57.3   services must provide recipients with information on 
 57.4   disclosures, including the names of entities and individuals 
 57.5   receiving the information and the general purpose of the 
 57.6   disclosure.  Prospective and current recipients of home visiting 
 57.7   services must be told and informed in writing that written 
 57.8   consent for disclosure of data is not required for access to 
 57.9   home visiting services. 
 57.10     Subd. 4.  [TRAINING.] The commissioner shall establish 
 57.11  training requirements for home visitors and minimum requirements 
 57.12  for supervision by a public health nurse.  The requirements for 
 57.13  nurses must be consistent with chapter 148.  Training must 
 57.14  include child development, positive parenting techniques, 
 57.15  screening and referrals for child abuse and neglect, and diverse 
 57.16  cultural practices in child rearing and family systems. 
 57.17     Subd. 5.  [TECHNICAL ASSISTANCE.] The commissioner shall 
 57.18  provide administrative and technical assistance to each program, 
 57.19  including assistance in data collection and other activities 
 57.20  related to conducting short- and long-term evaluations of the 
 57.21  programs as required under subdivision 7.  The commissioner may 
 57.22  request research and evaluation support from the University of 
 57.23  Minnesota. 
 57.24     Subd. 6.  [OUTCOME MEASURES.] The commissioner shall 
 57.25  establish outcomes to determine the impact of family home 
 57.26  visiting programs funded under this section on the following 
 57.27  areas: 
 57.28     (1) appropriate utilization of preventive health care; 
 57.29     (2) rates of substantiated child abuse and neglect; 
 57.30     (3) rates of unintentional child injuries; 
 57.31     (4) rates of children who are screened and who pass early 
 57.32  childhood screening; and 
 57.33     (5) any additional qualitative goals and quantitative 
 57.34  measures established by the commissioner. 
 57.35     Subd. 7.  [EVALUATION.] Using the qualitative goals and 
 57.36  quantitative outcome measures established under subdivisions 1 
 58.1   and 6, the commissioner shall conduct ongoing evaluations of the 
 58.2   programs funded under this section.  Community health boards and 
 58.3   tribal governments shall cooperate with the commissioner in the 
 58.4   evaluations and shall provide the commissioner with the 
 58.5   information necessary to conduct the evaluations.  As part of 
 58.6   the ongoing evaluations, the commissioner shall rate the impact 
 58.7   of the programs on the outcome measures listed in subdivision 6, 
 58.8   and shall periodically determine whether home visiting programs 
 58.9   are the best way to achieve the qualitative goals established 
 58.10  under subdivisions 1 and 6.  If the commissioner determines that 
 58.11  home visiting programs are not the best way to achieve these 
 58.12  goals, the commissioner shall provide the legislature with 
 58.13  alternative methods for achieving them. 
 58.14     Subd. 8.  [REPORT.] By January 15, 2002, and January 15 of 
 58.15  each even-numbered year thereafter, the commissioner shall 
 58.16  submit a report to the legislature on the family home visiting 
 58.17  programs funded under this section and on the results of the 
 58.18  evaluations conducted under subdivision 7. 
 58.19     Subd. 9.  [NO SUPPLANTING OF EXISTING FUNDS.] Funding 
 58.20  available under this section may be used only to supplement, not 
 58.21  to replace, nonstate funds being used for home visiting services 
 58.22  as of July 1, 2001. 
 58.23     Sec. 54.  Minnesota Statutes 2000, section 157.16, 
 58.24  subdivision 3, is amended to read: 
 58.25     Subd. 3.  [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 
 58.26  following fees are required for food and beverage service 
 58.27  establishments, hotels, motels, lodging establishments, and 
 58.28  resorts licensed under this chapter.  Food and beverage service 
 58.29  establishments must pay the highest applicable fee under 
 58.30  paragraph (e), clause (1), (2), (3), or (4), and establishments 
 58.31  serving alcohol must pay the highest applicable fee under 
 58.32  paragraph (e), clause (6) or (7).  The license fee for new 
 58.33  operators previously licensed under this chapter for the same 
 58.34  calendar year is one-half of the appropriate annual license fee, 
 58.35  plus any penalty that may be required.  The license fee for 
 58.36  operators opening on or after October 1 is one-half of the 
 59.1   appropriate annual license fee, plus any penalty that may be 
 59.2   required. 
 59.3      (b) All food and beverage service establishments, except 
 59.4   special event food stands, and all hotels, motels, lodging 
 59.5   establishments, and resorts shall pay an annual base fee of 
 59.6   $100 $145. 
 59.7      (c) A special event food stand shall pay a flat fee 
 59.8   of $30 $35 annually.  "Special event food stand" means a fee 
 59.9   category where food is prepared or served in conjunction with 
 59.10  celebrations, county fairs, or special events from a special 
 59.11  event food stand as defined in section 157.15. 
 59.12     (d) In addition to the base fee in paragraph (b), each food 
 59.13  and beverage service establishment, other than a special event 
 59.14  food stand, and each hotel, motel, lodging establishment, and 
 59.15  resort shall pay an additional annual fee for each fee category 
 59.16  as specified in this paragraph: 
 59.17     (1) Limited food menu selection, $30 $40.  "Limited food 
 59.18  menu selection" means a fee category that provides one or more 
 59.19  of the following: 
 59.20     (i) prepackaged food that receives heat treatment and is 
 59.21  served in the package; 
 59.22     (ii) frozen pizza that is heated and served; 
 59.23     (iii) a continental breakfast such as rolls, coffee, juice, 
 59.24  milk, and cold cereal; 
 59.25     (iv) soft drinks, coffee, or nonalcoholic beverages; or 
 59.26     (v) cleaning for eating, drinking, or cooking utensils, 
 59.27  when the only food served is prepared off site. 
 59.28     (2) Small establishment, including boarding establishments, 
 59.29  $55 $75.  "Small establishment" means a fee category that has no 
 59.30  salad bar and meets one or more of the following: 
 59.31     (i) possesses food service equipment that consists of no 
 59.32  more than a deep fat fryer, a grill, two hot holding containers, 
 59.33  and one or more microwave ovens; 
 59.34     (ii) serves dipped ice cream or soft serve frozen desserts; 
 59.35     (iii) serves breakfast in an owner-occupied bed and 
 59.36  breakfast establishment; 
 60.1      (iv) is a boarding establishment; or 
 60.2      (v) meets the equipment criteria in clause (3), item (i) or 
 60.3   (ii), and has a maximum patron seating capacity of not more than 
 60.4   50.  
 60.5      (3) Medium establishment, $150 $210.  "Medium establishment"
 60.6   means a fee category that meets one or more of the following: 
 60.7      (i) possesses food service equipment that includes a range, 
 60.8   oven, steam table, salad bar, or salad preparation area; 
 60.9      (ii) possesses food service equipment that includes more 
 60.10  than one deep fat fryer, one grill, or two hot holding 
 60.11  containers; or 
 60.12     (iii) is an establishment where food is prepared at one 
 60.13  location and served at one or more separate locations. 
 60.14     Establishments meeting criteria in clause (2), item (v), 
 60.15  are not included in this fee category.  
 60.16     (4) Large establishment, $250 $350.  "Large establishment" 
 60.17  means either: 
 60.18     (i) a fee category that (A) meets the criteria in clause 
 60.19  (3), items (i) or (ii), for a medium establishment, (B) seats 
 60.20  more than 175 people, and (C) offers the full menu selection an 
 60.21  average of five or more days a week during the weeks of 
 60.22  operation; or 
 60.23     (ii) a fee category that (A) meets the criteria in clause 
 60.24  (3), item (iii), for a medium establishment, and (B) prepares 
 60.25  and serves 500 or more meals per day. 
 60.26     (5) Other food and beverage service, including food carts, 
 60.27  mobile food units, seasonal temporary food stands, and seasonal 
 60.28  permanent food stands, $30 $40. 
 60.29     (6) Beer or wine table service, $30 $40.  "Beer or wine 
 60.30  table service" means a fee category where the only alcoholic 
 60.31  beverage service is beer or wine, served to customers seated at 
 60.32  tables. 
 60.33     (7) Alcoholic beverage service, other than beer or wine 
 60.34  table service, $75 $105. 
 60.35     "Alcohol beverage service, other than beer or wine table 
 60.36  service" means a fee category where alcoholic mixed drinks are 
 61.1   served or where beer or wine are served from a bar. 
 61.2      (8) Lodging per sleeping accommodation unit, $4 $6, 
 61.3   including hotels, motels, lodging establishments, and resorts, 
 61.4   up to a maximum of $400 $600.  "Lodging per sleeping 
 61.5   accommodation unit" means a fee category including the number of 
 61.6   guest rooms, cottages, or other rental units of a hotel, motel, 
 61.7   lodging establishment, or resort; or the number of beds in a 
 61.8   dormitory. 
 61.9      (9) First public swimming pool, $100 $140; each additional 
 61.10  public swimming pool, $50 $80.  "Public swimming pool" means a 
 61.11  fee category that has the meaning given in Minnesota Rules, part 
 61.12  4717.0250, subpart 8. 
 61.13     (10) First spa, $50 $80; each additional spa, $25 $40.  
 61.14  "Spa pool" means a fee category that has the meaning given in 
 61.15  Minnesota Rules, part 4717.0250, subpart 9. 
 61.16     (11) Private sewer or water, $30 $40.  "Individual private 
 61.17  water" means a fee category with a water supply other than a 
 61.18  community public water supply as defined in Minnesota Rules, 
 61.19  chapter 4720.  "Individual private sewer" means a fee category 
 61.20  with an individual sewage treatment system which uses subsurface 
 61.21  treatment and disposal. 
 61.22     (e) A fee is not required for a food and beverage service 
 61.23  establishment operated by a school as defined in sections 
 61.24  120A.05, subdivisions 9, 11, 13, and 17 and 120A.22. 
 61.25     (f) A fee of $150 for review of the construction plans must 
 61.26  accompany the initial license application for food and beverage 
 61.27  service establishments, hotels, motels, lodging establishments, 
 61.28  or resorts. 
 61.29     (g) (f) When existing food and beverage service 
 61.30  establishments, hotels, motels, lodging establishments, or 
 61.31  resorts are extensively remodeled, a fee of $150 must be 
 61.32  submitted with the remodeling plans. 
 61.33     (h) (g) Seasonal temporary food stands and special event 
 61.34  food stands are not required to submit construction or 
 61.35  remodeling plans for review. 
 61.36     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
 62.1      Sec. 55.  Minnesota Statutes 2000, section 157.22, as 
 62.2   amended by Laws 2001, chapter 65, section 1, is amended to read: 
 62.3      157.22 [EXEMPTIONS.] 
 62.4      This chapter shall not be construed to apply to: 
 62.5      (1) interstate carriers under the supervision of the United 
 62.6   States Department of Health and Human Services; 
 62.7      (2) any building constructed and primarily used for 
 62.8   religious worship; 
 62.9      (3) any building owned, operated, and used by a college or 
 62.10  university in accordance with health regulations promulgated by 
 62.11  the college or university under chapter 14; 
 62.12     (4) any person, firm, or corporation whose principal mode 
 62.13  of business is licensed under sections 28A.04 and 28A.05, is 
 62.14  exempt at that premises from licensure as a food or beverage 
 62.15  establishment; provided that the holding of any license pursuant 
 62.16  to sections 28A.04 and 28A.05 shall not exempt any person, firm, 
 62.17  or corporation from the applicable provisions of this chapter or 
 62.18  the rules of the state commissioner of health relating to food 
 62.19  and beverage service establishments; 
 62.20     (5) family day care homes and group family day care homes 
 62.21  governed by sections 245A.01 to 245A.16; 
 62.22     (6) nonprofit senior citizen centers for the sale of 
 62.23  home-baked goods; 
 62.24     (7) fraternal or patriotic organizations that are tax 
 62.25  exempt under section 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7), 
 62.26  501(c)(10), or 501(c)(19) of the Internal Revenue Code of 1986, 
 62.27  or organizations related to or affiliated with such fraternal or 
 62.28  patriotic organizations.  Such organizations may organize events 
 62.29  at which home-prepared food is donated by organization members 
 62.30  for sale at the events, provided: 
 62.31     (i) the event is not a circus, carnival, or fair; 
 62.32     (ii) the organization controls the admission of persons to 
 62.33  the event, the event agenda, or both; and 
 62.34     (iii) the organization's licensed kitchen is not used in 
 62.35  any manner for the event; and 
 62.36     (8) food not prepared at an establishment and brought in by 
 63.1   individuals attending a potluck event for consumption at the 
 63.2   potluck event.  An organization sponsoring a potluck event under 
 63.3   this clause may advertise the potluck event to the public 
 63.4   through any means.  Individuals who are not members of an 
 63.5   organization sponsoring a potluck event under this clause may 
 63.6   attend the potluck event and consume the food at the event.  
 63.7   Licensed food establishments other than schools cannot be 
 63.8   sponsors of potluck events.  A school may sponsor and hold 
 63.9   potluck events in areas of the school other than the school's 
 63.10  kitchen, provided that the school's kitchen is not used in any 
 63.11  manner for the potluck event.  For purposes of this clause, 
 63.12  "school" means a public school as defined in section 120A.05, 
 63.13  subdivisions 9, 11, 13, and 17, or a nonpublic school, church, 
 63.14  or religious organization at which a child is provided with 
 63.15  instruction in compliance with sections 120A.22 and 120A.24.  
 63.16  Potluck event food shall not be brought into a licensed food 
 63.17  establishment kitchen; and 
 63.18     (9) a home school in which a child is provided instruction 
 63.19  at home. 
 63.20     Sec. 56.  Minnesota Statutes 2000, section 326.38, is 
 63.21  amended to read: 
 63.22     326.38 [LOCAL REGULATIONS.] 
 63.23     Any city having a system of waterworks or sewerage, or any 
 63.24  town in which reside over 5,000 people exclusive of any 
 63.25  statutory cities located therein, or the metropolitan airports 
 63.26  commission, may, by ordinance, adopt local regulations providing 
 63.27  for plumbing permits, bonds, approval of plans, and inspections 
 63.28  of plumbing, which regulations are not in conflict with the 
 63.29  plumbing standards on the same subject prescribed by the state 
 63.30  commissioner of health.  No city or such town shall prohibit 
 63.31  plumbers licensed by the state commissioner of health from 
 63.32  engaging in or working at the business, except cities and 
 63.33  statutory cities which, prior to April 21, 1933, by ordinance 
 63.34  required the licensing of plumbers.  Any city by ordinance may 
 63.35  prescribe regulations, reasonable standards, and inspections and 
 63.36  grant permits to any person, firm, or corporation engaged in the 
 64.1   business of installing water softeners, who is not licensed as a 
 64.2   master plumber or journeyman plumber by the state commissioner 
 64.3   of health, to connect water softening and water filtering 
 64.4   equipment to private residence water distribution systems, where 
 64.5   provision has been previously made therefor and openings left 
 64.6   for that purpose or by use of cold water connections to a 
 64.7   domestic water heater; where it is not necessary to rearrange, 
 64.8   make any extension or alteration of, or addition to any pipe, 
 64.9   fixture or plumbing connected with the water system except to 
 64.10  connect the water softener, and provided the connections so made 
 64.11  comply with minimum standards prescribed by the state 
 64.12  commissioner of health. 
 64.13     Sec. 57.  [325F.691] [DISCLOSURE OF SPECIAL CARE STATUS 
 64.14  REQUIRED.] 
 64.15     Subdivision 1.  [PERSONS TO WHOM DISCLOSURE IS 
 64.16  REQUIRED.] Housing with services establishments, as defined in 
 64.17  sections 144D.01 to 144D.07, that secure, segregate, or provide 
 64.18  a special program or special unit for residents with a diagnosis 
 64.19  of probable Alzheimer's disease or a related disorder or that 
 64.20  advertise, market, or otherwise promote the establishment as 
 64.21  providing specialized care for Alzheimer's disease or a related 
 64.22  disorder are considered a "special care unit."  All special care 
 64.23  units shall provide a written disclosure to the following: 
 64.24     (1) the commissioner of health, if requested; 
 64.25     (2) the office of ombudsman for older Minnesotans; and 
 64.26     (3) each person seeking placement within a residence, or 
 64.27  the person's authorized representative, before an agreement to 
 64.28  provide the care is entered into. 
 64.29     Subd. 2.  [CONTENT.] Written disclosure shall include, but 
 64.30  is not limited to, the following: 
 64.31     (1) a statement of the overall philosophy and how it 
 64.32  reflects the special needs of residents with Alzheimer's disease 
 64.33  or other dementias; 
 64.34     (2) the criteria for determining who may reside in the 
 64.35  special care unit; 
 64.36     (3) the process used for assessment and establishment of 
 65.1   the service plan or agreement, including how the plan is 
 65.2   responsive to changes in the resident's condition; 
 65.3      (4) staffing credentials, job descriptions, and staff 
 65.4   duties and availability, including any training specific to 
 65.5   dementia; 
 65.6      (5) physical environment as well as design and security 
 65.7   features that specifically address the needs of residents with 
 65.8   Alzheimer's disease or other dementias; 
 65.9      (6) frequency and type of programs and activities for 
 65.10  residents of the special care unit; 
 65.11     (7) involvement of families in resident care and 
 65.12  availability of family support programs; 
 65.13     (8) fee schedules for additional services to the residents 
 65.14  of the special care unit; and 
 65.15     (9) a statement that residents will be given a written 
 65.16  notice 30 days prior to changes in the fee schedule. 
 65.17     Subd. 3.  [DUTY TO UPDATE.] Substantial changes to 
 65.18  disclosures must be reported to the parties listed in 
 65.19  subdivision 1 at the time the change is made. 
 65.20     Subd. 4.  [REMEDY.] The attorney general may seek the 
 65.21  remedies set forth in section 8.31 for repeated and intentional 
 65.22  violations of this section.  However, no private right of action 
 65.23  may be maintained as provided under section 8.31, subdivision 3a.
 65.24     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
 65.25     Sec. 58.  [RECOMMENDATIONS; INCENTIVES FOR MAGNET 
 65.26  HOSPITALS.] 
 65.27     The commissioner of health shall develop recommendations 
 65.28  for incentives that may be implemented to increase the number of 
 65.29  magnet hospitals in Minnesota.  These recommendations must be 
 65.30  reported by December 1, 2001 to the chairs of the house and 
 65.31  senate committees with jurisdiction over health and human 
 65.32  services policy and finance issues. 
 65.33     Sec. 59.  [STUDY; FACTORS INFLUENCING PATIENT CARE AND 
 65.34  PATIENT SAFETY.] 
 65.35     The commissioner of health, in consultation with relevant 
 65.36  stakeholders, shall review available research and literature and 
 66.1   identify the major factors influencing patient care and patient 
 66.2   safety, including but not limited to staffing levels for nurses 
 66.3   and other health care professionals in health care facilities.  
 66.4   This report must be coordinated, to the extent possible, with 
 66.5   other studies relating to health quality and patient safety 
 66.6   authorized by the 2001 legislature.  The commissioner shall 
 66.7   report findings from the study, including recommendations on 
 66.8   ongoing analysis and measurement of these factors for the 
 66.9   Minnesota health care system, to the chairs of the policy and 
 66.10  finance committees in the house and senate with jurisdiction 
 66.11  over health and human services issues by February 15, 2002. 
 66.12     Sec. 60.  [STUDY; IMPACT OF WORKFORCE SHORTAGE ON HEALTH 
 66.13  CARE COSTS.] 
 66.14     The commissioner of health shall review available data, 
 66.15  research, and literature and assess the effects of health care 
 66.16  labor availability and its impact on health care costs.  The 
 66.17  commissioner shall report findings and recommendations to the 
 66.18  chairs of the policy and finance committees in the house and 
 66.19  senate with jurisdiction over health and human services issues 
 66.20  by February 15, 2002. 
 66.21     Sec. 61.  [MEDICATIONS DISPENSED IN SCHOOLS STUDY.] 
 66.22     (a) The commissioner of health, in consultation with the 
 66.23  board of nursing, shall study the relationship between the Nurse 
 66.24  Practice Act, Minnesota Statutes, sections 148.171 to 148.285; 
 66.25  and 121A.22, which specifies the administration of medications 
 66.26  in schools and the activities authorized under these sections, 
 66.27  including the administration of prescription and nonprescription 
 66.28  medications and medications needed by students to manage a 
 66.29  chronic illness.  The commissioner shall also make 
 66.30  recommendations on necessary statutory changes needed to promote 
 66.31  student health and safety in relation to administering 
 66.32  medications in schools and addressing the changing health needs 
 66.33  of students.  
 66.34     (b) The commissioner shall convene a work group to assist 
 66.35  in the study and recommendations.  The work group shall consist 
 66.36  of representatives of the commissioner of human services; the 
 67.1   commissioner of children, families, and learning; the board of 
 67.2   nursing; the board of teaching; school nurses; parents; school 
 67.3   administrators; school board associations; the American Academy 
 67.4   of Pediatrics; and the Minnesota Nurse's Association. 
 67.5      (c) The commissioner shall submit these recommendations and 
 67.6   any recommended statutory changes to the legislature by January 
 67.7   15, 2002.  
 67.8      Sec. 62.  [REPEALER.] 
 67.9      (a) Minnesota Statutes 2000, section 144.148, subdivision 
 67.10  8, is repealed. 
 67.11     (b) Minnesota Statutes 2000, sections 121A.15, subdivision 
 67.12  6; and 145.927, are repealed. 
 67.13     <b>[EFFECTIVE DATE.]</b> Paragraph (a) of this section is 
 67.14  effective the day following final enactment. 
 67.15                             ARTICLE 2 
 67.16                            HEALTH CARE 
 67.17     Section 1.  Minnesota Statutes 2000, section 62A.095, 
 67.18  subdivision 1, is amended to read: 
 67.19     Subdivision 1.  [APPLICABILITY.] (a) No health plan shall 
 67.20  be offered, sold, or issued to a resident of this state, or to 
 67.21  cover a resident of this state, unless the health plan complies 
 67.22  with subdivision 2. 
 67.23     (b) Health plans providing benefits under health care 
 67.24  programs administered by the commissioner of human services are 
 67.25  not subject to the limits described in subdivision 2 but are 
 67.26  subject to the right of subrogation provisions under section 
 67.27  256B.37 and the lien provisions under section 256.015; 256B.042; 
 67.28  256D.03, subdivision 8; or 256L.03, subdivision 6. 
 67.29     Sec. 2.  Minnesota Statutes 2000, section 62J.692, 
 67.30  subdivision 7, is amended to read: 
 67.31     Subd. 7.  [TRANSFERS FROM THE COMMISSIONER OF HUMAN 
 67.32  SERVICES.] (a) The amount transferred according to section 
 67.33  256B.69, subdivision 5c, paragraph (a), clause (1), shall be 
 67.34  distributed by the commissioner to clinical medical education 
 67.35  programs that meet the qualifications of subdivision 3 based on 
 67.36  a distribution formula that reflects a summation of two factors: 
 68.1      (1) an education factor, which is determined by the total 
 68.2   number of eligible trainee FTEs and the total statewide average 
 68.3   costs per trainee, by type of trainee, in each clinical medical 
 68.4   education program; and 
 68.5      (2) a public program volume factor, which is determined by 
 68.6   the total volume of public program revenue received by each 
 68.7   training site as a percentage of all public program revenue 
 68.8   received by all training sites in the fund pool created under 
 68.9   this subdivision.  
 68.10     In this formula, the education factor shall be weighted at 
 68.11  50 percent and the public program volume factor shall be 
 68.12  weighted at 50 percent. 
 68.13     (b) Public program revenue for the distribution formula in 
 68.14  paragraph (a) shall include revenue from medical assistance, 
 68.15  prepaid medical assistance, general assistance medical care, and 
 68.16  prepaid general assistance medical care. 
 68.17     (c) Training sites that receive no public program revenue 
 68.18  shall be ineligible for funds available under this 
 68.19  subdivision paragraph. 
 68.20     (b) Fifty percent of the amount transferred according to 
 68.21  section 256B.69, subdivision 5c, paragraph (a), clause (2), 
 68.22  shall be distributed by the commissioner to the University of 
 68.23  Minnesota board of regents for the purposes described in 
 68.24  sections 137.38 to 137.40.  Of the remaining amount transferred 
 68.25  according to section 256B.69, subdivision 5c, paragraph (a), 
 68.26  clause (2), 24 percent of the amount shall be distributed by the 
 68.27  commissioner to the Hennepin County Medical Center for clinical 
 68.28  medical education.  The remaining 26 percent of the amount 
 68.29  transferred shall be distributed by the commissioner in 
 68.30  accordance with subdivision 7a.  If the federal approval is not 
 68.31  obtained for the matching funds under section 256B.69, 
 68.32  subdivision 5c, paragraph (a), clause (2), 100 percent of the 
 68.33  amount transferred under this paragraph shall be distributed by 
 68.34  the commissioner to the University of Minnesota board of regents 
 68.35  for the purposes described in sections 137.38 to 137.40.  
 68.36     Sec. 3.  Minnesota Statutes 2000, section 62J.692, is 
 69.1   amended by adding a subdivision to read: 
 69.2      Subd. 7a.  [CLINICAL MEDICAL EDUCATION INNOVATIONS 
 69.3   GRANTS.] (a) The commissioner shall award grants to teaching 
 69.4   institutions and clinical training sites for projects that 
 69.5   increase dental access for underserved populations and promote 
 69.6   innovative clinical training of dental professionals.  In 
 69.7   awarding the grants, the commissioner, in consultation with the 
 69.8   commissioner of human services, shall consider the following: 
 69.9      (1) potential to successfully increase access to an 
 69.10  underserved population; 
 69.11     (2) the long-term viability of the project to improve 
 69.12  access beyond the period of initial funding; 
 69.13     (3) evidence of collaboration between the applicant and 
 69.14  local communities; 
 69.15     (4) the efficiency in the use of the funding; and 
 69.16     (5) the priority level of the project in relation to state 
 69.17  clinical education, access, and workforce goals. 
 69.18     (b) The commissioner shall periodically evaluate the 
 69.19  priorities in awarding the innovations grants in order to ensure 
 69.20  that the priorities meet the changing workforce needs of the 
 69.21  state. 
 69.22     Sec. 4.  Minnesota Statutes 2000, section 137.38, 
 69.23  subdivision 1, is amended to read: 
 69.24     Subdivision 1.  [CONDITION.] If the board of regents 
 69.25  accepts the funding appropriated for amount transferred under 
 69.26  section 62J.692, subdivision 7, paragraph (b), to be used for 
 69.27  the purposes described in sections 137.38 to 137.40, it shall 
 69.28  comply with the duties for which the appropriations are transfer 
 69.29  is made. 
 69.30     Sec. 5.  Minnesota Statutes 2000, section 150A.10, is 
 69.31  amended by adding a subdivision to read: 
 69.32     Subd. 1a.  [LIMITED AUTHORIZATION FOR DENTAL 
 69.33  HYGIENISTS.] (a) Notwithstanding subdivision 1, a dental 
 69.34  hygienist licensed under this chapter may be employed or 
 69.35  retained by a health care facility to perform dental hygiene 
 69.36  services described under paragraph (b) without the patient first 
 70.1   being examined by a licensed dentist if the dental hygienist: 
 70.2      (1) has two years practical clinical experience with a 
 70.3   licensed dentist within the preceding five years; and 
 70.4      (2) has entered into a collaborative agreement with a 
 70.5   licensed dentist that designates authorization for the services 
 70.6   provided by the dental hygienist. 
 70.7      (b) The dental hygiene services authorized to be performed 
 70.8   by a dental hygienist under this subdivision are limited to 
 70.9   removal of deposits and stains from the surfaces of the teeth, 
 70.10  application of topical preventive or prophylactic agents, 
 70.11  polishing and smoothing restorations, removal of marginal 
 70.12  overhangs, performance of preliminary charting, taking of 
 70.13  radiographs, and performance of root planing and soft-tissue 
 70.14  curettage.  The dental hygienist shall not place pit and fissure 
 70.15  sealants, unless the patient has been recently examined and the 
 70.16  treatment planned by a licensed dentist.  The dental hygienist 
 70.17  shall not perform injections of anesthetic agents or the 
 70.18  administration of nitrous oxide unless under the indirect 
 70.19  supervision of a licensed dentist.  The performance of dental 
 70.20  hygiene services in a health care facility is limited to 
 70.21  patients, students, and residents of the facility. 
 70.22     (c) A collaborating dentist must be licensed under this 
 70.23  chapter and may enter into a collaborative agreement with no 
 70.24  more than four dental hygienists.  The collaborative agreement 
 70.25  must include: 
 70.26     (1) consideration for medically compromised patients and 
 70.27  medical conditions for which a dental evaluation and treatment 
 70.28  plan must occur prior to the provision of dental hygiene 
 70.29  services; and 
 70.30     (2) a period of time in which an examination by a dentist 
 70.31  should occur. 
 70.32  The collaborative agreement must be maintained by the dentist 
 70.33  and the dental hygienist and must be made available to the board 
 70.34  upon request.  
 70.35     (d) For the purposes of this subdivision, a "health care 
 70.36  facility" is limited to a hospital; nursing home; home health 
 71.1   agency; group home serving the elderly, disabled, or juveniles; 
 71.2   state-operated facility licensed by the commissioner of human 
 71.3   services or the commissioner of corrections; and federal, state, 
 71.4   or local public health facility, community clinic, or tribal 
 71.5   clinic.  
 71.6      (e) For purposes of this subdivision, a "collaborative 
 71.7   agreement" means a written agreement with a licensed dentist who 
 71.8   authorizes and accepts responsibility for the services performed 
 71.9   by the dental hygienist.  The services authorized under this 
 71.10  subdivision and the collaborative agreement may be performed 
 71.11  without the presence of a licensed dentist and may be performed 
 71.12  at a location other than the usual place of practice of the 
 71.13  dentist or dental hygienist and without a dentist's diagnosis 
 71.14  and treatment plan, unless specified in the collaborative 
 71.15  agreement. 
 71.16     Sec. 6.  Minnesota Statutes 2000, section 256.01, 
 71.17  subdivision 2, as amended by Laws 2001, chapter 178, article 1, 
 71.18  section 2, is amended to read: 
 71.19     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
 71.20  section 241.021, subdivision 2, the commissioner of human 
 71.21  services shall: 
 71.22     (1) Administer and supervise all forms of public assistance 
 71.23  provided for by state law and other welfare activities or 
 71.24  services as are vested in the commissioner.  Administration and 
 71.25  supervision of human services activities or services includes, 
 71.26  but is not limited to, assuring timely and accurate distribution 
 71.27  of benefits, completeness of service, and quality program 
 71.28  management.  In addition to administering and supervising human 
 71.29  services activities vested by law in the department, the 
 71.30  commissioner shall have the authority to: 
 71.31     (a) require county agency participation in training and 
 71.32  technical assistance programs to promote compliance with 
 71.33  statutes, rules, federal laws, regulations, and policies 
 71.34  governing human services; 
 71.35     (b) monitor, on an ongoing basis, the performance of county 
 71.36  agencies in the operation and administration of human services, 
 72.1   enforce compliance with statutes, rules, federal laws, 
 72.2   regulations, and policies governing welfare services and promote 
 72.3   excellence of administration and program operation; 
 72.4      (c) develop a quality control program or other monitoring 
 72.5   program to review county performance and accuracy of benefit 
 72.6   determinations; 
 72.7      (d) require county agencies to make an adjustment to the 
 72.8   public assistance benefits issued to any individual consistent 
 72.9   with federal law and regulation and state law and rule and to 
 72.10  issue or recover benefits as appropriate; 
 72.11     (e) delay or deny payment of all or part of the state and 
 72.12  federal share of benefits and administrative reimbursement 
 72.13  according to the procedures set forth in section 256.017; 
 72.14     (f) make contracts with and grants to public and private 
 72.15  agencies and organizations, both profit and nonprofit, and 
 72.16  individuals, using appropriated funds; and 
 72.17     (g) enter into contractual agreements with federally 
 72.18  recognized Indian tribes with a reservation in Minnesota to the 
 72.19  extent necessary for the tribe to operate a federally approved 
 72.20  family assistance program or any other program under the 
 72.21  supervision of the commissioner.  The commissioner shall consult 
 72.22  with the affected county or counties in the contractual 
 72.23  agreement negotiations, if the county or counties wish to be 
 72.24  included, in order to avoid the duplication of county and tribal 
 72.25  assistance program services.  The commissioner may establish 
 72.26  necessary accounts for the purposes of receiving and disbursing 
 72.27  funds as necessary for the operation of the programs. 
 72.28     (2) Inform county agencies, on a timely basis, of changes 
 72.29  in statute, rule, federal law, regulation, and policy necessary 
 72.30  to county agency administration of the programs. 
 72.31     (3) Administer and supervise all child welfare activities; 
 72.32  promote the enforcement of laws protecting handicapped, 
 72.33  dependent, neglected and delinquent children, and children born 
 72.34  to mothers who were not married to the children's fathers at the 
 72.35  times of the conception nor at the births of the children; 
 72.36  license and supervise child-caring and child-placing agencies 
 73.1   and institutions; supervise the care of children in boarding and 
 73.2   foster homes or in private institutions; and generally perform 
 73.3   all functions relating to the field of child welfare now vested 
 73.4   in the state board of control. 
 73.5      (4) Administer and supervise all noninstitutional service 
 73.6   to handicapped persons, including those who are visually 
 73.7   impaired, hearing impaired, or physically impaired or otherwise 
 73.8   handicapped.  The commissioner may provide and contract for the 
 73.9   care and treatment of qualified indigent children in facilities 
 73.10  other than those located and available at state hospitals when 
 73.11  it is not feasible to provide the service in state hospitals. 
 73.12     (5) Assist and actively cooperate with other departments, 
 73.13  agencies and institutions, local, state, and federal, by 
 73.14  performing services in conformity with the purposes of Laws 
 73.15  1939, chapter 431. 
 73.16     (6) Act as the agent of and cooperate with the federal 
 73.17  government in matters of mutual concern relative to and in 
 73.18  conformity with the provisions of Laws 1939, chapter 431, 
 73.19  including the administration of any federal funds granted to the 
 73.20  state to aid in the performance of any functions of the 
 73.21  commissioner as specified in Laws 1939, chapter 431, and 
 73.22  including the promulgation of rules making uniformly available 
 73.23  medical care benefits to all recipients of public assistance, at 
 73.24  such times as the federal government increases its participation 
 73.25  in assistance expenditures for medical care to recipients of 
 73.26  public assistance, the cost thereof to be borne in the same 
 73.27  proportion as are grants of aid to said recipients. 
 73.28     (7) Establish and maintain any administrative units 
 73.29  reasonably necessary for the performance of administrative 
 73.30  functions common to all divisions of the department. 
 73.31     (8) Act as designated guardian of both the estate and the 
 73.32  person of all the wards of the state of Minnesota, whether by 
 73.33  operation of law or by an order of court, without any further 
 73.34  act or proceeding whatever, except as to persons committed as 
 73.35  mentally retarded.  For children under the guardianship of the 
 73.36  commissioner whose interests would be best served by adoptive 
 74.1   placement, the commissioner may contract with a licensed 
 74.2   child-placing agency or a tribal social services agency to 
 74.3   provide adoption services.  A contract with a licensed 
 74.4   child-placing agency must be designed to supplement existing 
 74.5   county efforts and may not replace existing county programs, 
 74.6   unless the replacement is agreed to by the county board and the 
 74.7   appropriate exclusive bargaining representative or the 
 74.8   commissioner has evidence that child placements of the county 
 74.9   continue to be substantially below that of other counties.  
 74.10  Funds encumbered and obligated under an agreement for a specific 
 74.11  child shall remain available until the terms of the agreement 
 74.12  are fulfilled or the agreement is terminated. 
 74.13     (9) Act as coordinating referral and informational center 
 74.14  on requests for service for newly arrived immigrants coming to 
 74.15  Minnesota. 
 74.16     (10) The specific enumeration of powers and duties as 
 74.17  hereinabove set forth shall in no way be construed to be a 
 74.18  limitation upon the general transfer of powers herein contained. 
 74.19     (11) Establish county, regional, or statewide schedules of 
 74.20  maximum fees and charges which may be paid by county agencies 
 74.21  for medical, dental, surgical, hospital, nursing and nursing 
 74.22  home care and medicine and medical supplies under all programs 
 74.23  of medical care provided by the state and for congregate living 
 74.24  care under the income maintenance programs. 
 74.25     (12) Have the authority to conduct and administer 
 74.26  experimental projects to test methods and procedures of 
 74.27  administering assistance and services to recipients or potential 
 74.28  recipients of public welfare.  To carry out such experimental 
 74.29  projects, it is further provided that the commissioner of human 
 74.30  services is authorized to waive the enforcement of existing 
 74.31  specific statutory program requirements, rules, and standards in 
 74.32  one or more counties.  The order establishing the waiver shall 
 74.33  provide alternative methods and procedures of administration, 
 74.34  shall not be in conflict with the basic purposes, coverage, or 
 74.35  benefits provided by law, and in no event shall the duration of 
 74.36  a project exceed four years.  It is further provided that no 
 75.1   order establishing an experimental project as authorized by the 
 75.2   provisions of this section shall become effective until the 
 75.3   following conditions have been met: 
 75.4      (a) The secretary of health and human services of the 
 75.5   United States has agreed, for the same project, to waive state 
 75.6   plan requirements relative to statewide uniformity. 
 75.7      (b) A comprehensive plan, including estimated project 
 75.8   costs, shall be approved by the legislative advisory commission 
 75.9   and filed with the commissioner of administration.  
 75.10     (13) According to federal requirements, establish 
 75.11  procedures to be followed by local welfare boards in creating 
 75.12  citizen advisory committees, including procedures for selection 
 75.13  of committee members. 
 75.14     (14) Allocate federal fiscal disallowances or sanctions 
 75.15  which are based on quality control error rates for the aid to 
 75.16  families with dependent children program formerly codified in 
 75.17  sections 256.72 to 256.87, medical assistance, or food stamp 
 75.18  program in the following manner:  
 75.19     (a) One-half of the total amount of the disallowance shall 
 75.20  be borne by the county boards responsible for administering the 
 75.21  programs.  For the medical assistance and the AFDC program 
 75.22  formerly codified in sections 256.72 to 256.87, disallowances 
 75.23  shall be shared by each county board in the same proportion as 
 75.24  that county's expenditures for the sanctioned program are to the 
 75.25  total of all counties' expenditures for the AFDC program 
 75.26  formerly codified in sections 256.72 to 256.87, and medical 
 75.27  assistance programs.  For the food stamp program, sanctions 
 75.28  shall be shared by each county board, with 50 percent of the 
 75.29  sanction being distributed to each county in the same proportion 
 75.30  as that county's administrative costs for food stamps are to the 
 75.31  total of all food stamp administrative costs for all counties, 
 75.32  and 50 percent of the sanctions being distributed to each county 
 75.33  in the same proportion as that county's value of food stamp 
 75.34  benefits issued are to the total of all benefits issued for all 
 75.35  counties.  Each county shall pay its share of the disallowance 
 75.36  to the state of Minnesota.  When a county fails to pay the 
 76.1   amount due hereunder, the commissioner may deduct the amount 
 76.2   from reimbursement otherwise due the county, or the attorney 
 76.3   general, upon the request of the commissioner, may institute 
 76.4   civil action to recover the amount due. 
 76.5      (b) Notwithstanding the provisions of paragraph (a), if the 
 76.6   disallowance results from knowing noncompliance by one or more 
 76.7   counties with a specific program instruction, and that knowing 
 76.8   noncompliance is a matter of official county board record, the 
 76.9   commissioner may require payment or recover from the county or 
 76.10  counties, in the manner prescribed in paragraph (a), an amount 
 76.11  equal to the portion of the total disallowance which resulted 
 76.12  from the noncompliance, and may distribute the balance of the 
 76.13  disallowance according to paragraph (a).  
 76.14     (15) Develop and implement special projects that maximize 
 76.15  reimbursements and result in the recovery of money to the 
 76.16  state.  For the purpose of recovering state money, the 
 76.17  commissioner may enter into contracts with third parties.  Any 
 76.18  recoveries that result from projects or contracts entered into 
 76.19  under this paragraph shall be deposited in the state treasury 
 76.20  and credited to a special account until the balance in the 
 76.21  account reaches $1,000,000.  When the balance in the account 
 76.22  exceeds $1,000,000, the excess shall be transferred and credited 
 76.23  to the general fund.  All money in the account is appropriated 
 76.24  to the commissioner for the purposes of this paragraph. 
 76.25     (16) Have the authority to make direct payments to 
 76.26  facilities providing shelter to women and their children 
 76.27  according to section 256D.05, subdivision 3.  Upon the written 
 76.28  request of a shelter facility that has been denied payments 
 76.29  under section 256D.05, subdivision 3, the commissioner shall 
 76.30  review all relevant evidence and make a determination within 30 
 76.31  days of the request for review regarding issuance of direct 
 76.32  payments to the shelter facility.  Failure to act within 30 days 
 76.33  shall be considered a determination not to issue direct payments.
 76.34     (17) Have the authority to establish and enforce the 
 76.35  following county reporting requirements:  
 76.36     (a) The commissioner shall establish fiscal and statistical 
 77.1   reporting requirements necessary to account for the expenditure 
 77.2   of funds allocated to counties for human services programs.  
 77.3   When establishing financial and statistical reporting 
 77.4   requirements, the commissioner shall evaluate all reports, in 
 77.5   consultation with the counties, to determine if the reports can 
 77.6   be simplified or the number of reports can be reduced. 
 77.7      (b) The county board shall submit monthly or quarterly 
 77.8   reports to the department as required by the commissioner.  
 77.9   Monthly reports are due no later than 15 working days after the 
 77.10  end of the month.  Quarterly reports are due no later than 30 
 77.11  calendar days after the end of the quarter, unless the 
 77.12  commissioner determines that the deadline must be shortened to 
 77.13  20 calendar days to avoid jeopardizing compliance with federal 
 77.14  deadlines or risking a loss of federal funding.  Only reports 
 77.15  that are complete, legible, and in the required format shall be 
 77.16  accepted by the commissioner.  
 77.17     (c) If the required reports are not received by the 
 77.18  deadlines established in clause (b), the commissioner may delay 
 77.19  payments and withhold funds from the county board until the next 
 77.20  reporting period.  When the report is needed to account for the 
 77.21  use of federal funds and the late report results in a reduction 
 77.22  in federal funding, the commissioner shall withhold from the 
 77.23  county boards with late reports an amount equal to the reduction 
 77.24  in federal funding until full federal funding is received.  
 77.25     (d) A county board that submits reports that are late, 
 77.26  illegible, incomplete, or not in the required format for two out 
 77.27  of three consecutive reporting periods is considered 
 77.28  noncompliant.  When a county board is found to be noncompliant, 
 77.29  the commissioner shall notify the county board of the reason the 
 77.30  county board is considered noncompliant and request that the 
 77.31  county board develop a corrective action plan stating how the 
 77.32  county board plans to correct the problem.  The corrective 
 77.33  action plan must be submitted to the commissioner within 45 days 
 77.34  after the date the county board received notice of noncompliance.
 77.35     (e) The final deadline for fiscal reports or amendments to 
 77.36  fiscal reports is one year after the date the report was 
 78.1   originally due.  If the commissioner does not receive a report 
 78.2   by the final deadline, the county board forfeits the funding 
 78.3   associated with the report for that reporting period and the 
 78.4   county board must repay any funds associated with the report 
 78.5   received for that reporting period. 
 78.6      (f) The commissioner may not delay payments, withhold 
 78.7   funds, or require repayment under paragraph (c) or (e) if the 
 78.8   county demonstrates that the commissioner failed to provide 
 78.9   appropriate forms, guidelines, and technical assistance to 
 78.10  enable the county to comply with the requirements.  If the 
 78.11  county board disagrees with an action taken by the commissioner 
 78.12  under paragraph (c) or (e), the county board may appeal the 
 78.13  action according to sections 14.57 to 14.69. 
 78.14     (g) Counties subject to withholding of funds under 
 78.15  paragraph (c) or forfeiture or repayment of funds under 
 78.16  paragraph (e) shall not reduce or withhold benefits or services 
 78.17  to clients to cover costs incurred due to actions taken by the 
 78.18  commissioner under paragraph (c) or (e). 
 78.19     (18) Allocate federal fiscal disallowances or sanctions for 
 78.20  audit exceptions when federal fiscal disallowances or sanctions 
 78.21  are based on a statewide random sample for the foster care 
 78.22  program under title IV-E of the Social Security Act, United 
 78.23  States Code, title 42, in direct proportion to each county's 
 78.24  title IV-E foster care maintenance claim for that period. 
 78.25     (19) Be responsible for ensuring the detection, prevention, 
 78.26  investigation, and resolution of fraudulent activities or 
 78.27  behavior by applicants, recipients, and other participants in 
 78.28  the human services programs administered by the department. 
 78.29     (20) Require county agencies to identify overpayments, 
 78.30  establish claims, and utilize all available and cost-beneficial 
 78.31  methodologies to collect and recover these overpayments in the 
 78.32  human services programs administered by the department. 
 78.33     (21) Have the authority to administer a drug rebate program 
 78.34  for drugs purchased pursuant to the prescription drug program 
 78.35  established under section 256.955 after the beneficiary's 
 78.36  satisfaction of any deductible established in the program.  The 
 79.1   commissioner shall require a rebate agreement from all 
 79.2   manufacturers of covered drugs as defined in section 256B.0625, 
 79.3   subdivision 13.  Rebate agreements for prescription drugs 
 79.4   delivered on or after July 1, 2002, must include rebates for 
 79.5   individuals covered under the prescription drug program who are 
 79.6   under 65 years of age.  For each drug, the amount of the rebate 
 79.7   shall be equal to the basic rebate as defined for purposes of 
 79.8   the federal rebate program in United States Code, title 42, 
 79.9   section 1396r-8(c)(1).  This basic rebate shall be applied to 
 79.10  single-source and multiple-source drugs.  The manufacturers must 
 79.11  provide full payment within 30 days of receipt of the state 
 79.12  invoice for the rebate within the terms and conditions used for 
 79.13  the federal rebate program established pursuant to section 1927 
 79.14  of title XIX of the Social Security Act.  The manufacturers must 
 79.15  provide the commissioner with any information necessary to 
 79.16  verify the rebate determined per drug.  The rebate program shall 
 79.17  utilize the terms and conditions used for the federal rebate 
 79.18  program established pursuant to section 1927 of title XIX of the 
 79.19  Social Security Act. 
 79.20     (22) Have the authority to administer the federal drug 
 79.21  rebate program for drugs purchased under the medical assistance 
 79.22  program as allowed by section 1927 of title XIX of the Social 
 79.23  Security Act and according to the terms and conditions of 
 79.24  section 1927.  Rebates shall be collected for all drugs that 
 79.25  have been dispensed or administered in an outpatient setting and 
 79.26  that are from manufacturers who have signed a rebate agreement 
 79.27  with the United States Department of Health and Human Services. 
 79.28     (22) (23) Operate the department's communication systems 
 79.29  account established in Laws 1993, First Special Session chapter 
 79.30  1, article 1, section 2, subdivision 2, to manage shared 
 79.31  communication costs necessary for the operation of the programs 
 79.32  the commissioner supervises.  A communications account may also 
 79.33  be established for each regional treatment center which operates 
 79.34  communications systems.  Each account must be used to manage 
 79.35  shared communication costs necessary for the operations of the 
 79.36  programs the commissioner supervises.  The commissioner may 
 80.1   distribute the costs of operating and maintaining communication 
 80.2   systems to participants in a manner that reflects actual usage. 
 80.3   Costs may include acquisition, licensing, insurance, 
 80.4   maintenance, repair, staff time and other costs as determined by 
 80.5   the commissioner.  Nonprofit organizations and state, county, 
 80.6   and local government agencies involved in the operation of 
 80.7   programs the commissioner supervises may participate in the use 
 80.8   of the department's communications technology and share in the 
 80.9   cost of operation.  The commissioner may accept on behalf of the 
 80.10  state any gift, bequest, devise or personal property of any 
 80.11  kind, or money tendered to the state for any lawful purpose 
 80.12  pertaining to the communication activities of the department.  
 80.13  Any money received for this purpose must be deposited in the 
 80.14  department's communication systems accounts.  Money collected by 
 80.15  the commissioner for the use of communication systems must be 
 80.16  deposited in the state communication systems account and is 
 80.17  appropriated to the commissioner for purposes of this section. 
 80.18     (23) (24) Receive any federal matching money that is made 
 80.19  available through the medical assistance program for the 
 80.20  consumer satisfaction survey.  Any federal money received for 
 80.21  the survey is appropriated to the commissioner for this 
 80.22  purpose.  The commissioner may expend the federal money received 
 80.23  for the consumer satisfaction survey in either year of the 
 80.24  biennium. 
 80.25     (24) (25) Incorporate cost reimbursement claims from First 
 80.26  Call Minnesota and Greater Twin Cities United Way into the 
 80.27  federal cost reimbursement claiming processes of the department 
 80.28  according to federal law, rule, and regulations.  Any 
 80.29  reimbursement received is appropriated to the commissioner and 
 80.30  shall be disbursed to First Call Minnesota and Greater Twin 
 80.31  Cities United Way according to normal department payment 
 80.32  schedules. 
 80.33     (25) (26) Develop recommended standards for foster care 
 80.34  homes that address the components of specialized therapeutic 
 80.35  services to be provided by foster care homes with those services.
 80.36     <b>[EFFECTIVE DATE.]</b> This section is effective 30 days 
 81.1   following final enactment. 
 81.2      Sec. 7.  Minnesota Statutes 2000, section 256.955, 
 81.3   subdivision 2a, is amended to read: 
 81.4      Subd. 2a.  [ELIGIBILITY.] An individual satisfying the 
 81.5   following requirements and the requirements described in 
 81.6   subdivision 2, paragraph (d), is eligible for the prescription 
 81.7   drug program: 
 81.8      (1) is at least 65 years of age or older; and 
 81.9      (2) is eligible as a qualified Medicare beneficiary 
 81.10  according to section 256B.057, subdivision 3 or, 3a, or, 3b, 
 81.11  clause (1), or is eligible under section 256B.057, subdivision 3 
 81.12  or, 3a, or 3b, clause (1), and is also eligible for medical 
 81.13  assistance or general assistance medical care with a spenddown 
 81.14  as defined in section 256B.056, subdivision 5. 
 81.15     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
 81.16     Sec. 8.  Minnesota Statutes 2000, section 256.955, 
 81.17  subdivision 2b, is amended to read: 
 81.18     Subd. 2b.  [ELIGIBILITY.] Effective July 1, 2002, an 
 81.19  individual satisfying the following requirements and the 
 81.20  requirements described in subdivision 2, paragraph (d), is 
 81.21  eligible for the prescription drug program: 
 81.22     (1) is under 65 years of age; and 
 81.23     (2) is eligible as a qualified Medicare beneficiary 
 81.24  according to section 256B.057, subdivision 3, or 3a or is 
 81.25  eligible under section 256B.057, subdivision 3, or 3a and is 
 81.26  also eligible for medical assistance or general assistance 
 81.27  medical care with a spenddown as defined in section 256B.056, 
 81.28  subdivision 5. 
 81.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 81.30     Sec. 9.  [256.956] [PURCHASING ALLIANCE STOP-LOSS FUND.] 
 81.31     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 81.32  section, the following definitions apply:  
 81.33     (a) "Commissioner" means the commissioner of human services.
 81.34     (b) "Health plan" means a policy, contract, or certificate 
 81.35  issued by a health plan company to a qualifying purchasing 
 81.36  alliance.  Any health plan issued to the members of a qualifying 
 82.1   purchasing alliance must meet the requirements of chapter 62L.  
 82.2      (c) "Health plan company" means: 
 82.3      (1) a health carrier as defined under section 62A.011, 
 82.4   subdivision 2; 
 82.5      (2) a community integrated service network operating under 
 82.6   chapter 62N; or 
 82.7      (3) an accountable provider network operating under chapter 
 82.8   62T.  
 82.9      (d) "Qualifying employer" means an employer who: 
 82.10     (1) is a member of a qualifying purchasing alliance; 
 82.11     (2) has at least one employee but no more than ten 
 82.12  employees or is a sole proprietor or farmer; 
 82.13     (3) did not offer employer-subsidized health care coverage 
 82.14  to its employees for at least 12 months prior to joining the 
 82.15  purchasing alliance; and 
 82.16     (4) is offering health coverage through the purchasing 
 82.17  alliance to all employees who work at least 20 hours per week 
 82.18  unless the employee is eligible for Medicare. 
 82.19  For purposes of this subdivision, "employer-subsidized health 
 82.20  coverage" means health coverage for which the employer pays at 
 82.21  least 50 percent of the cost of coverage for the employee.  
 82.22     (e) "Qualifying enrollee" means an employee of a qualifying 
 82.23  employer or the employee's dependent covered by a health plan.  
 82.24     (f) "Qualifying purchasing alliance" means a purchasing 
 82.25  alliance as defined in section 62T.01, subdivision 2, that: 
 82.26     (1) meets the requirements of chapter 62T; 
 82.27     (2) services a geographic area located in outstate 
 82.28  Minnesota, excluding the city of Duluth; and 
 82.29     (3) is organized and operating before May 1, 2001. 
 82.30     The criteria used by the qualifying purchasing alliance for 
 82.31  membership must be approved by the commissioner of health.  A 
 82.32  qualifying purchasing alliance may begin enrolling qualifying 
 82.33  employers after July 1, 2001, with enrollment ending by December 
 82.34  31, 2003.  
 82.35     Subd. 2.  [CREATION OF ACCOUNT.] A purchasing alliance 
 82.36  stop-loss fund account is established in the general fund.  The 
 83.1   commissioner shall use the money to establish a stop-loss fund 
 83.2   from which a health plan company may receive reimbursement for 
 83.3   claims paid for qualifying enrollees.  The account consists of 
 83.4   money appropriated by the legislature.  Money from the account 
 83.5   must be used for the stop-loss fund.  
 83.6      Subd. 3.  [REIMBURSEMENT.] (a) A health plan company may 
 83.7   receive reimbursement from the fund for 90 percent of the 
 83.8   portion of the claim that exceeds $30,000 but not of the portion 
 83.9   that exceeds $100,000 in a calendar year for a qualifying 
 83.10  enrollee.  
 83.11     (b) Claims shall be reported and funds shall be distributed 
 83.12  on a calendar-year basis.  Claims shall be eligible for 
 83.13  reimbursement only for the calendar year in which the claims 
 83.14  were paid.  
 83.15     (c) Once claims paid on behalf of a qualifying enrollee 
 83.16  reach $100,000 in a given calendar year, no further claims may 
 83.17  be submitted for reimbursement on behalf of that enrollee in 
 83.18  that calendar year.  
 83.19     Subd. 4.  [REQUEST PROCESS.] (a) Each health plan company 
 83.20  must submit a request for reimbursement from the fund on a form 
 83.21  prescribed by the commissioner.  Requests for payment must be 
 83.22  submitted no later than April 1 following the end of the 
 83.23  calendar year for which the reimbursement request is being made, 
 83.24  beginning April 1, 2002. 
 83.25     (b) The commissioner may require a health plan company to 
 83.26  submit claims data as needed in connection with the 
 83.27  reimbursement request.  
 83.28     Subd. 5.  [DISTRIBUTION.] (a) The commissioner shall 
 83.29  calculate the total claims reimbursement amount for all 
 83.30  qualifying health plan companies for the calendar year for which 
 83.31  claims are being reported and shall distribute the stop-loss 
 83.32  funds on an annual basis.  
 83.33     (b) In the event that the total amount requested for 
 83.34  reimbursement by the health plan companies for a calendar year 
 83.35  exceeds the funds available for distribution for claims paid by 
 83.36  all health plan companies during the same calendar year, the 
 84.1   commissioner shall provide for the pro rata distribution of the 
 84.2   available funds.  Each health plan company shall be eligible to 
 84.3   receive only a proportionate amount of the available funds as 
 84.4   the health plan company's total eligible claims paid compares to 
 84.5   the total eligible claims paid by all health plan companies.  
 84.6      (c) In the event that funds available for distribution for 
 84.7   claims paid by all health plan companies during a calendar year 
 84.8   exceed the total amount requested for reimbursement by all 
 84.9   health plan companies during the same calendar year, any excess 
 84.10  funds shall be reallocated for distribution in the next calendar 
 84.11  year.  
 84.12     Subd. 6.  [DATA.] Upon the request of the commissioner, 
 84.13  each health plan company shall furnish such data as the 
 84.14  commissioner deems necessary to administer the fund.  The 
 84.15  commissioner may require that such data be submitted on a per 
 84.16  enrollee, aggregate, or categorical basis.  Any data submitted 
 84.17  under this section shall be classified as private data or 
 84.18  nonpublic data as defined in section 13.02. 
 84.19     Subd. 7.  [DELEGATION.] The commissioner may delegate any 
 84.20  or all of the commissioner's administrative duties to another 
 84.21  state agency or to a private contractor.  
 84.22     Subd. 8.  [REPORT.] The commissioner of commerce, in 
 84.23  consultation with the office of rural health and the qualifying 
 84.24  purchasing alliances, shall evaluate the extent to which the 
 84.25  purchasing alliance stop-loss fund increases the availability of 
 84.26  employer-subsidized health care coverage for residents residing 
 84.27  in the geographic areas served by the qualifying purchasing 
 84.28  alliances.  A preliminary report must be submitted to the 
 84.29  legislature by February 15, 2003, and a final report must be 
 84.30  submitted by February 15, 2004.  
 84.31     Subd. 9.  [SUNSET.] This section shall expire January 1, 
 84.32  2005.  
 84.33     Sec. 10.  [256.958] [RETIRED DENTIST PROGRAM.] 
 84.34     Subdivision 1.  [PROGRAM.] The commissioner of human 
 84.35  services shall establish a program to reimburse a retired 
 84.36  dentist for the dentist's license fee and for the reasonable 
 85.1   cost of malpractice insurance compared to other dentists in the 
 85.2   community in exchange for the dentist providing 100 hours of 
 85.3   dental services on a volunteer basis within a 12-month period at 
 85.4   a community dental clinic or a dental training clinic located at 
 85.5   a Minnesota state college or university.  
 85.6      Subd. 2.  [DOCUMENTATION.] Upon completion of the required 
 85.7   hours, the retired dentist shall submit to the commissioner the 
 85.8   following: 
 85.9      (1) documentation of the service provided; 
 85.10     (2) the cost of malpractice insurance for the 12-month 
 85.11  period; and 
 85.12     (3) the cost of the license.  
 85.13     Subd. 3.  [REIMBURSEMENT.] Upon receipt of the information 
 85.14  described in subdivision 2, the commissioner shall provide 
 85.15  reimbursement to the retired dentist for the cost of malpractice 
 85.16  insurance for the previous 12-month period and the cost of the 
 85.17  license.  
 85.18     Sec. 11.  [256.959] [DENTAL PRACTICE DONATION PROGRAM.] 
 85.19     Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
 85.20  services shall establish a dental practice donation program that 
 85.21  coordinates the donation of a qualifying dental practice to a 
 85.22  qualified charitable organization and assists in locating a 
 85.23  dentist licensed under chapter 150A who wishes to maintain the 
 85.24  dental practice.  
 85.25     Subd. 2.  [QUALIFYING DENTAL PRACTICE.] To qualify for the 
 85.26  dental practice donation program, a dental practice must meet 
 85.27  the following requirements: 
 85.28     (1) the dental practice must be owned by the donating 
 85.29  dentist; 
 85.30     (2) the dental practice must be located in a designated 
 85.31  underserved area of the state as defined by the commissioner; 
 85.32  and 
 85.33     (3) the practice must be equipped with the basic dental 
 85.34  equipment necessary to maintain a dental practice as determined 
 85.35  by the commissioner.  
 85.36     Subd. 3.  [COORDINATION.] The commissioner shall establish 
 86.1   a procedure for dentists to donate their dental practices to a 
 86.2   qualified charitable organization.  The commissioner shall 
 86.3   authorize a practice for donation only if it meets the 
 86.4   requirements of subdivision 2 and there is a licensed dentist 
 86.5   who is interested in entering into an agreement as described in 
 86.6   subdivision 4.  Upon donation of the practice, the commissioner 
 86.7   shall provide the donating dentist with a statement verifying 
 86.8   that a donation of the practice was made to a qualifying 
 86.9   charitable organization for purposes of state and federal income 
 86.10  tax returns.  
 86.11     Subd. 4.  [DONATED DENTAL PRACTICE AGREEMENT.] (a) A 
 86.12  dentist accepting the donated practice must enter into an 
 86.13  agreement with the qualified charitable organization to maintain 
 86.14  the dental practice for a minimum of five years at the donated 
 86.15  practice site and to provide services to underserved populations 
 86.16  up to a preagreed percentage of patients served.  
 86.17     (b) The agreement must include the terms for the recovery 
 86.18  of the donated dental practice if the dentist accepting the 
 86.19  practice does not fulfill the service commitment required under 
 86.20  this subdivision.  
 86.21     (c) Any costs associated with operating the dental practice 
 86.22  during the service commitment time period are the financial 
 86.23  responsibility of the dentist accepting the practice. 
 86.24     Sec. 12.  Minnesota Statutes 2000, section 256.9657, 
 86.25  subdivision 2, is amended to read: 
 86.26     Subd. 2.  [HOSPITAL SURCHARGE.] (a) Effective October 1, 
 86.27  1992, each Minnesota hospital except facilities of the federal 
 86.28  Indian Health Service and regional treatment centers shall pay 
 86.29  to the medical assistance account a surcharge equal to 1.4 
 86.30  percent of net patient revenues excluding net Medicare revenues 
 86.31  reported by that provider to the health care cost information 
 86.32  system according to the schedule in subdivision 4.  
 86.33     (b) Effective July 1, 1994, the surcharge under paragraph 
 86.34  (a) is increased to 1.56 percent. 
 86.35     (c) Notwithstanding the Medicare cost finding and allowable 
 86.36  cost principles, the hospital surcharge is not an allowable cost 
 87.1   for purposes of rate setting under sections 256.9685 to 256.9695.
 87.2      Sec. 13.  Minnesota Statutes 2000, section 256.969, is 
 87.3   amended by adding a subdivision to read: 
 87.4      Subd. 26.  [GREATER MINNESOTA PAYMENT ADJUSTMENT AFTER JUNE 
 87.5   30, 2001.] (a) For admissions occurring after June 30, 2001, the 
 87.6   commissioner shall pay fee-for-service inpatient admissions for 
 87.7   the diagnosis-related groups specified in paragraph (b) at 
 87.8   hospitals located outside of the seven-county metropolitan area 
 87.9   at the higher of: 
 87.10     (1) the hospital's current payment rate for the diagnostic 
 87.11  category to which the diagnosis-related group belongs, exclusive 
 87.12  of disproportionate population adjustments received under 
 87.13  subdivision 9 and hospital payment adjustments received under 
 87.14  subdivision 23; or 
 87.15     (2) 90 percent of the average payment rate for that 
 87.16  diagnostic category for hospitals located within the 
 87.17  seven-county metropolitan area, exclusive of disproportionate 
 87.18  population adjustments received under subdivision 9 and hospital 
 87.19  payment adjustments received under subdivisions 20 and 23.  The 
 87.20  commissioner may adjust this percentage each year so that the 
 87.21  estimated payment increases under this paragraph are equal to 
 87.22  the funding provided under section 256B.195 for this purpose. 
 87.23     (b) The payment increases provided in paragraph (a) apply 
 87.24  to the following diagnosis-related groups, as they fall within 
 87.25  the diagnostic categories: 
 87.26     (1) 370 cesarean section with complicating diagnosis; 
 87.27     (2) 371 cesarean section without complicating diagnosis; 
 87.28     (3) 372 vaginal delivery with complicating diagnosis; 
 87.29     (4) 373 vaginal delivery without complicating diagnosis; 
 87.30     (5) 386 extreme immaturity and respiratory distress 
 87.31  syndrome, neonate; 
 87.32     (6) 388 full-term neonates with other problems; 
 87.33     (7) 390 prematurity without major problems; 
 87.34     (8) 391 normal newborn; 
 87.35     (9) 385 neonate, died or transferred to another acute care 
 87.36  facility; 
 88.1      (10) 425 acute adjustment reaction and psychosocial 
 88.2   dysfunction; 
 88.3      (11) 430 psychoses; 
 88.4      (12) 431 childhood mental disorders; and 
 88.5      (13) 164-167 appendectomy. 
 88.6      Sec. 14.  Minnesota Statutes 2000, section 256B.04, is 
 88.7   amended by adding a subdivision to read: 
 88.8      Subd. 1b.  [CONTRACT FOR ADMINISTRATIVE SERVICES FOR 
 88.9   AMERICAN INDIAN CHILDREN.] Notwithstanding subdivision 1, the 
 88.10  commissioner may contract with federally recognized Indian 
 88.11  tribes with a reservation in Minnesota for the provision of 
 88.12  early and periodic screening, diagnosis, and treatment 
 88.13  administrative services for American Indian children, according 
 88.14  to Code of Federal Regulations, title 42, section 441, subpart 
 88.15  B, and Minnesota Rules, part 9505.1693 et seq., when the tribe 
 88.16  chooses to provide such services.  For purposes of this 
 88.17  subdivision, "American Indian" has the meaning given to persons 
 88.18  to whom services will be provided for in Code of Federal 
 88.19  Regulations, title 42, section 36.12.  Notwithstanding Minnesota 
 88.20  Rules, part 9505.1748, subpart 1, the commissioner, the local 
 88.21  agency, and the tribe may contract with any entity for the 
 88.22  provision of early and periodic screening, diagnosis, and 
 88.23  treatment administrative services. 
 88.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 88.25  following final enactment. 
 88.26     Sec. 15.  Minnesota Statutes 2000, section 256B.055, 
 88.27  subdivision 3a, is amended to read: 
 88.28     Subd. 3a.  [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 
 88.29  AFDC RULES WITH CHILDREN.] (a) Beginning January 1, 1998, or on 
 88.30  the date that MFIP-S is implemented in counties, medical 
 88.31  assistance may be paid for a person receiving public assistance 
 88.32  under the MFIP-S program.  Beginning July 1, 2002, medical 
 88.33  assistance may be paid for a person who is a child under the age 
 88.34  of 18, or age 18 if a full-time student in a secondary school, 
 88.35  or in the equivalent level of vocational or technical training, 
 88.36  and reasonably expected to complete the program before reaching 
 89.1   age 19; the parent of a dependent child, including a pregnant 
 89.2   woman; or a caretaker relative of a dependent child.  
 89.3      (b) Beginning January 1, 1998, medical assistance may be 
 89.4   paid for a person who would have been eligible for public 
 89.5   assistance under the income and resource standards, or who would 
 89.6   have been eligible but for excess income or assets, under the 
 89.7   state's AFDC plan in effect as of July 16, 1996, as required by 
 89.8   the Personal Responsibility and Work Opportunity Reconciliation 
 89.9   Act of 1996 (PRWORA), Public Law Number 104-193. 
 89.10     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.  
 89.11     Sec. 16.  Minnesota Statutes 2000, section 256B.056, 
 89.12  subdivision 1a, is amended to read: 
 89.13     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
 89.14  specifically required by state law or rule or federal law or 
 89.15  regulation, the methodologies used in counting income and assets 
 89.16  to determine eligibility for medical assistance for persons 
 89.17  whose eligibility category is based on blindness, disability, or 
 89.18  age of 65 or more years, the methodologies for the supplemental 
 89.19  security income program shall be used.  Increases in benefits 
 89.20  under title II of the Social Security Act shall not be counted 
 89.21  as income for purposes of this subdivision until July 1 of each 
 89.22  year.  Effective upon federal approval, for children eligible 
 89.23  under section 256B.055, subdivision 12, or for home and 
 89.24  community-based waiver services whose eligibility for medical 
 89.25  assistance is determined without regard to parental income, 
 89.26  child support payments, including any payments made by an 
 89.27  obligor in satisfaction of or in addition to a temporary or 
 89.28  permanent order for child support, and social security payments 
 89.29  are not counted as income.  For families and children, which 
 89.30  includes all other eligibility categories, the methodologies 
 89.31  under the state's AFDC plan in effect as of July 16, 1996, as 
 89.32  required by the Personal Responsibility and Work Opportunity 
 89.33  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
 89.34  shall be used, except that effective July 1, 2002, the $90 and 
 89.35  $30 and one-third earned income disregards shall not apply and 
 89.36  the disregard specified in subdivision 1c shall apply.  
 90.1   Effective upon federal approval, in-kind contributions to, and 
 90.2   payments made on behalf of, a recipient, by an obligor, in 
 90.3   satisfaction of or in addition to a temporary or permanent order 
 90.4   for child support or maintenance, shall be considered income to 
 90.5   the recipient.  For these purposes, a "methodology" does not 
 90.6   include an asset or income standard, or accounting method, or 
 90.7   method of determining effective dates. 
 90.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
 90.9      Sec. 17.  Minnesota Statutes 2000, section 256B.056, is 
 90.10  amended by adding a subdivision to read: 
 90.11     Subd. 1b.  [AGED, BLIND, AND DISABLED INCOME 
 90.12  METHODOLOGY.] The $20 general income disregard allowed under the 
 90.13  supplemental security income program is included in the standard 
 90.14  and shall not be allowed as a deduction from income for a person 
 90.15  eligible under section 256B.055, subdivisions 7, 7a, and 12. 
 90.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
 90.17     Sec. 18.  Minnesota Statutes 2000, section 256B.056, is 
 90.18  amended by adding a subdivision to read: 
 90.19     Subd. 1c.  [FAMILIES WITH CHILDREN INCOME METHODOLOGY.] (a) 
 90.20  For children ages one to five whose eligibility is determined 
 90.21  under section 256B.057, subdivision 2, 21 percent of countable 
 90.22  earned income shall be disregarded for up to four months.  
 90.23     (b) For families with children whose eligibility is 
 90.24  determined using the standard specified in section 256B.056, 
 90.25  subdivision 4, paragraph (c), 17 percent of countable earned 
 90.26  income shall be disregarded for up to four months. 
 90.27     (c) If the disregard has been applied to the wage earner's 
 90.28  income for four months, the disregard shall not be applied again 
 90.29  until the wage earner's income has not been considered in 
 90.30  determining medical assistance eligibility for 12 consecutive 
 90.31  months.  
 90.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 90.33     Sec. 19.  Minnesota Statutes 2000, section 256B.056, 
 90.34  subdivision 3, is amended to read: 
 90.35     Subd. 3.  [ASSET LIMITATIONS FOR ELDERLY AND DISABLED 
 90.36  INDIVIDUALS.] To be eligible for medical assistance, a person 
 91.1   must not individually own more than $3,000 in assets, or if a 
 91.2   member of a household with two family members, husband and wife, 
 91.3   or parent and child, the household must not own more than $6,000 
 91.4   in assets, plus $200 for each additional legal dependent.  In 
 91.5   addition to these maximum amounts, an eligible individual or 
 91.6   family may accrue interest on these amounts, but they must be 
 91.7   reduced to the maximum at the time of an eligibility 
 91.8   redetermination.  The accumulation of the clothing and personal 
 91.9   needs allowance according to section 256B.35 must also be 
 91.10  reduced to the maximum at the time of the eligibility 
 91.11  redetermination.  The value of assets that are not considered in 
 91.12  determining eligibility for medical assistance is the value of 
 91.13  those assets excluded under the AFDC state plan as of July 16, 
 91.14  1996, as required by the Personal Responsibility and Work 
 91.15  Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
 91.16  Number 104-193, for families and children, and the supplemental 
 91.17  security income program for aged, blind, and disabled persons, 
 91.18  with the following exceptions: 
 91.19     (a) Household goods and personal effects are not considered.
 91.20     (b) Capital and operating assets of a trade or business 
 91.21  that the local agency determines are necessary to the person's 
 91.22  ability to earn an income are not considered. 
 91.23     (c) Motor vehicles are excluded to the same extent excluded 
 91.24  by the supplemental security income program. 
 91.25     (d) Assets designated as burial expenses are excluded to 
 91.26  the same extent excluded by the supplemental security income 
 91.27  program. 
 91.28     (e) Effective upon federal approval, for a person who no 
 91.29  longer qualifies as an employed person with a disability due to 
 91.30  loss of earnings, assets allowed while eligible for medical 
 91.31  assistance under section 256B.057, subdivision 9, are not 
 91.32  considered for 12 months, beginning with the first month of 
 91.33  ineligibility as an employed person with a disability, to the 
 91.34  extent that the person's total assets remain within the allowed 
 91.35  limits of section 256B.057, subdivision 9, paragraph (b). 
 91.36     Sec. 20.  Minnesota Statutes 2000, section 256B.056, is 
 92.1   amended by adding a subdivision to read: 
 92.2      Subd. 3a.  [ASSET LIMITATIONS FOR FAMILIES AND CHILDREN.] A 
 92.3   household of two or more persons must not own more than $30,000 
 92.4   in total net assets, and a household of one person must not own 
 92.5   more than $15,000 in total net assets.  In addition to these 
 92.6   maximum amounts, an eligible individual or family may accrue 
 92.7   interest on these amounts, but they must be reduced to the 
 92.8   maximum at the time of an eligibility redetermination.  The 
 92.9   value of assets that are not considered in determining 
 92.10  eligibility for medical assistance for families and children is 
 92.11  the value of those assets excluded under the AFDC state plan as 
 92.12  of July 16, 1996, as required by the Personal Responsibility and 
 92.13  Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
 92.14  Number 104-193, with the following exceptions: 
 92.15     (1) household goods and personal effects are not 
 92.16  considered; 
 92.17     (2) capital and operating assets of a trade or business up 
 92.18  to $200,000 are not considered; 
 92.19     (3) one motor vehicle is excluded for each person of legal 
 92.20  driving age who is employed or seeking employment; 
 92.21     (4) one burial plot and all other burial expenses equal to 
 92.22  the supplemental security income program asset limit are not 
 92.23  considered for each individual; 
 92.24     (5) court-ordered settlements up to $10,000 are not 
 92.25  considered; 
 92.26     (6) individual retirement accounts and funds are not 
 92.27  considered; and 
 92.28     (7) assets owned by children are not considered.  
 92.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.  
 92.30     Sec. 21.  Minnesota Statutes 2000, section 256B.056, 
 92.31  subdivision 4, is amended to read: 
 92.32     Subd. 4.  [INCOME.] (a) To be eligible for medical 
 92.33  assistance, a person eligible under section 256B.055, 
 92.34  subdivision subdivisions 7, not receiving supplemental security 
 92.35  income program payments, and 7a, and 12, may have income up to 
 92.36  100 percent of the federal poverty guidelines.  Effective 
 93.1   January 1, 2000, and each successive January, recipients of 
 93.2   supplemental security income may have an income up to the 
 93.3   supplemental security income standard in effect on that date.  
 93.4      (b) To be eligible for medical assistance, families and 
 93.5   children may have an income up to 133-1/3 percent of the AFDC 
 93.6   income standard in effect under the July 16, 1996, AFDC state 
 93.7   plan.  Effective July 1, 2000, the base AFDC standard in effect 
 93.8   on July 16, 1996, shall be increased by three 
 93.9   percent.  Effective January 1, 2000, and each successive 
 93.10  January, recipients of supplemental security income may have an 
 93.11  income up to the supplemental security income standard in effect 
 93.12  on that date.  
 93.13     (c) Effective July 1, 2002, to be eligible for medical 
 93.14  assistance, families and children may have an income up to 100 
 93.15  percent of the federal poverty guidelines for the family size.  
 93.16     (d) In computing income to determine eligibility of persons 
 93.17  under paragraphs (a) to (c) who are not residents of long-term 
 93.18  care facilities, the commissioner shall disregard increases in 
 93.19  income as required by Public Law Numbers 94-566, section 503; 
 93.20  99-272; and 99-509.  Veterans aid and attendance benefits and 
 93.21  Veterans Administration unusual medical expense payments are 
 93.22  considered income to the recipient. 
 93.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
 93.24     Sec. 22.  Minnesota Statutes 2000, section 256B.056, 
 93.25  subdivision 4b, is amended to read: 
 93.26     Subd. 4b.  [INCOME VERIFICATION.] The local agency shall 
 93.27  not require a monthly income verification form for a recipient 
 93.28  who is a resident of a long-term care facility and who has 
 93.29  monthly earned income of $80 or less.  The commissioner or 
 93.30  county agency shall use electronic verification as the primary 
 93.31  method of income verification.  If there is a discrepancy 
 93.32  between reported income and electronically verified income, an 
 93.33  individual may be required to submit additional verification.  
 93.34     Sec. 23.  Minnesota Statutes 2000, section 256B.056, 
 93.35  subdivision 5, is amended to read: 
 93.36     Subd. 5.  [EXCESS INCOME.] A person who has excess income 
 94.1   is eligible for medical assistance if the person has expenses 
 94.2   for medical care that are more than the amount of the person's 
 94.3   excess income, computed by deducting incurred medical expenses 
 94.4   from the excess income to reduce the excess to the income 
 94.5   standard specified in subdivision 4 5c.  The person shall elect 
 94.6   to have the medical expenses deducted at the beginning of a 
 94.7   one-month budget period or at the beginning of a six-month 
 94.8   budget period.  The commissioner shall allow persons eligible 
 94.9   for assistance on a one-month spenddown basis under this 
 94.10  subdivision to elect to pay the monthly spenddown amount in 
 94.11  advance of the month of eligibility to the state agency in order 
 94.12  to maintain eligibility on a continuous basis.  If the recipient 
 94.13  does not pay the spenddown amount on or before the 20th of the 
 94.14  month, the recipient is ineligible for this option for the 
 94.15  following month.  The local agency shall code the Medicaid 
 94.16  Management Information System (MMIS) to indicate that the 
 94.17  recipient has elected this option.  The state agency shall 
 94.18  convey recipient eligibility information relative to the 
 94.19  collection of the spenddown to providers through the Electronic 
 94.20  Verification System (EVS).  A recipient electing advance payment 
 94.21  must pay the state agency the monthly spenddown amount on or 
 94.22  before the 20th of the month in order to be eligible for this 
 94.23  option in the following month.  
 94.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
 94.25     Sec. 24.  Minnesota Statutes 2000, section 256B.056, is 
 94.26  amended by adding a subdivision to read: 
 94.27     Subd. 5c.  [EXCESS INCOME STANDARD.] (a) The excess income 
 94.28  standard for families with children is the standard specified in 
 94.29  subdivision 4. 
 94.30     (b) The excess income standard for a person whose 
 94.31  eligibility is based on blindness, disability, or age of 65 or 
 94.32  more years is 70 percent of the federal poverty guidelines for 
 94.33  the family size.  Effective July 1, 2002, the excess income 
 94.34  standard for this paragraph shall equal 75 percent of the 
 94.35  federal poverty guidelines. 
 94.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
 95.1      Sec. 25.  Minnesota Statutes 2000, section 256B.057, 
 95.2   subdivision 2, is amended to read: 
 95.3      Subd. 2.  [CHILDREN.] Except as specified in subdivision 
 95.4   1b, effective July 1, 2002, a child one through five 18 years of 
 95.5   age in a family whose countable income is less no greater than 
 95.6   133 170 percent of the federal poverty guidelines for the same 
 95.7   family size, is eligible for medical assistance.  A child six 
 95.8   through 18 years of age, who was born after September 30, 1983, 
 95.9   in a family whose countable income is less than 100 percent of 
 95.10  the federal poverty guidelines for the same family size is 
 95.11  eligible for medical assistance.  
 95.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.  
 95.13     Sec. 26.  Minnesota Statutes 2000, section 256B.057, 
 95.14  subdivision 3, is amended to read: 
 95.15     Subd. 3.  [QUALIFIED MEDICARE BENEFICIARIES.] A person who 
 95.16  is entitled to Part A Medicare benefits, whose income is equal 
 95.17  to or less than 100 percent of the federal poverty guidelines, 
 95.18  and whose assets are no more than $10,000 for a single 
 95.19  individual and $18,000 for a married couple or family of two or 
 95.20  more, is eligible for medical assistance reimbursement of Part A 
 95.21  and Part B premiums, Part A and Part B coinsurance and 
 95.22  deductibles, and cost-effective premiums for enrollment with a 
 95.23  health maintenance organization or a competitive medical plan 
 95.24  under section 1876 of the Social Security Act.  Reimbursement of 
 95.25  the Medicare coinsurance and deductibles, when added to the 
 95.26  amount paid by Medicare, must not exceed the total rate the 
 95.27  provider would have received for the same service or services if 
 95.28  the person were a medical assistance recipient with Medicare 
 95.29  coverage.  Increases in benefits under Title II of the Social 
 95.30  Security Act shall not be counted as income for purposes of this 
 95.31  subdivision until the first day of the second full month 
 95.32  following publication of the change in the federal poverty 
 95.33  guidelines July 1 of each year.  
 95.34     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
 95.35     Sec. 27.  Minnesota Statutes 2000, section 256B.057, 
 95.36  subdivision 7, is amended to read: 
 96.1      Subd. 7.  [WAIVER OF MAINTENANCE OF EFFORT REQUIREMENT.] 
 96.2   Unless a federal waiver of the maintenance of effort requirement 
 96.3   of section 2105(d) of title XXI of the Balanced Budget Act of 
 96.4   1997, Public Law Number 105-33, Statutes at Large, volume 111, 
 96.5   page 251, is granted by the federal Department of Health and 
 96.6   Human Services by September 30, 1998, eligibility for children 
 96.7   under age 21 must be determined without regard to asset 
 96.8   standards established in section 256B.056, subdivision 3 3a.  
 96.9   The commissioner of human services shall publish a notice in the 
 96.10  State Register upon receipt of a federal waiver. 
 96.11     Sec. 28.  Minnesota Statutes 2000, section 256B.057, 
 96.12  subdivision 9, is amended to read: 
 96.13     Subd. 9.  [EMPLOYED PERSONS WITH DISABILITIES.] (a) Medical 
 96.14  assistance may be paid for a person who is employed and who: 
 96.15     (1) meets the definition of disabled under the supplemental 
 96.16  security income program; 
 96.17     (2) is at least 16 but less than 65 years of age; 
 96.18     (3) meets the asset limits in paragraph (b); and 
 96.19     (4) pays a premium, if required, under paragraph (c).  
 96.20  Any spousal income or assets shall be disregarded for purposes 
 96.21  of eligibility and premium determinations. 
 96.22     After the month of enrollment, a person enrolled in medical 
 96.23  assistance under this subdivision who is temporarily unable to 
 96.24  work and without receipt of earned income due to a medical 
 96.25  condition, as verified by a physician, may retain eligibility 
 96.26  for up to four calendar months. 
 96.27     (b) For purposes of determining eligibility under this 
 96.28  subdivision, a person's assets must not exceed $20,000, 
 96.29  excluding: 
 96.30     (1) all assets excluded under section 256B.056; 
 96.31     (2) retirement accounts, including individual accounts, 
 96.32  401(k) plans, 403(b) plans, Keogh plans, and pension plans; and 
 96.33     (3) medical expense accounts set up through the person's 
 96.34  employer. 
 96.35     (c) A person whose earned and unearned income is equal to 
 96.36  or greater than 200 than 100 percent of federal poverty 
 97.1   guidelines for the applicable family size must pay a premium to 
 97.2   be eligible for medical assistance under this subdivision.  The 
 97.3   premium shall be equal to ten percent of the person's gross 
 97.4   earned and unearned income above 200 percent of federal poverty 
 97.5   guidelines for the applicable family size up to the cost of 
 97.6   coverage based on the person's gross earned and unearned income 
 97.7   and the applicable family size using a sliding fee scale 
 97.8   established by the commissioner, which begins at one percent of 
 97.9   income at 100 percent of the federal poverty guidelines and 
 97.10  increases to 7.5 percent of income for those with incomes at or 
 97.11  above 300 percent of the federal poverty guidelines.  Annual 
 97.12  adjustments in the premium schedule based upon changes in the 
 97.13  federal poverty guidelines shall be effective for premiums due 
 97.14  in July of each year.  
 97.15     (d) A person's eligibility and premium shall be determined 
 97.16  by the local county agency.  Premiums must be paid to the 
 97.17  commissioner.  All premiums are dedicated to the commissioner. 
 97.18     (e) Any required premium shall be determined at application 
 97.19  and redetermined annually at recertification or when a change in 
 97.20  income or family size occurs. 
 97.21     (f) Premium payment is due upon notification from the 
 97.22  commissioner of the premium amount required.  Premiums may be 
 97.23  paid in installments at the discretion of the commissioner. 
 97.24     (g) Nonpayment of the premium shall result in denial or 
 97.25  termination of medical assistance unless the person demonstrates 
 97.26  good cause for nonpayment.  Good cause exists if the 
 97.27  requirements specified in Minnesota Rules, part 9506.0040, 
 97.28  subpart 7, items B to D, are met.  Nonpayment shall include 
 97.29  payment with a returned, refused, or dishonored instrument.  The 
 97.30  commissioner may require a guaranteed form of payment as the 
 97.31  only means to replace a returned, refused, or dishonored 
 97.32  instrument. 
 97.33     <b>[EFFECTIVE DATE.]</b> This section is effective November 1, 
 97.34  2001. 
 97.35     Sec. 29.  Minnesota Statutes 2000, section 256B.057, is 
 97.36  amended by adding a subdivision to read: 
 98.1      Subd. 10.  [CERTAIN PERSONS NEEDING TREATMENT FOR BREAST OR 
 98.2   CERVICAL CANCER.] (a) Medical assistance may be paid for a 
 98.3   person who: 
 98.4      (1) has been screened for breast or cervical cancer by the 
 98.5   Minnesota breast and cervical cancer control program, and 
 98.6   program funds have been used to pay for the person's screening; 
 98.7      (2) according to the person's treating health professional, 
 98.8   needs treatment, including diagnostic services necessary to 
 98.9   determine the extent and proper course of treatment, for breast 
 98.10  or cervical cancer, including precancerous conditions and early 
 98.11  stage cancer; 
 98.12     (3) meets the income eligibility guidelines for the 
 98.13  Minnesota breast and cervical cancer control program; 
 98.14     (4) is under age 65; 
 98.15     (5) is not otherwise eligible for medical assistance under 
 98.16  United States Code, title 42, section 1396(a)(10)(A)(i); and 
 98.17     (6) is not otherwise covered under creditable coverage, as 
 98.18  defined under United States Code, title 42, section 300gg(c). 
 98.19     (b) Medical assistance provided for an eligible person 
 98.20  under this subdivision shall be limited to services provided 
 98.21  during the period that the person receives treatment for breast 
 98.22  or cervical cancer. 
 98.23     (c) A person meeting the criteria in paragraph (a) is 
 98.24  eligible for medical assistance without meeting the eligibility 
 98.25  criteria relating to income and assets in section 256B.056, 
 98.26  subdivisions 1a to 5b. 
 98.27     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 98.28     Sec. 30.  Minnesota Statutes 2000, section 256B.0625, 
 98.29  subdivision 3b, is amended to read: 
 98.30     Subd. 3b.  [TELEMEDICINE CONSULTATIONS.] (a) Medical 
 98.31  assistance covers telemedicine consultations.  Telemedicine 
 98.32  consultations must be made via two-way, interactive video or 
 98.33  store-and-forward technology.  Store-and-forward technology 
 98.34  includes telemedicine consultations that do not occur in real 
 98.35  time via synchronous transmissions, and that do not require a 
 98.36  face-to-face encounter with the patient for all or any part of 
 99.1   any such telemedicine consultation.  The patient record must 
 99.2   include a written opinion from the consulting physician 
 99.3   providing the telemedicine consultation.  A communication 
 99.4   between two physicians that consists solely of a telephone 
 99.5   conversation is not a telemedicine consultation.  Coverage is 
 99.6   limited to three telemedicine consultations per recipient per 
 99.7   calendar week.  Telemedicine consultations shall be paid at the 
 99.8   full allowable rate. 
 99.9      (b) This subdivision expires July 1, 2001.  
 99.10     Sec. 31.  Minnesota Statutes 2000, section 256B.0625, is 
 99.11  amended by adding a subdivision to read: 
 99.12     Subd. 5a.  [INTENSIVE EARLY INTERVENTION BEHAVIOR THERAPY 
 99.13  SERVICES FOR CHILDREN WITH AUTISM SPECTRUM DISORDERS.] (a) 
 99.14  [COVERAGE.] Medical assistance covers home-based intensive early 
 99.15  intervention behavior therapy for children with autism spectrum 
 99.16  disorders.  Children with autism spectrum disorder, and their 
 99.17  custodial parents or foster parents, may access other covered 
 99.18  services to treat autism spectrum disorder, and are not required 
 99.19  to receive intensive early intervention behavior therapy 
 99.20  services under this subdivision.  Intensive early intervention 
 99.21  behavior therapy does not include coverage for services to treat 
 99.22  developmental disorders of language, early onset psychosis, 
 99.23  Rett's disorder, selective mutism, social anxiety disorder, 
 99.24  stereotypic movement disorder, dementia, obsessive compulsive 
 99.25  disorder, schizoid personality disorder, avoidant personality 
 99.26  disorder, or reactive attachment disorder.  If a child with 
 99.27  autism spectrum disorder is diagnosed to have one or more of 
 99.28  these conditions, intensive early intervention behavior therapy 
 99.29  includes coverage only for services necessary to treat the 
 99.30  autism spectrum disorder. 
 99.31     (b) [PURPOSE OF INTENSIVE EARLY INTERVENTION BEHAVIOR 
 99.32  THERAPY SERVICES (IEIBTS).] The purpose of IEIBTS is to improve 
 99.33  the child's behavioral functioning, to prevent development of 
 99.34  challenging behaviors, to eliminate autistic behaviors, to 
 99.35  reduce the risk of out-of-home placement, and to establish 
 99.36  independent typical functioning in language and social 
100.1   behavior.  The procedures used to accomplish these goals are 
100.2   based upon research in applied behavior analysis. 
100.3      (c) [ELIGIBLE CHILDREN.] A child is eligible to initiate 
100.4   IEIBTS if, the child meets the additional eligibility criteria 
100.5   in paragraph (d) and in a diagnostic assessment by a mental 
100.6   health professional who is not under the employ of the service 
100.7   provider, the child: 
100.8      (1) is found to have an autism spectrum disorder; 
100.9      (2) has a current IQ of either untestable, or at least 30; 
100.10     (3) if nonverbal, initiated behavior therapy by 42 months 
100.11  of age; 
100.12     (4) if verbal, initiated behavior therapy by 48 months of 
100.13  age; or 
100.14     (5) if having an IQ of at least 50, initiated behavior 
100.15  therapy by 84 months of age. 
100.16  To continue after six-month individualized treatment plan (ITP) 
100.17  reviews, at least one of the child's custodial parents or foster 
100.18  parents must participate in an average of at least five hours of 
100.19  documented behavior therapy per week for six months, and 
100.20  consistently implement behavior therapy recommendations 24 hours 
100.21  a day.  To continue after six-month individualized treatment 
100.22  plan (ITP) reviews, the child must show documented progress 
100.23  toward mastery of six-month benchmark behavior objectives.  The 
100.24  maximum number of months during which services may be billed is 
100.25  54, or up to the month of August in the first year in which the 
100.26  child completes first grade, whichever comes last.  If 
100.27  significant progress towards treatment goals has not been 
100.28  achieved after 24 months of treatment, treatment must be 
100.29  discontinued. 
100.30     (d) [ADDITIONAL ELIGIBILITY CRITERIA.] A child is eligible 
100.31  to initiate IEIBTS if: 
100.32     (1) in medical and diagnostic assessments by medical and 
100.33  mental health professionals, it is determined that the child 
100.34  does not have severe or profound mental retardation; 
100.35     (2) an accurate assessment of the child's hearing has been 
100.36  performed, including audiometry if the brain stem auditory 
101.1   evokes response; 
101.2      (3) a blood lead test has been performed prior to 
101.3   initiation of treatment; and 
101.4      (4) an EEG or neurologic evaluation is done, prior to 
101.5   initiation of treatment, if the child has a history of staring 
101.6   spells or developmental regression.  
101.7      (e) [COVERED SERVICES.] The focus of IEIBTS must be to 
101.8   treat the principal diagnostic features of the autism spectrum 
101.9   disorder.  All IEIBTS must be delivered by a team of 
101.10  practitioners under the consistent supervision of a single 
101.11  clinical supervisor.  A mental health professional must develop 
101.12  the ITP for IEIBTS.  The ITP must include six-month benchmark 
101.13  behavior objectives.  All behavior therapy must be based upon 
101.14  research in applied behavior analysis, with an emphasis upon 
101.15  positive reinforcement of carefully task-analyzed skills for 
101.16  optimum rates of progress.  All behavior therapy must be 
101.17  consistently applied and generalized throughout the 24-hour day 
101.18  and seven-day week by all of the child's regular care 
101.19  providers.  When placing the child in school activities, a 
101.20  majority of the peers must have no mental health diagnosis, and 
101.21  the child must have sufficient social skills to succeed with 80 
101.22  percent of the school activities.  Reactive consequences, such 
101.23  as redirection, correction, positive practice, or time-out, must 
101.24  be used only when necessary to improve the child's success when 
101.25  proactive procedures alone have not been effective.  IEIBTS must 
101.26  be delivered by a team of behavior therapy practitioners who are 
101.27  employed under the direction of the same agency.  The team may 
101.28  deliver up to 200 billable hours per year of direct clinical 
101.29  supervisor services, up to 700 billable hours per year of senior 
101.30  behavior therapist services, and up to 1,800 billable hours per 
101.31  year of direct behavior therapist services.  A one-hour clinical 
101.32  review meeting for the child, parents, and staff must be 
101.33  scheduled 50 weeks a year, at which behavior therapy is reviewed 
101.34  and planned.  At least one-quarter of the annual clinical 
101.35  supervisor billable hours shall consist of on-site clinical 
101.36  meeting time.  At least one-half of the annual senior behavior 
102.1   therapist billable hours shall consist of direct services to the 
102.2   child or parents.  All of the behavioral therapist billable 
102.3   hours shall consist of direct on-site services to the child or 
102.4   parents.  None of the senior behavior therapist billable hours 
102.5   or behavior therapist billable hours shall consist of clinical 
102.6   meeting time.  If there is any regression of the autistic 
102.7   spectrum disorder after 12 months of therapy, a neurologic 
102.8   consultation must be performed. 
102.9      (f) [PROVIDER QUALIFICATIONS.] The provider agency must be 
102.10  capable of delivering consistent applied behavior analysis 
102.11  (ABA)-based behavior therapy in the home.  The site director of 
102.12  the agency must be a mental health professional and a board 
102.13  certified behavior analyst certified by the behavior analyst 
102.14  certification board.  Each clinical supervisor must be a 
102.15  certified associate behavior analyst certified by the behavior 
102.16  analyst certification board or have equivalent experience in 
102.17  applied behavior analysis. 
102.18     (g) [SUPERVISION REQUIREMENTS.] (1) Each behavior therapist 
102.19  practitioner must be continuously supervised while in the home 
102.20  until the practitioner has mastered competencies for independent 
102.21  practice.  Each behavior therapist must have mastered three 
102.22  credits of academic content and practice in an applied behavior 
102.23  analysis sequence at an accredited university before providing 
102.24  more than 12 months of therapy.  A college degree or minimum 
102.25  hours of experience are not required.  Each behavior therapist 
102.26  must continue training through weekly direct observation by the 
102.27  senior behavior therapist, through demonstrated performance in 
102.28  clinical meetings with the clinical supervisor, and annual 
102.29  training in applied behavior analysis. 
102.30     (2) Each senior behavior therapist practitioner must have 
102.31  mastered the senior behavior therapy competencies, completed one 
102.32  year of practice as a behavior therapist, and six months of 
102.33  co-therapy training with another senior behavior therapist or 
102.34  have an equivalent amount of experience in applied behavior 
102.35  analysis.  Each senior behavior therapist must have mastered 12 
102.36  credits of academic content and practice in an applied behavior 
103.1   analysis sequence at an accredited university before providing 
103.2   more than 12 months of senior behavior therapy.  Each senior 
103.3   behavior therapist must continue training through demonstrated 
103.4   performance in clinical meetings with the clinical supervisor, 
103.5   and annual training in applied behavior analysis. 
103.6      (3) Each clinical supervisor practitioner must have 
103.7   mastered the clinical supervisor and family consultation 
103.8   competencies, completed two years of practice as a senior 
103.9   behavior therapist and one year of co-therapy training with 
103.10  another clinical supervisor, or equivalent experience in applied 
103.11  behavior analysis.  Each clinical supervisor must continue 
103.12  training through annual training in applied behavior analysis. 
103.13     (h) [PLACE OF SERVICE.] IEIBTS are provided primarily in 
103.14  the child's home and community.  Services may be provided in the 
103.15  child's natural school or preschool classroom, home of a 
103.16  relative, natural recreational setting, or day care. 
103.17     (i) [PRIOR AUTHORIZATION REQUIREMENTS.] Prior authorization 
103.18  shall be required for services provided after 200 hours of 
103.19  clinical supervisor, 700 hours of senior behavior therapist, or 
103.20  1,800 hours of behavior therapist services per year. 
103.21     (j) [PAYMENT RATES.] The following payment rates apply: 
103.22     (1) for an IEIBTS clinical supervisor practitioner under 
103.23  supervision of a mental health professional, the lower of the 
103.24  submitted charge or $67 per hour unit; 
103.25     (2) for an IEIBTS senior behavior therapist practitioner 
103.26  under supervision of a mental health professional, the lower of 
103.27  the submitted charge or $37 per hour unit; or 
103.28     (3) for an IEIBTS behavior therapist practitioner under 
103.29  supervision of a mental health professional, the lower of the 
103.30  submitted charge or $27 per hour unit. 
103.31  An IEIBTS practitioner may receive payment for travel time which 
103.32  exceeds 50 minutes one-way.  The maximum payment allowed will be 
103.33  $0.51 per minute for up to a maximum of 300 hours per year. 
103.34     For any week during which the above charges are made to 
103.35  medical assistance, payments for the following services are 
103.36  excluded:  supervising mental health professional hours and 
104.1   personal care attendant, home-based mental health, 
104.2   family-community support, or mental health behavioral aide hours.
104.3      (k) [REPORT.] The commissioner shall collect evidence of 
104.4   the effectiveness of intensive early intervention behavior 
104.5   therapy services and present a report to the legislature by July 
104.6   1, 2006. 
104.7      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2003.
104.8      Sec. 32.  Minnesota Statutes 2000, section 256B.0625, 
104.9   subdivision 13, is amended to read: 
104.10     Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
104.11  except for fertility drugs when specifically used to enhance 
104.12  fertility, if prescribed by a licensed practitioner and 
104.13  dispensed by a licensed pharmacist, by a physician enrolled in 
104.14  the medical assistance program as a dispensing physician, or by 
104.15  a physician or a nurse practitioner employed by or under 
104.16  contract with a community health board as defined in section 
104.17  145A.02, subdivision 5, for the purposes of communicable disease 
104.18  control.  The commissioner, after receiving recommendations from 
104.19  professional medical associations and professional pharmacist 
104.20  associations, shall designate a formulary committee to advise 
104.21  the commissioner on the names of drugs for which payment is 
104.22  made, recommend a system for reimbursing providers on a set fee 
104.23  or charge basis rather than the present system, and develop 
104.24  methods encouraging use of generic drugs when they are less 
104.25  expensive and equally effective as trademark drugs.  The 
104.26  formulary committee shall consist of nine members, four of whom 
104.27  shall be physicians who are not employed by the department of 
104.28  human services, and a majority of whose practice is for persons 
104.29  paying privately or through health insurance, three of whom 
104.30  shall be pharmacists who are not employed by the department of 
104.31  human services, and a majority of whose practice is for persons 
104.32  paying privately or through health insurance, a consumer 
104.33  representative, and a nursing home representative.  Committee 
104.34  members shall serve three-year terms and shall serve without 
104.35  compensation.  Members may be reappointed once.  
104.36     (b) The commissioner shall establish a drug formulary.  Its 
105.1   establishment and publication shall not be subject to the 
105.2   requirements of the Administrative Procedure Act, but the 
105.3   formulary committee shall review and comment on the formulary 
105.4   contents.  The formulary committee shall review and recommend 
105.5   drugs which require prior authorization.  The formulary 
105.6   committee may recommend drugs for prior authorization directly 
105.7   to the commissioner, as long as opportunity for public input is 
105.8   provided.  Prior authorization may be requested by the 
105.9   commissioner based on medical and clinical criteria before 
105.10  certain drugs are eligible for payment.  Before a drug may be 
105.11  considered for prior authorization at the request of the 
105.12  commissioner:  
105.13     (1) the drug formulary committee must develop criteria to 
105.14  be used for identifying drugs; the development of these criteria 
105.15  is not subject to the requirements of chapter 14, but the 
105.16  formulary committee shall provide opportunity for public input 
105.17  in developing criteria; 
105.18     (2) the drug formulary committee must hold a public forum 
105.19  and receive public comment for an additional 15 days; and 
105.20     (3) the commissioner must provide information to the 
105.21  formulary committee on the impact that placing the drug on prior 
105.22  authorization will have on the quality of patient care and 
105.23  information regarding whether the drug is subject to clinical 
105.24  abuse or misuse.  Prior authorization may be required by the 
105.25  commissioner before certain formulary drugs are eligible for 
105.26  payment.  The formulary shall not include:  
105.27     (i) drugs or products for which there is no federal 
105.28  funding; 
105.29     (ii) over-the-counter drugs, except for antacids, 
105.30  acetaminophen, family planning products, aspirin, insulin, 
105.31  products for the treatment of lice, vitamins for adults with 
105.32  documented vitamin deficiencies, vitamins for children under the 
105.33  age of seven and pregnant or nursing women, and any other 
105.34  over-the-counter drug identified by the commissioner, in 
105.35  consultation with the drug formulary committee, as necessary, 
105.36  appropriate, and cost-effective for the treatment of certain 
106.1   specified chronic diseases, conditions or disorders, and this 
106.2   determination shall not be subject to the requirements of 
106.3   chapter 14; 
106.4      (iii) anorectics, except that medically necessary 
106.5   anorectics shall be covered for a recipient previously diagnosed 
106.6   as having pickwickian syndrome and currently diagnosed as having 
106.7   diabetes and being morbidly obese; 
106.8      (iv) drugs for which medical value has not been 
106.9   established; and 
106.10     (v) drugs from manufacturers who have not signed a rebate 
106.11  agreement with the Department of Health and Human Services 
106.12  pursuant to section 1927 of title XIX of the Social Security Act.
106.13     The commissioner shall publish conditions for prohibiting 
106.14  payment for specific drugs after considering the formulary 
106.15  committee's recommendations.  An honorarium of $100 per meeting 
106.16  and reimbursement for mileage shall be paid to each committee 
106.17  member in attendance.  
106.18     (c) The basis for determining the amount of payment shall 
106.19  be the lower of the actual acquisition costs of the drugs plus a 
106.20  fixed dispensing fee; the maximum allowable cost set by the 
106.21  federal government or by the commissioner plus the fixed 
106.22  dispensing fee; or the usual and customary price charged to the 
106.23  public.  The pharmacy dispensing fee shall be $3.65, except that 
106.24  the dispensing fee for intravenous solutions which must be 
106.25  compounded by the pharmacist shall be $8 per bag, $14 per bag 
106.26  for cancer chemotherapy products, and $30 per bag for total 
106.27  parenteral nutritional products dispensed in one liter 
106.28  quantities, or $44 per bag for total parenteral nutritional 
106.29  products dispensed in quantities greater than one liter.  Actual 
106.30  acquisition cost includes quantity and other special discounts 
106.31  except time and cash discounts.  The actual acquisition cost of 
106.32  a drug shall be estimated by the commissioner, at average 
106.33  wholesale price minus nine percent, except that where a drug has 
106.34  had its wholesale price reduced as a result of the actions of 
106.35  the National Association of Medicaid Fraud Control Units, the 
106.36  estimated actual acquisition cost shall be the reduced average 
107.1   wholesale price, without the nine percent deduction.  The 
107.2   maximum allowable cost of a multisource drug may be set by the 
107.3   commissioner and it shall be comparable to, but no higher than, 
107.4   the maximum amount paid by other third-party payors in this 
107.5   state who have maximum allowable cost programs.  The 
107.6   commissioner shall set maximum allowable costs for multisource 
107.7   drugs that are not on the federal upper limit list as described 
107.8   in United States Code, title 42, chapter 7, section 1396r-8(e), 
107.9   the Social Security Act, and Code of Federal Regulations, title 
107.10  42, part 447, section 447.332.  Establishment of the amount of 
107.11  payment for drugs shall not be subject to the requirements of 
107.12  the Administrative Procedure Act.  An additional dispensing fee 
107.13  of $.30 may be added to the dispensing fee paid to pharmacists 
107.14  for legend drug prescriptions dispensed to residents of 
107.15  long-term care facilities when a unit dose blister card system, 
107.16  approved by the department, is used.  Under this type of 
107.17  dispensing system, the pharmacist must dispense a 30-day supply 
107.18  of drug.  The National Drug Code (NDC) from the drug container 
107.19  used to fill the blister card must be identified on the claim to 
107.20  the department.  The unit dose blister card containing the drug 
107.21  must meet the packaging standards set forth in Minnesota Rules, 
107.22  part 6800.2700, that govern the return of unused drugs to the 
107.23  pharmacy for reuse.  The pharmacy provider will be required to 
107.24  credit the department for the actual acquisition cost of all 
107.25  unused drugs that are eligible for reuse.  Over-the-counter 
107.26  medications must be dispensed in the manufacturer's unopened 
107.27  package.  The commissioner may permit the drug clozapine to be 
107.28  dispensed in a quantity that is less than a 30-day supply.  
107.29  Whenever a generically equivalent product is available, payment 
107.30  shall be on the basis of the actual acquisition cost of the 
107.31  generic drug, unless the prescriber specifically indicates 
107.32  "dispense as written - brand necessary" on the prescription as 
107.33  required by section 151.21, subdivision 2. 
107.34     (d) For purposes of this subdivision, "multisource drugs" 
107.35  means covered outpatient drugs, excluding innovator multisource 
107.36  drugs for which there are two or more drug products, which: 
108.1      (1) are related as therapeutically equivalent under the 
108.2   Food and Drug Administration's most recent publication of 
108.3   "Approved Drug Products with Therapeutic Equivalence 
108.4   Evaluations"; 
108.5      (2) are pharmaceutically equivalent and bioequivalent as 
108.6   determined by the Food and Drug Administration; and 
108.7      (3) are sold or marketed in Minnesota. 
108.8   "Innovator multisource drug" means a multisource drug that was 
108.9   originally marketed under an original new drug application 
108.10  approved by the Food and Drug Administration. 
108.11     (e) The basis for determining the amount of payment for 
108.12  drugs administered in an outpatient setting shall be the lower 
108.13  of the usual and customary cost submitted by the provider; the 
108.14  average wholesale price minus five percent; or the maximum 
108.15  allowable cost set by the federal government under United States 
108.16  Code, title 42, chapter 7, section 1396r-8(e) and Code of 
108.17  Federal Regulations, title 42, section 447.332, or by the 
108.18  commissioner under paragraph (c). 
108.19     <b>[EFFECTIVE DATE.]</b> This section is effective 30 days 
108.20  following final enactment. 
108.21     Sec. 33.  Minnesota Statutes 2000, section 256B.0625, 
108.22  subdivision 13a, is amended to read: 
108.23     Subd. 13a.  [DRUG UTILIZATION REVIEW BOARD.] A nine-member 
108.24  drug utilization review board is established.  The board is 
108.25  comprised of at least three but no more than four licensed 
108.26  physicians actively engaged in the practice of medicine in 
108.27  Minnesota; at least three licensed pharmacists actively engaged 
108.28  in the practice of pharmacy in Minnesota; and one consumer 
108.29  representative; the remainder to be made up of health care 
108.30  professionals who are licensed in their field and have 
108.31  recognized knowledge in the clinically appropriate prescribing, 
108.32  dispensing, and monitoring of covered outpatient drugs.  The 
108.33  board shall be staffed by an employee of the department who 
108.34  shall serve as an ex officio nonvoting member of the board.  The 
108.35  members of the board shall be appointed by the commissioner and 
108.36  shall serve three-year terms.  The members shall be selected 
109.1   from lists submitted by professional associations.  The 
109.2   commissioner shall appoint the initial members of the board for 
109.3   terms expiring as follows:  three members for terms expiring 
109.4   June 30, 1996; three members for terms expiring June 30, 1997; 
109.5   and three members for terms expiring June 30, 1998.  Members may 
109.6   be reappointed once.  The board shall annually elect a chair 
109.7   from among the members. 
109.8      The commissioner shall, with the advice of the board: 
109.9      (1) implement a medical assistance retrospective and 
109.10  prospective drug utilization review program as required by 
109.11  United States Code, title 42, section 1396r-8(g)(3); 
109.12     (2) develop and implement the predetermined criteria and 
109.13  practice parameters for appropriate prescribing to be used in 
109.14  retrospective and prospective drug utilization review; 
109.15     (3) develop, select, implement, and assess interventions 
109.16  for physicians, pharmacists, and patients that are educational 
109.17  and not punitive in nature; 
109.18     (4) establish a grievance and appeals process for 
109.19  physicians and pharmacists under this section; 
109.20     (5) publish and disseminate educational information to 
109.21  physicians and pharmacists regarding the board and the review 
109.22  program; 
109.23     (6) adopt and implement procedures designed to ensure the 
109.24  confidentiality of any information collected, stored, retrieved, 
109.25  assessed, or analyzed by the board, staff to the board, or 
109.26  contractors to the review program that identifies individual 
109.27  physicians, pharmacists, or recipients; 
109.28     (7) establish and implement an ongoing process to (i) 
109.29  receive public comment regarding drug utilization review 
109.30  criteria and standards, and (ii) consider the comments along 
109.31  with other scientific and clinical information in order to 
109.32  revise criteria and standards on a timely basis; and 
109.33     (8) adopt any rules necessary to carry out this section. 
109.34     The board may establish advisory committees.  The 
109.35  commissioner may contract with appropriate organizations to 
109.36  assist the board in carrying out the board's duties.  The 
110.1   commissioner may enter into contracts for services to develop 
110.2   and implement a retrospective and prospective review program. 
110.3      The board shall report to the commissioner annually on the 
110.4   date the Drug Utilization Review Annual Report is due to the 
110.5   Health Care Financing Administration.  This report is to cover 
110.6   the preceding federal fiscal year.  The commissioner shall make 
110.7   the report available to the public upon request.  The report 
110.8   must include information on the activities of the board and the 
110.9   program; the effectiveness of implemented interventions; 
110.10  administrative costs; and any fiscal impact resulting from the 
110.11  program.  An honorarium of $50 $100 per meeting and 
110.12  reimbursement for mileage shall be paid to each board member in 
110.13  attendance. 
110.14     Sec. 34.  Minnesota Statutes 2000, section 256B.0625, 
110.15  subdivision 17, is amended to read: 
110.16     Subd. 17.  [TRANSPORTATION COSTS.] (a) Medical assistance 
110.17  covers transportation costs incurred solely for obtaining 
110.18  emergency medical care or transportation costs incurred by 
110.19  nonambulatory persons in obtaining emergency or nonemergency 
110.20  medical care when paid directly to an ambulance company, common 
110.21  carrier, or other recognized providers of transportation 
110.22  services.  For the purpose of this subdivision, a person who is 
110.23  incapable of transport by taxicab or bus shall be considered to 
110.24  be nonambulatory. 
110.25     (b) Medical assistance covers special transportation, as 
110.26  defined in Minnesota Rules, part 9505.0315, subpart 1, item F, 
110.27  if the provider receives and maintains a current physician's 
110.28  order by the recipient's attending physician certifying that the 
110.29  recipient has a physical or mental impairment that would 
110.30  prohibit the recipient from safely accessing and using a bus, 
110.31  taxi, other commercial transportation, or private automobile.  
110.32  Special transportation includes driver-assisted service to 
110.33  eligible individuals.  Driver-assisted service includes 
110.34  passenger pickup at and return to the individual's residence or 
110.35  place of business, assistance with admittance of the individual 
110.36  to the medical facility, and assistance in passenger securement 
111.1   or in securing of wheelchairs or stretchers in the vehicle.  The 
111.2   commissioner shall establish maximum medical assistance 
111.3   reimbursement rates for special transportation services for 
111.4   persons who need a wheelchair lift accessible van or 
111.5   stretcher-equipped stretcher-accessible vehicle and for those 
111.6   who do not need a wheelchair lift accessible van or 
111.7   stretcher-equipped stretcher-accessible vehicle.  The average of 
111.8   these two rates per trip must not exceed $15 for the base rate 
111.9   and $1.20 $1.40 per mile.  Special transportation provided to 
111.10  nonambulatory persons who do not need a wheelchair lift 
111.11  accessible van or stretcher-equipped stretcher-accessible 
111.12  vehicle, may be reimbursed at a lower rate than special 
111.13  transportation provided to persons who need a wheelchair lift 
111.14  accessible van or stretcher-equipped stretcher-accessible 
111.15  vehicle.  
111.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
111.17     Sec. 35.  Minnesota Statutes 2000, section 256B.0625, 
111.18  subdivision 17a, is amended to read: 
111.19     Subd. 17a.  [PAYMENT FOR AMBULANCE SERVICES.] Effective for 
111.20  services rendered on or after July 1, 1999 2001, medical 
111.21  assistance payments for ambulance services shall be increased by 
111.22  five percent paid at the Medicare reimbursement rate or at the 
111.23  medical assistance payment rate in effect on July 1, 2000, 
111.24  whichever is greater.  
111.25     Sec. 36.  Minnesota Statutes 2000, section 256B.0625, 
111.26  subdivision 18a, is amended to read: 
111.27     Subd. 18a.  [PAYMENT FOR MEALS AND LODGING ACCESS TO 
111.28  MEDICAL SERVICES.] (a) Medical assistance reimbursement for 
111.29  meals for persons traveling to receive medical care may not 
111.30  exceed $5.50 for breakfast, $6.50 for lunch, or $8 for dinner. 
111.31     (b) Medical assistance reimbursement for lodging for 
111.32  persons traveling to receive medical care may not exceed $50 per 
111.33  day unless prior authorized by the local agency. 
111.34     (c) Medical assistance direct mileage reimbursement to the 
111.35  eligible person or the eligible person's driver may not exceed 
111.36  20 cents per mile. 
112.1      (d) Medical assistance covers oral language interpreter 
112.2   services when provided by an enrolled health care provider 
112.3   during the course of providing a direct, person-to-person 
112.4   covered health care service to an enrolled recipient with 
112.5   limited English proficiency. 
112.6      Sec. 37.  Minnesota Statutes 2000, section 256B.0625, 
112.7   subdivision 30, is amended to read: 
112.8      Subd. 30.  [OTHER CLINIC SERVICES.] (a) Medical assistance 
112.9   covers rural health clinic services, federally qualified health 
112.10  center services, nonprofit community health clinic services, 
112.11  public health clinic services, and the services of a clinic 
112.12  meeting the criteria established in rule by the commissioner.  
112.13  Rural health clinic services and federally qualified health 
112.14  center services mean services defined in United States Code, 
112.15  title 42, section 1396d(a)(2)(B) and (C).  Payment for rural 
112.16  health clinic and federally qualified health center services 
112.17  shall be made according to applicable federal law and regulation.
112.18     (b) A federally qualified health center that is beginning 
112.19  initial operation shall submit an estimate of budgeted costs and 
112.20  visits for the initial reporting period in the form and detail 
112.21  required by the commissioner.  A federally qualified health 
112.22  center that is already in operation shall submit an initial 
112.23  report using actual costs and visits for the initial reporting 
112.24  period.  Within 90 days of the end of its reporting period, a 
112.25  federally qualified health center shall submit, in the form and 
112.26  detail required by the commissioner, a report of its operations, 
112.27  including allowable costs actually incurred for the period and 
112.28  the actual number of visits for services furnished during the 
112.29  period, and other information required by the commissioner.  
112.30  Federally qualified health centers that file Medicare cost 
112.31  reports shall provide the commissioner with a copy of the most 
112.32  recent Medicare cost report filed with the Medicare program 
112.33  intermediary for the reporting year which support the costs 
112.34  claimed on their cost report to the state. 
112.35     (c) In order to continue cost-based payment under the 
112.36  medical assistance program according to paragraphs (a) and (b), 
113.1   a federally qualified health center or rural health clinic must 
113.2   apply for designation as an essential community provider within 
113.3   six months of final adoption of rules by the department of 
113.4   health according to section 62Q.19, subdivision 7.  For those 
113.5   federally qualified health centers and rural health clinics that 
113.6   have applied for essential community provider status within the 
113.7   six-month time prescribed, medical assistance payments will 
113.8   continue to be made according to paragraphs (a) and (b) for the 
113.9   first three years after application.  For federally qualified 
113.10  health centers and rural health clinics that either do not apply 
113.11  within the time specified above or who have had essential 
113.12  community provider status for three years, medical assistance 
113.13  payments for health services provided by these entities shall be 
113.14  according to the same rates and conditions applicable to the 
113.15  same service provided by health care providers that are not 
113.16  federally qualified health centers or rural health clinics.  
113.17     (d) Effective July 1, 1999, the provisions of paragraph (c) 
113.18  requiring a federally qualified health center or a rural health 
113.19  clinic to make application for an essential community provider 
113.20  designation in order to have cost-based payments made according 
113.21  to paragraphs (a) and (b) no longer apply. 
113.22     (e) Effective January 1, 2000, payments made according to 
113.23  paragraphs (a) and (b) shall be limited to the cost phase-out 
113.24  schedule of the Balanced Budget Act of 1997. 
113.25     (f) Effective January 1, 2001, each federally qualified 
113.26  health center and rural health clinic may elect to be paid 
113.27  either under the prospective payment system established in 
113.28  United States Code, title 42, section 1396a(aa) or under an 
113.29  alternative payment methodology consistent with the requirements 
113.30  of United States Code, title 42, section 1396a(aa) and approved 
113.31  by the Health Care Financing Administration.  The alternative 
113.32  payment methodology shall be 100 percent of cost as determined 
113.33  according to Medicare cost principles. 
113.34     Sec. 38.  Minnesota Statutes 2000, section 256B.0625, 
113.35  subdivision 34, is amended to read: 
113.36     Subd. 34.  [INDIAN HEALTH SERVICES FACILITIES.] Medical 
114.1   assistance payments and MinnesotaCare payments to facilities of 
114.2   the Indian health service and facilities operated by a tribe or 
114.3   tribal organization under funding authorized by United States 
114.4   Code, title 25, sections 450f to 450n, or title III of the 
114.5   Indian Self-Determination and Education Assistance Act, Public 
114.6   Law Number 93-638, for enrollees who are eligible for federal 
114.7   financial participation, shall be at the option of the facility 
114.8   in accordance with the rate published by the United States 
114.9   Assistant Secretary for Health under the authority of United 
114.10  States Code, title 42, sections 248(a) and 249(b).  General 
114.11  assistance medical care payments to facilities of the Indian 
114.12  health services and facilities operated by a tribe or tribal 
114.13  organization for the provision of outpatient medical care 
114.14  services billed after June 30, 1990, must be in accordance with 
114.15  the general assistance medical care rates paid for the same 
114.16  services when provided in a facility other than a facility of 
114.17  the Indian health service or a facility operated by a tribe or 
114.18  tribal organization.  MinnesotaCare payments for enrollees who 
114.19  are not eligible for federal financial participation at 
114.20  facilities of the Indian Health Service and facilities operated 
114.21  by a tribe or tribal organization for the provision of 
114.22  outpatient medical services must be in accordance with the 
114.23  medical assistance rates paid for the same services when 
114.24  provided in a facility other than a facility of the Indian 
114.25  Health Service or a facility operated by a tribe or tribal 
114.26  organization. 
114.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
114.28  following final enactment. 
114.29     Sec. 39.  Minnesota Statutes 2000, section 256B.0625, is 
114.30  amended by adding a subdivision to read: 
114.31     Subd. 43.  [TARGETED CASE MANAGEMENT SERVICES.] Medical 
114.32  assistance covers case management services for vulnerable adults 
114.33  and persons with developmental disabilities not receiving home 
114.34  and community-based waiver services. 
114.35     Sec. 40.  Minnesota Statutes 2000, section 256B.0635, 
114.36  subdivision 1, is amended to read: 
115.1      Subdivision 1.  [INCREASED EMPLOYMENT.] Beginning January 
115.2   1, 1998 (a) Until June 30, 2002, medical assistance may be paid 
115.3   for persons who received MFIP-S or medical assistance for 
115.4   families and children in at least three of six months preceding 
115.5   the month in which the person became ineligible for MFIP-S or 
115.6   medical assistance, if the ineligibility was due to an increase 
115.7   in hours of employment or employment income or due to the loss 
115.8   of an earned income disregard.  In addition, to receive 
115.9   continued assistance under this section, persons who received 
115.10  medical assistance for families and children but did not receive 
115.11  MFIP-S must have had income less than or equal to the assistance 
115.12  standard for their family size under the state's AFDC plan in 
115.13  effect as of July 16, 1996, as required by the Personal 
115.14  Responsibility and Work Opportunity Reconciliation Act of 1996 
115.15  (PRWORA), Public Law Number 104-193, increased by three percent 
115.16  effective July 1, 2000, at the time medical assistance 
115.17  eligibility began.  A person who is eligible for extended 
115.18  medical assistance is entitled to six months of assistance 
115.19  without reapplication, unless the assistance unit ceases to 
115.20  include a dependent child.  For a person under 21 years of age, 
115.21  medical assistance may not be discontinued within the six-month 
115.22  period of extended eligibility until it has been determined that 
115.23  the person is not otherwise eligible for medical assistance.  
115.24  Medical assistance may be continued for an additional six months 
115.25  if the person meets all requirements for the additional six 
115.26  months, according to title XIX of the Social Security Act, as 
115.27  amended by section 303 of the Family Support Act of 1988, Public 
115.28  Law Number 100-485. 
115.29     (b) Beginning July 1, 2002, medical assistance for families 
115.30  and children may be paid for persons who were eligible under 
115.31  section 256B.055, subdivision 3a, in at least three of six 
115.32  months preceding the month in which the person became ineligible 
115.33  under that section if the ineligibility was due to an increase 
115.34  in hours of employment or employment income or due to the loss 
115.35  of an earned income disregard.  A person who is eligible for 
115.36  extended medical assistance is entitled to six months of 
116.1   assistance without reapplication, unless the assistance unit 
116.2   ceases to include a dependent child, except medical assistance 
116.3   may not be discontinued for that dependent child under 21 years 
116.4   of age within the six-month period of extended eligibility until 
116.5   it has been determined that the person is not otherwise eligible 
116.6   for medical assistance.  Medical assistance may be continued for 
116.7   an additional six months if the person meets all requirements 
116.8   for the additional six months, according to title XIX of the 
116.9   Social Security Act, as amended by section 303 of the Family 
116.10  Support Act of 1988, Public Law Number 100-485. 
116.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
116.12     Sec. 41.  Minnesota Statutes 2000, section 256B.0635, 
116.13  subdivision 2, is amended to read: 
116.14     Subd. 2.  [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 
116.15  January 1, 1998 (a) Until June 30, 2002, medical assistance may 
116.16  be paid for persons who received MFIP-S or medical assistance 
116.17  for families and children in at least three of the six months 
116.18  preceding the month in which the person became ineligible for 
116.19  MFIP-S or medical assistance, if the ineligibility was the 
116.20  result of the collection of child or spousal support under part 
116.21  D of title IV of the Social Security Act.  In addition, to 
116.22  receive continued assistance under this section, persons who 
116.23  received medical assistance for families and children but did 
116.24  not receive MFIP-S must have had income less than or equal to 
116.25  the assistance standard for their family size under the state's 
116.26  AFDC plan in effect as of July 16, 1996, as required by the 
116.27  Personal Responsibility and Work Opportunity Reconciliation Act 
116.28  of 1996 (PRWORA), Public Law Number 104-193 increased by three 
116.29  percent effective July 1, 2000, at the time medical assistance 
116.30  eligibility began.  A person who is eligible for extended 
116.31  medical assistance under this subdivision is entitled to four 
116.32  months of assistance without reapplication, unless the 
116.33  assistance unit ceases to include a dependent child.  For a 
116.34  person under 21 years of age, except medical assistance may not 
116.35  be discontinued for that dependent child under 21 years of age 
116.36  within the four-month period of extended eligibility until it 
117.1   has been determined that the person is not otherwise eligible 
117.2   for medical assistance. 
117.3      (b) Beginning July 1, 2002, medical assistance for families 
117.4   and children may be paid for persons who were eligible under 
117.5   section 256B.055, subdivision 3a, in at least three of the six 
117.6   months preceding the month in which the person became ineligible 
117.7   under that section if the ineligibility was the result of the 
117.8   collection of child or spousal support under part D of title IV 
117.9   of the Social Security Act.  A person who is eligible for 
117.10  extended medical assistance under this subdivision is entitled 
117.11  to four months of assistance without reapplication, unless the 
117.12  assistance unit ceases to include a dependent child, except 
117.13  medical assistance may not be discontinued for that dependent 
117.14  child under 21 years of age within the four-month period of 
117.15  extended eligibility until it has been determined that the 
117.16  person is not otherwise eligible for medical assistance. 
117.17     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
117.18     Sec. 42.  [256B.0637] [PRESUMPTIVE ELIGIBILITY FOR CERTAIN 
117.19  PERSONS NEEDING TREATMENT FOR BREAST OR CERVICAL CANCER.] 
117.20     Medical assistance is available during a presumptive 
117.21  eligibility period for persons who meet the criteria in section 
117.22  256B.057, subdivision 10.  For purposes of this section, the 
117.23  presumptive eligibility period begins on the date on which an 
117.24  entity designated by the commissioner determines, based on 
117.25  preliminary information, that the person meets the criteria in 
117.26  section 256B.057, subdivision 10.  The presumptive eligibility 
117.27  period ends on the day on which a determination is made as to 
117.28  the person's eligibility, except that if an application is not 
117.29  submitted by the last day of the month following the month 
117.30  during which the determination based on preliminary information 
117.31  is made, the presumptive eligibility period ends on that last 
117.32  day of the month. 
117.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
117.34     Sec. 43.  Minnesota Statutes 2000, section 256B.0644, is 
117.35  amended to read: 
117.36     256B.0644 [PARTICIPATION REQUIRED FOR REIMBURSEMENT UNDER 
118.1   OTHER STATE HEALTH CARE PROGRAMS.] 
118.2      A vendor of medical care, as defined in section 256B.02, 
118.3   subdivision 7, and a health maintenance organization, as defined 
118.4   in chapter 62D, must participate as a provider or contractor in 
118.5   the medical assistance program, general assistance medical care 
118.6   program, and MinnesotaCare as a condition of participating as a 
118.7   provider in health insurance plans and programs or contractor 
118.8   for state employees established under section 43A.18, the public 
118.9   employees insurance program under section 43A.316, for health 
118.10  insurance plans offered to local statutory or home rule charter 
118.11  city, county, and school district employees, the workers' 
118.12  compensation system under section 176.135, and insurance plans 
118.13  provided through the Minnesota comprehensive health association 
118.14  under sections 62E.01 to 62E.19.  The limitations on insurance 
118.15  plans offered to local government employees shall not be 
118.16  applicable in geographic areas where provider participation is 
118.17  limited by managed care contracts with the department of human 
118.18  services.  For providers other than health maintenance 
118.19  organizations, participation in the medical assistance program 
118.20  means that (1) the provider accepts new medical assistance, 
118.21  general assistance medical care, and MinnesotaCare patients or 
118.22  (2) at least 20 percent of the provider's patients are covered 
118.23  by medical assistance, general assistance medical care, and 
118.24  MinnesotaCare as their primary source of coverage.  Patients 
118.25  seen on a volunteer basis by the provider at a location other 
118.26  than the provider's usual place of practice may be considered in 
118.27  meeting this participation requirement.  The commissioner shall 
118.28  establish participation requirements for health maintenance 
118.29  organizations.  The commissioner shall provide lists of 
118.30  participating medical assistance providers on a quarterly basis 
118.31  to the commissioner of employee relations, the commissioner of 
118.32  labor and industry, and the commissioner of commerce.  Each of 
118.33  the commissioners shall develop and implement procedures to 
118.34  exclude as participating providers in the program or programs 
118.35  under their jurisdiction those providers who do not participate 
118.36  in the medical assistance program.  The commissioner of employee 
119.1   relations shall implement this section through contracts with 
119.2   participating health and dental carriers. 
119.3      Sec. 44.  [256B.0924] [TARGETED CASE MANAGEMENT SERVICES 
119.4   FOR VULNERABLE ADULTS AND PERSONS WITH DEVELOPMENTAL 
119.5   DISABILITIES.] 
119.6      Subdivision 1.  [PURPOSE.] The state recognizes that 
119.7   targeted case management services can decrease the need for more 
119.8   costly services such as multiple emergency room visits or 
119.9   hospitalizations by linking eligible individuals with less 
119.10  costly services available in the community. 
119.11     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
119.12  following terms have the meanings given: 
119.13     (a) "Targeted case management" means services which will 
119.14  assist medical assistance eligible persons to gain access to 
119.15  needed medical, social, educational, and other services.  
119.16  Targeted case management does not include therapy, treatment, 
119.17  legal, or outreach services. 
119.18     (b) "Targeted case management for adults" means activities 
119.19  that coordinate and link social and other services designed to 
119.20  help eligible persons gain access to needed protective services, 
119.21  social, health care, mental health, habilitative, educational, 
119.22  vocational, recreational, advocacy, legal, chemical, health, and 
119.23  other related services. 
119.24     Subd. 3.  [ELIGIBILITY.] Persons are eligible to receive 
119.25  targeted case management services under this section if the 
119.26  requirements in paragraphs (a) and (b) are met. 
119.27     (a) The person must be assessed and determined by the local 
119.28  county agency to: 
119.29     (1) be age 18 or older; 
119.30     (2) be receiving medical assistance; 
119.31     (3) have significant functional limitations; and 
119.32     (4) be in need of service coordination to attain or 
119.33  maintain living in an integrated community setting. 
119.34     (b) The person must be a vulnerable adult in need of adult 
119.35  protection as defined in section 626.5572, or is an adult with 
119.36  mental retardation as defined in section 252A.02, subdivision 2, 
120.1   or a related condition as defined in section 252.27, subdivision 
120.2   1a, and is not receiving home and community-based waiver 
120.3   services. 
120.4      Subd. 4.  [TARGETED CASE MANAGEMENT SERVICE 
120.5   ACTIVITIES.] (a) For persons with mental retardation or a 
120.6   related condition, targeted case management services must meet 
120.7   the provisions of section 256B.092. 
120.8      (b) For persons not eligible as a person with mental 
120.9   retardation or a related condition, targeted case management 
120.10  service activities include: 
120.11     (1) an assessment of the person's need for targeted case 
120.12  management services; 
120.13     (2) the development of a written personal service plan; 
120.14     (3) a regular review and revision of the written personal 
120.15  service plan with the recipient and the recipient's legal 
120.16  representative, and others as identified by the recipient, to 
120.17  ensure access to necessary services and supports identified in 
120.18  the plan; 
120.19     (4) effective communication with the recipient and the 
120.20  recipient's legal representative and others identified by the 
120.21  recipient; 
120.22     (5) coordination of referrals for needed services with 
120.23  qualified providers; 
120.24     (6) coordination and monitoring of the overall service 
120.25  delivery to ensure the quality and effectiveness of services; 
120.26     (7) assistance to the recipient and the recipient's legal 
120.27  representative to help make an informed choice of services; 
120.28     (8) advocating on behalf of the recipient when service 
120.29  barriers are encountered or referring the recipient and the 
120.30  recipient's legal representative to an independent advocate; 
120.31     (9) monitoring and evaluating services identified in the 
120.32  personal service plan to ensure personal outcomes are met and to 
120.33  ensure satisfaction with services and service delivery; 
120.34     (10) conducting face-to-face monitoring with the recipient 
120.35  at least twice a year; 
120.36     (11) completing and maintain necessary documentation that 
121.1   supports verifies the activities in this section; 
121.2      (12) coordinating with the medical assistance facility 
121.3   discharge planner in the 180-day period prior to the recipient's 
121.4   discharge into the community; and 
121.5      (13) a personal service plan developed and reviewed at 
121.6   least annually with the recipient and the recipient's legal 
121.7   representative.  The personal service plan must be revised when 
121.8   there is a change in the recipient's status.  The personal 
121.9   service plan must identify: 
121.10     (i) the desired personal short and long-term outcomes; 
121.11     (ii) the recipient's preferences for services and supports, 
121.12  including development of a person-centered plan if requested; 
121.13  and 
121.14     (iii) formal and informal services and supports based on 
121.15  areas of assessment, such as:  social, health, mental health, 
121.16  residence, family, educational and vocational, safety, legal, 
121.17  self-determination, financial, and chemical health as determined 
121.18  by the recipient and the recipient's legal representative and 
121.19  the recipient's support network. 
121.20     Subd. 5.  [PROVIDER STANDARDS.] County boards or providers 
121.21  who contract with the county are eligible to receive medical 
121.22  assistance reimbursement for adult targeted case management 
121.23  services.  To qualify as a provider of targeted case management 
121.24  services the vendor must: 
121.25     (1) have demonstrated the capacity and experience to 
121.26  provide the activities of case management services defined in 
121.27  subdivision 4; 
121.28     (2) be able to coordinate and link community resources 
121.29  needed by the recipient; 
121.30     (3) have the administrative capacity and experience to 
121.31  serve the eligible population in providing services and to 
121.32  ensure quality of services under state and federal requirements; 
121.33     (4) have a financial management system that provides 
121.34  accurate documentation of services and costs under state and 
121.35  federal requirements; 
121.36     (5) have the capacity to document and maintain individual 
122.1   case records complying with state and federal requirements; 
122.2      (6) coordinate with county social service agencies 
122.3   responsible for planning for community social services under 
122.4   chapters 256E and 256F; conducting adult protective 
122.5   investigations under section 626.557, and conducting prepetition 
122.6   screenings for commitments under section 253B.07; 
122.7      (7) coordinate with health care providers to ensure access 
122.8   to necessary health care services; 
122.9      (8) have a procedure in place that notifies the recipient 
122.10  and the recipient's legal representative of any conflict of 
122.11  interest if the contracted targeted case management service 
122.12  provider also provides the recipient's services and supports and 
122.13  provides information on all potential conflicts of interest and 
122.14  obtains the recipient's informed consent and provides the 
122.15  recipient with alternatives; and 
122.16     (9) have demonstrated the capacity to achieve the following 
122.17  performance outcomes:  access, quality, and consumer 
122.18  satisfaction. 
122.19     Subd. 6.  [PAYMENT FOR TARGETED CASE MANAGEMENT.] (a) 
122.20  Medical assistance and MinnesotaCare payment for targeted case 
122.21  management shall be made on a monthly basis.  In order to 
122.22  receive payment for an eligible adult, the provider must 
122.23  document at least one contact per month and not more than two 
122.24  consecutive months without a face-to-face contact with the adult 
122.25  or the adult's legal representative. 
122.26     (b) Payment for targeted case management provided by county 
122.27  staff under this subdivision shall be based on the monthly rate 
122.28  methodology under section 256B.094, subdivision 6, paragraph 
122.29  (b), calculated as one combined average rate together with adult 
122.30  mental health case management under section 256B.0625, 
122.31  subdivision 20, except for calendar year 2002.  In calendar year 
122.32  2002, the rate for case management under this section shall be 
122.33  the same as the rate for adult mental health case management in 
122.34  effect as of December 31, 2001.  Billing and payment must 
122.35  identify the recipient's primary population group to allow 
122.36  tracking of revenues. 
123.1      (c) Payment for targeted case management provided by 
123.2   county-contracted vendors shall be based on a monthly rate 
123.3   negotiated by the host county.  The negotiated rate must not 
123.4   exceed the rate charged by the vendor for the same service to 
123.5   other payers.  If the service is provided by a team of 
123.6   contracted vendors, the county may negotiate a team rate with a 
123.7   vendor who is a member of the team.  The team shall determine 
123.8   how to distribute the rate among its members.  No reimbursement 
123.9   received by contracted vendors shall be returned to the county, 
123.10  except to reimburse the county for advance funding provided by 
123.11  the county to the vendor. 
123.12     (d) If the service is provided by a team that includes 
123.13  contracted vendors and county staff, the costs for county staff 
123.14  participation on the team shall be included in the rate for 
123.15  county-provided services.  In this case, the contracted vendor 
123.16  and the county may each receive separate payment for services 
123.17  provided by each entity in the same month.  In order to prevent 
123.18  duplication of services, the county must document, in the 
123.19  recipient's file, the need for team targeted case management and 
123.20  a description of the different roles of the team members. 
123.21     (e) Notwithstanding section 256B.19, subdivision 1, the 
123.22  nonfederal share of costs for targeted case management shall be 
123.23  provided by the recipient's county of responsibility, as defined 
123.24  in sections 256G.01 to 256G.12, from sources other than federal 
123.25  funds or funds used to match other federal funds. 
123.26     (f) The commissioner may suspend, reduce, or terminate 
123.27  reimbursement to a provider that does not meet the reporting or 
123.28  other requirements of this section.  The county of 
123.29  responsibility, as defined in sections 256G.01 to 256G.12, is 
123.30  responsible for any federal disallowances.  The county may share 
123.31  this responsibility with its contracted vendors. 
123.32     (g) The commissioner shall set aside five percent of the 
123.33  federal funds received under this section for use in reimbursing 
123.34  the state for costs of developing and implementing this section. 
123.35     (h) Notwithstanding section 256.025, subdivision 2, 
123.36  payments to counties for targeted case management expenditures 
124.1   under this section shall only be made from federal earnings from 
124.2   services provided under this section.  Payments to contracted 
124.3   vendors shall include both the federal earnings and the county 
124.4   share. 
124.5      (i) Notwithstanding section 256B.041, county payments for 
124.6   the cost of case management services provided by county staff 
124.7   shall not be made to the state treasurer.  For the purposes of 
124.8   targeted case management services provided by county staff under 
124.9   this section, the centralized disbursement of payments to 
124.10  counties under section 256B.041 consists only of federal 
124.11  earnings from services provided under this section. 
124.12     (j) If the recipient is a resident of a nursing facility, 
124.13  intermediate care facility, or hospital, and the recipient's 
124.14  institutional care is paid by medical assistance, payment for 
124.15  targeted case management services under this subdivision is 
124.16  limited to the last 180 days of the recipient's residency in 
124.17  that facility and may not exceed more than six months in a 
124.18  calendar year. 
124.19     (k) Payment for targeted case management services under 
124.20  this subdivision shall not duplicate payments made under other 
124.21  program authorities for the same purpose. 
124.22     (l) Any growth in targeted case management services and 
124.23  cost increases under this section shall be the responsibility of 
124.24  the counties. 
124.25     Subd. 7.  [IMPLEMENTATION AND EVALUATION.] The commissioner 
124.26  of human services in consultation with county boards shall 
124.27  establish a program to accomplish the provisions of subdivisions 
124.28  1 to 6.  The commissioner in consultation with county boards 
124.29  shall establish performance measures to evaluate the 
124.30  effectiveness of the targeted case management services.  If a 
124.31  county fails to meet agreed upon performance measures, the 
124.32  commissioner may authorize contracted providers other than the 
124.33  county.  Providers contracted by the commissioner shall also be 
124.34  subject to the standards in subdivision 6. 
124.35     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
124.36     Sec. 45.  Minnesota Statutes 2000, section 256B.19, 
125.1   subdivision 1c, is amended to read: 
125.2      Subd. 1c.  [ADDITIONAL PORTION OF NONFEDERAL SHARE.] In 
125.3   addition to any payment required under subdivision 1b, (a) 
125.4   Hennepin county shall be responsible for a monthly transfer 
125.5   payment of $1,500,000, due before noon on the 15th of each month 
125.6   and the University of Minnesota shall be responsible for a 
125.7   monthly transfer payment of $500,000 due before noon on the 15th 
125.8   of each month, beginning July 15, 1995.  These sums shall be 
125.9   part of the designated governmental unit's portion of the 
125.10  nonfederal share of medical assistance costs, but shall not be 
125.11  subject to payback provisions of section 256.025. 
125.12     (b) Beginning July 1, 2001, Hennepin county's payment under 
125.13  paragraph (a) shall be $2,066,000 each month. 
125.14     (c) Beginning July 1, 2001, the commissioner shall increase 
125.15  annual capitation payments to metropolitan health plan under 
125.16  section 256B.69 for the prepaid medical assistance program by 
125.17  approximately $3,400,000, plus any available federal matching 
125.18  funds, to recognize higher than average medical education costs. 
125.19     Sec. 46.  [256B.195] [ADDITIONAL INTERGOVERNMENTAL 
125.20  TRANSFERS; HOSPITAL PAYMENTS.] 
125.21     Subdivision 1.  [FEDERAL APPROVAL REQUIRED.] Sections 
125.22  145.9268, 256.969, subdivision 26, and this section are 
125.23  contingent on federal approval of the intergovernmental 
125.24  transfers and payments to safety net hospitals and community 
125.25  clinics authorized under this section.  These sections are also 
125.26  contingent on current payment, by the government entities, of 
125.27  intergovernmental transfers under section 256B.19 and this 
125.28  section. 
125.29     Subd. 2.  [PAYMENTS FROM GOVERNMENTAL ENTITIES.] (a) In 
125.30  addition to any payment required under section 256B.19, 
125.31  effective July 15, 2001, the following government entities shall 
125.32  make the payments indicated before noon on the 15th of each 
125.33  month: 
125.34     (1) Hennepin county, $2,000,000; and 
125.35     (2) Ramsey county, $1,000,000. 
125.36     (b) These sums shall be part of the designated governmental 
126.1   unit's portion of the nonfederal share of medical assistance 
126.2   costs.  Of these payments, Hennepin county shall pay 71 percent 
126.3   directly to Hennepin County Medical Center, and Ramsey county 
126.4   shall pay 71 percent directly to Regions hospital.  The counties 
126.5   must provide certification to the commissioner of payments to 
126.6   hospitals under this subdivision. 
126.7      Subd. 3.  [PAYMENTS TO CERTAIN SAFETY NET PROVIDERS.] (a) 
126.8   Effective July 15, 2001, the commissioner shall make the 
126.9   following payments to the hospitals indicated after noon on the 
126.10  15th of each month: 
126.11     (1) to Hennepin County Medical Center, any federal matching 
126.12  funds available to match the payments received by the medical 
126.13  center under subdivision 2, to increase payments for medical 
126.14  assistance admissions and to recognize higher medical assistance 
126.15  costs in institutions that provide high levels of charity care; 
126.16  and 
126.17     (2) to Regions hospital, any federal matching funds 
126.18  available to match the payments received by the hospital under 
126.19  subdivision 2, to increase payments for medical assistance 
126.20  admissions and to recognize higher medical assistance costs in 
126.21  institutions that provide high levels of charity care.  
126.22     (b) Effective July 15, 2001, the following percentages of 
126.23  the transfers under subdivision 2 shall be retained by the 
126.24  commissioner for deposit each month into the general fund: 
126.25     (1) 18 percent, plus any federal matching funds, shall be 
126.26  allocated for the following purposes: 
126.27     (i) during the fiscal year beginning July 1, 2001, of the 
126.28  amount available under this clause, 39.7 percent shall be 
126.29  allocated to make increased hospital payments under section 
126.30  256.969, subdivision 26; 34.2 percent shall be allocated to fund 
126.31  the amounts due from small rural hospitals, as defined in 
126.32  section 144.148, for overpayments under section 256.969, 
126.33  subdivision 5a, resulting from a determination that medical 
126.34  assistance and general assistance payments exceeded the charge 
126.35  limit during the period from 1994 to 1997; and 26.1 percent 
126.36  shall be allocated to the commissioner of health for rural 
127.1   hospital capital improvement grants under section 144.148; and 
127.2      (ii) during fiscal years beginning on or after July 1, 
127.3   2002, of the amount available under this clause, 55 percent 
127.4   shall be allocated to make increased hospital payments under 
127.5   section 256.969, subdivision 26, and 45 percent shall be 
127.6   allocated to the commissioner of health for rural hospital 
127.7   capital improvement grants under section 144.148; and 
127.8      (2) 11 percent shall be allocated to the commissioner of 
127.9   health to fund community clinic grants under section 145.9268. 
127.10     (c) This subdivision shall apply to fee-for-service 
127.11  payments only and shall not increase capitation payments or 
127.12  payments made based on average rates. 
127.13     (d) Medical assistance rate or payment changes, including 
127.14  those required to obtain federal financial participation under 
127.15  section 62J.692, subdivision 8, shall precede the determination 
127.16  of intergovernmental transfer amounts determined in this 
127.17  subdivision.  Participation in the intergovernmental transfer 
127.18  program shall not result in the offset of any health care 
127.19  provider's receipt of medical assistance payment increases other 
127.20  than limits resulting from hospital-specific charge limits and 
127.21  limits on disproportionate share hospital payments. 
127.22     Subd. 4.  [ADJUSTMENTS PERMITTED.] (a) The commissioner may 
127.23  adjust the intergovernmental transfers under subdivision 2 and 
127.24  the payments under subdivision 3, and payments and transfers 
127.25  under subdivision 5, based on the commissioner's determination 
127.26  of Medicare upper payment limits, hospital-specific charge 
127.27  limits, and hospital-specific limitations on disproportionate 
127.28  share payments.  Any adjustments must be made on a proportional 
127.29  basis.  If participation by a particular hospital under this 
127.30  section is limited, the commissioner shall adjust the payments 
127.31  that relate to that hospital under subdivisions 2, 3, and 5 on a 
127.32  proportional basis in order to allow the hospital to participate 
127.33  under this section to the fullest extent possible and shall 
127.34  increase other payments under subdivisions 2, 3, and 5 to the 
127.35  extent allowable to maintain the overall level of payments under 
127.36  this section.  The commissioner may make adjustments under this 
128.1   subdivision only after consultation with the counties and 
128.2   hospitals identified in subdivisions 2 and 3, and, if 
128.3   subdivision 5 receives federal approval, with the hospital and 
128.4   educational institution identified in subdivision 5. 
128.5      (b) The ratio of medical assistance payments specified in 
128.6   subdivision 3 to the intergovernmental transfers specified in 
128.7   subdivision 2 shall not be reduced except as provided under 
128.8   paragraph (a). 
128.9      Subd. 5.  [INCLUSION OF FAIRVIEW UNIVERSITY MEDICAL 
128.10  CENTER.] (a) Upon federal approval of the inclusion of Fairview 
128.11  university medical center in the nonstate government category, 
128.12  the commissioner shall establish an intergovernmental transfer 
128.13  with the University of Minnesota in an amount determined by the 
128.14  commissioner based on the increase in the Medicare upper payment 
128.15  limit due solely to the inclusion of Fairview university medical 
128.16  center as a nonstate government hospital and limited by 
128.17  hospital-specific charge limits and the amount available under 
128.18  the hospital-specific disproportionate share limit. 
128.19     (b) The commissioner shall increase payments for medical 
128.20  assistance admissions at Fairview University Medical Center by 
128.21  71 percent of the transfer plus any federal matching payments on 
128.22  that amount, to increase payments for medical assistance 
128.23  admissions and to recognize higher medical assistance costs in 
128.24  institutions that provide high levels of charity care.  From 
128.25  this payment, Fairview University Medical Center shall pay to 
128.26  the University of Minnesota the cost of the transfer, on the 
128.27  same day the payment is received.  Eighteen percent of the 
128.28  transfer plus any federal matching payments shall be used as 
128.29  specified in subdivision 3, paragraph (b), clause (1).  Payments 
128.30  under section 256.969, subdivision 26, may be increased above 
128.31  the 90 percent level specified in that subdivision within the 
128.32  limits of additional funding available under this subdivision.  
128.33  Eleven percent of the transfer shall be used to increase the 
128.34  grants under section 145.9268. 
128.35     Sec. 47.  [256B.53] [DENTAL ACCESS GRANTS.] 
128.36     (a) The commissioner shall award grants to community 
129.1   clinics or other nonprofit community organizations, political 
129.2   subdivisions, professional associations, or other organizations 
129.3   that demonstrate the ability to provide dental services 
129.4   effectively to public program recipients.  Grants may be used to 
129.5   fund the costs related to coordinating access for recipients, 
129.6   developing and implementing patient care criteria, upgrading or 
129.7   establishing new facilities, acquiring furnishings or equipment, 
129.8   recruiting new providers, or other development costs that will 
129.9   improve access to dental care in a region.  
129.10     (b) In awarding grants, the commissioner shall give 
129.11  priority to applicants that plan to serve areas of the state in 
129.12  which the number of dental providers is not currently sufficient 
129.13  to meet the needs of recipients of public programs or uninsured 
129.14  individuals.  The commissioner shall consider the following in 
129.15  awarding the grants:  
129.16     (1) potential to successfully increase access to an 
129.17  underserved population; 
129.18     (2) the long-term viability of the project to improve 
129.19  access beyond the period of initial funding; 
129.20     (3) the efficiency in the use of the funding; and 
129.21     (4) the experience of the applicants in providing services 
129.22  to the target population. 
129.23     (c) The commissioner shall consider grants for the 
129.24  following: 
129.25     (1) implementation of new programs or continued expansion 
129.26  of current access programs that have demonstrated success in 
129.27  providing dental services in underserved areas; 
129.28     (2) a program for mobile or other types of outreach dental 
129.29  clinics in underserved geographic areas; 
129.30     (3) a program for school-based dental clinics in schools 
129.31  with high numbers of children receiving medical assistance; 
129.32     (4) a program testing new models of care that are sensitive 
129.33  to the cultural needs of the recipients; 
129.34     (5) a program creating new educational campaigns that 
129.35  inform individuals of the importance of good oral health and the 
129.36  link between dental disease and overall health status; 
130.1      (6) a program that organizes a network of volunteer 
130.2   dentists to provide dental services to public program recipients 
130.3   or uninsured individuals; and 
130.4      (7) a program that tests new delivery models by creating 
130.5   partnerships between local providers and county public health 
130.6   agencies.  
130.7      (d) The commissioner shall evaluate the effects of the 
130.8   dental access initiatives funded through the dental access 
130.9   grants and submit a report to the legislature by January 15, 
130.10  2003.  
130.11     Sec. 48.  [256B.55] [DENTAL ACCESS ADVISORY COMMITTEE.] 
130.12     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
130.13  establish a dental access advisory committee to monitor the 
130.14  purchasing, administration, and coverage of dental care services 
130.15  for the public health care programs to ensure dental care access 
130.16  and quality for public program recipients.  
130.17     Subd. 2.  [MEMBERSHIP.] (a) The membership of the advisory 
130.18  committee shall include, but is not limited to, representatives 
130.19  of dentists, including a dentist practicing in the seven-county 
130.20  metropolitan area and a dentist practicing outside the 
130.21  seven-county metropolitan area; oral surgeons; pediatric 
130.22  dentists; dental hygienists; community clinics; client advocacy 
130.23  groups; public health; health service plans; the University of 
130.24  Minnesota school of dentistry and the department of pediatrics; 
130.25  and the commissioner of health.  
130.26     (b) The advisory committee is governed by section 15.059 
130.27  for membership terms and removal of members.  Members shall not 
130.28  receive per diem compensation or reimbursement for expenses.  
130.29     Subd. 3.  [DUTIES.] The advisory committee shall provide 
130.30  recommendations on the following: 
130.31     (1) how to reduce the administrative burden governing 
130.32  dental care coverage policies in order to promote administrative 
130.33  simplification, including prior authorization, coverage limits, 
130.34  and co-payment collections; 
130.35     (2) developing and implementing an action plan to improve 
130.36  the oral health of children and persons with special needs in 
131.1   the state; 
131.2      (3) exploring alternative ways of purchasing and improving 
131.3   access to dental services; 
131.4      (4) developing ways to foster greater responsibility among 
131.5   health care program recipients in seeking and obtaining dental 
131.6   care, including initiatives to keep dental appointments and 
131.7   comply with dental care plans; 
131.8      (5) exploring innovative ways for dental providers to 
131.9   schedule public program patients in order to reduce or minimize 
131.10  the effect of appointment no shows; 
131.11     (6) exploring ways to meet the barriers that may be present 
131.12  in providing dental services to health care program recipients 
131.13  such as language, culture, disability, and lack of 
131.14  transportation; and 
131.15     (7) exploring the possibility of pediatricians, family 
131.16  physicians, and nurse practitioners providing basic oral health 
131.17  screenings and basic preventive dental services.  
131.18     Subd. 4.  [REPORT.] The commissioner shall submit a report 
131.19  by February 1, 2002, and by February 1, 2003, summarizing the 
131.20  activities and recommendations of the advisory committee. 
131.21     Subd. 5.  [SUNSET.] Notwithstanding section 15.059, 
131.22  subdivision 5, this section expires June 30, 2003.  
131.23     Sec. 49.  Minnesota Statutes 2000, section 256B.69, 
131.24  subdivision 4, is amended to read: 
131.25     Subd. 4.  [LIMITATION OF CHOICE.] (a) The commissioner 
131.26  shall develop criteria to determine when limitation of choice 
131.27  may be implemented in the experimental counties.  The criteria 
131.28  shall ensure that all eligible individuals in the county have 
131.29  continuing access to the full range of medical assistance 
131.30  services as specified in subdivision 6.  
131.31     (b) The commissioner shall exempt the following persons 
131.32  from participation in the project, in addition to those who do 
131.33  not meet the criteria for limitation of choice:  
131.34     (1) persons eligible for medical assistance according to 
131.35  section 256B.055, subdivision 1; 
131.36     (2) persons eligible for medical assistance due to 
132.1   blindness or disability as determined by the social security 
132.2   administration or the state medical review team, unless:  
132.3      (i) they are 65 years of age or older,; or 
132.4      (ii) they reside in Itasca county or they reside in a 
132.5   county in which the commissioner conducts a pilot project under 
132.6   a waiver granted pursuant to section 1115 of the Social Security 
132.7   Act; 
132.8      (3) recipients who currently have private coverage through 
132.9   a health maintenance organization; 
132.10     (4) recipients who are eligible for medical assistance by 
132.11  spending down excess income for medical expenses other than the 
132.12  nursing facility per diem expense; 
132.13     (5) recipients who receive benefits under the Refugee 
132.14  Assistance Program, established under United States Code, title 
132.15  8, section 1522(e); 
132.16     (6) children who are both determined to be severely 
132.17  emotionally disturbed and receiving case management services 
132.18  according to section 256B.0625, subdivision 20; and 
132.19     (7) adults who are both determined to be seriously and 
132.20  persistently mentally ill and received case management services 
132.21  according to section 256B.0625, subdivision 20; and 
132.22     (8) persons eligible for medical assistance according to 
132.23  section 256B.057, subdivision 10.  
132.24  Children under age 21 who are in foster placement may enroll in 
132.25  the project on an elective basis.  Individuals excluded under 
132.26  clauses (6) and (7) may choose to enroll on an elective basis.  
132.27     (c) The commissioner may allow persons with a one-month 
132.28  spenddown who are otherwise eligible to enroll to voluntarily 
132.29  enroll or remain enrolled, if they elect to prepay their monthly 
132.30  spenddown to the state.  
132.31     (d) Beginning on or after July 1, 1997, The commissioner 
132.32  may require those individuals to enroll in the prepaid medical 
132.33  assistance program who otherwise would have been excluded 
132.34  under paragraph (b), clauses (1) and, (3), and (8), and under 
132.35  Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L.  
132.36     (e) Before limitation of choice is implemented, eligible 
133.1   individuals shall be notified and after notification, shall be 
133.2   allowed to choose only among demonstration providers.  The 
133.3   commissioner may assign an individual with private coverage 
133.4   through a health maintenance organization, to the same health 
133.5   maintenance organization for medical assistance coverage, if the 
133.6   health maintenance organization is under contract for medical 
133.7   assistance in the individual's county of residence.  After 
133.8   initially choosing a provider, the recipient is allowed to 
133.9   change that choice only at specified times as allowed by the 
133.10  commissioner.  If a demonstration provider ends participation in 
133.11  the project for any reason, a recipient enrolled with that 
133.12  provider must select a new provider but may change providers 
133.13  without cause once more within the first 60 days after 
133.14  enrollment with the second provider. 
133.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
133.16     Sec. 50.  Minnesota Statutes 2000, section 256B.69, 
133.17  subdivision 5c, is amended to read: 
133.18     Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH FUND.] (a) 
133.19  Beginning in January 1999 and each year thereafter: 
133.20     (1) The commissioner of human services shall transfer an 
133.21  amount equal to the reduction in the prepaid medical assistance 
133.22  and prepaid general assistance medical care payments resulting 
133.23  from clause (2), excluding nursing facility and elderly waiver 
133.24  payments and demonstration projects operating under subdivision 
133.25  23, to the medical education and research fund established under 
133.26  section 62J.692; each year to the medical education and research 
133.27  fund established under section 62J.692, the following: 
133.28     (2) (1) an amount equal to the reduction in the prepaid 
133.29  medical assistance and prepaid general assistance medical care 
133.30  payments as specified in this clause.  Until January 1, 2002, 
133.31  the county medical assistance and general assistance medical 
133.32  care capitation base rate prior to plan specific adjustments and 
133.33  after the regional rate adjustments under section 256B.69, 
133.34  subdivision 5b, shall be is reduced 6.3 percent for Hennepin 
133.35  county, two percent for the remaining metropolitan counties, and 
133.36  no reduction for nonmetropolitan Minnesota counties; and after 
134.1   January 1, 2002, the county medical assistance and general 
134.2   assistance medical care capitation base rate prior to plan 
134.3   specific adjustments shall be is reduced 6.3 percent for 
134.4   Hennepin county, two percent for the remaining metropolitan 
134.5   counties, and 1.6 percent for nonmetropolitan Minnesota 
134.6   counties.  Nursing facility and elderly waiver payments and 
134.7   demonstration project payments operating under subdivision 23 
134.8   are excluded from this reduction.  The amount calculated under 
134.9   this clause shall not be adjusted for periods already paid due 
134.10  to subsequent changes to the capitation payments; and 
134.11     (2) beginning July 1, 2001, $2,537,000 from the capitation 
134.12  rates paid under this section plus any federal matching funds on 
134.13  this amount.  
134.14     (3) the amount calculated under clause (1) shall not be 
134.15  adjusted for subsequent changes to the capitation payments for 
134.16  periods already paid. 
134.17     (b) This subdivision shall be effective upon approval of a 
134.18  federal waiver which allows federal financial participation in 
134.19  the medical education and research fund. 
134.20     Sec. 51.  Minnesota Statutes 2000, section 256B.69, is 
134.21  amended by adding a subdivision to read: 
134.22     Subd. 6c.  [DENTAL SERVICES DEMONSTRATION PROJECT.] The 
134.23  commissioner shall establish a dental services demonstration 
134.24  project in Crow Wing, Todd, Morrison, Wadena, and Cass counties 
134.25  for provision of dental services to medical assistance, general 
134.26  assistance medical care, and MinnesotaCare recipients.  The 
134.27  commissioner may contract on a prospective per capita payment 
134.28  basis for these dental services with an organization licensed 
134.29  under chapter 62C, 62D, or 62N in accordance with section 
134.30  256B.037 or may establish and administer a fee-for-service 
134.31  system for the reimbursement of dental services.  
134.32     Sec. 52.  Minnesota Statutes 2000, section 256B.69, 
134.33  subdivision 23, is amended to read: 
134.34     Subd. 23.  [ALTERNATIVE INTEGRATED LONG-TERM CARE SERVICES; 
134.35  ELDERLY AND DISABLED PERSONS.] (a) The commissioner may 
134.36  implement demonstration projects to create alternative 
135.1   integrated delivery systems for acute and long-term care 
135.2   services to elderly persons and persons with disabilities as 
135.3   defined in section 256B.77, subdivision 7a, that provide 
135.4   increased coordination, improve access to quality services, and 
135.5   mitigate future cost increases.  The commissioner may seek 
135.6   federal authority to combine Medicare and Medicaid capitation 
135.7   payments for the purpose of such demonstrations.  Medicare funds 
135.8   and services shall be administered according to the terms and 
135.9   conditions of the federal waiver and demonstration provisions.  
135.10  For the purpose of administering medical assistance funds, 
135.11  demonstrations under this subdivision are subject to 
135.12  subdivisions 1 to 22.  The provisions of Minnesota Rules, parts 
135.13  9500.1450 to 9500.1464, apply to these demonstrations, with the 
135.14  exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, 
135.15  subpart 1, items B and C, which do not apply to persons 
135.16  enrolling in demonstrations under this section.  An initial open 
135.17  enrollment period may be provided.  Persons who disenroll from 
135.18  demonstrations under this subdivision remain subject to 
135.19  Minnesota Rules, parts 9500.1450 to 9500.1464.  When a person is 
135.20  enrolled in a health plan under these demonstrations and the 
135.21  health plan's participation is subsequently terminated for any 
135.22  reason, the person shall be provided an opportunity to select a 
135.23  new health plan and shall have the right to change health plans 
135.24  within the first 60 days of enrollment in the second health 
135.25  plan.  Persons required to participate in health plans under 
135.26  this section who fail to make a choice of health plan shall not 
135.27  be randomly assigned to health plans under these demonstrations. 
135.28  Notwithstanding section 256L.12, subdivision 5, and Minnesota 
135.29  Rules, part 9505.5220, subpart 1, item A, if adopted, for the 
135.30  purpose of demonstrations under this subdivision, the 
135.31  commissioner may contract with managed care organizations, 
135.32  including counties, to serve only elderly persons eligible for 
135.33  medical assistance, elderly and disabled persons, or disabled 
135.34  persons only.  For persons with primary diagnoses of mental 
135.35  retardation or a related condition, serious and persistent 
135.36  mental illness, or serious emotional disturbance, the 
136.1   commissioner must ensure that the county authority has approved 
136.2   the demonstration and contracting design.  Enrollment in these 
136.3   projects for persons with disabilities shall be voluntary until 
136.4   July 1, 2001.  The commissioner shall not implement any 
136.5   demonstration project under this subdivision for persons with 
136.6   primary diagnoses of mental retardation or a related condition, 
136.7   serious and persistent mental illness, or serious emotional 
136.8   disturbance, without approval of the county board of the county 
136.9   in which the demonstration is being implemented. 
136.10     Before implementation of a demonstration project for 
136.11  disabled persons, the commissioner must provide information to 
136.12  appropriate committees of the house of representatives and 
136.13  senate and must involve representatives of affected disability 
136.14  groups in the design of the demonstration projects. 
136.15     (b) A nursing facility reimbursed under the alternative 
136.16  reimbursement methodology in section 256B.434 may, in 
136.17  collaboration with a hospital, clinic, or other health care 
136.18  entity provide services under paragraph (a).  The commissioner 
136.19  shall amend the state plan and seek any federal waivers 
136.20  necessary to implement this paragraph.  
136.21     Sec. 53.  Minnesota Statutes 2000, section 256B.75, is 
136.22  amended to read: 
136.23     256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 
136.24     (a) For outpatient hospital facility fee payments for 
136.25  services rendered on or after October 1, 1992, the commissioner 
136.26  of human services shall pay the lower of (1) submitted charge, 
136.27  or (2) 32 percent above the rate in effect on June 30, 1992, 
136.28  except for those services for which there is a federal maximum 
136.29  allowable payment.  Effective for services rendered on or after 
136.30  January 1, 2000, payment rates for nonsurgical outpatient 
136.31  hospital facility fees and emergency room facility fees shall be 
136.32  increased by eight percent over the rates in effect on December 
136.33  31, 1999, except for those services for which there is a federal 
136.34  maximum allowable payment.  Services for which there is a 
136.35  federal maximum allowable payment shall be paid at the lower of 
136.36  (1) submitted charge, or (2) the federal maximum allowable 
137.1   payment.  Total aggregate payment for outpatient hospital 
137.2   facility fee services shall not exceed the Medicare upper 
137.3   limit.  If it is determined that a provision of this section 
137.4   conflicts with existing or future requirements of the United 
137.5   States government with respect to federal financial 
137.6   participation in medical assistance, the federal requirements 
137.7   prevail.  The commissioner may, in the aggregate, prospectively 
137.8   reduce payment rates to avoid reduced federal financial 
137.9   participation resulting from rates that are in excess of the 
137.10  Medicare upper limitations. 
137.11     (b) Notwithstanding paragraph (a), payment for outpatient, 
137.12  emergency, and ambulatory surgery hospital facility fee services 
137.13  for critical access hospitals designated under section 144.1483, 
137.14  clause (11), shall be paid on a cost-based payment system that 
137.15  is based on the cost-finding methods and allowable costs of the 
137.16  Medicare program. 
137.17     (c) Effective for services provided on or after July 1, 
137.18  2002, rates that are based on the Medicare outpatient 
137.19  prospective payment system shall be replaced by a budget neutral 
137.20  prospective payment system that is derived using medical 
137.21  assistance data.  The commissioner shall provide a proposal to 
137.22  the 2002 legislature to define and implement this provision. 
137.23     Sec. 54.  Minnesota Statutes 2000, section 256B.76, is 
137.24  amended to read: 
137.25     256B.76 [PHYSICIAN AND DENTAL REIMBURSEMENT.] 
137.26     (a) Effective for services rendered on or after October 1, 
137.27  1992, the commissioner shall make payments for physician 
137.28  services as follows: 
137.29     (1) payment for level one Health Care Finance 
137.30  Administration's common procedural coding system (HCPCS) codes 
137.31  titled "office and other outpatient services," "preventive 
137.32  medicine new and established patient," "delivery, antepartum, 
137.33  and postpartum care," "critical care," Caesarean cesarean 
137.34  delivery and pharmacologic management provided to psychiatric 
137.35  patients, and HCPCS level three codes for enhanced services for 
137.36  prenatal high risk, shall be paid at the lower of (i) submitted 
138.1   charges, or (ii) 25 percent above the rate in effect on June 30, 
138.2   1992.  If the rate on any procedure code within these categories 
138.3   is different than the rate that would have been paid under the 
138.4   methodology in section 256B.74, subdivision 2, then the larger 
138.5   rate shall be paid; 
138.6      (2) payments for all other services shall be paid at the 
138.7   lower of (i) submitted charges, or (ii) 15.4 percent above the 
138.8   rate in effect on June 30, 1992; 
138.9      (3) all physician rates shall be converted from the 50th 
138.10  percentile of 1982 to the 50th percentile of 1989, less the 
138.11  percent in aggregate necessary to equal the above increases 
138.12  except that payment rates for home health agency services shall 
138.13  be the rates in effect on September 30, 1992; 
138.14     (4) effective for services rendered on or after January 1, 
138.15  2000, payment rates for physician and professional services 
138.16  shall be increased by three percent over the rates in effect on 
138.17  December 31, 1999, except for home health agency and family 
138.18  planning agency services; and 
138.19     (5) the increases in clause (4) shall be implemented 
138.20  January 1, 2000, for managed care. 
138.21     (b) Effective for services rendered on or after October 1, 
138.22  1992, the commissioner shall make payments for dental services 
138.23  as follows: 
138.24     (1) dental services shall be paid at the lower of (i) 
138.25  submitted charges, or (ii) 25 percent above the rate in effect 
138.26  on June 30, 1992; 
138.27     (2) dental rates shall be converted from the 50th 
138.28  percentile of 1982 to the 50th percentile of 1989, less the 
138.29  percent in aggregate necessary to equal the above increases; 
138.30     (3) effective for services rendered on or after January 1, 
138.31  2000, payment rates for dental services shall be increased by 
138.32  three percent over the rates in effect on December 31, 1999; 
138.33     (4) the commissioner shall award grants to community 
138.34  clinics or other nonprofit community organizations, political 
138.35  subdivisions, professional associations, or other organizations 
138.36  that demonstrate the ability to provide dental services 
139.1   effectively to public program recipients.  Grants may be used to 
139.2   fund the costs related to coordinating access for recipients, 
139.3   developing and implementing patient care criteria, upgrading or 
139.4   establishing new facilities, acquiring furnishings or equipment, 
139.5   recruiting new providers, or other development costs that will 
139.6   improve access to dental care in a region.  In awarding grants, 
139.7   the commissioner shall give priority to applicants that plan to 
139.8   serve areas of the state in which the number of dental providers 
139.9   is not currently sufficient to meet the needs of recipients of 
139.10  public programs or uninsured individuals.  The commissioner 
139.11  shall consider the following in awarding the grants:  (i) 
139.12  potential to successfully increase access to an underserved 
139.13  population; (ii) the ability to raise matching funds; (iii) the 
139.14  long-term viability of the project to improve access beyond the 
139.15  period of initial funding; (iv) the efficiency in the use of the 
139.16  funding; and (v) the experience of the proposers in providing 
139.17  services to the target population. 
139.18     The commissioner shall monitor the grants and may terminate 
139.19  a grant if the grantee does not increase dental access for 
139.20  public program recipients.  The commissioner shall consider 
139.21  grants for the following: 
139.22     (i) implementation of new programs or continued expansion 
139.23  of current access programs that have demonstrated success in 
139.24  providing dental services in underserved areas; 
139.25     (ii) a pilot program for utilizing hygienists outside of a 
139.26  traditional dental office to provide dental hygiene services; 
139.27  and 
139.28     (iii) a program that organizes a network of volunteer 
139.29  dentists, establishes a system to refer eligible individuals to 
139.30  volunteer dentists, and through that network provides donated 
139.31  dental care services to public program recipients or uninsured 
139.32  individuals. 
139.33     (5) beginning October 1, 1999, the payment for tooth 
139.34  sealants and fluoride treatments shall be the lower of (i) 
139.35  submitted charge, or (ii) 80 percent of median 1997 charges; and 
139.36     (6) the increases listed in clauses (3) and (5) shall be 
140.1   implemented January 1, 2000, for managed care; and 
140.2      (7) effective for services provided on or after January 1, 
140.3   2002, payment for diagnostic examinations and dental x-rays 
140.4   provided to children under age 21 shall be the lower of (i) the 
140.5   submitted charge, or (ii) 85 percent of median 1999 charges.  
140.6      (c) Effective for dental services rendered on or after 
140.7   January 1, 2002, the commissioner may, within the limits of 
140.8   available appropriation, increase reimbursements to dentists and 
140.9   dental clinics deemed by the commissioner to be critical access 
140.10  dental providers.  Reimbursement to a critical access dental 
140.11  provider may be increased by not more than 50 percent above the 
140.12  reimbursement rate that would otherwise be paid to the 
140.13  provider.  Payments to health plan companies shall be adjusted 
140.14  to reflect increased reimbursements to critical access dental 
140.15  providers as approved by the commissioner.  In determining which 
140.16  dentists and dental clinics shall be deemed critical access 
140.17  dental providers, the commissioner shall review: 
140.18     (1) the utilization rate in the service area in which the 
140.19  dentist or dental clinic operates for dental services to 
140.20  patients covered by medical assistance, general assistance 
140.21  medical care, or MinnesotaCare as their primary source of 
140.22  coverage; 
140.23     (2) the level of services provided by the dentist or dental 
140.24  clinic to patients covered by medical assistance, general 
140.25  assistance medical care, or MinnesotaCare as their primary 
140.26  source of coverage; and 
140.27     (3) whether the level of services provided by the dentist 
140.28  or dental clinic is critical to maintaining adequate levels of 
140.29  patient access within the service area. 
140.30  In the absence of a critical access dental provider in a service 
140.31  area, the commissioner may designate a dentist or dental clinic 
140.32  as a critical access dental provider if the dentist or dental 
140.33  clinic is willing to provide care to patients covered by medical 
140.34  assistance, general assistance medical care, or MinnesotaCare at 
140.35  a level which significantly increases access to dental care in 
140.36  the service area. 
141.1      (d) An entity that operates both a Medicare certified 
141.2   comprehensive outpatient rehabilitation facility and a facility 
141.3   which was certified prior to January 1, 1993, that is licensed 
141.4   under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
141.5   whom at least 33 percent of the clients receiving rehabilitation 
141.6   services in the most recent calendar year are medical assistance 
141.7   recipients, shall be reimbursed by the commissioner for 
141.8   rehabilitation services at rates that are 38 percent greater 
141.9   than the maximum reimbursement rate allowed under paragraph (a), 
141.10  clause (2), when those services are (1) provided within the 
141.11  comprehensive outpatient rehabilitation facility and (2) 
141.12  provided to residents of nursing facilities owned by the entity. 
141.13     Sec. 55.  [256B.78] [MEDICAL ASSISTANCE DEMONSTRATION 
141.14  PROJECT FOR FAMILY PLANNING SERVICES.] 
141.15     (a) The commissioner of human services shall establish a 
141.16  medical assistance demonstration project to determine whether 
141.17  improved access to coverage of prepregnancy family planning 
141.18  services reduces medical assistance and MFIP costs. 
141.19     (b) This section is effective upon federal approval of the 
141.20  demonstration project. 
141.21     Sec. 56.  Minnesota Statutes 2000, section 256D.03, 
141.22  subdivision 3, is amended to read: 
141.23     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
141.24  (a) General assistance medical care may be paid for any person 
141.25  who is not eligible for medical assistance under chapter 256B, 
141.26  including eligibility for medical assistance based on a 
141.27  spenddown of excess income according to section 256B.056, 
141.28  subdivision 5, or MinnesotaCare as defined in paragraph (b), 
141.29  except as provided in paragraph (c); and: 
141.30     (1) who is receiving assistance under section 256D.05, 
141.31  except for families with children who are eligible under 
141.32  Minnesota family investment program-statewide (MFIP-S), who is 
141.33  having a payment made on the person's behalf under sections 
141.34  256I.01 to 256I.06, or who resides in group residential housing 
141.35  as defined in chapter 256I and can meet a spenddown using the 
141.36  cost of remedial services received through group residential 
142.1   housing; or 
142.2      (2)(i) who is a resident of Minnesota; and whose equity in 
142.3   assets is not in excess of $1,000 per assistance unit.  Exempt 
142.4   assets, the reduction of excess assets, and the waiver of excess 
142.5   assets must conform to the medical assistance program in chapter 
142.6   256B, with the following exception:  the maximum amount of 
142.7   undistributed funds in a trust that could be distributed to or 
142.8   on behalf of the beneficiary by the trustee, assuming the full 
142.9   exercise of the trustee's discretion under the terms of the 
142.10  trust, must be applied toward the asset maximum; and 
142.11     (ii) who has countable income not in excess of the 
142.12  assistance standards established in section 256B.056, 
142.13  subdivision 4 5c, paragraph (b), or whose excess income is spent 
142.14  down according to section 256B.056, subdivision 5, to that 
142.15  standard using a six-month budget period.  The method for 
142.16  calculating earned income disregards and deductions for a person 
142.17  who resides with a dependent child under age 21 shall 
142.18  follow section 256B.056, subdivision 1a.  However, if a 
142.19  disregard of $30 and one-third of the remainder has been applied 
142.20  to the wage earner's income, the disregard shall not be applied 
142.21  again until the wage earner's income has not been considered in 
142.22  an eligibility determination for general assistance, general 
142.23  assistance medical care, medical assistance, or MFIP-S for 12 
142.24  consecutive months the AFDC income disregard and deductions in 
142.25  effect under the July 16, 1996, AFDC state plan.  The earned 
142.26  income and work expense deductions for a person who does not 
142.27  reside with a dependent child under age 21 shall be the same as 
142.28  the method used to determine eligibility for a person under 
142.29  section 256D.06, subdivision 1, except the disregard of the 
142.30  first $50 of earned income is not allowed; 
142.31     (3) who would be eligible for medical assistance except 
142.32  that the person resides in a facility that is determined by the 
142.33  commissioner or the federal Health Care Financing Administration 
142.34  to be an institution for mental diseases; or 
142.35     (4) who is ineligible for medical assistance under chapter 
142.36  256B or general assistance medical care under any other 
143.1   provision of this section, and is receiving care and 
143.2   rehabilitation services from a nonprofit center established to 
143.3   serve victims of torture.  These individuals are eligible for 
143.4   general assistance medical care only for the period during which 
143.5   they are receiving services from the center.  During this period 
143.6   of eligibility, individuals eligible under this clause shall not 
143.7   be required to participate in prepaid general assistance medical 
143.8   care.  
143.9      (b) Beginning January 1, 2000, applicants or recipients who 
143.10  meet all eligibility requirements of MinnesotaCare as defined in 
143.11  sections 256L.01 to 256L.16, and are: 
143.12     (i) adults with dependent children under 21 whose gross 
143.13  family income is equal to or less than 275 percent of the 
143.14  federal poverty guidelines; or 
143.15     (ii) adults without children with earned income and whose 
143.16  family gross income is between 75 percent of the federal poverty 
143.17  guidelines and the amount set by section 256L.04, subdivision 7, 
143.18  shall be terminated from general assistance medical care upon 
143.19  enrollment in MinnesotaCare. 
143.20     (c) For services rendered on or after July 1, 1997, 
143.21  eligibility is limited to one month prior to application if the 
143.22  person is determined eligible in the prior month.  A 
143.23  redetermination of eligibility must occur every 12 months.  
143.24  Beginning January 1, 2000, Minnesota health care program 
143.25  applications completed by recipients and applicants who are 
143.26  persons described in paragraph (b), may be returned to the 
143.27  county agency to be forwarded to the department of human 
143.28  services or sent directly to the department of human services 
143.29  for enrollment in MinnesotaCare.  If all other eligibility 
143.30  requirements of this subdivision are met, eligibility for 
143.31  general assistance medical care shall be available in any month 
143.32  during which a MinnesotaCare eligibility determination and 
143.33  enrollment are pending.  Upon notification of eligibility for 
143.34  MinnesotaCare, notice of termination for eligibility for general 
143.35  assistance medical care shall be sent to an applicant or 
143.36  recipient.  If all other eligibility requirements of this 
144.1   subdivision are met, eligibility for general assistance medical 
144.2   care shall be available until enrollment in MinnesotaCare 
144.3   subject to the provisions of paragraph (e). 
144.4      (d) The date of an initial Minnesota health care program 
144.5   application necessary to begin a determination of eligibility 
144.6   shall be the date the applicant has provided a name, address, 
144.7   and social security number, signed and dated, to the county 
144.8   agency or the department of human services.  If the applicant is 
144.9   unable to provide an initial application when health care is 
144.10  delivered due to a medical condition or disability, a health 
144.11  care provider may act on the person's behalf to complete the 
144.12  initial application.  The applicant must complete the remainder 
144.13  of the application and provide necessary verification before 
144.14  eligibility can be determined.  The county agency must assist 
144.15  the applicant in obtaining verification if necessary.  On the 
144.16  basis of information provided on the completed application, an 
144.17  applicant who meets the following criteria shall be determined 
144.18  eligible beginning in the month of application: 
144.19     (1) has gross income less than 90 percent of the applicable 
144.20  income standard; 
144.21     (2) has liquid assets that total within $300 of the asset 
144.22  standard; 
144.23     (3) does not reside in a long-term care facility; and 
144.24     (4) meets all other eligibility requirements. 
144.25  The applicant must provide all required verifications within 30 
144.26  days' notice of the eligibility determination or eligibility 
144.27  shall be terminated. 
144.28     (e) County agencies are authorized to use all automated 
144.29  databases containing information regarding recipients' or 
144.30  applicants' income in order to determine eligibility for general 
144.31  assistance medical care or MinnesotaCare.  Such use shall be 
144.32  considered sufficient in order to determine eligibility and 
144.33  premium payments by the county agency. 
144.34     (f) General assistance medical care is not available for a 
144.35  person in a correctional facility unless the person is detained 
144.36  by law for less than one year in a county correctional or 
145.1   detention facility as a person accused or convicted of a crime, 
145.2   or admitted as an inpatient to a hospital on a criminal hold 
145.3   order, and the person is a recipient of general assistance 
145.4   medical care at the time the person is detained by law or 
145.5   admitted on a criminal hold order and as long as the person 
145.6   continues to meet other eligibility requirements of this 
145.7   subdivision.  
145.8      (g) General assistance medical care is not available for 
145.9   applicants or recipients who do not cooperate with the county 
145.10  agency to meet the requirements of medical assistance.  General 
145.11  assistance medical care is limited to payment of emergency 
145.12  services only for applicants or recipients as described in 
145.13  paragraph (b), whose MinnesotaCare coverage is denied or 
145.14  terminated for nonpayment of premiums as required by sections 
145.15  256L.06 and 256L.07.  
145.16     (h) In determining the amount of assets of an individual, 
145.17  there shall be included any asset or interest in an asset, 
145.18  including an asset excluded under paragraph (a), that was given 
145.19  away, sold, or disposed of for less than fair market value 
145.20  within the 60 months preceding application for general 
145.21  assistance medical care or during the period of eligibility.  
145.22  Any transfer described in this paragraph shall be presumed to 
145.23  have been for the purpose of establishing eligibility for 
145.24  general assistance medical care, unless the individual furnishes 
145.25  convincing evidence to establish that the transaction was 
145.26  exclusively for another purpose.  For purposes of this 
145.27  paragraph, the value of the asset or interest shall be the fair 
145.28  market value at the time it was given away, sold, or disposed 
145.29  of, less the amount of compensation received.  For any 
145.30  uncompensated transfer, the number of months of ineligibility, 
145.31  including partial months, shall be calculated by dividing the 
145.32  uncompensated transfer amount by the average monthly per person 
145.33  payment made by the medical assistance program to skilled 
145.34  nursing facilities for the previous calendar year.  The 
145.35  individual shall remain ineligible until this fixed period has 
145.36  expired.  The period of ineligibility may exceed 30 months, and 
146.1   a reapplication for benefits after 30 months from the date of 
146.2   the transfer shall not result in eligibility unless and until 
146.3   the period of ineligibility has expired.  The period of 
146.4   ineligibility begins in the month the transfer was reported to 
146.5   the county agency, or if the transfer was not reported, the 
146.6   month in which the county agency discovered the transfer, 
146.7   whichever comes first.  For applicants, the period of 
146.8   ineligibility begins on the date of the first approved 
146.9   application. 
146.10     (i) When determining eligibility for any state benefits 
146.11  under this subdivision, the income and resources of all 
146.12  noncitizens shall be deemed to include their sponsor's income 
146.13  and resources as defined in the Personal Responsibility and Work 
146.14  Opportunity Reconciliation Act of 1996, title IV, Public Law 
146.15  Number 104-193, sections 421 and 422, and subsequently set out 
146.16  in federal rules. 
146.17     (j)(1) An undocumented noncitizen or a nonimmigrant is 
146.18  ineligible for general assistance medical care other than 
146.19  emergency services.  For purposes of this subdivision, a 
146.20  nonimmigrant is an individual in one or more of the classes 
146.21  listed in United States Code, title 8, section 1101(a)(15), and 
146.22  an undocumented noncitizen is an individual who resides in the 
146.23  United States without the approval or acquiescence of the 
146.24  Immigration and Naturalization Service. 
146.25     (2) This paragraph does not apply to a child under age 18, 
146.26  to a Cuban or Haitian entrant as defined in Public Law Number 
146.27  96-422, section 501(e)(1) or (2)(a), or to a noncitizen who is 
146.28  aged, blind, or disabled as defined in Code of Federal 
146.29  Regulations, title 42, sections 435.520, 435.530, 435.531, 
146.30  435.540, and 435.541, or effective October 1, 1998, to an 
146.31  individual eligible for general assistance medical care under 
146.32  paragraph (a), clause (4), who cooperates with the Immigration 
146.33  and Naturalization Service to pursue any applicable immigration 
146.34  status, including citizenship, that would qualify the individual 
146.35  for medical assistance with federal financial participation. 
146.36     (k) For purposes of paragraphs (g) and (j), "emergency 
147.1   services" has the meaning given in Code of Federal Regulations, 
147.2   title 42, section 440.255(b)(1), except that it also means 
147.3   services rendered because of suspected or actual pesticide 
147.4   poisoning. 
147.5      (l) Notwithstanding any other provision of law, a 
147.6   noncitizen who is ineligible for medical assistance due to the 
147.7   deeming of a sponsor's income and resources, is ineligible for 
147.8   general assistance medical care. 
147.9      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
147.10     Sec. 57.  Minnesota Statutes 2000, section 256J.31, 
147.11  subdivision 12, is amended to read: 
147.12     Subd. 12.  [RIGHT TO DISCONTINUE CASH ASSISTANCE.] A 
147.13  participant who is not in vendor payment status may discontinue 
147.14  receipt of the cash assistance portion of the MFIP assistance 
147.15  grant and retain eligibility for child care assistance under 
147.16  section 119B.05 and for medical assistance under sections 
147.17  256B.055, subdivision 3a, and 256B.0635.  For the months a 
147.18  participant chooses to discontinue the receipt of the cash 
147.19  portion of the MFIP grant, the assistance unit accrues months of 
147.20  eligibility to be applied toward eligibility for child care 
147.21  under section 119B.05 and for medical assistance under sections 
147.22  256B.055, subdivision 3a, and 256B.0635. 
147.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
147.24     Sec. 58.  Minnesota Statutes 2000, section 256K.03, 
147.25  subdivision 1, is amended to read: 
147.26     Subdivision 1.  [NOTIFICATION OF PROGRAM.] Except for the 
147.27  provisions in this section, the provisions for the MFIP 
147.28  application process shall be followed.  Within two days after 
147.29  receipt of a completed combined application form, the county 
147.30  agency must refer to the provider the applicant who meets the 
147.31  conditions under section 256K.02, and notify the applicant in 
147.32  writing of the program including the following provisions: 
147.33     (1) notification that, as part of the application process, 
147.34  applicants are required to attend orientation, to be followed 
147.35  immediately by a job search; 
147.36     (2) the program provider, the date, time, and location of 
148.1   the scheduled program orientation; 
148.2      (3) the procedures for qualifying for and receiving 
148.3   benefits under the program; 
148.4      (4) the immediate availability of supportive services, 
148.5   including, but not limited to, child care, transportation, 
148.6   medical assistance, and other work-related aid; and 
148.7      (5) the rights, responsibilities, and obligations of 
148.8   participants in the program, including, but not limited to, the 
148.9   grounds for exemptions and deferrals, the consequences for 
148.10  refusing or failing to participate fully, and the appeal process.
148.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
148.12     Sec. 59.  Minnesota Statutes 2000, section 256K.07, is 
148.13  amended to read: 
148.14     256K.07 [ELIGIBILITY FOR FOOD STAMPS, MEDICAL ASSISTANCE, 
148.15  AND CHILD CARE.] 
148.16     The participant shall be treated as an MFIP recipient for 
148.17  food stamps, medical assistance, and child care eligibility 
148.18  purposes.  The participant who leaves the program as a result of 
148.19  increased earnings from employment shall be eligible for 
148.20  transitional medical assistance and child care without regard to 
148.21  MFIP receipt in three of the six months preceding ineligibility. 
148.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
148.23     Sec. 60.  Minnesota Statutes 2000, section 256L.03, is 
148.24  amended by adding a subdivision to read: 
148.25     Subd. 5a.  [CO-PAYMENTS FOR CERTAIN CHILDREN.] Effective 
148.26  July 1, 2002, through June 30, 2006, the MinnesotaCare benefit 
148.27  plan for children enrolled in MinnesotaCare who, in accordance 
148.28  with section 256L.15, subdivision 1, paragraph (c), opt not to 
148.29  pay a premium shall include a $5 co-payment for nonpreventive 
148.30  physician services, chiropractic services, and hospital 
148.31  outpatient services as determined by the commissioner.  
148.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.  
148.33     Sec. 61.  Minnesota Statutes 2000, section 256L.05, 
148.34  subdivision 2, is amended to read: 
148.35     Subd. 2.  [COMMISSIONER'S DUTIES.] The commissioner shall 
148.36  use individuals' social security numbers as identifiers for 
149.1   purposes of administering the plan and conduct data matches to 
149.2   verify income.  Applicants shall submit evidence of individual 
149.3   and family income, earned and unearned, such as the most recent 
149.4   income tax return, wage slips, or other documentation that is 
149.5   determined by the commissioner as necessary to verify income 
149.6   eligibility or county agency shall use electronic verification 
149.7   as the primary method of income verification.  If there is a 
149.8   discrepancy between reported income and electronically verified 
149.9   income, an individual may be required to submit additional 
149.10  verification.  In addition, the commissioner shall perform 
149.11  random audits to verify reported income and eligibility.  The 
149.12  commissioner may execute data sharing arrangements with the 
149.13  department of revenue and any other governmental agency in order 
149.14  to perform income verification related to eligibility and 
149.15  premium payment under the MinnesotaCare program. 
149.16     Sec. 62.  Minnesota Statutes 2000, section 256L.06, 
149.17  subdivision 3, is amended to read: 
149.18     Subd. 3.  [ADMINISTRATION AND COMMISSIONER'S DUTIES.] (a) 
149.19  Premiums are dedicated to the commissioner for MinnesotaCare. 
149.20     (b) The commissioner shall develop and implement procedures 
149.21  to:  (1) require enrollees to report changes in income; (2) 
149.22  adjust sliding scale premium payments, based upon changes in 
149.23  enrollee income; and (3) disenroll enrollees from MinnesotaCare 
149.24  for failure to pay required premiums.  Failure to pay includes 
149.25  payment with a dishonored check, a returned automatic bank 
149.26  withdrawal, or a refused credit card or debit card payment.  The 
149.27  commissioner may demand a guaranteed form of payment, including 
149.28  a cashier's check or a money order, as the only means to replace 
149.29  a dishonored, returned, or refused payment. 
149.30     (c) Premiums are calculated on a calendar month basis and 
149.31  may be paid on a monthly, quarterly, or annual basis, with the 
149.32  first payment due upon notice from the commissioner of the 
149.33  premium amount required.  The commissioner shall inform 
149.34  applicants and enrollees of these premium payment options. 
149.35  Premium payment is required before enrollment is complete and to 
149.36  maintain eligibility in MinnesotaCare.  
150.1      (d) Nonpayment of the premium will result in disenrollment 
150.2   from the plan within one calendar month after the due date 
150.3   effective for the calendar month for which the premium was due.  
150.4   Persons disenrolled for nonpayment or who voluntarily terminate 
150.5   coverage from the program may not reenroll until four calendar 
150.6   months have elapsed.  Persons disenrolled for nonpayment who pay 
150.7   all past due premiums as well as current premiums due, including 
150.8   premiums due for the period of disenrollment, within 20 days of 
150.9   disenrollment, shall be reenrolled retroactively to the first 
150.10  day of disenrollment.  Persons disenrolled for nonpayment or who 
150.11  voluntarily terminate coverage from the program may not reenroll 
150.12  for four calendar months unless the person demonstrates good 
150.13  cause for nonpayment.  Good cause does not exist if a person 
150.14  chooses to pay other family expenses instead of the premium.  
150.15  The commissioner shall define good cause in rule. 
150.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
150.17     Sec. 63.  Minnesota Statutes 2000, section 256L.07, 
150.18  subdivision 2, is amended to read: 
150.19     Subd. 2.  [MUST NOT HAVE ACCESS TO EMPLOYER-SUBSIDIZED 
150.20  COVERAGE.] (a) To be eligible, a family or individual must not 
150.21  have access to subsidized health coverage through an employer 
150.22  and must not have had access to employer-subsidized coverage 
150.23  through a current employer for 18 months prior to application or 
150.24  reapplication.  A family or individual whose employer-subsidized 
150.25  coverage is lost due to an employer terminating health care 
150.26  coverage as an employee benefit during the previous 18 months is 
150.27  not eligible.  
150.28     (b) This subdivision does not apply to a family or 
150.29  individual who was enrolled in MinnesotaCare within six months 
150.30  or less of reapplication and who no longer has 
150.31  employer-subsidized coverage due to the employer terminating 
150.32  health care coverage as an employee benefit.  
150.33     (c) For purposes of this requirement, subsidized health 
150.34  coverage means health coverage for which the employer pays at 
150.35  least 50 percent of the cost of coverage for the employee or 
150.36  dependent, or a higher percentage as specified by the 
151.1   commissioner.  Children are eligible for employer-subsidized 
151.2   coverage through either parent, including the noncustodial 
151.3   parent.  The commissioner must treat employer contributions to 
151.4   Internal Revenue Code Section 125 plans and any other employer 
151.5   benefits intended to pay health care costs as qualified employer 
151.6   subsidies toward the cost of health coverage for employees for 
151.7   purposes of this subdivision. 
151.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
151.9   or upon receipt of federal approval, whichever is later. 
151.10     Sec. 64.  Minnesota Statutes 2000, section 256L.12, is 
151.11  amended by adding a subdivision to read: 
151.12     Subd. 11.  [COVERAGE AT INDIAN HEALTH SERVICE 
151.13  FACILITIES.] For American Indian enrollees of MinnesotaCare, 
151.14  MinnesotaCare shall cover health care services provided at 
151.15  Indian Health Service facilities and facilities operated by a 
151.16  tribe or tribal organization under funding authorized by United 
151.17  States Code, title 25, sections 450f to 450n, or title III of 
151.18  the Indian Self-Determination and Education Act, Public Law 
151.19  Number 93-638, if those services would otherwise be covered 
151.20  under section 256L.03.  Payments for services provided under 
151.21  this subdivision shall be made on a fee-for-service basis, and 
151.22  may, at the option of the tribe or organization, be made at the 
151.23  rates authorized under sections 256.969, subdivision 16, and 
151.24  256B.0625, subdivision 34, for those MinnesotaCare enrollees 
151.25  eligible for coverage at medical assistance rates.  For purposes 
151.26  of this subdivision, "American Indian" has the meaning given to 
151.27  persons to whom services will be provided for in the Code of 
151.28  Federal Regulations, title 42, section 36.12. 
151.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
151.30  following final enactment. 
151.31     Sec. 65.  Minnesota Statutes 2000, section 256L.15, 
151.32  subdivision 1, is amended to read: 
151.33     Subdivision 1.  [PREMIUM DETERMINATION.] (a) Families with 
151.34  children and individuals shall pay a premium determined 
151.35  according to a sliding fee based on a percentage of the family's 
151.36  gross family income.  
152.1      (b) Pregnant women and children under age two are exempt 
152.2   from the provisions of section 256L.06, subdivision 3, paragraph 
152.3   (b), clause (3), requiring disenrollment for failure to pay 
152.4   premiums.  For pregnant women, this exemption continues until 
152.5   the first day of the month following the 60th day postpartum.  
152.6   Women who remain enrolled during pregnancy or the postpartum 
152.7   period, despite nonpayment of premiums, shall be disenrolled on 
152.8   the first of the month following the 60th day postpartum for the 
152.9   penalty period that otherwise applies under section 256L.06, 
152.10  unless they begin paying premiums. 
152.11     (c) Effective July 1, 2002, through June 30, 2006, at their 
152.12  option, children with gross family income at or below 217 
152.13  percent of the federal poverty guidelines who are eligible for 
152.14  MinnesotaCare in the first month following termination from 
152.15  medical assistance shall not pay a premium for 12 months. 
152.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.  
152.17     Sec. 66.  Minnesota Statutes 2000, section 256L.16, is 
152.18  amended to read: 
152.19     256L.16 [PAYMENT RATES; SERVICES FOR FAMILIES AND CHILDREN 
152.20  UNDER THE MINNESOTACARE HEALTH CARE REFORM WAIVER.] 
152.21     Section 256L.11, subdivision 2, shall not apply to services 
152.22  provided to children families with children who are eligible to 
152.23  receive expanded services according to section 256L.03, 
152.24  subdivision 1a 256L.04, subdivision 1, paragraph (a). 
152.25     Sec. 67.  Minnesota Statutes 2000, section 256L.17, 
152.26  subdivision 2, is amended to read: 
152.27     Subd. 2.  [LIMIT ON TOTAL ASSETS.] (a) Effective April 1, 
152.28  1997 July 1, 2002, or upon federal approval, whichever is later, 
152.29  in order to be eligible for the MinnesotaCare program, a 
152.30  household of two or more persons must not own more than $30,000 
152.31  in total net assets, and a household of one person must not own 
152.32  more than $15,000 in total net assets. 
152.33     (b) For purposes of this subdivision, total net assets 
152.34  include all assets, with the following exceptions: 
152.35     (1) a homestead is not considered; 
152.36     (2) household goods and personal effects are not 
153.1   considered; 
153.2      (3) any assets owned by children; 
153.3      (4) vehicles used for employment; 
153.4      (5) court-ordered settlements up to $10,000; 
153.5      (6) individual retirement accounts; and 
153.6      (7) capital and operating assets of a trade or business up 
153.7   to $200,000 in net assets are not considered. 
153.8      (c) If an asset excluded under paragraph (b) has a negative 
153.9   value, the negative value shall be subtracted from the total net 
153.10  assets under paragraph (a) assets are determined according to 
153.11  section 256B.056, subdivision 3a.  
153.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
153.13     Sec. 68.  Laws 1995, chapter 178, article 2, section 36, is 
153.14  amended to read: 
153.15     Sec. 36.  [EMPOWERMENT ZONES; ADMINISTRATIVE SIMPLIFICATION 
153.16  OF WELFARE LAWS.] 
153.17     (a) The commissioner of human services shall make 
153.18  recommendations to effectuate the changes in federal laws and 
153.19  regulations, state laws and rules, and the state plan to improve 
153.20  the administrative efficiency of the aid to families with 
153.21  dependent children, general assistance, work readiness, family 
153.22  general assistance, medical assistance, general assistance 
153.23  medical care, and food stamp programs.  At a minimum, the 
153.24  following administrative standards and procedures must be 
153.25  changed. 
153.26     The commissioner shall: 
153.27     (1) require income or eligibility reviews no more 
153.28  frequently than annually for cases in which income is normally 
153.29  invariant, as in aid to families with dependent children cases 
153.30  where the only source of household income is Supplemental Social 
153.31  Security Income; 
153.32     (2) permit households to report income annually when the 
153.33  source of income is excluded, such as a minor's earnings; 
153.34     (3) require income or eligibility reviews no more 
153.35  frequently than annually for extended medical assistance cases; 
153.36     (4) require income or eligibility reviews no more 
154.1   frequently than annually for a medical assistance postpartum 
154.2   client, where the client previously had eligibility under a 
154.3   different basis prior to pregnancy or if other household members 
154.4   have eligibility with the same income/basis that applies to the 
154.5   client; 
154.6      (5) (4) permit all income or eligibility reviews for foster 
154.7   care medical assistance cases to use the short application form; 
154.8   and 
154.9      (6) (5) make dependent care expenses declaratory for 
154.10  medical assistance; and 
154.11     (7) permit households to only report gifts worth $100 or 
154.12  more per month. 
154.13     (b) The county's administrative savings resulting from 
154.14  these changes may be allocated to fund any lawful purpose. 
154.15     (c) The recommendations must be provided in a report to the 
154.16  chairs of the appropriate legislative committees by August 1, 
154.17  1995.  The recommendations must include a list of the 
154.18  administrative standards and procedures that require approval by 
154.19  the federal government before implementation, and also which 
154.20  administrative simplification standards and procedures may be 
154.21  implemented by a county prior to receiving a federal waiver. 
154.22     (d) The commissioner shall seek the necessary waivers from 
154.23  the federal government as soon as possible to implement the 
154.24  administrative simplification standards and procedures. 
154.25     Sec. 69.  Laws 1999, chapter 245, article 4, section 110, 
154.26  is amended to read: 
154.27     Sec. 110.  [PROGRAMS FOR SENIOR CITIZENS.] 
154.28     The commissioner of human services shall study the 
154.29  eligibility criteria of and benefits provided to persons age 65 
154.30  and over through the array of cash assistance and health care 
154.31  programs administered by the department, and the extent to which 
154.32  these programs can be combined, simplified, or coordinated to 
154.33  reduce administrative costs and improve access.  The 
154.34  commissioner shall also study potential barriers to enrollment 
154.35  for low-income seniors who would otherwise deplete resources 
154.36  necessary to maintain independent community living.  At a 
155.1   minimum, the study must include an evaluation of asset 
155.2   requirements and enrollment sites.  The commissioner shall 
155.3   report study findings and recommendations to the legislature by 
155.4   June 30, 2001 January 15, 2002. 
155.5      Sec. 70.  [REGULATORY SIMPLIFICATION FOR STATE HEALTH CARE 
155.6   PROGRAM PROVIDERS.] 
155.7      The commissioner of human services, in consultation with 
155.8   providers participating in state health care programs, shall 
155.9   identify nonfinancial barriers to increased provider enrollment 
155.10  and provider retention in state health care programs, and shall 
155.11  implement procedures to address these barriers.  Areas to be 
155.12  examined by the commissioner shall include, but are not limited 
155.13  to, regulatory complexity and inconsistencies between state 
155.14  health care programs, provider requirements, provision of 
155.15  technical assistance to providers, responsiveness to provider 
155.16  inquiries and complaints, claims processing turnaround times, 
155.17  and policies for rejecting provider claims.  The commissioner 
155.18  shall report to the legislature by February 15, 2002, on any 
155.19  changes to the administration of state health care programs that 
155.20  will be implemented as a result of the study, and present 
155.21  recommendations for any necessary changes in state law. 
155.22     Sec. 71.  [EXPAND DENTAL AUXILIARY PERSONNEL; 
155.23  FOREIGN-TRAINED DENTISTS; DENTAL CLINICS.] 
155.24     Subdivision 1.  [DEVELOPMENT.] (a) The board of dentistry, 
155.25  in consultation with the University of Minnesota school of 
155.26  dentistry, the Minnesota state colleges and universities that 
155.27  offer a dental auxiliary training program, the commissioner of 
155.28  health, and licensed dentists and dental auxiliaries practicing 
155.29  in private practice and at community clinics, shall develop new 
155.30  expanded duties for registered dental assistants and dental 
155.31  hygienists.  The new duties must be performed under direct or 
155.32  indirect supervision of a licensed dentist.  These expanded 
155.33  duties must be limited to reversible procedures, including, but 
155.34  not limited to, placement, contouring, and adjustment of amalgam 
155.35  restorations, temporary restorations, the alignment and 
155.36  cementing of stainless steel crowns to primary teeth, and 
156.1   application of pit and fissure sealants.  These expanded duties 
156.2   shall not include or imply a diagnosis or treatment plan, nor 
156.3   include prescribing medications, cutting hard or soft tissue, or 
156.4   any direct patient care in which formal training has not been 
156.5   completed.  The board shall establish the necessary educational 
156.6   qualifications to perform the new duties. 
156.7      (b) The board shall make recommendations to amend Minnesota 
156.8   Statutes, chapter 150A, to permit a foreign-trained dentist to 
156.9   practice as a dental hygienist or as a registered dental 
156.10  assistant. 
156.11     (c) The board shall submit the proposed changes to 
156.12  Minnesota Statutes, chapter 150A, to the legislature by January 
156.13  15, 2002. 
156.14     Subd. 2.  [DENTAL CLINICS.] The commissioner of health, in 
156.15  consultation with the Minnesota state colleges and universities, 
156.16  shall determine the capital improvements needed to establish 
156.17  community-based dental clinics at state colleges and 
156.18  universities to be used as training sites and as public 
156.19  community-based dental clinics for public program recipients 
156.20  during times when the school is not in session and the clinic is 
156.21  not in use.  The commissioner shall submit the necessary capital 
156.22  improvement costs for start-up equipment and necessary 
156.23  infrastructure as part of the 2002 legislative capital budget 
156.24  requests. 
156.25     Sec. 72.  [NOTICE OF PREMIUM CHANGES IN THE EMPLOYED 
156.26  PERSONS WITH DISABILITIES PROGRAM.] 
156.27     The commissioner of human services shall provide notice to 
156.28  all medical assistance recipients receiving coverage through the 
156.29  employed persons with disabilities program under Minnesota 
156.30  Statutes, section 256B.057, subdivision 9, of the first new 
156.31  premium schedule in effect on November 1, 2001, at least two 
156.32  months before the month in which the first new premium is due. 
156.33     Sec. 73.  [ADDITIONAL TRAINING REQUIREMENTS.] 
156.34     The board of dentistry may make recommendations to the 2002 
156.35  legislature on additional training requirements for dental 
156.36  hygienists practicing under the limited authorization provided 
157.1   in Minnesota Statutes, section 150A.10, subdivision 1a. 
157.2      Sec. 74.  [ELIGIBILITY EXCEPTION TO THE PRESCRIPTION DRUG 
157.3   PROGRAM.] 
157.4      Notwithstanding the requirements of Minnesota Statutes, 
157.5   section 256.955, subdivision 2, paragraph (d), from March 1, 
157.6   2001, to June 30, 2002, the definition of a "qualified 
157.7   individual" in the prescription drug program established under 
157.8   Minnesota Statutes, section 256.955, shall include an individual 
157.9   who: 
157.10     (1) was enrolled in the prescription drug program prior to 
157.11  March 1, 2001; 
157.12     (2) was enrolled in a Medicare risk plan prior to March 1, 
157.13  2001, to which an annual prescription drug benefit of $400 was 
157.14  added on March 1, 2001; and 
157.15     (3) meets the requirements described in Minnesota Statutes, 
157.16  section 256.955, subdivision 2, paragraph (d), clauses (1) and 
157.17  (5), and subdivision 2a. 
157.18  The prescription benefit offered by the Medicare risk plan shall 
157.19  be primary to benefits provided under the prescription drug 
157.20  program. 
157.21     Sec. 75.  [MINNESOTACARE ELIGIBILITY FOR SELF-EMPLOYED 
157.22  FARMERS.] 
157.23     (a) The commissioner of human services shall seek federal 
157.24  approval to redefine in the MinnesotaCare program the definition 
157.25  of "gross individual or gross family income" for farm 
157.26  self-employed to mean income calculated using as a baseline the 
157.27  adjusted gross income reported on the applicant's federal income 
157.28  tax form for the previous year and adding back in reported 
157.29  depreciation amounts that apply to the business in which the 
157.30  family is currently engaged. 
157.31     (b) Upon receipt of federal approval, the commissioner 
157.32  shall notify the legislature.  No change to the definition shall 
157.33  be implemented without further action by the legislature. 
157.34     Sec. 76.  [REPEALER.] 
157.35     (a) Minnesota Statutes 2000, section 256B.0635, subdivision 
157.36  3, and 256B.19, subdivision 1b, are repealed effective July 1, 
158.1   2001. 
158.2      (b) Minnesota Statutes 2000, section 256L.02, subdivision 
158.3   4, is repealed effective January 1, 2003. 
158.4                              ARTICLE 3 
158.5                           CONTINUING CARE 
158.6      Section 1.  Minnesota Statutes 2000, section 245A.13, 
158.7   subdivision 7, is amended to read: 
158.8      Subd. 7.  [RATE RECOMMENDATION.] The commissioner of human 
158.9   services may review rates of a residential program participating 
158.10  in the medical assistance program which is in receivership and 
158.11  that has needs or deficiencies documented by the department of 
158.12  health or the department of human services.  If the commissioner 
158.13  of human services determines that a review of the rate 
158.14  established under section 256B.501 sections 256B.5012 and 
158.15  256B.5013 is needed, the commissioner shall: 
158.16     (1) review the order or determination that cites the 
158.17  deficiencies or needs; and 
158.18     (2) determine the need for additional staff, additional 
158.19  annual hours by type of employee, and additional consultants, 
158.20  services, supplies, equipment, repairs, or capital assets 
158.21  necessary to satisfy the needs or deficiencies. 
158.22     Sec. 2.  Minnesota Statutes 2000, section 245A.13, 
158.23  subdivision 8, is amended to read: 
158.24     Subd. 8.  [ADJUSTMENT TO THE RATE.] Upon review of rates 
158.25  under subdivision 7, the commissioner may adjust the residential 
158.26  program's payment rate.  The commissioner shall review the 
158.27  circumstances, together with the residential program cost report 
158.28  program's most recent income and expense report, to determine 
158.29  whether or not the deficiencies or needs can be corrected or met 
158.30  by reallocating residential program staff, costs, revenues, 
158.31  or any other resources including any investments, efficiency 
158.32  incentives, or allowances.  If the commissioner determines that 
158.33  any deficiency cannot be corrected or the need cannot be met 
158.34  with the payment rate currently being paid, the commissioner 
158.35  shall determine the payment rate adjustment by dividing the 
158.36  additional annual costs established during the commissioner's 
159.1   review by the residential program's actual resident days from 
159.2   the most recent desk-audited cost income and expense report or 
159.3   the estimated resident days in the projected receivership 
159.4   period.  The payment rate adjustment must meet the conditions in 
159.5   Minnesota Rules, parts 9553.0010 to 9553.0080, and remains in 
159.6   effect during the period of the receivership or until another 
159.7   date set by the commissioner.  Upon the subsequent sale, 
159.8   closure, or transfer of the residential program, the 
159.9   commissioner may recover amounts that were paid as payment rate 
159.10  adjustments under this subdivision.  This recovery shall be 
159.11  determined through a review of actual costs and resident days in 
159.12  the receivership period.  The costs the commissioner finds to be 
159.13  allowable shall be divided by the actual resident days for the 
159.14  receivership period.  This rate shall be compared to the rate 
159.15  paid throughout the receivership period, with the difference 
159.16  multiplied by resident days, being the amount to be repaid to 
159.17  the commissioner.  Allowable costs shall be determined by the 
159.18  commissioner as those ordinary, necessary, and related to 
159.19  resident care by prudent and cost-conscious management.  The 
159.20  buyer or transferee shall repay this amount to the commissioner 
159.21  within 60 days after the commissioner notifies the buyer or 
159.22  transferee of the obligation to repay.  This provision does not 
159.23  limit the liability of the seller to the commissioner pursuant 
159.24  to section 256B.0641. 
159.25     Sec. 3.  Minnesota Statutes 2000, section 252.275, 
159.26  subdivision 4b, is amended to read: 
159.27     Subd. 4b.  [GUARANTEED FLOOR.] Each county with an original 
159.28  allocation for the preceding year that is equal to or less than 
159.29  the guaranteed floor minimum index shall have a guaranteed floor 
159.30  equal to its original allocation for the preceding year.  Each 
159.31  county with an original allocation for the preceding year that 
159.32  is greater than the guaranteed floor minimum index shall have a 
159.33  guaranteed floor equal to the lesser of clause (1) or (2): 
159.34     (1) the county's original allocation for the preceding 
159.35  year; or 
159.36     (2) 70 percent of the county's reported expenditures 
160.1   eligible for reimbursement during the 12 months ending on June 
160.2   30 of the preceding calendar year. 
160.3      For calendar year 1993, the guaranteed floor minimum index 
160.4   shall be $20,000.  For each subsequent year, the index shall be 
160.5   adjusted by the projected change in the average value in the 
160.6   United States Department of Labor Bureau of Labor Statistics 
160.7   consumer price index (all urban) for that year. 
160.8      Notwithstanding this subdivision, no county shall be 
160.9   allocated a guaranteed floor of less than $1,000. 
160.10     When the amount of funds available for allocation is less 
160.11  than the amount available in the previous year, each county's 
160.12  previous year allocation shall be reduced in proportion to the 
160.13  reduction in the statewide funding, to establish each county's 
160.14  guaranteed floor. 
160.15     Sec. 4.  Minnesota Statutes 2000, section 254B.02, 
160.16  subdivision 3, is amended to read: 
160.17     Subd. 3.  [RESERVE ACCOUNT.] The commissioner shall 
160.18  allocate money from the reserve account to counties that, during 
160.19  the current fiscal year, have met or exceeded the base level of 
160.20  expenditures for eligible chemical dependency services from 
160.21  local money.  The commissioner shall establish the base level 
160.22  for fiscal year 1988 as the amount of local money used for 
160.23  eligible services in calendar year 1986.  In later years, the 
160.24  base level must be increased in the same proportion as state 
160.25  appropriations to implement Laws 1986, chapter 394, sections 8 
160.26  to 20, are increased.  The base level must be decreased if the 
160.27  fund balance from which allocations are made under section 
160.28  254B.02, subdivision 1, is decreased in later years.  The local 
160.29  match rate for the reserve account is the same rate as applied 
160.30  to the initial allocation.  Reserve account payments must not be 
160.31  included when calculating the county adjustments made according 
160.32  to subdivision 2.  For counties providing medical assistance or 
160.33  general assistance medical care through managed care plans on 
160.34  January 1, 1996, the base year is fiscal year 1995.  For 
160.35  counties beginning provision of managed care after January 1, 
160.36  1996, the base year is the most recent fiscal year before 
161.1   enrollment in managed care begins.  For counties providing 
161.2   managed care, the base level will be increased or decreased in 
161.3   proportion to changes in the fund balance from which allocations 
161.4   are made under subdivision 2, but will be additionally increased 
161.5   or decreased in proportion to the change in county adjusted 
161.6   population made in subdivision 1, paragraphs (b) and 
161.7   (c).  Effective July 1, 2001, at the end of each biennium, any 
161.8   funds deposited in the reserve account funds in excess of those 
161.9   needed to meet obligations incurred under this section and 
161.10  sections 254B.06 and 254B.09 shall cancel to the general fund. 
161.11     Sec. 5.  Minnesota Statutes 2000, section 254B.03, 
161.12  subdivision 1, is amended to read: 
161.13     Subdivision 1.  [LOCAL AGENCY DUTIES.] (a) Every local 
161.14  agency shall provide chemical dependency services to persons 
161.15  residing within its jurisdiction who meet criteria established 
161.16  by the commissioner for placement in a chemical dependency 
161.17  residential or nonresidential treatment service.  Chemical 
161.18  dependency money must be administered by the local agencies 
161.19  according to law and rules adopted by the commissioner under 
161.20  sections 14.001 to 14.69. 
161.21     (b) In order to contain costs, the county board shall, with 
161.22  the approval of the commissioner of human services, select 
161.23  eligible vendors of chemical dependency services who can provide 
161.24  economical and appropriate treatment.  Unless the local agency 
161.25  is a social services department directly administered by a 
161.26  county or human services board, the local agency shall not be an 
161.27  eligible vendor under section 254B.05.  The commissioner may 
161.28  approve proposals from county boards to provide services in an 
161.29  economical manner or to control utilization, with safeguards to 
161.30  ensure that necessary services are provided.  If a county 
161.31  implements a demonstration or experimental medical services 
161.32  funding plan, the commissioner shall transfer the money as 
161.33  appropriate.  If a county selects a vendor located in another 
161.34  state, the county shall ensure that the vendor is in compliance 
161.35  with the rules governing licensure of programs located in the 
161.36  state. 
162.1      (c) The calendar year 1998 2002 rate for vendors may not 
162.2   increase more than three percent above the rate approved in 
162.3   effect on January 1, 1997 2001.  The calendar year 1999 2003 
162.4   rate for vendors may not increase more than three percent above 
162.5   the rate in effect on January 1, 1998 2002.  The calendar years 
162.6   2004 and 2005 rates may not exceed the rate in effect on January 
162.7   1, 2003. 
162.8      (d) A culturally specific vendor that provides assessments 
162.9   under a variance under Minnesota Rules, part 9530.6610, shall be 
162.10  allowed to provide assessment services to persons not covered by 
162.11  the variance. 
162.12     Sec. 6.  Minnesota Statutes 2000, section 254B.04, 
162.13  subdivision 1, is amended to read: 
162.14     Subdivision 1.  [ELIGIBILITY.] (a) Persons eligible for 
162.15  benefits under Code of Federal Regulations, title 25, part 20, 
162.16  persons eligible for medical assistance benefits under sections 
162.17  256B.055, 256B.056, and 256B.057, subdivisions 1, 2, 5, and 6, 
162.18  or who meet the income standards of section 256B.056, 
162.19  subdivision 4, and persons eligible for general assistance 
162.20  medical care under section 256D.03, subdivision 3, are entitled 
162.21  to chemical dependency fund services.  State money appropriated 
162.22  for this paragraph must be placed in a separate account 
162.23  established for this purpose.  
162.24     Persons with dependent children who are determined to be in 
162.25  need of chemical dependency treatment pursuant to an assessment 
162.26  under section 626.556, subdivision 10, or a case plan under 
162.27  section 260C.201, subdivision 6, or 260C.212, shall be assisted 
162.28  by the local agency to access needed treatment services.  
162.29  Treatment services must be appropriate for the individual or 
162.30  family, which may include long-term care treatment or treatment 
162.31  in a facility that allows the dependent children to stay in the 
162.32  treatment facility.  The county shall pay for out-of-home 
162.33  placement costs, if applicable. 
162.34     (b) A person not entitled to services under paragraph (a), 
162.35  but with family income that is less than 60 percent of the state 
162.36  median income for a family of like size and composition 215 
163.1   percent of the federal poverty guidelines for the applicable 
163.2   family size, shall be eligible to receive chemical dependency 
163.3   fund services within the limit of funds available after persons 
163.4   entitled to services under paragraph (a) have been 
163.5   served appropriated for this group for the fiscal year.  If 
163.6   notified by the state agency of limited funds, a county must 
163.7   give preferential treatment to persons with dependent children 
163.8   who are in need of chemical dependency treatment pursuant to an 
163.9   assessment under section 626.556, subdivision 10, or a case plan 
163.10  under section 260C.201, subdivision 6, or 260C.212.  A county 
163.11  may spend money from its own sources to serve persons under this 
163.12  paragraph.  State money appropriated for this paragraph must be 
163.13  placed in a separate account established for this purpose. 
163.14     (c) Persons whose income is between 60 215 percent and 115 
163.15  412 percent of the state median income federal poverty 
163.16  guidelines for the applicable family size shall be eligible for 
163.17  chemical dependency services on a sliding fee basis, within the 
163.18  limit of funds available, after persons entitled to services 
163.19  under paragraph (a) and persons eligible for services under 
163.20  paragraph (b) have been served appropriated for this group for 
163.21  the fiscal year.  Persons eligible under this paragraph must 
163.22  contribute to the cost of services according to the sliding fee 
163.23  scale established under subdivision 3.  A county may spend money 
163.24  from its own sources to provide services to persons under this 
163.25  paragraph.  State money appropriated for this paragraph must be 
163.26  placed in a separate account established for this purpose. 
163.27     Sec. 7.  Minnesota Statutes 2000, section 254B.09, is 
163.28  amended by adding a subdivision to read: 
163.29     Subd. 8.  [PAYMENTS TO IMPROVE SERVICES TO AMERICAN 
163.30  INDIANS.] The commissioner may set rates for chemical dependency 
163.31  services according to the American Indian Health Improvement 
163.32  Act, Public Law Number 94-437, for eligible vendors.  These 
163.33  rates shall supersede rates set in county purchase of service 
163.34  agreements when payments are made on behalf of clients eligible 
163.35  according to Public Law Number 94-437. 
163.36     Sec. 8.  Minnesota Statutes 2000, section 256.01, is 
164.1   amended by adding a subdivision to read: 
164.2      Subd. 19.  [GRANTS FOR CASE MANAGEMENT SERVICES TO PERSONS 
164.3   WITH HIV OR AIDS.] The commissioner may award grants to eligible 
164.4   vendors for the development, implementation, and evaluation of 
164.5   case management services for individuals infected with the human 
164.6   immunodeficiency virus.  HIV/AIDs case management services will 
164.7   be provided to increase access to cost effective health care 
164.8   services, to reduce the risk of HIV transmission, to ensure that 
164.9   basic client needs are met, and to increase client access to 
164.10  needed community supports or services. 
164.11     Sec. 9.  Minnesota Statutes 2000, section 256.476, 
164.12  subdivision 1, is amended to read: 
164.13     Subdivision 1.  [PURPOSE AND GOALS.] The commissioner of 
164.14  human services shall establish a consumer support grant 
164.15  program to assist for individuals with functional limitations 
164.16  and their families in purchasing and securing supports which the 
164.17  individuals need to live as independently and productively in 
164.18  the community as possible who wish to purchase and secure their 
164.19  own supports.  The commissioner and local agencies shall jointly 
164.20  develop an implementation plan which must include a way to 
164.21  resolve the issues related to county liability.  The program 
164.22  shall: 
164.23     (1) make support grants or exception grants described in 
164.24  subdivision 11 available to individuals or families as an 
164.25  effective alternative to existing programs and services, such as 
164.26  the developmental disability family support program, the 
164.27  alternative care program, personal care attendant services, home 
164.28  health aide services, and private duty nursing facility 
164.29  services; 
164.30     (2) provide consumers more control, flexibility, and 
164.31  responsibility over the needed supports their services and 
164.32  supports; 
164.33     (3) promote local program management and decision making; 
164.34  and 
164.35     (4) encourage the use of informal and typical community 
164.36  supports. 
165.1      Sec. 10.  Minnesota Statutes 2000, section 256.476, 
165.2   subdivision 2, is amended to read: 
165.3      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
165.4   following terms have the meanings given them: 
165.5      (a) "County board" means the county board of commissioners 
165.6   for the county of financial responsibility as defined in section 
165.7   256G.02, subdivision 4, or its designated representative.  When 
165.8   a human services board has been established under sections 
165.9   402.01 to 402.10, it shall be considered the county board for 
165.10  the purposes of this section. 
165.11     (b) "Family" means the person's birth parents, adoptive 
165.12  parents or stepparents, siblings or stepsiblings, children or 
165.13  stepchildren, grandparents, grandchildren, niece, nephew, aunt, 
165.14  uncle, or spouse.  For the purposes of this section, a family 
165.15  member is at least 18 years of age. 
165.16     (c) "Functional limitations" means the long-term inability 
165.17  to perform an activity or task in one or more areas of major 
165.18  life activity, including self-care, understanding and use of 
165.19  language, learning, mobility, self-direction, and capacity for 
165.20  independent living.  For the purpose of this section, the 
165.21  inability to perform an activity or task results from a mental, 
165.22  emotional, psychological, sensory, or physical disability, 
165.23  condition, or illness. 
165.24     (d) "Informed choice" means a voluntary decision made by 
165.25  the person or the person's legal representative, after becoming 
165.26  familiarized with the alternatives to: 
165.27     (1) select a preferred alternative from a number of 
165.28  feasible alternatives; 
165.29     (2) select an alternative which may be developed in the 
165.30  future; and 
165.31     (3) refuse any or all alternatives. 
165.32     (e) "Local agency" means the local agency authorized by the 
165.33  county board or, for counties not participating in the consumer 
165.34  grant program by July 1, 2002, the commissioner, to carry out 
165.35  the provisions of this section. 
165.36     (f) "Person" or "persons" means a person or persons meeting 
166.1   the eligibility criteria in subdivision 3. 
166.2      (g) "Authorized representative" means an individual 
166.3   designated by the person or their legal representative to act on 
166.4   their behalf.  This individual may be a family member, guardian, 
166.5   representative payee, or other individual designated by the 
166.6   person or their legal representative, if any, to assist in 
166.7   purchasing and arranging for supports.  For the purposes of this 
166.8   section, an authorized representative is at least 18 years of 
166.9   age. 
166.10     (h) "Screening" means the screening of a person's service 
166.11  needs under sections 256B.0911 and 256B.092. 
166.12     (i) "Supports" means services, care, aids, home 
166.13  environmental modifications, or assistance purchased by the 
166.14  person or the person's family.  Examples of supports include 
166.15  respite care, assistance with daily living, and adaptive aids 
166.16  assistive technology.  For the purpose of this section, 
166.17  notwithstanding the provisions of section 144A.43, supports 
166.18  purchased under the consumer support program are not considered 
166.19  home care services. 
166.20     (j) "Program of origination" means the program the 
166.21  individual transferred from when approved for the consumer 
166.22  support grant program. 
166.23     Sec. 11.  Minnesota Statutes 2000, section 256.476, 
166.24  subdivision 3, is amended to read: 
166.25     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
166.26  is eligible to apply for a consumer support grant if the person 
166.27  meets all of the following criteria: 
166.28     (1) the person is eligible for and has been approved to 
166.29  receive services under medical assistance as determined under 
166.30  sections 256B.055 and 256B.056 or the person is eligible for and 
166.31  has been approved to receive services under alternative care 
166.32  services as determined under section 256B.0913 or the person has 
166.33  been approved to receive a grant under the developmental 
166.34  disability family support program under section 252.32; 
166.35     (2) the person is able to direct and purchase the person's 
166.36  own care and supports, or the person has a family member, legal 
167.1   representative, or other authorized representative who can 
167.2   purchase and arrange supports on the person's behalf; 
167.3      (3) the person has functional limitations, requires ongoing 
167.4   supports to live in the community, and is at risk of or would 
167.5   continue institutionalization without such supports; and 
167.6      (4) the person will live in a home.  For the purpose of 
167.7   this section, "home" means the person's own home or home of a 
167.8   person's family member.  These homes are natural home settings 
167.9   and are not licensed by the department of health or human 
167.10  services. 
167.11     (b) Persons may not concurrently receive a consumer support 
167.12  grant if they are: 
167.13     (1) receiving home and community-based services under 
167.14  United States Code, title 42, section 1396h(c); personal care 
167.15  attendant and home health aide services under section 256B.0625; 
167.16  a developmental disability family support grant; or alternative 
167.17  care services under section 256B.0913; or 
167.18     (2) residing in an institutional or congregate care setting.
167.19     (c) A person or person's family receiving a consumer 
167.20  support grant shall not be charged a fee or premium by a local 
167.21  agency for participating in the program.  
167.22     (d) The commissioner may limit the participation of nursing 
167.23  facility residents, residents of intermediate care facilities 
167.24  for persons with mental retardation, and the recipients of 
167.25  services from federal waiver programs in the consumer support 
167.26  grant program if the participation of these individuals will 
167.27  result in an increase in the cost to the state. 
167.28     (e) The commissioner shall establish a budgeted 
167.29  appropriation each fiscal year for the consumer support grant 
167.30  program.  The number of individuals participating in the program 
167.31  will be adjusted so the total amount allocated to counties does 
167.32  not exceed the amount of the budgeted appropriation.  The 
167.33  budgeted appropriation will be adjusted annually to accommodate 
167.34  changes in demand for the consumer support grants. 
167.35     Sec. 12.  Minnesota Statutes 2000, section 256.476, 
167.36  subdivision 4, is amended to read: 
168.1      Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 
168.2   county board may choose to participate in the consumer support 
168.3   grant program.  If a county board chooses to participate in the 
168.4   program, has not chosen to participate by July 1, 2002, the 
168.5   commissioner shall contract with another county or other entity 
168.6   to provide access to residents of the nonparticipating county 
168.7   who choose the consumer support grant option.  The commissioner 
168.8   shall notify the county board in a county that has declined to 
168.9   participate of the commissioner's intent to enter into a 
168.10  contract with another county or other entity at least 30 days in 
168.11  advance of entering into the contract.  The local agency shall 
168.12  establish written procedures and criteria to determine the 
168.13  amount and use of support grants.  These procedures must 
168.14  include, at least, the availability of respite care, assistance 
168.15  with daily living, and adaptive aids.  The local agency may 
168.16  establish monthly or annual maximum amounts for grants and 
168.17  procedures where exceptional resources may be required to meet 
168.18  the health and safety needs of the person on a time-limited 
168.19  basis, however, the total amount awarded to each individual may 
168.20  not exceed the limits established in subdivision 5, paragraph 
168.21  (f) subdivision 11. 
168.22     (b) Support grants to a person or a person's family will be 
168.23  provided through a monthly subsidy payment and be in the form of 
168.24  cash, voucher, or direct county payment to vendor.  Support 
168.25  grant amounts must be determined by the local agency.  Each 
168.26  service and item purchased with a support grant must meet all of 
168.27  the following criteria:  
168.28     (1) it must be over and above the normal cost of caring for 
168.29  the person if the person did not have functional limitations; 
168.30     (2) it must be directly attributable to the person's 
168.31  functional limitations; 
168.32     (3) it must enable the person or the person's family to 
168.33  delay or prevent out-of-home placement of the person; and 
168.34     (4) it must be consistent with the needs identified in the 
168.35  service plan, when applicable. 
168.36     (c) Items and services purchased with support grants must 
169.1   be those for which there are no other public or private funds 
169.2   available to the person or the person's family.  Fees assessed 
169.3   to the person or the person's family for health and human 
169.4   services are not reimbursable through the grant. 
169.5      (d) In approving or denying applications, the local agency 
169.6   shall consider the following factors:  
169.7      (1) the extent and areas of the person's functional 
169.8   limitations; 
169.9      (2) the degree of need in the home environment for 
169.10  additional support; and 
169.11     (3) the potential effectiveness of the grant to maintain 
169.12  and support the person in the family environment or the person's 
169.13  own home. 
169.14     (e) At the time of application to the program or screening 
169.15  for other services, the person or the person's family shall be 
169.16  provided sufficient information to ensure an informed choice of 
169.17  alternatives by the person, the person's legal representative, 
169.18  if any, or the person's family.  The application shall be made 
169.19  to the local agency and shall specify the needs of the person 
169.20  and family, the form and amount of grant requested, the items 
169.21  and services to be reimbursed, and evidence of eligibility for 
169.22  medical assistance or alternative care program. 
169.23     (f) Upon approval of an application by the local agency and 
169.24  agreement on a support plan for the person or person's family, 
169.25  the local agency shall make grants to the person or the person's 
169.26  family.  The grant shall be in an amount for the direct costs of 
169.27  the services or supports outlined in the service agreement.  
169.28     (g) Reimbursable costs shall not include costs for 
169.29  resources already available, such as special education classes, 
169.30  day training and habilitation, case management, other services 
169.31  to which the person is entitled, medical costs covered by 
169.32  insurance or other health programs, or other resources usually 
169.33  available at no cost to the person or the person's family. 
169.34     (h) The state of Minnesota, the county boards participating 
169.35  in the consumer support grant program, or the agencies acting on 
169.36  behalf of the county boards in the implementation and 
170.1   administration of the consumer support grant program shall not 
170.2   be liable for damages, injuries, or liabilities sustained 
170.3   through the purchase of support by the individual, the 
170.4   individual's family, or the authorized representative under this 
170.5   section with funds received through the consumer support grant 
170.6   program.  Liabilities include but are not limited to:  workers' 
170.7   compensation liability, the Federal Insurance Contributions Act 
170.8   (FICA), or the Federal Unemployment Tax Act (FUTA).  For 
170.9   purposes of this section, participating county boards and 
170.10  agencies acting on behalf of county boards are exempt from the 
170.11  provisions of section 268.04. 
170.12     Sec. 13.  Minnesota Statutes 2000, section 256.476, 
170.13  subdivision 5, is amended to read: 
170.14     Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
170.15  For the purpose of transferring persons to the consumer support 
170.16  grant program from specific programs or services, such as the 
170.17  developmental disability family support program and alternative 
170.18  care program, personal care attendant assistant services, home 
170.19  health aide services, or nursing facility private duty nursing 
170.20  services, the amount of funds transferred by the commissioner 
170.21  between the developmental disability family support program 
170.22  account, the alternative care account, the medical assistance 
170.23  account, or the consumer support grant account shall be based on 
170.24  each county's participation in transferring persons to the 
170.25  consumer support grant program from those programs and services. 
170.26     (b) At the beginning of each fiscal year, county 
170.27  allocations for consumer support grants shall be based on: 
170.28     (1) the number of persons to whom the county board expects 
170.29  to provide consumer supports grants; 
170.30     (2) their eligibility for current program and services; 
170.31     (3) the amount of nonfederal dollars expended on those 
170.32  individuals for those programs and services or, in situations 
170.33  where an individual is unable to obtain the support needed from 
170.34  the program of origination due to the unavailability of service 
170.35  providers at the time or the location where the supports are 
170.36  needed, the allocation will be based on the county's best 
171.1   estimate of the nonfederal dollars that would have been expended 
171.2   if the services had been available allowed under subdivision 11; 
171.3   and 
171.4      (4) projected dates when persons will start receiving 
171.5   grants.  County allocations shall be adjusted periodically by 
171.6   the commissioner based on the actual transfer of persons or 
171.7   service openings, and the nonfederal dollars associated with 
171.8   those persons or service openings, to the consumer support grant 
171.9   program. 
171.10     (c) The amount of funds transferred by the commissioner 
171.11  from the alternative care account and the medical assistance 
171.12  account for an individual may be changed if it is determined by 
171.13  the county or its agent that the individual's need for support 
171.14  has changed. 
171.15     (d) The authority to utilize funds transferred to the 
171.16  consumer support grant account for the purposes of implementing 
171.17  and administering the consumer support grant program will not be 
171.18  limited or constrained by the spending authority provided to the 
171.19  program of origination. 
171.20     (e) The commissioner shall may use up to five percent of 
171.21  each county's allocation, as adjusted, for payments to that 
171.22  county for administrative expenses, to be paid as a 
171.23  proportionate addition to reported direct service expenditures. 
171.24     (f) Except as provided in this paragraph, The county 
171.25  allocation for each individual or individual's family cannot 
171.26  exceed 80 percent of the total nonfederal dollars expended on 
171.27  the individual by the program of origination except for the 
171.28  developmental disabilities family support grant program which 
171.29  can be approved up to 100 percent of the nonfederal dollars and 
171.30  in situations as described in paragraph (b), clause (3).  In 
171.31  situations where exceptional need exists or the individual's 
171.32  need for support increases, up to 100 percent of the nonfederal 
171.33  dollars expended may be allocated to the county.  Allocations 
171.34  that exceed 80 percent of the nonfederal dollars expended on the 
171.35  individual by the program of origination must be approved by the 
171.36  commissioner.  The remainder of the amount expended on the 
172.1   individual by the program of origination will be used in the 
172.2   following proportions:  half will be made available to the 
172.3   consumer support grant program and participating counties for 
172.4   consumer training, resource development, and other costs, and 
172.5   half will be returned to the state general fund the amount 
172.6   allowed under subdivision 11. 
172.7      (g) The commissioner may recover, suspend, or withhold 
172.8   payments if the county board, local agency, or grantee does not 
172.9   comply with the requirements of this section. 
172.10     (h) Grant funds unexpended by consumers shall return to the 
172.11  state once a year.  The annual return of unexpended grant funds 
172.12  shall occur in the quarter following the end of the state fiscal 
172.13  year. 
172.14     Sec. 14.  Minnesota Statutes 2000, section 256.476, 
172.15  subdivision 8, is amended to read: 
172.16     Subd. 8.  [COMMISSIONER RESPONSIBILITIES.] The commissioner 
172.17  shall: 
172.18     (1) transfer and allocate funds pursuant to this 
172.19  section subdivision 11; 
172.20     (2) determine allocations based on projected and actual 
172.21  local agency use; 
172.22     (3) monitor and oversee overall program spending; 
172.23     (4) evaluate the effectiveness of the program; 
172.24     (5) provide training and technical assistance for local 
172.25  agencies and consumers to help identify potential applicants to 
172.26  the program; and 
172.27     (6) develop guidelines for local agency program 
172.28  administration and consumer information; and 
172.29     (7) apply for a federal waiver or take any other action 
172.30  necessary to maximize federal funding for the program by 
172.31  September 1, 1999. 
172.32     Sec. 15.  Minnesota Statutes 2000, section 256.476, is 
172.33  amended by adding a subdivision to read: 
172.34     Subd. 11.  [CONSUMER SUPPORT GRANT PROGRAM AFTER JULY 1, 
172.35  2001.] (a) Effective July 1, 2001, the commissioner shall 
172.36  allocate consumer support grant resources to serve additional 
173.1   individuals based on a review of Medicaid authorization and 
173.2   payment information of persons eligible for a consumer support 
173.3   grant from the most recent fiscal year.  The commissioner shall 
173.4   use the following methodology to calculate maximum allowable 
173.5   monthly consumer support grant levels: 
173.6      (1) for individuals whose program of origination is medical 
173.7   assistance home care under section 256B.0627, the maximum 
173.8   allowable monthly grant levels are calculated by: 
173.9      (i) determining the nonfederal share of the average service 
173.10  authorization for each home care rating; 
173.11     (ii) calculating the overall ratio of actual payments to 
173.12  service authorizations by program; 
173.13     (iii) applying the overall ratio to the average service 
173.14  authorization level of each home care rating; 
173.15     (iv) adjusting the result for any authorized rate increases 
173.16  provided by the legislature; and 
173.17     (v) adjusting the result for the average monthly 
173.18  utilization per recipient; and 
173.19     (2) for persons with programs of origination other than the 
173.20  program described in clause (1), the maximum grant level for an 
173.21  individual shall not exceed the total of the nonfederal dollars 
173.22  expended on the individual by the program of origination. 
173.23     (b) Persons receiving consumer support grants prior to July 
173.24  1, 2001, may continue to receive the grant amount established 
173.25  prior to July 1, 2001. 
173.26     (c) The commissioner may provide up to 200 exception 
173.27  grants, including grants in use under paragraph (b).  Eligible 
173.28  persons shall be provided an exception grant in priority order 
173.29  based upon the date of the commissioner's receipt of the county 
173.30  request.  The maximum allowable grant level for an exception 
173.31  grant shall be based upon the nonfederal share of the average 
173.32  service authorization from the most recent fiscal year for each 
173.33  home care rating category.  The amount of each exception grant 
173.34  shall be based upon the commissioner's determination of the 
173.35  nonfederal dollars that would have been expended if services had 
173.36  been available for an individual who is unable to obtain the 
174.1   support needed from the program of origination due to the 
174.2   unavailability of qualified service providers at the time or the 
174.3   location where the supports are needed. 
174.4      Sec. 16.  Minnesota Statutes 2000, section 256B.0625, 
174.5   subdivision 7, is amended to read: 
174.6      Subd. 7.  [PRIVATE DUTY NURSING.] Medical assistance covers 
174.7   private duty nursing services in a recipient's home.  Recipients 
174.8   who are authorized to receive private duty nursing services in 
174.9   their home may use approved hours outside of the home during 
174.10  hours when normal life activities take them outside of their 
174.11  home and when, without the provision of private duty nursing, 
174.12  their health and safety would be jeopardized.  To use private 
174.13  duty nursing services at school, the recipient or responsible 
174.14  party must provide written authorization in the care plan 
174.15  identifying the chosen provider and the daily amount of services 
174.16  to be used at school.  Medical assistance does not cover private 
174.17  duty nursing services for residents of a hospital, nursing 
174.18  facility, intermediate care facility, or a health care facility 
174.19  licensed by the commissioner of health, except as authorized in 
174.20  section 256B.64 for ventilator-dependent recipients in hospitals 
174.21  or unless a resident who is otherwise eligible is on leave from 
174.22  the facility and the facility either pays for the private duty 
174.23  nursing services or forgoes the facility per diem for the leave 
174.24  days that private duty nursing services are used.  Total hours 
174.25  of service and payment allowed for services outside the home 
174.26  cannot exceed that which is otherwise allowed in an in-home 
174.27  setting according to section 256B.0627.  All private duty 
174.28  nursing services must be provided according to the limits 
174.29  established under section 256B.0627.  Private duty nursing 
174.30  services may not be reimbursed if the nurse is the spouse of the 
174.31  recipient or the parent or foster care provider of a recipient 
174.32  who is under age 18, or the recipient's legal guardian. 
174.33     Sec. 17.  Minnesota Statutes 2000, section 256B.0625, 
174.34  subdivision 19a, is amended to read: 
174.35     Subd. 19a.  [PERSONAL CARE ASSISTANT SERVICES.] Medical 
174.36  assistance covers personal care assistant services in a 
175.1   recipient's home.  To qualify for personal care assistant 
175.2   services, recipients or responsible parties must be able to 
175.3   identify the recipient's needs, direct and evaluate task 
175.4   accomplishment, and provide for health and safety.  Approved 
175.5   hours may be used outside the home when normal life activities 
175.6   take them outside the home and when, without the provision of 
175.7   personal care, their health and safety would be jeopardized.  To 
175.8   use personal care assistant services at school, the recipient or 
175.9   responsible party must provide written authorization in the care 
175.10  plan identifying the chosen provider and the daily amount of 
175.11  services to be used at school.  Total hours for services, 
175.12  whether actually performed inside or outside the recipient's 
175.13  home, cannot exceed that which is otherwise allowed for personal 
175.14  care assistant services in an in-home setting according to 
175.15  section 256B.0627.  Medical assistance does not cover personal 
175.16  care assistant services for residents of a hospital, nursing 
175.17  facility, intermediate care facility, health care facility 
175.18  licensed by the commissioner of health, or unless a resident who 
175.19  is otherwise eligible is on leave from the facility and the 
175.20  facility either pays for the personal care assistant services or 
175.21  forgoes the facility per diem for the leave days that personal 
175.22  care assistant services are used.  All personal care assistant 
175.23  services must be provided according to section 256B.0627.  
175.24  Personal care assistant services may not be reimbursed if the 
175.25  personal care assistant is the spouse or legal guardian of the 
175.26  recipient or the parent of a recipient under age 18, or the 
175.27  responsible party or the foster care provider of a recipient who 
175.28  cannot direct the recipient's own care unless, in the case of a 
175.29  foster care provider, a county or state case manager visits the 
175.30  recipient as needed, but not less than every six months, to 
175.31  monitor the health and safety of the recipient and to ensure the 
175.32  goals of the care plan are met.  Parents of adult recipients, 
175.33  adult children of the recipient or adult siblings of the 
175.34  recipient may be reimbursed for personal care assistant services 
175.35  if they are not the recipient's legal guardian and, if they are 
175.36  granted a waiver under section 256B.0627.  Until July 1, 2001, 
176.1   and Notwithstanding the provisions of section 256B.0627, 
176.2   subdivision 4, paragraph (b), clause (4), the noncorporate legal 
176.3   guardian or conservator of an adult, who is not the responsible 
176.4   party and not the personal care provider organization, may be 
176.5   granted a hardship waiver under section 256B.0627, to be 
176.6   reimbursed to provide personal care assistant services to the 
176.7   recipient, and shall not be considered to have a service 
176.8   provider interest for purposes of participation on the screening 
176.9   team under section 256B.092, subdivision 7. 
176.10     Sec. 18.  Minnesota Statutes 2000, section 256B.0625, 
176.11  subdivision 19c, is amended to read: 
176.12     Subd. 19c.  [PERSONAL CARE.] Medical assistance covers 
176.13  personal care assistant services provided by an individual who 
176.14  is qualified to provide the services according to subdivision 
176.15  19a and section 256B.0627, where the services are prescribed by 
176.16  a physician in accordance with a plan of treatment and are 
176.17  supervised by the recipient under the fiscal agent option 
176.18  according to section 256B.0627, subdivision 10, or a qualified 
176.19  professional.  "Qualified professional" means a mental health 
176.20  professional as defined in section 245.462, subdivision 18, or 
176.21  245.4871, subdivision 27; or a registered nurse as defined in 
176.22  sections 148.171 to 148.285.  As part of the assessment, the 
176.23  county public health nurse will consult with assist the 
176.24  recipient or responsible party and to identify the most 
176.25  appropriate person to provide supervision of the personal care 
176.26  assistant.  The qualified professional shall perform the duties 
176.27  described in Minnesota Rules, part 9505.0335, subpart 4.  
176.28     Sec. 19.  Minnesota Statutes 2000, section 256B.0625, 
176.29  subdivision 20, is amended to read: 
176.30     Subd. 20.  [MENTAL HEALTH CASE MANAGEMENT.] (a) To the 
176.31  extent authorized by rule of the state agency, medical 
176.32  assistance covers case management services to persons with 
176.33  serious and persistent mental illness and children with severe 
176.34  emotional disturbance.  Services provided under this section 
176.35  must meet the relevant standards in sections 245.461 to 
176.36  245.4888, the Comprehensive Adult and Children's Mental Health 
177.1   Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
177.2   9505.0322, excluding subpart 10. 
177.3      (b) Entities meeting program standards set out in rules 
177.4   governing family community support services as defined in 
177.5   section 245.4871, subdivision 17, are eligible for medical 
177.6   assistance reimbursement for case management services for 
177.7   children with severe emotional disturbance when these services 
177.8   meet the program standards in Minnesota Rules, parts 9520.0900 
177.9   to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
177.10     (c) Medical assistance and MinnesotaCare payment for mental 
177.11  health case management shall be made on a monthly basis.  In 
177.12  order to receive payment for an eligible child, the provider 
177.13  must document at least a face-to-face contact with the child, 
177.14  the child's parents, or the child's legal representative.  To 
177.15  receive payment for an eligible adult, the provider must 
177.16  document: 
177.17     (1) at least a face-to-face contact with the adult or the 
177.18  adult's legal representative; or 
177.19     (2) at least a telephone contact with the adult or the 
177.20  adult's legal representative and document a face-to-face contact 
177.21  with the adult or the adult's legal representative within the 
177.22  preceding two months. 
177.23     (d) Payment for mental health case management provided by 
177.24  county or state staff shall be based on the monthly rate 
177.25  methodology under section 256B.094, subdivision 6, paragraph 
177.26  (b), with separate rates calculated for child welfare and mental 
177.27  health, and within mental health, separate rates for children 
177.28  and adults. 
177.29     (e) Payment for mental health case management provided by 
177.30  county-contracted vendors shall be based on a monthly rate 
177.31  negotiated by the host county.  The negotiated rate must not 
177.32  exceed the rate charged by the vendor for the same service to 
177.33  other payers.  If the service is provided by a team of 
177.34  contracted vendors, the county may negotiate a team rate with a 
177.35  vendor who is a member of the team.  The team shall determine 
177.36  how to distribute the rate among its members.  No reimbursement 
178.1   received by contracted vendors shall be returned to the county, 
178.2   except to reimburse the county for advance funding provided by 
178.3   the county to the vendor. 
178.4      (f) If the service is provided by a team which includes 
178.5   contracted vendors and county or state staff, the costs for 
178.6   county or state staff participation in the team shall be 
178.7   included in the rate for county-provided services.  In this 
178.8   case, the contracted vendor and the county may each receive 
178.9   separate payment for services provided by each entity in the 
178.10  same month.  In order to prevent duplication of services, the 
178.11  county must document, in the recipient's file, the need for team 
178.12  case management and a description of the roles of the team 
178.13  members. 
178.14     (g) The commissioner shall calculate the nonfederal share 
178.15  of actual medical assistance and general assistance medical care 
178.16  payments for each county, based on the higher of calendar year 
178.17  1995 or 1996, by service date, project that amount forward to 
178.18  1999, and transfer one-half of the result from medical 
178.19  assistance and general assistance medical care to each county's 
178.20  mental health grants under sections 245.4886 and 256E.12 for 
178.21  calendar year 1999.  The annualized minimum amount added to each 
178.22  county's mental health grant shall be $3,000 per year for 
178.23  children and $5,000 per year for adults.  The commissioner may 
178.24  reduce the statewide growth factor in order to fund these 
178.25  minimums.  The annualized total amount transferred shall become 
178.26  part of the base for future mental health grants for each county.
178.27     (h) Any net increase in revenue to the county as a result 
178.28  of the change in this section must be used to provide expanded 
178.29  mental health services as defined in sections 245.461 to 
178.30  245.4888, the Comprehensive Adult and Children's Mental Health 
178.31  Acts, excluding inpatient and residential treatment.  For 
178.32  adults, increased revenue may also be used for services and 
178.33  consumer supports which are part of adult mental health projects 
178.34  approved under Laws 1997, chapter 203, article 7, section 25.  
178.35  For children, increased revenue may also be used for respite 
178.36  care and nonresidential individualized rehabilitation services 
179.1   as defined in section 245.492, subdivisions 17 and 23.  
179.2   "Increased revenue" has the meaning given in Minnesota Rules, 
179.3   part 9520.0903, subpart 3.  
179.4      (i) Notwithstanding section 256B.19, subdivision 1, the 
179.5   nonfederal share of costs for mental health case management 
179.6   shall be provided by the recipient's county of responsibility, 
179.7   as defined in sections 256G.01 to 256G.12, from sources other 
179.8   than federal funds or funds used to match other federal funds.  
179.9      (j) The commissioner may suspend, reduce, or terminate the 
179.10  reimbursement to a provider that does not meet the reporting or 
179.11  other requirements of this section.  The county of 
179.12  responsibility, as defined in sections 256G.01 to 256G.12, is 
179.13  responsible for any federal disallowances.  The county may share 
179.14  this responsibility with its contracted vendors.  
179.15     (k) The commissioner shall set aside a portion of the 
179.16  federal funds earned under this section to repay the special 
179.17  revenue maximization account under section 256.01, subdivision 
179.18  2, clause (15).  The repayment is limited to: 
179.19     (1) the costs of developing and implementing this section; 
179.20  and 
179.21     (2) programming the information systems. 
179.22     (l) Notwithstanding section 256.025, subdivision 2, 
179.23  payments to counties for case management expenditures under this 
179.24  section shall only be made from federal earnings from services 
179.25  provided under this section.  Payments to contracted vendors 
179.26  shall include both the federal earnings and the county share. 
179.27     (m) Notwithstanding section 256B.041, county payments for 
179.28  the cost of mental health case management services provided by 
179.29  county or state staff shall not be made to the state treasurer.  
179.30  For the purposes of mental health case management services 
179.31  provided by county or state staff under this section, the 
179.32  centralized disbursement of payments to counties under section 
179.33  256B.041 consists only of federal earnings from services 
179.34  provided under this section. 
179.35     (n) Case management services under this subdivision do not 
179.36  include therapy, treatment, legal, or outreach services. 
180.1      (o) If the recipient is a resident of a nursing facility, 
180.2   intermediate care facility, or hospital, and the recipient's 
180.3   institutional care is paid by medical assistance, payment for 
180.4   case management services under this subdivision is limited to 
180.5   the last 30 180 days of the recipient's residency in that 
180.6   facility and may not exceed more than two six months in a 
180.7   calendar year. 
180.8      (p) Payment for case management services under this 
180.9   subdivision shall not duplicate payments made under other 
180.10  program authorities for the same purpose. 
180.11     (q) By July 1, 2000, the commissioner shall evaluate the 
180.12  effectiveness of the changes required by this section, including 
180.13  changes in number of persons receiving mental health case 
180.14  management, changes in hours of service per person, and changes 
180.15  in caseload size. 
180.16     (r) For each calendar year beginning with the calendar year 
180.17  2001, the annualized amount of state funds for each county 
180.18  determined under paragraph (g) shall be adjusted by the county's 
180.19  percentage change in the average number of clients per month who 
180.20  received case management under this section during the fiscal 
180.21  year that ended six months prior to the calendar year in 
180.22  question, in comparison to the prior fiscal year. 
180.23     (s) For counties receiving the minimum allocation of $3,000 
180.24  or $5,000 described in paragraph (g), the adjustment in 
180.25  paragraph (r) shall be determined so that the county receives 
180.26  the higher of the following amounts: 
180.27     (1) a continuation of the minimum allocation in paragraph 
180.28  (g); or 
180.29     (2) an amount based on that county's average number of 
180.30  clients per month who received case management under this 
180.31  section during the fiscal year that ended six months prior to 
180.32  the calendar year in question, in comparison to the prior fiscal 
180.33  year, times the average statewide grant per person per month for 
180.34  counties not receiving the minimum allocation. 
180.35     (t) The adjustments in paragraphs (r) and (s) shall be 
180.36  calculated separately for children and adults. 
181.1      Sec. 20.  Minnesota Statutes 2000, section 256B.0625, is 
181.2   amended by adding a subdivision to read: 
181.3      Subd. 43.  [TARGETED CASE MANAGEMENT.] For purposes of 
181.4   subdivisions 43a to 43h, the following terms have the meanings 
181.5   given them: 
181.6      (1) "home care service recipients" means those individuals 
181.7   receiving the following services under section 256B.0627:  
181.8   skilled nursing visits, home health aide visits, private duty 
181.9   nursing, personal care assistants, or therapies provided through 
181.10  a home health agency; 
181.11     (2) "home care targeted case management" means the 
181.12  provision of targeted case management services for the purpose 
181.13  of assisting home care service recipients to gain access to 
181.14  needed services and supports so that they may remain in the 
181.15  community; 
181.16     (3) "institutions" means hospitals, consistent with Code of 
181.17  Federal Regulations, title 42, section 440.10; regional 
181.18  treatment center inpatient services, consistent with section 
181.19  245.474; nursing facilities; and intermediate care facilities 
181.20  for persons with mental retardation; 
181.21     (4) "relocation targeted case management" means the 
181.22  provision of targeted case management services for the purpose 
181.23  of assisting recipients to gain access to needed services and 
181.24  supports if they choose to move from an institution to the 
181.25  community.  Relocation targeted case management may be provided 
181.26  during the last 180 consecutive days of an eligible recipient's 
181.27  institutional stay; and 
181.28     (5) "targeted case management" means case management 
181.29  services provided to help recipients gain access to needed 
181.30  medical, social, educational, and other services and supports. 
181.31     Sec. 21.  Minnesota Statutes 2000, section 256B.0625, is 
181.32  amended by adding a subdivision to read: 
181.33     Subd. 43a.  [ELIGIBILITY.] The following persons are 
181.34  eligible for relocation targeted case management or home 
181.35  care-targeted case management: 
181.36     (1) medical assistance eligible persons residing in 
182.1   institutions who choose to move into the community are eligible 
182.2   for relocation targeted case management services; and 
182.3      (2) medical assistance eligible persons receiving home care 
182.4   services, who are not eligible for any other medical assistance 
182.5   reimbursable case management service, are eligible for home 
182.6   care-targeted case management services beginning January 1, 2003.
182.7      Sec. 22.  Minnesota Statutes 2000, section 256B.0625, is 
182.8   amended by adding a subdivision to read: 
182.9      Subd. 43b.  [RELOCATION TARGETED CASE MANAGEMENT PROVIDER 
182.10  QUALIFICATIONS.] The following qualifications and certification 
182.11  standards must be met by providers of relocation targeted case 
182.12  management: 
182.13     (a) The commissioner must certify each provider of 
182.14  relocation targeted case management before enrollment.  The 
182.15  certification process shall examine the provider's ability to 
182.16  meet the requirements in this subdivision and other federal and 
182.17  state requirements of this service.  A certified relocation 
182.18  targeted case management provider may subcontract with another 
182.19  provider to deliver relocation targeted case management 
182.20  services.  Subcontracted providers must demonstrate the ability 
182.21  to provide the services outlined in subdivision 43d. 
182.22     (b) A relocation targeted case management provider is an 
182.23  enrolled medical assistance provider who is determined by the 
182.24  commissioner to have all of the following characteristics: 
182.25     (1) the legal authority to provide public welfare under 
182.26  sections 393.01, subdivision 7; and 393.07; or a federally 
182.27  recognized Indian tribe; 
182.28     (2) the demonstrated capacity and experience to provide the 
182.29  components of case management to coordinate and link community 
182.30  resources needed by the eligible population; 
182.31     (3) the administrative capacity and experience to serve the 
182.32  target population for whom it will provide services and ensure 
182.33  quality of services under state and federal requirements; 
182.34     (4) the legal authority to provide complete investigative 
182.35  and protective services under section 626.556, subdivision 10; 
182.36  and child welfare and foster care services under section 393.07, 
183.1   subdivisions 1 and 2; or a federally recognized Indian tribe; 
183.2      (5) a financial management system that provides accurate 
183.3   documentation of services and costs under state and federal 
183.4   requirements; and 
183.5      (6) the capacity to document and maintain individual case 
183.6   records under state and federal requirements. 
183.7   A provider of targeted case management under subdivision 20 may 
183.8   be deemed a certified provider of relocation targeted case 
183.9   management. 
183.10     Sec. 23. Minnesota Statutes 2000, section 256B.0625, is 
183.11  amended by adding a subdivision to read: 
183.12     Subd. 43c.  [HOME CARE TARGETED CASE MANAGEMENT PROVIDER 
183.13  QUALIFICATIONS.] The following qualifications and certification 
183.14  standards must be met by providers of home care targeted case 
183.15  management. 
183.16     (a) The commissioner must certify each provider of home 
183.17  care targeted case management before enrollment.  The 
183.18  certification process shall examine the provider's ability to 
183.19  meet the requirements in this subdivision and other state and 
183.20  federal requirements of this service. 
183.21     (b) A home care targeted case management provider is an 
183.22  enrolled medical assistance provider who has a minimum of a 
183.23  bachelor's degree or a license in a health or human services 
183.24  field, and is determined by the commissioner to have all of the 
183.25  following characteristics: 
183.26     (1) the demonstrated capacity and experience to provide the 
183.27  components of case management to coordinate and link community 
183.28  resources needed by the eligible population; 
183.29     (2) the administrative capacity and experience to serve the 
183.30  target population for whom it will provide services and ensure 
183.31  quality of services under state and federal requirements; 
183.32     (3) a financial management system that provides accurate 
183.33  documentation of services and costs under state and federal 
183.34  requirements; 
183.35     (4) the capacity to document and maintain individual case 
183.36  records under state and federal requirements; and 
184.1      (5) the capacity to coordinate with county administrative 
184.2   functions. 
184.3      Sec. 24.  Minnesota Statutes 2000, section 256B.0625, is 
184.4   amended by adding a subdivision to read: 
184.5      Subd. 43d.  [ELIGIBLE SERVICES.] Services eligible for 
184.6   medical assistance reimbursement as targeted case management 
184.7   include: 
184.8      (1) assessment of the recipient's need for targeted case 
184.9   management services; 
184.10     (2) development, completion, and regular review of a 
184.11  written individual service plan, which is based upon the 
184.12  assessment of the recipient's needs and choices, and which will 
184.13  ensure access to medical, social, educational, and other related 
184.14  services and supports; 
184.15     (3) routine contact or communication with the recipient, 
184.16  recipient's family, primary caregiver, legal representative, 
184.17  substitute care provider, service providers, or other relevant 
184.18  persons identified as necessary to the development or 
184.19  implementation of the goals of the individual service plan; 
184.20     (4) coordinating referrals for, and the provision of, case 
184.21  management services for the recipient with appropriate service 
184.22  providers, consistent with section 1902(a)(23) of the Social 
184.23  Security Act; 
184.24     (5) coordinating and monitoring the overall service 
184.25  delivery to ensure quality of services, appropriateness, and 
184.26  continued need; 
184.27     (6) completing and maintaining necessary documentation that 
184.28  supports and verifies the activities in this subdivision; 
184.29     (7) traveling to conduct a visit with the recipient or 
184.30  other relevant person necessary to develop or implement the 
184.31  goals of the individual service plan; and 
184.32     (8) coordinating with the institution discharge planner in 
184.33  the 180-day period before the recipient's discharge. 
184.34     Sec. 25.  Minnesota Statutes 2000, section 256B.0625, is 
184.35  amended by adding a subdivision to read: 
184.36     Subd. 43e.  [TIME LINES.] The following time lines must be 
185.1   met for assigning a case manager: 
185.2      (1) for relocation targeted case management, an eligible 
185.3   recipient must be assigned a case manager who visits the person 
185.4   within 20 working days of requesting a case manager from their 
185.5   county of financial responsibility as determined under chapter 
185.6   256G.  If a county agency does not provide case management 
185.7   services as required, the recipient may, after written notice to 
185.8   the county agency, obtain targeted relocation case management 
185.9   services from a home care targeted case management provider, as 
185.10  defined in subdivision 43c; and 
185.11     (2) for home care targeted case management, an eligible 
185.12  recipient must be assigned a case manager within 20 working days 
185.13  of requesting a case manager from a home care targeted case 
185.14  management provider, as defined in subdivision 43c. 
185.15     Sec. 26.  Minnesota Statutes 2000, section 256B.0625, is 
185.16  amended by adding a subdivision to read: 
185.17     Subd. 43f.  [EVALUATION.] The commissioner shall evaluate 
185.18  the delivery of targeted case management, including, but not 
185.19  limited to, access to case management services, consumer 
185.20  satisfaction with case management services, and quality of case 
185.21  management services. 
185.22     Sec. 27.  Minnesota Statutes 2000, section 256B.0625, is 
185.23  amended by adding a subdivision to read: 
185.24     Subd. 43g.  [CONTACT DOCUMENTATION.] The case manager must 
185.25  document each face-to-face and telephone contact with the 
185.26  recipient and others involved in the recipient's individual 
185.27  service plan. 
185.28     Sec. 28.  Minnesota Statutes 2000, section 256B.0625, is 
185.29  amended by adding a subdivision to read: 
185.30     Subd. 43h.  [PAYMENT RATES.] The commissioner shall set 
185.31  payment rates for targeted case management under this 
185.32  subdivision.  Case managers may bill according to the following 
185.33  criteria: 
185.34     (1) for relocation targeted case management, case managers 
185.35  may bill for direct case management activities, including 
185.36  face-to-face and telephone contacts, in the 180 days preceding 
186.1   an eligible recipient's discharge from an institution; 
186.2      (2) for home care targeted case management, case managers 
186.3   may bill for direct case management activities, including 
186.4   face-to-face and telephone contacts; and 
186.5      (3) billings for targeted case management services under 
186.6   this subdivision shall not duplicate payments made under other 
186.7   program authorities for the same purpose. 
186.8      Sec. 29.  Minnesota Statutes 2000, section 256B.0627, 
186.9   subdivision 1, is amended to read: 
186.10     Subdivision 1.  [DEFINITION.] (a) "Activities of daily 
186.11  living" includes eating, toileting, grooming, dressing, bathing, 
186.12  transferring, mobility, and positioning.  
186.13     (b) "Assessment" means a review and evaluation of a 
186.14  recipient's need for home care services conducted in person.  
186.15  Assessments for private duty nursing shall be conducted by a 
186.16  registered private duty nurse.  Assessments for home health 
186.17  agency services shall be conducted by a home health agency 
186.18  nurse.  Assessments for personal care assistant services shall 
186.19  be conducted by the county public health nurse or a certified 
186.20  public health nurse under contract with the county.  A 
186.21  face-to-face assessment must include:  documentation of health 
186.22  status, determination of need, evaluation of service 
186.23  effectiveness, identification of appropriate services, service 
186.24  plan development or modification, coordination of services, 
186.25  referrals and follow-up to appropriate payers and community 
186.26  resources, completion of required reports, recommendation of 
186.27  service authorization, and consumer education.  Once the need 
186.28  for personal care assistant services is determined under this 
186.29  section, the county public health nurse or certified public 
186.30  health nurse under contract with the county is responsible for 
186.31  communicating this recommendation to the commissioner and the 
186.32  recipient.  A face-to-face assessment for personal 
186.33  care assistant services is conducted on those recipients who 
186.34  have never had a county public health nurse assessment.  A 
186.35  face-to-face assessment must occur at least annually or when 
186.36  there is a significant change in the recipient's condition or 
187.1   when there is a change in the need for personal care assistant 
187.2   services.  A service update may substitute for the annual 
187.3   face-to-face assessment when there is not a significant change 
187.4   in recipient condition or a change in the need for personal care 
187.5   assistant service.  A service update or review for temporary 
187.6   increase includes a review of initial baseline data, evaluation 
187.7   of service effectiveness, redetermination of service need, 
187.8   modification of service plan and appropriate referrals, update 
187.9   of initial forms, obtaining service authorization, and on going 
187.10  consumer education.  Assessments for medical assistance home 
187.11  care services for mental retardation or related conditions and 
187.12  alternative care services for developmentally disabled home and 
187.13  community-based waivered recipients may be conducted by the 
187.14  county public health nurse to ensure coordination and avoid 
187.15  duplication.  Assessments must be completed on forms provided by 
187.16  the commissioner within 30 days of a request for home care 
187.17  services by a recipient or responsible party. 
187.18     (b) (c) "Care plan" means a written description of personal 
187.19  care assistant services developed by the qualified 
187.20  professional or the recipient's physician with the recipient or 
187.21  responsible party to be used by the personal care assistant with 
187.22  a copy provided to the recipient or responsible party. 
187.23     (d) "Complex and regular private duty nursing care" means: 
187.24     (1) complex care is private duty nursing provided to 
187.25  recipients who are ventilator dependent or for whom a physician 
187.26  has certified that were it not for private duty nursing the 
187.27  recipient would meet the criteria for inpatient hospital 
187.28  intensive care unit (ICU) level of care; and 
187.29     (2) regular care is private duty nursing provided to all 
187.30  other recipients. 
187.31     (e) "Health-related functions" means functions that can be 
187.32  delegated or assigned by a licensed health care professional 
187.33  under state law to be performed by a personal care attendant. 
187.34     (c) (f) "Home care services" means a health service, 
187.35  determined by the commissioner as medically necessary, that is 
187.36  ordered by a physician and documented in a service plan that is 
188.1   reviewed by the physician at least once every 62 60 days for the 
188.2   provision of home health services, or private duty nursing, or 
188.3   at least once every 365 days for personal care.  Home care 
188.4   services are provided to the recipient at the recipient's 
188.5   residence that is a place other than a hospital or long-term 
188.6   care facility or as specified in section 256B.0625.  
188.7      (g) "Instrumental activities of daily living" includes meal 
188.8   planning and preparation, managing finances, shopping for food, 
188.9   clothing, and other essential items, performing essential 
188.10  household chores, communication by telephone and other media, 
188.11  and getting around and participating in the community. 
188.12     (d) (h) "Medically necessary" has the meaning given in 
188.13  Minnesota Rules, parts 9505.0170 to 9505.0475.  
188.14     (e) (i) "Personal care assistant" means a person who:  
188.15     (1) is at least 18 years old, except for persons 16 to 18 
188.16  years of age who participated in a related school-based job 
188.17  training program or have completed a certified home health aide 
188.18  competency evaluation; 
188.19     (2) is able to effectively communicate with the recipient 
188.20  and personal care provider organization; 
188.21     (3) effective July 1, 1996, has completed one of the 
188.22  training requirements as specified in Minnesota Rules, part 
188.23  9505.0335, subpart 3, items A to D; 
188.24     (4) has the ability to, and provides covered personal 
188.25  care assistant services according to the recipient's care plan, 
188.26  responds appropriately to recipient needs, and reports changes 
188.27  in the recipient's condition to the supervising qualified 
188.28  professional or physician; 
188.29     (5) is not a consumer of personal care assistant services; 
188.30  and 
188.31     (6) is subject to criminal background checks and procedures 
188.32  specified in section 245A.04.  
188.33     (f) (j) "Personal care provider organization" means an 
188.34  organization enrolled to provide personal care assistant 
188.35  services under the medical assistance program that complies with 
188.36  the following:  (1) owners who have a five percent interest or 
189.1   more, and managerial officials are subject to a background study 
189.2   as provided in section 245A.04.  This applies to currently 
189.3   enrolled personal care provider organizations and those agencies 
189.4   seeking enrollment as a personal care provider organization.  An 
189.5   organization will be barred from enrollment if an owner or 
189.6   managerial official of the organization has been convicted of a 
189.7   crime specified in section 245A.04, or a comparable crime in 
189.8   another jurisdiction, unless the owner or managerial official 
189.9   meets the reconsideration criteria specified in section 245A.04; 
189.10  (2) the organization must maintain a surety bond and liability 
189.11  insurance throughout the duration of enrollment and provides 
189.12  proof thereof.  The insurer must notify the department of human 
189.13  services of the cancellation or lapse of policy; and (3) the 
189.14  organization must maintain documentation of services as 
189.15  specified in Minnesota Rules, part 9505.2175, subpart 7, as well 
189.16  as evidence of compliance with personal care assistant training 
189.17  requirements. 
189.18     (g) (k) "Responsible party" means an individual residing 
189.19  with a recipient of personal care assistant services who is 
189.20  capable of providing the supportive care necessary to assist the 
189.21  recipient to live in the community, is at least 18 years old, 
189.22  and is not a personal care assistant.  Responsible parties who 
189.23  are parents of minors or guardians of minors or incapacitated 
189.24  persons may delegate the responsibility to another adult during 
189.25  a temporary absence of at least 24 hours but not more than six 
189.26  months.  The person delegated as a responsible party must be 
189.27  able to meet the definition of responsible party, except that 
189.28  the delegated responsible party is required to reside with the 
189.29  recipient only while serving as the responsible party.  Foster 
189.30  care license holders may be designated the responsible party for 
189.31  residents of the foster care home if case management is provided 
189.32  as required in section 256B.0625, subdivision 19a.  For persons 
189.33  who, as of April 1, 1992, are sharing personal care assistant 
189.34  services in order to obtain the availability of 24-hour 
189.35  coverage, an employee of the personal care provider organization 
189.36  may be designated as the responsible party if case management is 
190.1   provided as required in section 256B.0625, subdivision 19a. 
190.2      (h) (l) "Service plan" means a written description of the 
190.3   services needed based on the assessment developed by the nurse 
190.4   who conducts the assessment together with the recipient or 
190.5   responsible party.  The service plan shall include a description 
190.6   of the covered home care services, frequency and duration of 
190.7   services, and expected outcomes and goals.  The recipient and 
190.8   the provider chosen by the recipient or responsible party must 
190.9   be given a copy of the completed service plan within 30 calendar 
190.10  days of the request for home care services by the recipient or 
190.11  responsible party. 
190.12     (i) (m) "Skilled nurse visits" are provided in a 
190.13  recipient's residence under a plan of care or service plan that 
190.14  specifies a level of care which the nurse is qualified to 
190.15  provide.  These services are: 
190.16     (1) nursing services according to the written plan of care 
190.17  or service plan and accepted standards of medical and nursing 
190.18  practice in accordance with chapter 148; 
190.19     (2) services which due to the recipient's medical condition 
190.20  may only be safely and effectively provided by a registered 
190.21  nurse or a licensed practical nurse; 
190.22     (3) assessments performed only by a registered nurse; and 
190.23     (4) teaching and training the recipient, the recipient's 
190.24  family, or other caregivers requiring the skills of a registered 
190.25  nurse or licensed practical nurse. 
190.26     (n) "Telehomecare" means the use of telecommunications 
190.27  technology by a home health care professional to deliver home 
190.28  health care services, within the professional's scope of 
190.29  practice, to a patient located at a site other than the site 
190.30  where the practitioner is located. 
190.31     Sec. 30.  Minnesota Statutes 2000, section 256B.0627, 
190.32  subdivision 2, is amended to read: 
190.33     Subd. 2.  [SERVICES COVERED.] Home care services covered 
190.34  under this section include:  
190.35     (1) nursing services under section 256B.0625, subdivision 
190.36  6a; 
191.1      (2) private duty nursing services under section 256B.0625, 
191.2   subdivision 7; 
191.3      (3) home health aide services under section 256B.0625, 
191.4   subdivision 6a; 
191.5      (4) personal care assistant services under section 
191.6   256B.0625, subdivision 19a; 
191.7      (5) supervision of personal care assistant services 
191.8   provided by a qualified professional under section 256B.0625, 
191.9   subdivision 19a; 
191.10     (6) consulting qualified professional of personal care 
191.11  assistant services under the fiscal agent intermediary option as 
191.12  specified in subdivision 10; 
191.13     (7) face-to-face assessments by county public health nurses 
191.14  for services under section 256B.0625, subdivision 19a; and 
191.15     (8) service updates and review of temporary increases for 
191.16  personal care assistant services by the county public health 
191.17  nurse for services under section 256B.0625, subdivision 19a. 
191.18     Sec. 31.  Minnesota Statutes 2000, section 256B.0627, 
191.19  subdivision 4, is amended to read: 
191.20     Subd. 4.  [PERSONAL CARE ASSISTANT SERVICES.] (a) The 
191.21  personal care assistant services that are eligible for payment 
191.22  are the following: services and supports furnished to an 
191.23  individual, as needed, to assist in accomplishing activities of 
191.24  daily living; instrumental activities of daily living; 
191.25  health-related functions through hands-on assistance, 
191.26  supervision, and cuing; and redirection and intervention for 
191.27  behavior including observation and monitoring.  
191.28     (b) Payment for services will be made within the limits 
191.29  approved using the prior authorized process established in 
191.30  subdivision 5. 
191.31     (c) The amount and type of services authorized shall be 
191.32  based on an assessment of the recipient's needs in these areas: 
191.33     (1) bowel and bladder care; 
191.34     (2) skin care to maintain the health of the skin; 
191.35     (3) repetitive maintenance range of motion, muscle 
191.36  strengthening exercises, and other tasks specific to maintaining 
192.1   a recipient's optimal level of function; 
192.2      (4) respiratory assistance; 
192.3      (5) transfers and ambulation; 
192.4      (6) bathing, grooming, and hairwashing necessary for 
192.5   personal hygiene; 
192.6      (7) turning and positioning; 
192.7      (8) assistance with furnishing medication that is 
192.8   self-administered; 
192.9      (9) application and maintenance of prosthetics and 
192.10  orthotics; 
192.11     (10) cleaning medical equipment; 
192.12     (11) dressing or undressing; 
192.13     (12) assistance with eating and meal preparation and 
192.14  necessary grocery shopping; 
192.15     (13) accompanying a recipient to obtain medical diagnosis 
192.16  or treatment; 
192.17     (14) assisting, monitoring, or prompting the recipient to 
192.18  complete the services in clauses (1) to (13); 
192.19     (15) redirection, monitoring, and observation that are 
192.20  medically necessary and an integral part of completing the 
192.21  personal care assistant services described in clauses (1) to 
192.22  (14); 
192.23     (16) redirection and intervention for behavior, including 
192.24  observation and monitoring; 
192.25     (17) interventions for seizure disorders, including 
192.26  monitoring and observation if the recipient has had a seizure 
192.27  that requires intervention within the past three months; 
192.28     (18) tracheostomy suctioning using a clean procedure if the 
192.29  procedure is properly delegated by a registered nurse.  Before 
192.30  this procedure can be delegated to a personal care assistant, a 
192.31  registered nurse must determine that the tracheostomy suctioning 
192.32  can be accomplished utilizing a clean rather than a sterile 
192.33  procedure and must ensure that the personal care assistant has 
192.34  been taught the proper procedure; and 
192.35     (19) incidental household services that are an integral 
192.36  part of a personal care service described in clauses (1) to (18).
193.1   For purposes of this subdivision, monitoring and observation 
193.2   means watching for outward visible signs that are likely to 
193.3   occur and for which there is a covered personal care service or 
193.4   an appropriate personal care intervention.  For purposes of this 
193.5   subdivision, a clean procedure refers to a procedure that 
193.6   reduces the numbers of microorganisms or prevents or reduces the 
193.7   transmission of microorganisms from one person or place to 
193.8   another.  A clean procedure may be used beginning 14 days after 
193.9   insertion. 
193.10     (b) (d) The personal care assistant services that are not 
193.11  eligible for payment are the following:  
193.12     (1) services not ordered by the physician; 
193.13     (2) assessments by personal care assistant provider 
193.14  organizations or by independently enrolled registered nurses; 
193.15     (3) services that are not in the service plan; 
193.16     (4) services provided by the recipient's spouse, legal 
193.17  guardian for an adult or child recipient, or parent of a 
193.18  recipient under age 18; 
193.19     (5) services provided by a foster care provider of a 
193.20  recipient who cannot direct the recipient's own care, unless 
193.21  monitored by a county or state case manager under section 
193.22  256B.0625, subdivision 19a; 
193.23     (6) services provided by the residential or program license 
193.24  holder in a residence for more than four persons; 
193.25     (7) services that are the responsibility of a residential 
193.26  or program license holder under the terms of a service agreement 
193.27  and administrative rules; 
193.28     (8) sterile procedures; 
193.29     (9) injections of fluids into veins, muscles, or skin; 
193.30     (10) services provided by parents of adult recipients, 
193.31  adult children, or siblings of the recipient, unless these 
193.32  relatives meet one of the following hardship criteria and the 
193.33  commissioner waives this requirement: 
193.34     (i) the relative resigns from a part-time or full-time job 
193.35  to provide personal care for the recipient; 
193.36     (ii) the relative goes from a full-time to a part-time job 
194.1   with less compensation to provide personal care for the 
194.2   recipient; 
194.3      (iii) the relative takes a leave of absence without pay to 
194.4   provide personal care for the recipient; 
194.5      (iv) the relative incurs substantial expenses by providing 
194.6   personal care for the recipient; or 
194.7      (v) because of labor conditions, special language needs, or 
194.8   intermittent hours of care needed, the relative is needed in 
194.9   order to provide an adequate number of qualified personal care 
194.10  assistants to meet the medical needs of the recipient; 
194.11     (11) homemaker services that are not an integral part of a 
194.12  personal care assistant services; 
194.13     (12) home maintenance, or chore services; 
194.14     (13) services not specified under paragraph (a); and 
194.15     (14) services not authorized by the commissioner or the 
194.16  commissioner's designee. 
194.17     (e) The recipient or responsible party may choose to 
194.18  supervise the personal care assistant or to have a qualified 
194.19  professional, as defined in section 256B.0625, subdivision 19c, 
194.20  provide the supervision.  As required under section 256B.0625, 
194.21  subdivision 19c, the county public health nurse, as a part of 
194.22  the assessment, will assist the recipient or responsible party 
194.23  to identify the most appropriate person to provide supervision 
194.24  of the personal care assistant.  Health-related delegated tasks 
194.25  performed by the personal care assistant will be under the 
194.26  supervision of a qualified professional or the direction of the 
194.27  recipient's physician.  If the recipient has a qualified 
194.28  professional, Minnesota Rules, part 9505.0335, subpart 4, 
194.29  applies. 
194.30     Sec. 32.  Minnesota Statutes 2000, section 256B.0627, 
194.31  subdivision 5, is amended to read: 
194.32     Subd. 5.  [LIMITATION ON PAYMENTS.] Medical assistance 
194.33  payments for home care services shall be limited according to 
194.34  this subdivision.  
194.35     (a)  [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 
194.36  recipient may receive the following home care services during a 
195.1   calendar year: 
195.2      (1) up to two face-to-face assessments to determine a 
195.3   recipient's need for personal care assistant services; 
195.4      (2) one service update done to determine a recipient's need 
195.5   for personal care assistant services; and 
195.6      (3) up to five nine skilled nurse visits.  
195.7      (b)  [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 
195.8   services above the limits in paragraph (a) must receive the 
195.9   commissioner's prior authorization, except when: 
195.10     (1) the home care services were required to treat an 
195.11  emergency medical condition that if not immediately treated 
195.12  could cause a recipient serious physical or mental disability, 
195.13  continuation of severe pain, or death.  The provider must 
195.14  request retroactive authorization no later than five working 
195.15  days after giving the initial service.  The provider must be 
195.16  able to substantiate the emergency by documentation such as 
195.17  reports, notes, and admission or discharge histories; 
195.18     (2) the home care services were provided on or after the 
195.19  date on which the recipient's eligibility began, but before the 
195.20  date on which the recipient was notified that the case was 
195.21  opened.  Authorization will be considered if the request is 
195.22  submitted by the provider within 20 working days of the date the 
195.23  recipient was notified that the case was opened; 
195.24     (3) a third-party payor for home care services has denied 
195.25  or adjusted a payment.  Authorization requests must be submitted 
195.26  by the provider within 20 working days of the notice of denial 
195.27  or adjustment.  A copy of the notice must be included with the 
195.28  request; 
195.29     (4) the commissioner has determined that a county or state 
195.30  human services agency has made an error; or 
195.31     (5) the professional nurse determines an immediate need for 
195.32  up to 40 skilled nursing or home health aide visits per calendar 
195.33  year and submits a request for authorization within 20 working 
195.34  days of the initial service date, and medical assistance is 
195.35  determined to be the appropriate payer. 
195.36     (c)  [RETROACTIVE AUTHORIZATION.] A request for retroactive 
196.1   authorization will be evaluated according to the same criteria 
196.2   applied to prior authorization requests.  
196.3      (d)  [ASSESSMENT AND SERVICE PLAN.] Assessments under 
196.4   section 256B.0627, subdivision 1, paragraph (a), shall be 
196.5   conducted initially, and at least annually thereafter, in person 
196.6   with the recipient and result in a completed service plan using 
196.7   forms specified by the commissioner.  Within 30 days of 
196.8   recipient or responsible party request for home care services, 
196.9   the assessment, the service plan, and other information 
196.10  necessary to determine medical necessity such as diagnostic or 
196.11  testing information, social or medical histories, and hospital 
196.12  or facility discharge summaries shall be submitted to the 
196.13  commissioner.  Notwithstanding the provisions of section 
196.14  256B.0627, subdivision 12, the commissioner shall maximize 
196.15  federal financial participation to pay for public health nurse 
196.16  assessments for personal care services.  For personal care 
196.17  assistant services: 
196.18     (1) The amount and type of service authorized based upon 
196.19  the assessment and service plan will follow the recipient if the 
196.20  recipient chooses to change providers.  
196.21     (2) If the recipient's medical need changes, the 
196.22  recipient's provider may assess the need for a change in service 
196.23  authorization and request the change from the county public 
196.24  health nurse.  Within 30 days of the request, the public health 
196.25  nurse will determine whether to request the change in services 
196.26  based upon the provider assessment, or conduct a home visit to 
196.27  assess the need and determine whether the change is appropriate. 
196.28     (3) To continue to receive personal care assistant services 
196.29  after the first year, the recipient or the responsible party, in 
196.30  conjunction with the public health nurse, may complete a service 
196.31  update on forms developed by the commissioner according to 
196.32  criteria and procedures in subdivision 1.  
196.33     (e)  [PRIOR AUTHORIZATION.] The commissioner, or the 
196.34  commissioner's designee, shall review the assessment, service 
196.35  update, request for temporary services, service plan, and any 
196.36  additional information that is submitted.  The commissioner 
197.1   shall, within 30 days after receiving a complete request, 
197.2   assessment, and service plan, authorize home care services as 
197.3   follows:  
197.4      (1)  [HOME HEALTH SERVICES.] All home health services 
197.5   provided by a licensed nurse or a home health aide must be prior 
197.6   authorized by the commissioner or the commissioner's designee.  
197.7   Prior authorization must be based on medical necessity and 
197.8   cost-effectiveness when compared with other care options.  When 
197.9   home health services are used in combination with personal care 
197.10  and private duty nursing, the cost of all home care services 
197.11  shall be considered for cost-effectiveness.  The commissioner 
197.12  shall limit nurse and home health aide visits to no more than 
197.13  one visit each per day.  The commissioner, or the commissioner's 
197.14  designee, may authorize up to two skilled nurse visits per day. 
197.15     (2)  [PERSONAL CARE ASSISTANT SERVICES.] (i) All personal 
197.16  care assistant services and supervision by a qualified 
197.17  professional, if requested by the recipient, must be prior 
197.18  authorized by the commissioner or the commissioner's designee 
197.19  except for the assessments established in paragraph (a).  The 
197.20  amount of personal care assistant services authorized must be 
197.21  based on the recipient's home care rating.  A child may not be 
197.22  found to be dependent in an activity of daily living if because 
197.23  of the child's age an adult would either perform the activity 
197.24  for the child or assist the child with the activity and the 
197.25  amount of assistance needed is similar to the assistance 
197.26  appropriate for a typical child of the same age.  Based on 
197.27  medical necessity, the commissioner may authorize: 
197.28     (A) up to two times the average number of direct care hours 
197.29  provided in nursing facilities for the recipient's comparable 
197.30  case mix level; or 
197.31     (B) up to three times the average number of direct care 
197.32  hours provided in nursing facilities for recipients who have 
197.33  complex medical needs or are dependent in at least seven 
197.34  activities of daily living and need physical assistance with 
197.35  eating or have a neurological diagnosis; or 
197.36     (C) up to 60 percent of the average reimbursement rate, as 
198.1   of July 1, 1991, for care provided in a regional treatment 
198.2   center for recipients who have Level I behavior, plus any 
198.3   inflation adjustment as provided by the legislature for personal 
198.4   care service; or 
198.5      (D) up to the amount the commissioner would pay, as of July 
198.6   1, 1991, plus any inflation adjustment provided for home care 
198.7   services, for care provided in a regional treatment center for 
198.8   recipients referred to the commissioner by a regional treatment 
198.9   center preadmission evaluation team.  For purposes of this 
198.10  clause, home care services means all services provided in the 
198.11  home or community that would be included in the payment to a 
198.12  regional treatment center; or 
198.13     (E) up to the amount medical assistance would reimburse for 
198.14  facility care for recipients referred to the commissioner by a 
198.15  preadmission screening team established under section 256B.0911 
198.16  or 256B.092; and 
198.17     (F) a reasonable amount of time for the provision of 
198.18  supervision by a qualified professional of personal 
198.19  care assistant services, if a qualified professional is 
198.20  requested by the recipient or responsible party.  
198.21     (ii) The number of direct care hours shall be determined 
198.22  according to the annual cost report submitted to the department 
198.23  by nursing facilities.  The average number of direct care hours, 
198.24  as established by May 1, 1992, shall be calculated and 
198.25  incorporated into the home care limits on July 1, 1992.  These 
198.26  limits shall be calculated to the nearest quarter hour. 
198.27     (iii) The home care rating shall be determined by the 
198.28  commissioner or the commissioner's designee based on information 
198.29  submitted to the commissioner by the county public health nurse 
198.30  on forms specified by the commissioner.  The home care rating 
198.31  shall be a combination of current assessment tools developed 
198.32  under sections 256B.0911 and 256B.501 with an addition for 
198.33  seizure activity that will assess the frequency and severity of 
198.34  seizure activity and with adjustments, additions, and 
198.35  clarifications that are necessary to reflect the needs and 
198.36  conditions of recipients who need home care including children 
199.1   and adults under 65 years of age.  The commissioner shall 
199.2   establish these forms and protocols under this section and shall 
199.3   use an advisory group, including representatives of recipients, 
199.4   providers, and counties, for consultation in establishing and 
199.5   revising the forms and protocols. 
199.6      (iv) A recipient shall qualify as having complex medical 
199.7   needs if the care required is difficult to perform and because 
199.8   of recipient's medical condition requires more time than 
199.9   community-based standards allow or requires more skill than 
199.10  would ordinarily be required and the recipient needs or has one 
199.11  or more of the following: 
199.12     (A) daily tube feedings; 
199.13     (B) daily parenteral therapy; 
199.14     (C) wound or decubiti care; 
199.15     (D) postural drainage, percussion, nebulizer treatments, 
199.16  suctioning, tracheotomy care, oxygen, mechanical ventilation; 
199.17     (E) catheterization; 
199.18     (F) ostomy care; 
199.19     (G) quadriplegia; or 
199.20     (H) other comparable medical conditions or treatments the 
199.21  commissioner determines would otherwise require institutional 
199.22  care.  
199.23     (v) A recipient shall qualify as having Level I behavior if 
199.24  there is reasonable supporting evidence that the recipient 
199.25  exhibits, or that without supervision, observation, or 
199.26  redirection would exhibit, one or more of the following 
199.27  behaviors that cause, or have the potential to cause: 
199.28     (A) injury to the recipient's own body; 
199.29     (B) physical injury to other people; or 
199.30     (C) destruction of property. 
199.31     (vi) Time authorized for personal care relating to Level I 
199.32  behavior in subclause (v), items (A) to (C), shall be based on 
199.33  the predictability, frequency, and amount of intervention 
199.34  required. 
199.35     (vii) A recipient shall qualify as having Level II behavior 
199.36  if the recipient exhibits on a daily basis one or more of the 
200.1   following behaviors that interfere with the completion of 
200.2   personal care assistant services under subdivision 4, paragraph 
200.3   (a): 
200.4      (A) unusual or repetitive habits; 
200.5      (B) withdrawn behavior; or 
200.6      (C) offensive behavior. 
200.7      (viii) A recipient with a home care rating of Level II 
200.8   behavior in subclause (vii), items (A) to (C), shall be rated as 
200.9   comparable to a recipient with complex medical needs under 
200.10  subclause (iv).  If a recipient has both complex medical needs 
200.11  and Level II behavior, the home care rating shall be the next 
200.12  complex category up to the maximum rating under subclause (i), 
200.13  item (B). 
200.14     (3)  [PRIVATE DUTY NURSING SERVICES.] All private duty 
200.15  nursing services shall be prior authorized by the commissioner 
200.16  or the commissioner's designee.  Prior authorization for private 
200.17  duty nursing services shall be based on medical necessity and 
200.18  cost-effectiveness when compared with alternative care options.  
200.19  The commissioner may authorize medically necessary private duty 
200.20  nursing services in quarter-hour units when: 
200.21     (i) the recipient requires more individual and continuous 
200.22  care than can be provided during a nurse visit; or 
200.23     (ii) the cares are outside of the scope of services that 
200.24  can be provided by a home health aide or personal care assistant.
200.25     The commissioner may authorize: 
200.26     (A) up to two times the average amount of direct care hours 
200.27  provided in nursing facilities statewide for case mix 
200.28  classification "K" as established by the annual cost report 
200.29  submitted to the department by nursing facilities in May 1992; 
200.30     (B) private duty nursing in combination with other home 
200.31  care services up to the total cost allowed under clause (2); 
200.32     (C) up to 16 hours per day if the recipient requires more 
200.33  nursing than the maximum number of direct care hours as 
200.34  established in item (A) and the recipient meets the hospital 
200.35  admission criteria established under Minnesota Rules, parts 
200.36  9505.0500 9505.0501 to 9505.0540.  
201.1      The commissioner may authorize up to 16 hours per day of 
201.2   medically necessary private duty nursing services or up to 24 
201.3   hours per day of medically necessary private duty nursing 
201.4   services until such time as the commissioner is able to make a 
201.5   determination of eligibility for recipients who are 
201.6   cooperatively applying for home care services under the 
201.7   community alternative care program developed under section 
201.8   256B.49, or until it is determined by the appropriate regulatory 
201.9   agency that a health benefit plan is or is not required to pay 
201.10  for appropriate medically necessary health care services.  
201.11  Recipients or their representatives must cooperatively assist 
201.12  the commissioner in obtaining this determination.  Recipients 
201.13  who are eligible for the community alternative care program may 
201.14  not receive more hours of nursing under this section than would 
201.15  otherwise be authorized under section 256B.49.  
201.16     (4)  [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 
201.17  ventilator-dependent, the monthly medical assistance 
201.18  authorization for home care services shall not exceed what the 
201.19  commissioner would pay for care at the highest cost hospital 
201.20  designated as a long-term hospital under the Medicare program.  
201.21  For purposes of this clause, home care services means all 
201.22  services provided in the home that would be included in the 
201.23  payment for care at the long-term hospital.  
201.24  "Ventilator-dependent" means an individual who receives 
201.25  mechanical ventilation for life support at least six hours per 
201.26  day and is expected to be or has been dependent for at least 30 
201.27  consecutive days.  
201.28     (f)  [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 
201.29  or the commissioner's designee shall determine the time period 
201.30  for which a prior authorization shall be effective.  If the 
201.31  recipient continues to require home care services beyond the 
201.32  duration of the prior authorization, the home care provider must 
201.33  request a new prior authorization.  Under no circumstances, 
201.34  other than the exceptions in paragraph (b), shall a prior 
201.35  authorization be valid prior to the date the commissioner 
201.36  receives the request or for more than 12 months.  A recipient 
202.1   who appeals a reduction in previously authorized home care 
202.2   services may continue previously authorized services, other than 
202.3   temporary services under paragraph (h), pending an appeal under 
202.4   section 256.045.  The commissioner must provide a detailed 
202.5   explanation of why the authorized services are reduced in amount 
202.6   from those requested by the home care provider.  
202.7      (g)  [APPROVAL OF HOME CARE SERVICES.] The commissioner or 
202.8   the commissioner's designee shall determine the medical 
202.9   necessity of home care services, the level of caregiver 
202.10  according to subdivision 2, and the institutional comparison 
202.11  according to this subdivision, the cost-effectiveness of 
202.12  services, and the amount, scope, and duration of home care 
202.13  services reimbursable by medical assistance, based on the 
202.14  assessment, primary payer coverage determination information as 
202.15  required, the service plan, the recipient's age, the cost of 
202.16  services, the recipient's medical condition, and diagnosis or 
202.17  disability.  The commissioner may publish additional criteria 
202.18  for determining medical necessity according to section 256B.04. 
202.19     (h)  [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 
202.20  The agency nurse, the independently enrolled private duty nurse, 
202.21  or county public health nurse may request a temporary 
202.22  authorization for home care services by telephone.  The 
202.23  commissioner may approve a temporary level of home care services 
202.24  based on the assessment, and service or care plan information, 
202.25  and primary payer coverage determination information as required.
202.26  Authorization for a temporary level of home care services 
202.27  including nurse supervision is limited to the time specified by 
202.28  the commissioner, but shall not exceed 45 days, unless extended 
202.29  because the county public health nurse has not completed the 
202.30  required assessment and service plan, or the commissioner's 
202.31  determination has not been made.  The level of services 
202.32  authorized under this provision shall have no bearing on a 
202.33  future prior authorization. 
202.34     (i)  [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 
202.35  Home care services provided in an adult or child foster care 
202.36  setting must receive prior authorization by the department 
203.1   according to the limits established in paragraph (a). 
203.2      The commissioner may not authorize: 
203.3      (1) home care services that are the responsibility of the 
203.4   foster care provider under the terms of the foster care 
203.5   placement agreement and administrative rules; 
203.6      (2) personal care assistant services when the foster care 
203.7   license holder is also the personal care provider or personal 
203.8   care assistant unless the recipient can direct the recipient's 
203.9   own care, or case management is provided as required in section 
203.10  256B.0625, subdivision 19a; 
203.11     (3) personal care assistant services when the responsible 
203.12  party is an employee of, or under contract with, or has any 
203.13  direct or indirect financial relationship with the personal care 
203.14  provider or personal care assistant, unless case management is 
203.15  provided as required in section 256B.0625, subdivision 19a; or 
203.16     (4) personal care assistant and private duty nursing 
203.17  services when the number of foster care residents is greater 
203.18  than four unless the county responsible for the recipient's 
203.19  foster placement made the placement prior to April 1, 1992, 
203.20  requests that personal care assistant and private duty nursing 
203.21  services be provided, and case management is provided as 
203.22  required in section 256B.0625, subdivision 19a. 
203.23     Sec. 33.  Minnesota Statutes 2000, section 256B.0627, 
203.24  subdivision 7, is amended to read: 
203.25     Subd. 7.  [NONCOVERED HOME CARE SERVICES.] The following 
203.26  home care services are not eligible for payment under medical 
203.27  assistance:  
203.28     (1) skilled nurse visits for the sole purpose of 
203.29  supervision of the home health aide; 
203.30     (2) a skilled nursing visit: 
203.31     (i) only for the purpose of monitoring medication 
203.32  compliance with an established medication program for a 
203.33  recipient; or 
203.34     (ii) to administer or assist with medication 
203.35  administration, including injections, prefilling syringes for 
203.36  injections, or oral medication set-up of an adult recipient, 
204.1   when as determined and documented by the registered nurse, the 
204.2   need can be met by an available pharmacy or the recipient is 
204.3   physically and mentally able to self-administer or prefill a 
204.4   medication; 
204.5      (3) home care services to a recipient who is eligible for 
204.6   covered services including hospice, if elected by the recipient, 
204.7   under the Medicare program or any other insurance held by the 
204.8   recipient; 
204.9      (4) services to other members of the recipient's household; 
204.10     (5) a visit made by a skilled nurse solely to train other 
204.11  home health agency workers; 
204.12     (6) any home care service included in the daily rate of the 
204.13  community-based residential facility where the recipient is 
204.14  residing; 
204.15     (7) nursing and rehabilitation therapy services that are 
204.16  reasonably accessible to a recipient outside the recipient's 
204.17  place of residence, excluding the assessment, counseling and 
204.18  education, and personal assistant care; 
204.19     (8) any home health agency service, excluding personal care 
204.20  assistant services and private duty nursing services, which are 
204.21  performed in a place other than the recipient's residence; and 
204.22     (9) Medicare evaluation or administrative nursing visits on 
204.23  dual-eligible recipients that do not qualify for Medicare visit 
204.24  billing. 
204.25     Sec. 34.  Minnesota Statutes 2000, section 256B.0627, 
204.26  subdivision 8, is amended to read: 
204.27     Subd. 8.  [SHARED PERSONAL CARE ASSISTANT SERVICES.] (a) 
204.28  Medical assistance payments for shared personal care assistance 
204.29  services shall be limited according to this subdivision. 
204.30     (b) Recipients of personal care assistant services may 
204.31  share staff and the commissioner shall provide a rate system for 
204.32  shared personal care assistant services.  For two persons 
204.33  sharing services, the rate paid to a provider shall not exceed 
204.34  1-1/2 times the rate paid for serving a single individual, and 
204.35  for three persons sharing services, the rate paid to a provider 
204.36  shall not exceed twice the rate paid for serving a single 
205.1   individual.  These rates apply only to situations in which all 
205.2   recipients were present and received shared services on the date 
205.3   for which the service is billed.  No more than three persons may 
205.4   receive shared services from a personal care assistant in a 
205.5   single setting. 
205.6      (c) Shared service is the provision of personal 
205.7   care assistant services by a personal care assistant to two or 
205.8   three recipients at the same time and in the same setting.  For 
205.9   the purposes of this subdivision, "setting" means: 
205.10     (1) the home or foster care home of one of the individual 
205.11  recipients; or 
205.12     (2) a child care program in which all recipients served by 
205.13  one personal care assistant are participating, which is licensed 
205.14  under chapter 245A or operated by a local school district or 
205.15  private school; or 
205.16     (3) outside the home or foster care home of one of the 
205.17  recipients when normal life activities take the recipients 
205.18  outside the home.  
205.19     The provisions of this subdivision do not apply when a 
205.20  personal care assistant is caring for multiple recipients in 
205.21  more than one setting. 
205.22     (d) The recipient or the recipient's responsible party, in 
205.23  conjunction with the county public health nurse, shall determine:
205.24     (1) whether shared personal care assistant services is an 
205.25  appropriate option based on the individual needs and preferences 
205.26  of the recipient; and 
205.27     (2) the amount of shared services allocated as part of the 
205.28  overall authorization of personal care assistant services. 
205.29     The recipient or the responsible party, in conjunction with 
205.30  the supervising qualified professional, if a qualified 
205.31  professional is requested by any one of the recipients or 
205.32  responsible parties, shall arrange the setting and grouping of 
205.33  shared services based on the individual needs and preferences of 
205.34  the recipients.  Decisions on the selection of recipients to 
205.35  share services must be based on the ages of the recipients, 
205.36  compatibility, and coordination of their care needs. 
206.1      (e) The following items must be considered by the recipient 
206.2   or the responsible party and the supervising qualified 
206.3   professional, if a qualified professional has been requested by 
206.4   any one of the recipients or responsible parties, and documented 
206.5   in the recipient's health service record: 
206.6      (1) the additional qualifications needed by the personal 
206.7   care assistant to provide care to several recipients in the same 
206.8   setting; 
206.9      (2) the additional training and supervision needed by the 
206.10  personal care assistant to ensure that the needs of the 
206.11  recipient are met appropriately and safely.  The provider must 
206.12  provide on-site supervision by a qualified professional within 
206.13  the first 14 days of shared services, and monthly thereafter, if 
206.14  supervision by a qualified provider has been requested by any 
206.15  one of the recipients or responsible parties; 
206.16     (3) the setting in which the shared services will be 
206.17  provided; 
206.18     (4) the ongoing monitoring and evaluation of the 
206.19  effectiveness and appropriateness of the service and process 
206.20  used to make changes in service or setting; and 
206.21     (5) a contingency plan which accounts for absence of the 
206.22  recipient in a shared services setting due to illness or other 
206.23  circumstances and staffing contingencies. 
206.24     (f) The provider must offer the recipient or the 
206.25  responsible party the option of shared or one-on-one personal 
206.26  care assistant services.  The recipient or the responsible party 
206.27  can withdraw from participating in a shared services arrangement 
206.28  at any time. 
206.29     (g) In addition to documentation requirements under 
206.30  Minnesota Rules, part 9505.2175, a personal care provider must 
206.31  meet documentation requirements for shared personal care 
206.32  assistant services and must document the following in the health 
206.33  service record for each individual recipient sharing services: 
206.34     (1) permission by the recipient or the recipient's 
206.35  responsible party, if any, for the maximum number of shared 
206.36  services hours per week chosen by the recipient; 
207.1      (2) permission by the recipient or the recipient's 
207.2   responsible party, if any, for personal care assistant services 
207.3   provided outside the recipient's residence; 
207.4      (3) permission by the recipient or the recipient's 
207.5   responsible party, if any, for others to receive shared services 
207.6   in the recipient's residence; 
207.7      (4) revocation by the recipient or the recipient's 
207.8   responsible party, if any, of the shared service authorization, 
207.9   or the shared service to be provided to others in the 
207.10  recipient's residence, or the shared service to be provided 
207.11  outside the recipient's residence; 
207.12     (5) supervision of the shared personal care assistant 
207.13  services by the qualified professional, if a qualified 
207.14  professional is requested by one of the recipients or 
207.15  responsible parties, including the date, time of day, number of 
207.16  hours spent supervising the provision of shared services, 
207.17  whether the supervision was face-to-face or another method of 
207.18  supervision, changes in the recipient's condition, shared 
207.19  services scheduling issues and recommendations; 
207.20     (6) documentation by the qualified professional, if a 
207.21  qualified professional is requested by one of the recipients or 
207.22  responsible parties, of telephone calls or other discussions 
207.23  with the personal care assistant regarding services being 
207.24  provided to the recipient who has requested the supervision; and 
207.25     (7) daily documentation of the shared services provided by 
207.26  each identified personal care assistant including: 
207.27     (i) the names of each recipient receiving shared services 
207.28  together; 
207.29     (ii) the setting for the shared services, including the 
207.30  starting and ending times that the recipient received shared 
207.31  services; and 
207.32     (iii) notes by the personal care assistant regarding 
207.33  changes in the recipient's condition, problems that may arise 
207.34  from the sharing of services, scheduling issues, care issues, 
207.35  and other notes as required by the qualified professional, if a 
207.36  qualified professional is requested by one of the recipients or 
208.1   responsible parties. 
208.2      (h) Unless otherwise provided in this subdivision, all 
208.3   other statutory and regulatory provisions relating to personal 
208.4   care assistant services apply to shared services. 
208.5      (i) In the event that supervision by a qualified 
208.6   professional has been requested by one or more recipients, but 
208.7   not by all of the recipients, the supervision duties of the 
208.8   qualified professional shall be limited to only those recipients 
208.9   who have requested the supervision. 
208.10     Nothing in this subdivision shall be construed to reduce 
208.11  the total number of hours authorized for an individual recipient.
208.12     Sec. 35.  Minnesota Statutes 2000, section 256B.0627, 
208.13  subdivision 10, is amended to read: 
208.14     Subd. 10.  [FISCAL AGENT INTERMEDIARY OPTION AVAILABLE FOR 
208.15  PERSONAL CARE ASSISTANT SERVICES.] (a) "Fiscal agent option" is 
208.16  an option that allows the recipient to: 
208.17     (1) use a fiscal agent instead of a personal care provider 
208.18  organization; 
208.19     (2) supervise the personal care assistant; and 
208.20     (3) use a consulting professional. 
208.21     The commissioner may allow a recipient of personal care 
208.22  assistant services to use a fiscal agent intermediary to assist 
208.23  the recipient in paying and accounting for medically necessary 
208.24  covered personal care assistant services authorized in 
208.25  subdivision 4 and within the payment parameters of subdivision 
208.26  5.  Unless otherwise provided in this subdivision, all other 
208.27  statutory and regulatory provisions relating to personal care 
208.28  assistant services apply to a recipient using the fiscal agent 
208.29  intermediary option. 
208.30     (b) The recipient or responsible party shall: 
208.31     (1) hire, and terminate the personal care assistant and 
208.32  consulting professional, with the fiscal agent recruit, hire, 
208.33  and terminate a qualified professional, if a qualified 
208.34  professional is requested by the recipient or responsible party; 
208.35     (2) recruit the personal care assistant and consulting 
208.36  professional and orient and train the personal care assistant in 
209.1   areas that do not require professional delegation as determined 
209.2   by the county public health nurse verify and document the 
209.3   credentials of the qualified professional, if a qualified 
209.4   professional is requested by the recipient or responsible party; 
209.5      (3) supervise and evaluate the personal care assistant in 
209.6   areas that do not require professional delegation as determined 
209.7   in the assessment; 
209.8      (4) cooperate with a consulting develop a service plan 
209.9   based on physician orders and public health nurse assessment 
209.10  with the assistance of a qualified professional and implement 
209.11  recommendations pertaining to the health and safety of the 
209.12  recipient, if a qualified professional is requested by the 
209.13  recipient or responsible party, that addresses the health and 
209.14  safety of the recipient; 
209.15     (5) hire a qualified professional to train and supervise 
209.16  the performance of delegated tasks done by (4) recruit, hire, 
209.17  and terminate the personal care assistant; 
209.18     (6) monitor services and verify in writing the hours worked 
209.19  by the personal care assistant and the consulting (5) orient and 
209.20  train the personal care assistant with assistance as needed from 
209.21  the qualified professional; 
209.22     (7) develop and revise a care plan with assistance from a 
209.23  consulting (6) supervise and evaluate the personal care 
209.24  assistant with assistance as needed from the recipient's 
209.25  physician or the qualified professional; 
209.26     (8) verify and document the credentials of the consulting 
209.27  (7) monitor and verify in writing and report to the fiscal 
209.28  intermediary the number of hours worked by the personal care 
209.29  assistant and the qualified professional; and 
209.30     (9) (8) enter into a written agreement, as specified in 
209.31  paragraph (f). 
209.32     (c) The duties of the fiscal agent intermediary shall be to:
209.33     (1) bill the medical assistance program for personal care 
209.34  assistant and consulting qualified professional services; 
209.35     (2) request and secure background checks on personal care 
209.36  assistants and consulting qualified professionals according to 
210.1   section 245A.04; 
210.2      (3) pay the personal care assistant and consulting 
210.3   qualified professional based on actual hours of services 
210.4   provided; 
210.5      (4) withhold and pay all applicable federal and state 
210.6   taxes; 
210.7      (5) verify and document keep records of hours worked by the 
210.8   personal care assistant and consulting qualified professional; 
210.9      (6) make the arrangements and pay unemployment insurance, 
210.10  taxes, workers' compensation, liability insurance, and other 
210.11  benefits, if any; 
210.12     (7) enroll in the medical assistance program as a fiscal 
210.13  agent intermediary; and 
210.14     (8) enter into a written agreement as specified in 
210.15  paragraph (f) before services are provided. 
210.16     (d) The fiscal agent intermediary: 
210.17     (1) may not be related to the recipient, consulting 
210.18  qualified professional, or the personal care assistant; 
210.19     (2) must ensure arm's length transactions with the 
210.20  recipient and personal care assistant; and 
210.21     (3) shall be considered a joint employer of the personal 
210.22  care assistant and consulting qualified professional to the 
210.23  extent specified in this section. 
210.24     The fiscal agent intermediary or owners of the entity that 
210.25  provides fiscal agent intermediary services under this 
210.26  subdivision must pass a criminal background check as required in 
210.27  section 256B.0627, subdivision 1, paragraph (e). 
210.28     (e) If the recipient or responsible party requests a 
210.29  qualified professional, the consulting qualified professional 
210.30  providing assistance to the recipient shall meet the 
210.31  qualifications specified in section 256B.0625, subdivision 19c.  
210.32  The consulting qualified professional shall assist the recipient 
210.33  in developing and revising a plan to meet the 
210.34  recipient's assessed needs, and supervise the performance of 
210.35  delegated tasks, as determined by the public health nurse as 
210.36  assessed by the public health nurse.  In performing this 
211.1   function, the consulting qualified professional must visit the 
211.2   recipient in the recipient's home at least once annually.  
211.3   The consulting qualified professional must report to the local 
211.4   county public health nurse concerns relating to the health and 
211.5   safety of the recipient, and any suspected abuse, neglect, or 
211.6   financial exploitation of the recipient to the appropriate 
211.7   authorities.  
211.8      (f) The fiscal agent intermediary, recipient or responsible 
211.9   party, personal care assistant, and consulting qualified 
211.10  professional shall enter into a written agreement before 
211.11  services are started.  The agreement shall include: 
211.12     (1) the duties of the recipient, qualified professional, 
211.13  personal care assistant, and fiscal agent based on paragraphs 
211.14  (a) to (e); 
211.15     (2) the salary and benefits for the personal care assistant 
211.16  and those providing professional consultation the qualified 
211.17  professional; 
211.18     (3) the administrative fee of the fiscal agent intermediary 
211.19  and services paid for with that fee, including background check 
211.20  fees; 
211.21     (4) procedures to respond to billing or payment complaints; 
211.22  and 
211.23     (5) procedures for hiring and terminating the personal care 
211.24  assistant and those providing professional consultation the 
211.25  qualified professional. 
211.26     (g) The rates paid for personal care assistant services, 
211.27  qualified professional assistance services, and fiscal agency 
211.28  intermediary services under this subdivision shall be the same 
211.29  rates paid for personal care assistant services and qualified 
211.30  professional services under subdivision 2 respectively.  Except 
211.31  for the administrative fee of the fiscal agent intermediary 
211.32  specified in paragraph (f), the remainder of the rates paid to 
211.33  the fiscal agent intermediary must be used to pay for the salary 
211.34  and benefits for the personal care assistant or those providing 
211.35  professional consultation the qualified professional. 
211.36     (h) As part of the assessment defined in subdivision 1, the 
212.1   following conditions must be met to use or continue use of a 
212.2   fiscal agent intermediary: 
212.3      (1) the recipient must be able to direct the recipient's 
212.4   own care, or the responsible party for the recipient must be 
212.5   readily available to direct the care of the personal care 
212.6   assistant; 
212.7      (2) the recipient or responsible party must be 
212.8   knowledgeable of the health care needs of the recipient and be 
212.9   able to effectively communicate those needs; 
212.10     (3) a face-to-face assessment must be conducted by the 
212.11  local county public health nurse at least annually, or when 
212.12  there is a significant change in the recipient's condition or 
212.13  change in the need for personal care assistant services.  The 
212.14  county public health nurse shall determine the services that 
212.15  require professional delegation, if any, and the amount and 
212.16  frequency of related supervision; 
212.17     (4) the recipient cannot select the shared services option 
212.18  as specified in subdivision 8; and 
212.19     (5) parties must be in compliance with the written 
212.20  agreement specified in paragraph (f). 
212.21     (i) The commissioner shall deny, revoke, or suspend the 
212.22  authorization to use the fiscal agent intermediary option if: 
212.23     (1) it has been determined by the consulting qualified 
212.24  professional or local county public health nurse that the use of 
212.25  this option jeopardizes the recipient's health and safety; 
212.26     (2) the parties have failed to comply with the written 
212.27  agreement specified in paragraph (f); or 
212.28     (3) the use of the option has led to abusive or fraudulent 
212.29  billing for personal care assistant services.  
212.30     The recipient or responsible party may appeal the 
212.31  commissioner's action according to section 256.045.  The denial, 
212.32  revocation, or suspension to use the fiscal agent intermediary 
212.33  option shall not affect the recipient's authorized level of 
212.34  personal care assistant services as determined in subdivision 5. 
212.35     Sec. 36.  Minnesota Statutes 2000, section 256B.0627, 
212.36  subdivision 11, is amended to read: 
213.1      Subd. 11.  [SHARED PRIVATE DUTY NURSING CARE OPTION.] (a) 
213.2   Medical assistance payments for shared private duty nursing 
213.3   services by a private duty nurse shall be limited according to 
213.4   this subdivision.  For the purposes of this section, "private 
213.5   duty nursing agency" means an agency licensed under chapter 144A 
213.6   to provide private duty nursing services. 
213.7      (b) Recipients of private duty nursing services may share 
213.8   nursing staff and the commissioner shall provide a rate 
213.9   methodology for shared private duty nursing.  For two persons 
213.10  sharing nursing care, the rate paid to a provider shall not 
213.11  exceed 1.5 times the nonwaivered regular private duty nursing 
213.12  rates paid for serving a single individual who is not ventilator 
213.13  dependent, by a registered nurse or licensed practical nurse.  
213.14  These rates apply only to situations in which both recipients 
213.15  are present and receive shared private duty nursing care on the 
213.16  date for which the service is billed.  No more than two persons 
213.17  may receive shared private duty nursing services from a private 
213.18  duty nurse in a single setting. 
213.19     (c) Shared private duty nursing care is the provision of 
213.20  nursing services by a private duty nurse to two recipients at 
213.21  the same time and in the same setting.  For the purposes of this 
213.22  subdivision, "setting" means: 
213.23     (1) the home or foster care home of one of the individual 
213.24  recipients; or 
213.25     (2) a child care program licensed under chapter 245A or 
213.26  operated by a local school district or private school; or 
213.27     (3) an adult day care service licensed under chapter 245A; 
213.28  or 
213.29     (4) outside the home or foster care home of one of the 
213.30  recipients when normal life activities take the recipients 
213.31  outside the home.  
213.32     This subdivision does not apply when a private duty nurse 
213.33  is caring for multiple recipients in more than one setting. 
213.34     (d) The recipient or the recipient's legal representative, 
213.35  and the recipient's physician, in conjunction with the home 
213.36  health care agency, shall determine: 
214.1      (1) whether shared private duty nursing care is an 
214.2   appropriate option based on the individual needs and preferences 
214.3   of the recipient; and 
214.4      (2) the amount of shared private duty nursing services 
214.5   authorized as part of the overall authorization of nursing 
214.6   services. 
214.7      (e) The recipient or the recipient's legal representative, 
214.8   in conjunction with the private duty nursing agency, shall 
214.9   approve the setting, grouping, and arrangement of shared private 
214.10  duty nursing care based on the individual needs and preferences 
214.11  of the recipients.  Decisions on the selection of recipients to 
214.12  share services must be based on the ages of the recipients, 
214.13  compatibility, and coordination of their care needs. 
214.14     (f) The following items must be considered by the recipient 
214.15  or the recipient's legal representative and the private duty 
214.16  nursing agency, and documented in the recipient's health service 
214.17  record: 
214.18     (1) the additional training needed by the private duty 
214.19  nurse to provide care to two recipients in the same setting and 
214.20  to ensure that the needs of the recipients are met appropriately 
214.21  and safely; 
214.22     (2) the setting in which the shared private duty nursing 
214.23  care will be provided; 
214.24     (3) the ongoing monitoring and evaluation of the 
214.25  effectiveness and appropriateness of the service and process 
214.26  used to make changes in service or setting; 
214.27     (4) a contingency plan which accounts for absence of the 
214.28  recipient in a shared private duty nursing setting due to 
214.29  illness or other circumstances; 
214.30     (5) staffing backup contingencies in the event of employee 
214.31  illness or absence; and 
214.32     (6) arrangements for additional assistance to respond to 
214.33  urgent or emergency care needs of the recipients. 
214.34     (g) The provider must offer the recipient or responsible 
214.35  party the option of shared or one-on-one private duty nursing 
214.36  services.  The recipient or responsible party can withdraw from 
215.1   participating in a shared service arrangement at any time. 
215.2      (h) The private duty nursing agency must document the 
215.3   following in the health service record for each individual 
215.4   recipient sharing private duty nursing care: 
215.5      (1) permission by the recipient or the recipient's legal 
215.6   representative for the maximum number of shared nursing care 
215.7   hours per week chosen by the recipient; 
215.8      (2) permission by the recipient or the recipient's legal 
215.9   representative for shared private duty nursing services provided 
215.10  outside the recipient's residence; 
215.11     (3) permission by the recipient or the recipient's legal 
215.12  representative for others to receive shared private duty nursing 
215.13  services in the recipient's residence; 
215.14     (4) revocation by the recipient or the recipient's legal 
215.15  representative of the shared private duty nursing care 
215.16  authorization, or the shared care to be provided to others in 
215.17  the recipient's residence, or the shared private duty nursing 
215.18  services to be provided outside the recipient's residence; and 
215.19     (5) daily documentation of the shared private duty nursing 
215.20  services provided by each identified private duty nurse, 
215.21  including: 
215.22     (i) the names of each recipient receiving shared private 
215.23  duty nursing services together; 
215.24     (ii) the setting for the shared services, including the 
215.25  starting and ending times that the recipient received shared 
215.26  private duty nursing care; and 
215.27     (iii) notes by the private duty nurse regarding changes in 
215.28  the recipient's condition, problems that may arise from the 
215.29  sharing of private duty nursing services, and scheduling and 
215.30  care issues. 
215.31     (i) Unless otherwise provided in this subdivision, all 
215.32  other statutory and regulatory provisions relating to private 
215.33  duty nursing services apply to shared private duty nursing 
215.34  services. 
215.35     Nothing in this subdivision shall be construed to reduce 
215.36  the total number of private duty nursing hours authorized for an 
216.1   individual recipient under subdivision 5. 
216.2      Sec. 37.  Minnesota Statutes 2000, section 256B.0627, is 
216.3   amended by adding a subdivision to read: 
216.4      Subd. 13.  [CONSUMER-DIRECTED HOME CARE DEMONSTRATION 
216.5   PROJECT.] (a) Upon the receipt of federal waiver authority, the 
216.6   commissioner shall implement a consumer-directed home care 
216.7   demonstration project.  The consumer-directed home care 
216.8   demonstration project must demonstrate and evaluate the outcomes 
216.9   of a consumer-directed service delivery alternative to improve 
216.10  access, increase consumer control and accountability over 
216.11  available resources, and enable the use of supports that are 
216.12  more individualized and cost-effective for eligible medical 
216.13  assistance recipients receiving certain medical assistance home 
216.14  care services.  The consumer-directed home care demonstration 
216.15  project will be administered locally by county agencies, tribal 
216.16  governments, or administrative entities under contract with the 
216.17  state in regions where counties choose not to provide this 
216.18  service. 
216.19     (b) Grant awards for persons who have been receiving 
216.20  medical assistance covered personal care, home health aide, or 
216.21  private duty nursing services for a period of 12 consecutive 
216.22  months or more prior to enrollment in the consumer-directed home 
216.23  care demonstration project will be established on a case-by-case 
216.24  basis using historical service expenditure data.  An average 
216.25  monthly expenditure for each continuing enrollee will be 
216.26  calculated based on historical expenditures made on behalf of 
216.27  the enrollee for personal care, home health aide, or private 
216.28  duty nursing services during the 12 month period directly prior 
216.29  to enrollment in the project.  The grant award will equal 90 
216.30  percent of the average monthly expenditure. 
216.31     (c) Grant awards for project enrollees who have been 
216.32  receiving medical assistance covered personal care, home health 
216.33  aide, or private duty nursing services for a period of less than 
216.34  12 consecutive months prior to project enrollment will be 
216.35  calculated on a case-by-case basis using the service 
216.36  authorization in place at the time of enrollment.  The total 
217.1   number of units of personal care, home health aide, or private 
217.2   duty nursing services the enrollee has been authorized to 
217.3   receive will be converted to the total cost of the authorized 
217.4   services in a given month using the statewide average service 
217.5   payment rates.  To determine an estimated monthly expenditure, 
217.6   the total authorized monthly personal care, home health aide or 
217.7   private duty nursing service costs will be reduced by a 
217.8   percentage rate equivalent to the difference between the 
217.9   statewide average service authorization and the statewide 
217.10  average utilization rate for each of the services by medical 
217.11  assistance eligibles during the most recent fiscal year for 
217.12  which 12 months of data is available.  The grant award will 
217.13  equal 90 percent of the estimated monthly expenditure. 
217.14     (d) The state of Minnesota, county agencies, tribal 
217.15  governments, or administrative entities under contract with the 
217.16  state that participate in the implementation and administration 
217.17  of the consumer-directed home care demonstration project, shall 
217.18  not be liable for damages, injuries, or liabilities sustained 
217.19  through the purchase of support by the individual, the 
217.20  individual's family, legal representative, or the authorized 
217.21  representative under this section with funds received through 
217.22  the consumer-directed home care demonstration project.  
217.23  Liabilities include but are not limited to:  workers' 
217.24  compensation liability, the Federal Insurance Contributions Act 
217.25  (FICA), or the Federal Unemployment Tax Act (FUTA). 
217.26     (e) With federal approval, the commissioner may adjust 
217.27  methodologies in paragraphs (b) and (c) to simplify program 
217.28  administration, improve consistency between state and federal 
217.29  programs, and maximize federal financial participation. 
217.30     Sec. 38.  Minnesota Statutes 2000, section 256B.0627, is 
217.31  amended by adding a subdivision to read: 
217.32     Subd. 14.  [TELEHOMECARE; SKILLED NURSE VISITS.] Medical 
217.33  assistance covers skilled nurse visits according to section 
217.34  256B.0625, subdivision 6a, provided via telehomecare, for 
217.35  services which do not require hands-on care between the home 
217.36  care nurse and recipient.  The provision of telehomecare must be 
218.1   made via live, two-way interactive audiovisual technology and 
218.2   may be augmented by utilizing store-and-forward technologies.  
218.3   Store-and-forward technology includes telehomecare services that 
218.4   do not occur in real time via synchronous transmissions, and 
218.5   that do not require a face-to-face encounter with the recipient 
218.6   for all or any part of any such telehomecare visit.  
218.7   Individually identifiable patient data obtained through 
218.8   real-time or store-and-forward technology must be maintained as 
218.9   health records according to section 144.335.  If the video is 
218.10  used for research, training, or other purposes unrelated to the 
218.11  care of the patient, the identity of the patient must be 
218.12  concealed.  A communication between the home care nurse and 
218.13  recipient that consists solely of a telephone conversation, 
218.14  facsimile, electronic mail, or a consultation between two health 
218.15  care practitioners, is not to be considered a telehomecare visit.
218.16  Multiple daily skilled nurse visits provided via telehomecare 
218.17  are allowed.  Coverage of telehomecare is limited to two visits 
218.18  per day.  All skilled nurse visits provided via telehomecare 
218.19  must be prior authorized by the commissioner or the 
218.20  commissioner's designee and will be covered at the same 
218.21  allowable rate as skilled nurse visits provided in-person. 
218.22     Sec. 39.  Minnesota Statutes 2000, section 256B.0627, is 
218.23  amended by adding a subdivision to read: 
218.24     Subd. 15.  [THERAPIES THROUGH HOME HEALTH AGENCIES.] (a)  
218.25  [PHYSICAL THERAPY.] Medical assistance covers physical therapy 
218.26  and related services, including specialized maintenance 
218.27  therapy.  Services provided by a physical therapy assistant 
218.28  shall be reimbursed at the same rate as services performed by a 
218.29  physical therapist when the services of the physical therapy 
218.30  assistant are provided under the direction of a physical 
218.31  therapist who is on the premises.  Services provided by a 
218.32  physical therapy assistant that are provided under the direction 
218.33  of a physical therapist who is not on the premises shall be 
218.34  reimbursed at 65 percent of the physical therapist rate.  
218.35  Direction of the physical therapy assistant must be provided by 
218.36  the physical therapist as described in Minnesota Rules, part 
219.1   9505.0390, subpart 1, item B.  The physical therapist and 
219.2   physical therapist assistant may not both bill for services 
219.3   provided to a recipient on the same day. 
219.4      (b)  [OCCUPATIONAL THERAPY.] Medical assistance covers 
219.5   occupational therapy and related services, including specialized 
219.6   maintenance therapy.  Services provided by an occupational 
219.7   therapy assistant shall be reimbursed at the same rate as 
219.8   services performed by an occupational therapist when the 
219.9   services of the occupational therapy assistant are provided 
219.10  under the direction of the occupational therapist who is on the 
219.11  premises.  Services provided by an occupational therapy 
219.12  assistant under the direction of an occupational therapist who 
219.13  is not on the premises shall be reimbursed at 65 percent of the 
219.14  occupational therapist rate.  Direction of the occupational 
219.15  therapy assistant must be provided by the occupational therapist 
219.16  as described in Minnesota Rules, part 9505.0390, subpart 1, item 
219.17  B.  The occupational therapist and occupational therapist 
219.18  assistant may not both bill for services provided to a recipient 
219.19  on the same day. 
219.20     Sec. 40.  Minnesota Statutes 2000, section 256B.0627, is 
219.21  amended by adding a subdivision to read: 
219.22     Subd. 16.  [HARDSHIP CRITERIA; PRIVATE DUTY NURSING.] (a) 
219.23  Payment is allowed for extraordinary services that require 
219.24  specialized nursing skills and are provided by parents of minor 
219.25  children, spouses, and legal guardians who are providing private 
219.26  duty nursing care under the following conditions: 
219.27     (1) the provision of these services is not legally required 
219.28  of the parents, spouses, or legal guardians; 
219.29     (2) the services are necessary to prevent hospitalization 
219.30  of the recipient; and 
219.31     (3) the recipient is eligible for state plan home care or a 
219.32  home and community-based waiver and one of the following 
219.33  hardship criteria are met: 
219.34     (i) the parent, spouse, or legal guardian resigns from a 
219.35  part-time or full-time job to provide nursing care for the 
219.36  recipient; or 
220.1      (ii) the parent, spouse, or legal guardian goes from a 
220.2   full-time to a part-time job with less compensation to provide 
220.3   nursing care for the recipient; or 
220.4      (iii) the parent, spouse, or legal guardian takes a leave 
220.5   of absence without pay to provide nursing care for the 
220.6   recipient; or 
220.7      (iv) because of labor conditions, special language needs, 
220.8   or intermittent hours of care needed, the parent, spouse, or 
220.9   legal guardian is needed in order to provide adequate private 
220.10  duty nursing services to meet the medical needs of the recipient.
220.11     (b) Private duty nursing may be provided by a parent, 
220.12  spouse, or legal guardian who is a nurse licensed in Minnesota.  
220.13  Private duty nursing services provided by a parent, spouse, or 
220.14  legal guardian cannot be used in lieu of nursing services 
220.15  covered and available under liable third-party payors, including 
220.16  Medicare.  The private duty nursing provided by a parent, 
220.17  spouse, or legal guardian must be included in the service plan.  
220.18  Authorized skilled nursing services provided by the parent, 
220.19  spouse, or legal guardian may not exceed 50 percent of the total 
220.20  approved nursing hours, or eight hours per day, whichever is 
220.21  less, up to a maximum of 40 hours per week.  Nothing in this 
220.22  subdivision precludes the parent's, spouse's, or legal 
220.23  guardian's obligation of assuming the nonreimbursed family 
220.24  responsibilities of emergency backup caregiver and primary 
220.25  caregiver. 
220.26     (c) A parent or a spouse may not be paid to provide private 
220.27  duty nursing care if the parent or spouse fails to pass a 
220.28  criminal background check according to section 245A.04, or if it 
220.29  has been determined by the home health agency, the case manager, 
220.30  or the physician that the private duty nursing care provided by 
220.31  the parent, spouse, or legal guardian is unsafe. 
220.32     Sec. 41.  Minnesota Statutes 2000, section 256B.0627, is 
220.33  amended by adding a subdivision to read: 
220.34     Subd. 17.  [QUALITY ASSURANCE PLAN FOR PERSONAL CARE 
220.35  ASSISTANT SERVICES.] The commissioner shall establish a quality 
220.36  assurance plan for personal care assistant services that 
221.1   includes: 
221.2      (1) performance-based provider agreements; 
221.3      (2) meaningful consumer input, which may include consumer 
221.4   surveys, that measure the extent to which participants receive 
221.5   the services and supports described in the individual plan and 
221.6   participant satisfaction with such services and supports; 
221.7      (3) ongoing monitoring of the health and well-being of 
221.8   consumers; and 
221.9      (4) an ongoing public process for development, 
221.10  implementation, and review of the quality assurance plan.  
221.11     Sec. 42.  Minnesota Statutes 2000, section 256B.0911, is 
221.12  amended by adding a subdivision to read: 
221.13     Subd. 4d.  [PREADMISSION SCREENING OF INDIVIDUALS UNDER 65 
221.14  YEARS OF AGE.] (a) It is the policy of the state of Minnesota to 
221.15  ensure that individuals with disabilities or chronic illness are 
221.16  served in the most integrated setting appropriate to their needs 
221.17  and have the necessary information to make informed choices 
221.18  about home and community-based service options. 
221.19     (b) Individuals under 65 years of age who are admitted to a 
221.20  nursing facility from a hospital must be screened prior to 
221.21  admission as outlined in subdivisions 4a through 4c. 
221.22     (c) Individuals under 65 years of age who are admitted to 
221.23  nursing facilities with only a telephone screening must receive 
221.24  a face-to-face assessment from the long-term care consultation 
221.25  team member of the county in which the facility is located or 
221.26  from the recipient's county case manager within 20 working days 
221.27  of admission. 
221.28     (d) At the face-to-face assessment, the long-term care 
221.29  consultation team member or county case manager must perform the 
221.30  activities required under subdivision 3b. 
221.31     (e) For individuals under 21 years of age, a screening 
221.32  interview which recommends nursing facility admission must be 
221.33  face-to-face and approved by the commissioner before the 
221.34  individual is admitted to the nursing facility. 
221.35     (f) In the event that an individual under 65 years of age 
221.36  is admitted to a nursing facility on an emergency basis, the 
222.1   county must be notified of the admission on the next working 
222.2   day, and a face-to-face assessment as described in paragraph (c) 
222.3   must be conducted within 20 working days of admission. 
222.4      (g) At the face-to-face assessment, the long-term care 
222.5   consultation team member or the case manager must present 
222.6   information about home and community-based options so the 
222.7   individual can make informed choices.  If the individual chooses 
222.8   home and community-based services, the long-term care 
222.9   consultation team member or case manager must complete a written 
222.10  relocation plan within 20 working days of the visit.  The plan 
222.11  shall describe the services needed to move out of the facility 
222.12  and a time line for the move which is designed to ensure a 
222.13  smooth transition to the individual's home and community. 
222.14     (h) An individual under 65 years of age residing in a 
222.15  nursing facility shall receive a face-to-face assessment at 
222.16  least every 12 months to review the person's service choices and 
222.17  available alternatives unless the individual indicates, in 
222.18  writing, that annual visits are not desired.  In this case, the 
222.19  individual must receive a face-to-face assessment at least once 
222.20  every 36 months for the same purposes. 
222.21     (i) Notwithstanding the provisions of subdivision 6, the 
222.22  commissioner may pay county agencies directly for face-to-face 
222.23  assessments for individuals under 65 years of age who are being 
222.24  considered for placement or residing in a nursing facility. 
222.25     Sec. 43.  Minnesota Statutes 2000, section 256B.0916, is 
222.26  amended by adding a subdivision to read: 
222.27     Subd. 6a.  [STATEWIDE AVAILABILITY OF CONSUMER-DIRECTED 
222.28  COMMUNITY SUPPORT SERVICES.] (a) The commissioner shall submit 
222.29  to the federal Health Care Financing Administration by August 1, 
222.30  2001, an amendment to the home and community-based waiver for 
222.31  persons with mental retardation or related conditions to make 
222.32  consumer-directed community support services available in every 
222.33  county of the state by January 1, 2002. 
222.34     (b) If a county declines to meet the requirements for 
222.35  provision of consumer-directed community supports, the 
222.36  commissioner shall contract with another county, a group of 
223.1   counties, or a private agency to plan for and administer 
223.2   consumer-directed community supports in that county. 
223.3      (c) The state of Minnesota, county agencies, tribal 
223.4   governments, or administrative entities under contract to 
223.5   participate in the implementation and administration of the home 
223.6   and community-based waiver for persons with mental retardation 
223.7   or a related condition, shall not be liable for damages, 
223.8   injuries, or liabilities sustained through the purchase of 
223.9   support by the individual, the individual's family, legal 
223.10  representative, or the authorized representative with funds 
223.11  received through the consumer-directed community support service 
223.12  under this section.  Liabilities include but are not limited 
223.13  to:  workers' compensation liability, the Federal Insurance 
223.14  Contributions Act (FICA), or the Federal Unemployment Tax Act 
223.15  (FUTA). 
223.16     Sec. 44.  Minnesota Statutes 2000, section 256B.0916, 
223.17  subdivision 7, is amended to read: 
223.18     Subd. 7.  [ANNUAL REPORT BY COMMISSIONER.] Beginning 
223.19  October 1, 1999, and each October 1 November 1, 2001, and each 
223.20  November 1 thereafter, the commissioner shall issue an annual 
223.21  report on county and state use of available resources for the 
223.22  home and community-based waiver for persons with mental 
223.23  retardation or related conditions.  For each county or county 
223.24  partnership, the report shall include: 
223.25     (1) the amount of funds allocated but not used; 
223.26     (2) the county specific allowed reserve amount approved and 
223.27  used; 
223.28     (3) the number, ages, and living situations of individuals 
223.29  screened and waiting for services; 
223.30     (4) the urgency of need for services to begin within one, 
223.31  two, or more than two years for each individual; 
223.32     (5) the services needed; 
223.33     (6) the number of additional persons served by approval of 
223.34  increased capacity within existing allocations; 
223.35     (7) results of action by the commissioner to streamline 
223.36  administrative requirements and improve county resource 
224.1   management; and 
224.2      (8) additional action that would decrease the number of 
224.3   those eligible and waiting for waivered services. 
224.4   The commissioner shall specify intended outcomes for the program 
224.5   and the degree to which these specified outcomes are attained. 
224.6      Sec. 45.  Minnesota Statutes 2000, section 256B.0916, 
224.7   subdivision 9, is amended to read: 
224.8      Subd. 9.  [LEGAL REPRESENTATIVE PARTICIPATION EXCEPTION.] 
224.9   The commissioner, in cooperation with representatives of 
224.10  counties, service providers, service recipients, family members, 
224.11  legal representatives and advocates, shall develop criteria to 
224.12  allow legal representatives to be reimbursed for providing 
224.13  specific support services to meet the person's needs when a plan 
224.14  which assures health and safety has been agreed upon and carried 
224.15  out by the legal representative, the person, and the county.  
224.16  Legal representatives providing support under consumer-directed 
224.17  community support services pursuant to section 256B.092, 
224.18  subdivision 4, the home and community-based waiver for persons 
224.19  with mental retardation or related conditions or the consumer 
224.20  support grant program pursuant to section 256B.092, subdivision 
224.21  7 256.476, shall not be considered to have a direct or indirect 
224.22  service provider interest under section 256B.092, subdivision 7, 
224.23  if a health and safety plan which meets the criteria established 
224.24  has been agreed upon and implemented.  By October 1, 1999 August 
224.25  1, 2001, the commissioner shall submit, for federal approval, 
224.26  amendments to allow legal representatives to provide support and 
224.27  receive reimbursement under the consumer-directed community 
224.28  support services section of the home and community-based waiver 
224.29  plan. 
224.30     Sec. 46.  Minnesota Statutes 2000, section 256B.092, 
224.31  subdivision 5, is amended to read: 
224.32     Subd. 5.  [FEDERAL WAIVERS.] (a) The commissioner shall 
224.33  apply for any federal waivers necessary to secure, to the extent 
224.34  allowed by law, federal financial participation under United 
224.35  States Code, title 42, sections 1396 et seq., as amended, for 
224.36  the provision of services to persons who, in the absence of the 
225.1   services, would need the level of care provided in a regional 
225.2   treatment center or a community intermediate care facility for 
225.3   persons with mental retardation or related conditions.  The 
225.4   commissioner may seek amendments to the waivers or apply for 
225.5   additional waivers under United States Code, title 42, sections 
225.6   1396 et seq., as amended, to contain costs.  The commissioner 
225.7   shall ensure that payment for the cost of providing home and 
225.8   community-based alternative services under the federal waiver 
225.9   plan shall not exceed the cost of intermediate care services 
225.10  including day training and habilitation services that would have 
225.11  been provided without the waivered services.  
225.12     (b) The commissioner, in administering home and 
225.13  community-based waivers for persons with mental retardation and 
225.14  related conditions, shall ensure that day services for eligible 
225.15  persons are not provided by the person's residential service 
225.16  provider, unless the person or the person's legal representative 
225.17  is offered a choice of providers and agrees in writing to 
225.18  provision of day services by the residential service provider.  
225.19  The individual service plan for individuals who choose to have 
225.20  their residential service provider provide their day services 
225.21  must describe how health, safety, and protection needs will be 
225.22  met by frequent and regular contact with persons other than the 
225.23  residential service provider. 
225.24     Sec. 47.  Minnesota Statutes 2000, section 256B.093, 
225.25  subdivision 3, is amended to read: 
225.26     Subd. 3.  [TRAUMATIC BRAIN INJURY PROGRAM DUTIES.] The 
225.27  department shall fund administrative case management under this 
225.28  subdivision using medical assistance administrative funds.  The 
225.29  traumatic brain injury program duties include: 
225.30     (1) recommending to the commissioner in consultation with 
225.31  the medical review agent according to Minnesota Rules, parts 
225.32  9505.0500 to 9505.0540, the approval or denial of medical 
225.33  assistance funds to pay for out-of-state placements for 
225.34  traumatic brain injury services and in-state traumatic brain 
225.35  injury services provided by designated Medicare long-term care 
225.36  hospitals; 
226.1      (2) coordinating the traumatic brain injury home and 
226.2   community-based waiver; 
226.3      (3) approving traumatic brain injury waiver eligibility or 
226.4   care plans or both; 
226.5      (4) providing ongoing technical assistance and consultation 
226.6   to county and facility case managers to facilitate care plan 
226.7   development for appropriate, accessible, and cost-effective 
226.8   medical assistance services; 
226.9      (5) (4) providing technical assistance to promote statewide 
226.10  development of appropriate, accessible, and cost-effective 
226.11  medical assistance services and related policy; 
226.12     (6) (5) providing training and outreach to facilitate 
226.13  access to appropriate home and community-based services to 
226.14  prevent institutionalization; 
226.15     (7) (6) facilitating appropriate admissions, continued stay 
226.16  review, discharges, and utilization review for neurobehavioral 
226.17  hospitals and other specialized institutions; 
226.18     (8) (7) providing technical assistance on the use of prior 
226.19  authorization of home care services and coordination of these 
226.20  services with other medical assistance services; 
226.21     (9) (8) developing a system for identification of nursing 
226.22  facility and hospital residents with traumatic brain injury to 
226.23  assist in long-term planning for medical assistance services.  
226.24  Factors will include, but are not limited to, number of 
226.25  individuals served, length of stay, services received, and 
226.26  barriers to community placement; and 
226.27     (10) (9) providing information, referral, and case 
226.28  consultation to access medical assistance services for 
226.29  recipients without a county or facility case manager.  Direct 
226.30  access to this assistance may be limited due to the structure of 
226.31  the program. 
226.32     Sec. 48.  Minnesota Statutes 2000, section 256B.095, is 
226.33  amended to read: 
226.34     256B.095 [THREE-YEAR QUALITY ASSURANCE PILOT PROJECT 
226.35  ESTABLISHED.] 
226.36     Effective July 1, 1998, an alternative quality assurance 
227.1   licensing system pilot project for programs for persons with 
227.2   developmental disabilities is established in Dodge, Fillmore, 
227.3   Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, 
227.4   Wabasha, and Winona counties for the purpose of improving the 
227.5   quality of services provided to persons with developmental 
227.6   disabilities.  A county, at its option, may choose to have all 
227.7   programs for persons with developmental disabilities located 
227.8   within the county licensed under chapter 245A using standards 
227.9   determined under the alternative quality assurance licensing 
227.10  system pilot project or may continue regulation of these 
227.11  programs under the licensing system operated by the 
227.12  commissioner.  The pilot project expires on June 30, 2001 2005. 
227.13     Sec. 49.  Minnesota Statutes 2000, section 256B.0951, 
227.14  subdivision 1, is amended to read: 
227.15     Subdivision 1.  [MEMBERSHIP.] The region 10 quality 
227.16  assurance commission is established.  The commission consists of 
227.17  at least 14 but not more than 21 members as follows:  at least 
227.18  three but not more than five members representing advocacy 
227.19  organizations; at least three but not more than five members 
227.20  representing consumers, families, and their legal 
227.21  representatives; at least three but not more than five members 
227.22  representing service providers; at least three but not more than 
227.23  five members representing counties; and the commissioner of 
227.24  human services or the commissioner's designee.  Initial 
227.25  membership of the commission shall be recruited and approved by 
227.26  the region 10 stakeholders group.  Prior to approving the 
227.27  commission's membership, the stakeholders group shall provide to 
227.28  the commissioner a list of the membership in the stakeholders 
227.29  group, as of February 1, 1997, a brief summary of meetings held 
227.30  by the group since July 1, 1996, and copies of any materials 
227.31  prepared by the group for public distribution.  The first 
227.32  commission shall establish membership guidelines for the 
227.33  transition and recruitment of membership for the commission's 
227.34  ongoing existence.  Members of the commission who do not receive 
227.35  a salary or wages from an employer for time spent on commission 
227.36  duties may receive a per diem payment when performing commission 
228.1   duties and functions.  All members may be reimbursed for 
228.2   expenses related to commission activities.  Notwithstanding the 
228.3   provisions of section 15.059, subdivision 5, the commission 
228.4   expires on June 30, 2001 2005. 
228.5      Sec. 50.  Minnesota Statutes 2000, section 256B.0951, 
228.6   subdivision 3, is amended to read: 
228.7      Subd. 3.  [COMMISSION DUTIES.] (a) By October 1, 1997, the 
228.8   commission, in cooperation with the commissioners of human 
228.9   services and health, shall do the following:  (1) approve an 
228.10  alternative quality assurance licensing system based on the 
228.11  evaluation of outcomes; (2) approve measurable outcomes in the 
228.12  areas of health and safety, consumer evaluation, education and 
228.13  training, providers, and systems that shall be evaluated during 
228.14  the alternative licensing process; and (3) establish variable 
228.15  licensure periods not to exceed three years based on outcomes 
228.16  achieved.  For purposes of this subdivision, "outcome" means the 
228.17  behavior, action, or status of a person that can be observed or 
228.18  measured and can be reliably and validly determined. 
228.19     (b) By January 15, 1998, the commission shall approve, in 
228.20  cooperation with the commissioner of human services, a training 
228.21  program for members of the quality assurance teams established 
228.22  under section 256B.0952, subdivision 4. 
228.23     (c) The commission and the commissioner shall establish an 
228.24  ongoing review process for the alternative quality assurance 
228.25  licensing system.  The review shall take into account the 
228.26  comprehensive nature of the alternative system, which is 
228.27  designed to evaluate the broad spectrum of licensed and 
228.28  unlicensed entities that provide services to clients, as 
228.29  compared to the current licensing system.  
228.30     (d) The commission shall contract with an independent 
228.31  entity to conduct a financial review of the alternative quality 
228.32  assurance pilot project.  The review shall take into account the 
228.33  comprehensive nature of the alternative system, which is 
228.34  designed to evaluate the broad spectrum of licensed and 
228.35  unlicensed entities that provide services to clients, as 
228.36  compared to the current licensing system.  The review shall 
229.1   include an evaluation of possible budgetary savings within the 
229.2   department of human services as a result of implementation of 
229.3   the alternative quality assurance pilot project.  If a federal 
229.4   waiver is approved under subdivision 7, the financial review 
229.5   shall also evaluate possible savings within the department of 
229.6   health.  This review must be completed by December 15, 2000. 
229.7      (e) The commission shall submit a report to the legislature 
229.8   by January 15, 2001, on the results of the review process for 
229.9   the alternative quality assurance pilot project, a summary of 
229.10  the results of the independent financial review, and a 
229.11  recommendation on whether the pilot project should be extended 
229.12  beyond June 30, 2001. 
229.13     (f) The commissioner, in consultation with the commission, 
229.14  shall examine the feasibility of expanding the project to other 
229.15  populations or geographic areas and identify barriers to 
229.16  expansion.  The commissioner shall report findings and 
229.17  recommendations to the legislature by December 15, 2004. 
229.18     Sec. 51.  Minnesota Statutes 2000, section 256B.0951, 
229.19  subdivision 4, is amended to read: 
229.20     Subd. 4.  [COMMISSION'S AUTHORITY TO RECOMMEND VARIANCES OF 
229.21  LICENSING STANDARDS.] The commission may recommend to the 
229.22  commissioners of human services and health variances from the 
229.23  standards governing licensure of programs for persons with 
229.24  developmental disabilities in order to improve the quality of 
229.25  services by implementing an alternative developmental 
229.26  disabilities licensing system if the commission determines that 
229.27  the alternative licensing system does not adversely affect the 
229.28  health or safety of persons being served by the licensed program 
229.29  nor compromise the qualifications of staff to provide services. 
229.30     Sec. 52.  Minnesota Statutes 2000, section 256B.0951, 
229.31  subdivision 5, is amended to read: 
229.32     Subd. 5.  [VARIANCE OF CERTAIN STANDARDS PROHIBITED.] The 
229.33  safety standards, rights, or procedural protections under 
229.34  sections 245.825; 245.91 to 245.97; 245A.04, subdivisions 3, 3a, 
229.35  3b, and 3c; 245A.09, subdivision 2, paragraph (c), clauses (2) 
229.36  and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, 
230.1   subdivisions 1b, clause (7), and 10; 626.556; 626.557, and 
230.2   procedures for the monitoring of psychotropic medications shall 
230.3   not be varied under the alternative licensing system pilot 
230.4   project.  The commission may make recommendations to the 
230.5   commissioners of human services and health or to the legislature 
230.6   regarding alternatives to or modifications of the rules and 
230.7   procedures referenced in this subdivision. 
230.8      Sec. 53.  Minnesota Statutes 2000, section 256B.0951, 
230.9   subdivision 7, is amended to read: 
230.10     Subd. 7.  [WAIVER OF RULES.] The commissioner of health may 
230.11  exempt residents of intermediate care facilities for persons 
230.12  with mental retardation (ICFs/MR) who participate in the 
230.13  three-year quality assurance pilot project established in 
230.14  section 256B.095 from the requirements of Minnesota Rules, 
230.15  chapter 4665, upon approval by the federal government of a 
230.16  waiver of federal certification requirements for ICFs/MR.  The 
230.17  commissioners of health and human services shall apply for any 
230.18  necessary waivers as soon as practicable and shall submit the 
230.19  concept paper to the federal government by June 1, 1998.  
230.20     Sec. 54.  Minnesota Statutes 2000, section 256B.0951, is 
230.21  amended by adding a subdivision to read: 
230.22     Subd. 8.  [FEDERAL WAIVER.] The commissioner of human 
230.23  services shall seek federal authority to waive provisions of 
230.24  intermediate care facilities for persons with mental retardation 
230.25  (ICFs/MR) regulations to enable the demonstration and evaluation 
230.26  of the alternative quality assurance system for ICFs/MR under 
230.27  the project.  The commissioner of human services shall apply for 
230.28  any necessary waivers as soon as practicable. 
230.29     Sec. 55.  Minnesota Statutes 2000, section 256B.0951, is 
230.30  amended by adding a subdivision to read: 
230.31     Subd. 9.  [EVALUATION.] The commission, in consultation 
230.32  with the commissioner of human services, shall conduct an 
230.33  evaluation of the alternative quality assurance system, and 
230.34  present a report to the commissioner by June 30, 2004. 
230.35     Sec. 56.  Minnesota Statutes 2000, section 256B.0952, 
230.36  subdivision 1, is amended to read: 
231.1      Subdivision 1.  [NOTIFICATION.] By January 15, 1998, each 
231.2   affected county shall notify the commission and the 
231.3   commissioners of human services and health as to whether it 
231.4   chooses to implement on July 1, 1998, the alternative licensing 
231.5   system for the pilot project.  A county that does not implement 
231.6   the alternative licensing system on July 1, 1998, may give 
231.7   notice to the commission and the commissioners by January 15, 
231.8   1999, or January 15, 2000, that it will implement the 
231.9   alternative licensing system on the following July 1.  A county 
231.10  that implements the alternative licensing system commits to 
231.11  participate until June 30, 2001.  For each year of the project, 
231.12  region 10 counties shall give notice to the commission and 
231.13  commissioners of human services and health by March 15 of intent 
231.14  to join the quality assurance alternative licensing system, 
231.15  effective July 1 of that year.  A county choosing to participate 
231.16  in the alternative licensing system commits to participate until 
231.17  June 30, 2005.  Counties participating in the quality assurance 
231.18  alternative licensing system as of January 1, 2001, shall notify 
231.19  the commission and the commissioners of human services and 
231.20  health by March 15, 2001, of intent to continue participation.  
231.21  Counties that elect to continue participation must participate 
231.22  in the alternative licensing system until June 30, 2005. 
231.23     Sec. 57.  Minnesota Statutes 2000, section 256B.0952, 
231.24  subdivision 4, is amended to read: 
231.25     Subd. 4.  [APPOINTMENT OF QUALITY ASSURANCE MANAGER.] (a) A 
231.26  county or group of counties that chooses to participate in the 
231.27  alternative licensing system shall designate a quality assurance 
231.28  manager and shall establish quality assurance teams in 
231.29  accordance with subdivision 5.  The manager shall recruit, 
231.30  train, and assign duties to the quality assurance team members.  
231.31  In assigning team members to conduct the quality assurance 
231.32  process at a facility, program, or service, the manager shall 
231.33  take into account the size of the service provider, the number 
231.34  of services to be reviewed, the skills necessary for team 
231.35  members to complete the process, and other relevant factors.  
231.36  The manager shall ensure that no team member has a financial, 
232.1   personal, or family relationship with the facility, program, or 
232.2   service being reviewed or with any clients of the facility, 
232.3   program, or service. 
232.4      (b) Quality assurance teams shall report the findings of 
232.5   their quality assurance reviews to the quality assurance manager.
232.6   The quality assurance manager shall provide the report from the 
232.7   quality assurance team to the county and, upon request, to the 
232.8   commissioners of human services and health, and shall provide a 
232.9   summary of the report to the quality assurance review council.  
232.10     Sec. 58.  Minnesota Statutes 2000, section 256B.49, is 
232.11  amended by adding a subdivision to read: 
232.12     Subd. 11.  [AUTHORITY.] (a) The commissioner is authorized 
232.13  to apply for home and community-based service waivers, as 
232.14  authorized under section 1915(c) of the Social Security Act to 
232.15  serve persons under the age of 65 who are determined to require 
232.16  the level of care provided in a nursing home and persons who 
232.17  require the level of care provided in a hospital.  The 
232.18  commissioner shall apply for the home and community-based 
232.19  waivers in order to:  (i) promote the support of persons with 
232.20  disabilities in the most integrated settings; (ii) expand the 
232.21  availability of services for persons who are eligible for 
232.22  medical assistance; (iii) promote cost-effective options to 
232.23  institutional care; and (iv) obtain federal financial 
232.24  participation.  
232.25     (b) The provision of waivered services to medical 
232.26  assistance recipients with disabilities shall comply with the 
232.27  requirements outlined in the federally approved applications for 
232.28  home and community-based services and subsequent amendments, 
232.29  including provision of services according to a service plan 
232.30  designed to meet the needs of the individual.  For purposes of 
232.31  this section, the approved home and community-based application 
232.32  is considered the necessary federal requirement. 
232.33     (c) The commissioner shall provide interested persons 
232.34  serving on agency advisory committees and task forces, and 
232.35  others upon request, with notice of, and an opportunity to 
232.36  comment on, any changes or amendments to the federally approved 
233.1   applications for home and community-based waivers, prior to 
233.2   their submission to the federal health care financing 
233.3   administration. 
233.4      (d) The commissioner shall seek approval, as authorized 
233.5   under section 1915(c) of the Social Security Act, to allow 
233.6   medical assistance eligibility under this section for children 
233.7   under age 21 without deeming of parental income or assets. 
233.8      (e) The commissioner shall seek approval, as authorized 
233.9   under section 1915(c) of the Social Act, to allow medical 
233.10  assistance eligibility under this section for individuals under 
233.11  age 65 without deeming the spouse's income or assets. 
233.12     Sec. 59.  Minnesota Statutes 2000, section 256B.49, is 
233.13  amended by adding a subdivision to read: 
233.14     Subd. 12.  [INFORMED CHOICE.] Persons who are determined 
233.15  likely to require the level of care provided in a nursing 
233.16  facility or hospital shall be informed of the home and 
233.17  community-based support alternatives to the provision of 
233.18  inpatient hospital services or nursing facility services.  Each 
233.19  person must be given the choice of either institutional or home 
233.20  and community-based services using the provisions described in 
233.21  section 256B.77, subdivision 2, paragraph (p). 
233.22     Sec. 60.  Minnesota Statutes 2000, section 256B.49, is 
233.23  amended by adding a subdivision to read: 
233.24     Subd. 13.  [CASE MANAGEMENT.] (a) Each recipient of a home 
233.25  and community-based waiver shall be provided case management 
233.26  services by qualified vendors as described in the federally 
233.27  approved waiver application.  The case management service 
233.28  activities provided will include: 
233.29     (1) assessing the needs of the individual within 20 working 
233.30  days of a recipient's request; 
233.31     (2) developing the written individual service plan within 
233.32  ten working days after the assessment is completed; 
233.33     (3) informing the recipient or the recipient's legal 
233.34  guardian or conservator of service options; 
233.35     (4) assisting the recipient in the identification of 
233.36  potential service providers; 
234.1      (5) assisting the recipient to access services; 
234.2      (6) coordinating, evaluating, and monitoring of the 
234.3   services identified in the service plan; 
234.4      (7) completing the annual reviews of the service plan; and 
234.5      (8) informing the recipient or legal representative of the 
234.6   right to have assessments completed and service plans developed 
234.7   within specified time periods, and to appeal county action or 
234.8   inaction under section 256.045, subdivision 3. 
234.9      (b) The case manager may delegate certain aspects of the 
234.10  case management service activities to another individual 
234.11  provided there is oversight by the case manager.  The case 
234.12  manager may not delegate those aspects which require 
234.13  professional judgment including assessments, reassessments, and 
234.14  care plan development. 
234.15     Sec. 61.  Minnesota Statutes 2000, section 256B.49, is 
234.16  amended by adding a subdivision to read: 
234.17     Subd. 14.  [ASSESSMENT AND REASSESSMENT.] (a) Assessments 
234.18  of each recipient's strengths, informal support systems, and 
234.19  need for services shall be completed within 20 working days of 
234.20  the recipient's request.  Reassessment of each recipient's 
234.21  strengths, support systems, and need for services shall be 
234.22  conducted at least every 12 months and at other times when there 
234.23  has been a significant change in the recipient's functioning. 
234.24     (b) Persons with mental retardation or a related condition 
234.25  who apply for services under the nursing facility level waiver 
234.26  programs shall be screened for the appropriate level of care 
234.27  according to section 256B.092. 
234.28     (c) Recipients who are found eligible for home and 
234.29  community-based services under this section before their 65th 
234.30  birthday may remain eligible for these services after their 65th 
234.31  birthday if they continue to meet all other eligibility factors. 
234.32     Sec. 62.  Minnesota Statutes 2000, section 256B.49, is 
234.33  amended by adding a subdivision to read: 
234.34     Subd. 15.  [INDIVIDUALIZED SERVICE PLAN.] Each recipient of 
234.35  home and community-based waivered services shall be provided a 
234.36  copy of the written service plan which: 
235.1      (1) is developed and signed by the recipient within ten 
235.2   working days of the completion of the assessment; 
235.3      (2) meets the assessed needs of the recipient; 
235.4      (3) reasonably ensures the health and safety of the 
235.5   recipient; 
235.6      (4) promotes independence; 
235.7      (5) allows for services to be provided in the most 
235.8   integrated settings; and 
235.9      (6) provides for an informed choice, as defined in section 
235.10  256B.77, subdivision 2, paragraph (p), of service and support 
235.11  providers. 
235.12     Sec. 63.  Minnesota Statutes 2000, section 256B.49, is 
235.13  amended by adding a subdivision to read: 
235.14     Subd. 16.  [SERVICES AND SUPPORTS.] (a) Services and 
235.15  supports included in the home and community-based waivers for 
235.16  persons with disabilities shall meet the requirements set out in 
235.17  United States Code, title 42, section 1396n.  The services and 
235.18  supports, which are offered as alternatives to institutional 
235.19  care, shall promote consumer choice, community inclusion, 
235.20  self-sufficiency, and self-determination. 
235.21     (b) Beginning January 1, 2003, the commissioner shall 
235.22  simplify and improve access to home and community-based waivered 
235.23  services, to the extent possible, through the establishment of a 
235.24  common service menu that is available to eligible recipients 
235.25  regardless of age, disability type, or waiver program. 
235.26     (c) Consumer directed community support services shall be 
235.27  offered as an option to all persons eligible for services under 
235.28  subdivision 11, by January 1, 2002. 
235.29     (d) Services and supports shall be arranged and provided 
235.30  consistent with individualized written plans of care for 
235.31  eligible waiver recipients. 
235.32     (e) The state of Minnesota and county agencies that 
235.33  administer home and community-based waivered services for 
235.34  persons with disabilities, shall not be liable for damages, 
235.35  injuries, or liabilities sustained through the purchase of 
235.36  supports by the individual, the individual's family, legal 
236.1   representative, or the authorized representative with funds 
236.2   received through the consumer-directed community support service 
236.3   under this section.  Liabilities include but are not limited 
236.4   to:  workers' compensation liability, the Federal Insurance 
236.5   Contributions Act (FICA), or the Federal Unemployment Tax Act 
236.6   (FUTA). 
236.7      Sec. 64.  Minnesota Statutes 2000, section 256B.49, is 
236.8   amended by adding a subdivision to read: 
236.9      Subd. 17.  [COST OF SERVICES AND SUPPORTS.] (a) The 
236.10  commissioner shall ensure that the average per capita 
236.11  expenditures estimated in any fiscal year for home and 
236.12  community-based waiver recipients does not exceed the average 
236.13  per capita expenditures that would have been made to provide 
236.14  institutional services for recipients in the absence of the 
236.15  waiver. 
236.16     (b) The commissioner shall implement on January 1, 2002, 
236.17  one or more aggregate, need-based methods for allocating to 
236.18  local agencies the home and community-based waivered service 
236.19  resources available to support recipients with disabilities in 
236.20  need of the level of care provided in a nursing facility or a 
236.21  hospital.  The commissioner shall allocate resources to single 
236.22  counties and county partnerships in a manner that reflects 
236.23  consideration of: 
236.24     (1) an incentive-based payment process for achieving 
236.25  outcomes; 
236.26     (2) the need for a state-level risk pool; 
236.27     (3) the need for retention of management responsibility at 
236.28  the state agency level; and 
236.29     (4) a phase-in strategy as appropriate. 
236.30     (c) Until the allocation methods described in paragraph (b) 
236.31  are implemented, the annual allowable reimbursement level of 
236.32  home and community-based waiver services shall be the greater of:
236.33     (1) the statewide average payment amount which the 
236.34  recipient is assigned under the waiver reimbursement system in 
236.35  place on June 30, 2001, modified by the percentage of any 
236.36  provider rate increase appropriated for home and community-based 
237.1   services; or 
237.2      (2) an amount approved by the commissioner based on the 
237.3   recipient's extraordinary needs that cannot be met within the 
237.4   current allowable reimbursement level.  The increased 
237.5   reimbursement level must be necessary to allow the recipient to 
237.6   be discharged from an institution or to prevent imminent 
237.7   placement in an institution.  The additional reimbursement may 
237.8   be used to secure environmental modifications; assistive 
237.9   technology and equipment; and increased costs for supervision, 
237.10  training, and support services necessary to address the 
237.11  recipient's extraordinary needs.  The commissioner may approve 
237.12  an increased reimbursement level for up to one year of the 
237.13  recipient's relocation from an institution or up to six months 
237.14  of a determination that a current waiver recipient is at 
237.15  imminent risk of being placed in an institution. 
237.16     (d) Beginning July 1, 2001, medically necessary private 
237.17  duty nursing services will be authorized under this section as 
237.18  complex and regular care according to section 256B.0627.  The 
237.19  rate established by the commissioner for registered nurse or 
237.20  licensed practical nurse services under any home and 
237.21  community-based waiver as of January 1, 2001, shall not be 
237.22  reduced. 
237.23     Sec. 65.  Minnesota Statutes 2000, section 256B.49, is 
237.24  amended by adding a subdivision to read: 
237.25     Subd. 18.  [PAYMENTS.] The commissioner shall reimburse 
237.26  approved vendors from the medical assistance account for the 
237.27  costs of providing home and community-based services to eligible 
237.28  recipients using the invoice processing procedures of the 
237.29  Medicaid management information system (MMIS).  Recipients will 
237.30  be screened and authorized for services according to the 
237.31  federally approved waiver application and its subsequent 
237.32  amendments. 
237.33     Sec. 66.  Minnesota Statutes 2000, section 256B.49, is 
237.34  amended by adding a subdivision to read: 
237.35     Subd. 19.  [HEALTH AND WELFARE.] The commissioner of human 
237.36  services shall take the necessary safeguards to protect the 
238.1   health and welfare of individuals provided services under the 
238.2   waiver. 
238.3      Sec. 67.  Minnesota Statutes 2000, section 256B.49, is 
238.4   amended by adding a subdivision to read: 
238.5      Subd. 20.  [TRAUMATIC BRAIN INJURY AND RELATED CONDITIONS.] 
238.6   The commissioner shall seek to amend the traumatic brain injury 
238.7   waiver to include, as eligible persons, individuals with an 
238.8   acquired or degenerative disease diagnosis where cognitive 
238.9   impairment is present, such as multiple sclerosis. 
238.10     Sec. 68.  Minnesota Statutes 2000, section 256D.35, is 
238.11  amended by adding a subdivision to read: 
238.12     Subd. 11a.  [INSTITUTION.] "Institution" means a hospital, 
238.13  consistent with Code of Federal Regulations, title 42, section 
238.14  440.10; regional treatment center inpatient services, consistent 
238.15  with section 245.474; a nursing facility; and an intermediate 
238.16  care facility for persons with mental retardation. 
238.17     Sec. 69.  Minnesota Statutes 2000, section 256D.35, is 
238.18  amended by adding a subdivision to read: 
238.19     Subd. 18a.  [SHELTER COSTS.] "Shelter costs" means rent, 
238.20  manufactured home lot rentals; monthly principal, interest, 
238.21  insurance premiums, and property taxes due for mortgages or 
238.22  contract for deed costs; costs for utilities, including heating, 
238.23  cooling, electricity, water, and sewerage; garbage collection 
238.24  fees; and the basic service fee for one telephone. 
238.25     Sec. 70.  Minnesota Statutes 2000, section 256D.44, 
238.26  subdivision 5, is amended to read: 
238.27     Subd. 5.  [SPECIAL NEEDS.] In addition to the state 
238.28  standards of assistance established in subdivisions 1 to 4, 
238.29  payments are allowed for the following special needs of 
238.30  recipients of Minnesota supplemental aid who are not residents 
238.31  of a nursing home, a regional treatment center, or a group 
238.32  residential housing facility. 
238.33     (a) The county agency shall pay a monthly allowance for 
238.34  medically prescribed diets payable under the Minnesota family 
238.35  investment program if the cost of those additional dietary needs 
238.36  cannot be met through some other maintenance benefit.  
239.1      (b) Payment for nonrecurring special needs must be allowed 
239.2   for necessary home repairs or necessary repairs or replacement 
239.3   of household furniture and appliances using the payment standard 
239.4   of the AFDC program in effect on July 16, 1996, for these 
239.5   expenses, as long as other funding sources are not available.  
239.6      (c) A fee for guardian or conservator service is allowed at 
239.7   a reasonable rate negotiated by the county or approved by the 
239.8   court.  This rate shall not exceed five percent of the 
239.9   assistance unit's gross monthly income up to a maximum of $100 
239.10  per month.  If the guardian or conservator is a member of the 
239.11  county agency staff, no fee is allowed. 
239.12     (d) The county agency shall continue to pay a monthly 
239.13  allowance of $68 for restaurant meals for a person who was 
239.14  receiving a restaurant meal allowance on June 1, 1990, and who 
239.15  eats two or more meals in a restaurant daily.  The allowance 
239.16  must continue until the person has not received Minnesota 
239.17  supplemental aid for one full calendar month or until the 
239.18  person's living arrangement changes and the person no longer 
239.19  meets the criteria for the restaurant meal allowance, whichever 
239.20  occurs first. 
239.21     (e) A fee of ten percent of the recipient's gross income or 
239.22  $25, whichever is less, is allowed for representative payee 
239.23  services provided by an agency that meets the requirements under 
239.24  SSI regulations to charge a fee for representative payee 
239.25  services.  This special need is available to all recipients of 
239.26  Minnesota supplemental aid regardless of their living 
239.27  arrangement.  
239.28     (f) Notwithstanding the language in this subdivision, an 
239.29  amount equal to the maximum allotment authorized by the federal 
239.30  Food Stamp Program for a single individual which is in effect on 
239.31  the first day of January of the previous year will be added to 
239.32  the standards of assistance established in subdivisions 1 to 4 
239.33  for individuals under the age of 65 who are relocating from an 
239.34  institution and who are shelter needy.  An eligible individual 
239.35  who receives this benefit prior to age 65 may continue to 
239.36  receive the benefit after the age of 65. 
240.1      "Shelter needy" means that the assistance unit incurs 
240.2   monthly shelter costs that exceed 40 percent of the assistance 
240.3   unit's gross income before the application of this special needs 
240.4   standard.  "Gross income" for the purposes of this section is 
240.5   the applicant's or recipient's income as defined in section 
240.6   256D.35, subdivision 10, or the standard specified in 
240.7   subdivision 3, whichever is greater.  A recipient of a federal 
240.8   or state housing subsidy, that limits shelter costs to a 
240.9   percentage of gross income, shall not be considered shelter 
240.10  needy for purposes of this paragraph. 
240.11     Sec. 71.  [256I.07] [RESPITE CARE PILOT PROJECT FOR FAMILY 
240.12  ADULT FOSTER CARE PROVIDERS.] 
240.13     Subdivision 1.  [PROGRAM ESTABLISHED.] The state recognizes 
240.14  the importance of developing and maintaining quality family 
240.15  foster care resources.  In order to accomplish that goal, the 
240.16  commissioner shall establish a two-year respite care pilot 
240.17  project for family adult foster care providers in three 
240.18  counties.  This pilot project is intended to provide support to 
240.19  caregivers of family adult foster care residents.  The 
240.20  commissioner shall establish a state-funded pilot project to 
240.21  accomplish the provisions in subdivisions 2 to 4. 
240.22     Subd. 2.  [ELIGIBILITY.] A family adult foster care home 
240.23  provider as defined under section 144D.01, subdivision 7, who 
240.24  has been licensed for six months is eligible for up to 30 days 
240.25  of respite care per calendar year.  In cases of emergency, a 
240.26  county social services agency may waive the six-month licensing 
240.27  requirement.  In order to be eligible to receive respite 
240.28  payment, a provider must take time off away from their foster 
240.29  care residents.  
240.30     Subd. 3.  [PAYMENT STRUCTURE.] (a) The rate of payment for 
240.31  respite care for an adult foster care resident eligible for only 
240.32  group residential housing shall be based on the current monthly 
240.33  group residential housing base room and board rate and the 
240.34  current maximum monthly group residential housing difficulty of 
240.35  care rate. 
240.36     (b) The rate of payment for respite care for an adult 
241.1   foster care resident eligible for alternative care funds shall 
241.2   be based on the resident's alternative care foster care rate. 
241.3      (c) The rate of payment for respite care for an adult 
241.4   foster care resident eligible for Medicaid home and 
241.5   community-based services waiver funds shall be based on the 
241.6   group residential housing base room and board rate. 
241.7      (d) The total amount available to pay for respite care for 
241.8   a family adult foster care provider shall be based on the number 
241.9   of residents currently served in the foster care home.  Respite 
241.10  care must be paid for on a per diem basis and for a full day. 
241.11     Subd. 4.  [PRIVATE PAY RESIDENTS.] Payment for respite care 
241.12  for private pay foster care residents must be arranged between 
241.13  the provider and the resident or the resident's family. 
241.14     Sec. 72.  Laws 1999, chapter 152, section 1, is amended to 
241.15  read: 
241.16     Section 1.  [TASK FORCE.] 
241.17     A day training and habilitation task force is established.  
241.18  Task force membership shall consist of representatives of the 
241.19  commissioner of human services, counties, service consumers, and 
241.20  vendors of day training and habilitation as defined in Minnesota 
241.21  Statutes, section 252.41, subdivision 9, including at least one 
241.22  representative from each association representing day training 
241.23  and habilitation vendors.  Appointments to the task force shall 
241.24  be made by the commissioner of human services and technical 
241.25  assistance shall be provided by the department of human services.
241.26     Sec. 73.  [SEMI-INDEPENDENT LIVING SERVICES (SILS) STUDY.] 
241.27     The commissioner of human services, in consultation with 
241.28  county representatives and other interested persons, shall 
241.29  develop recommendations revising the funding methodology for 
241.30  SILS as defined in Minnesota Statutes, section 252.275, 
241.31  subdivisions 3, 4, 4b, and 4c, and report by January 15, 2002, 
241.32  to the chair of the house of representatives health and human 
241.33  services finance committee and the chair of the senate health, 
241.34  human services and corrections budget division. 
241.35     Sec. 74.  [WAIVER REQUEST REGARDING SPOUSAL INCOME.] 
241.36     By September 1, 2001, the commissioner of human services 
242.1   shall seek federal approval to allow recipients of home and 
242.2   community-based waivers authorized under Minnesota Statutes, 
242.3   section 256B.49, to choose either a waiver of deeming of spousal 
242.4   income or the spousal impoverishment protections authorized 
242.5   under United States Code, title 42, section 1396r-5, with the 
242.6   addition of a recipient's maintenance needs in an amount equal 
242.7   to the Minnesota supplemental aid equivalent rate as defined in 
242.8   Minnesota Statutes, section 256I.03, subdivision 5, plus the 
242.9   personal needs allowance as defined in Minnesota Statutes, 
242.10  section 256B.35, subdivision 1, paragraph (a).  Recipient 
242.11  maintenance needs shall be adjusted under this provision each 
242.12  July 1. 
242.13     Sec. 75.  [FEDERAL WAIVER REQUESTS.] 
242.14     The commissioner of human services shall submit to the 
242.15  federal Health Care Financing Administration by September 1, 
242.16  2001, a request for a home and community-based services waiver 
242.17  for day services, including:  community inclusion, supported 
242.18  employment, and day training and habilitation services defined 
242.19  in Minnesota Statutes, section 252.41, subdivision 3, clause 
242.20  (1), for persons eligible for the waiver under Minnesota 
242.21  Statutes, section 256B.092. 
242.22     Sec. 76. [REPEALER.] 
242.23     (a) Minnesota Statutes 2000, section 256B.0951, subdivision 
242.24  6, is repealed. 
242.25     (b) Minnesota Statutes 2000, sections 145.9245; 256.476, 
242.26  subdivision 7; 256B.0912; 256B.0915, subdivisions 3a, 3b, and 
242.27  3c; and 256B.49, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10, 
242.28  are repealed. 
242.29     (c) Laws 1995, chapter 178, article 2, section 48, 
242.30  subdivision 6, is repealed. 
242.31     (d) Minnesota Rules, parts 9505.2455; 9505.2458; 9505.2460; 
242.32  9505.2465; 9505.2470; 9505.2473; 9505.2475; 9505.2480; 
242.33  9505.2485; 9505.2486; 9505.2490; 9505.2495; 9505.2496; 
242.34  9505.2500; 9505.3010; 9505.3015; 9505.3020; 9505.3025; 
242.35  9505.3030; 9505.3035; 9505.3040; 9505.3065; 9505.3085; 
242.36  9505.3135; 9505.3500; 9505.3510; 9505.3520; 9505.3530; 
243.1   9505.3535; 9505.3540; 9505.3545; 9505.3550; 9505.3560; 
243.2   9505.3570; 9505.3575; 9505.3580; 9505.3585; 9505.3600; 
243.3   9505.3610; 9505.3620; 9505.3622; 9505.3624; 9505.3626; 
243.4   9505.3630; 9505.3635; 9505.3640; 9505.3645; 9505.3650; 
243.5   9505.3660; and 9505.3670, are repealed. 
243.6      Sec. 77.  [EFFECTIVE DATE.] 
243.7      Section 23 is effective January 1, 2003. 
243.8                              ARTICLE 4
243.9                         CONSUMER INFORMATION 
243.10     Section 1.  [144A.35] [EXPANSION OF BED DISTRIBUTION 
243.11  STUDY.] 
243.12     The commissioner of human services, shall monitor and 
243.13  analyze the distribution of older adult services, including, but 
243.14  not limited to, nursing home beds, senior housing, housing with 
243.15  services units, and home and community-based services in the 
243.16  different geographic areas of the state.  The study shall 
243.17  include an analysis of the impact of amendments to the nursing 
243.18  home moratorium law which would allow for transfers of nursing 
243.19  home beds within the state.  The commissioner of human services 
243.20  shall submit to the legislature, beginning June 1, 2002, and 
243.21  each January 15 thereafter, an assessment of the distribution of 
243.22  long-term health care services by geographic area, with 
243.23  particular attention to service deficits or problems, and 
243.24  corrective action plans. 
243.25     Sec. 2.  Minnesota Statutes 2000, section 256.975, is 
243.26  amended by adding a subdivision to read: 
243.27     Subd. 7.  [CONSUMER INFORMATION AND ASSISTANCE; SENIOR 
243.28  LINKAGE.] (a) The Minnesota board on aging shall operate a 
243.29  statewide information and assistance service to aid older 
243.30  Minnesotans and their families in making informed choices about 
243.31  long-term care options and health care benefits.  Language 
243.32  services to persons with limited English language skills may be 
243.33  made available.  The service, known as Senior LinkAge Line, must 
243.34  be available during business hours through a statewide toll-free 
243.35  number and must also be available through the Internet. 
243.36     (b) The service must assist older adults, caregivers, and 
244.1   providers in accessing information about choices in long-term 
244.2   care services that are purchased through private providers or 
244.3   available through public options.  The service must: 
244.4      (1) develop a comprehensive database that includes detailed 
244.5   listings in both consumer- and provider-oriented formats; 
244.6      (2) make the database accessible on the Internet and 
244.7   through other telecommunication and media-related tools; 
244.8      (3) link callers to interactive long-term care screening 
244.9   tools and make these tools available through the Internet by 
244.10  integrating the tools with the database; 
244.11     (4) develop community education materials with a focus on 
244.12  planning for long-term care and evaluating independent living, 
244.13  housing, and service options; 
244.14     (5) conduct an outreach campaign to assist older adults and 
244.15  their caregivers in finding information on the Internet and 
244.16  through other means of communication; 
244.17     (6) implement a messaging system for overflow callers and 
244.18  respond to these callers by the next business day; 
244.19     (7) link callers with county human services and other 
244.20  providers to receive more in-depth assistance and consultation 
244.21  related to long-term care options; and 
244.22     (8) link callers with quality profiles for nursing 
244.23  facilities and other providers developed by the commissioner of 
244.24  health. 
244.25     (c) The Minnesota board on aging shall conduct an 
244.26  evaluation of the effectiveness of the statewide information and 
244.27  assistance, and submit this evaluation to the legislature by 
244.28  December 1, 2002.  The evaluation must include an analysis of 
244.29  funding adequacy, gaps in service delivery, continuity in 
244.30  information between the service and identified linkages, and 
244.31  potential use of private funding to enhance the service. 
244.32     Sec. 3.  [256.9754] [COMMUNITY SERVICES DEVELOPMENT GRANTS 
244.33  PROGRAM.] 
244.34     Subdivision 1.  [DEFINITIONS.] For purposes of this 
244.35  section, the following terms have the meanings given. 
244.36     (a) "Community" means a town, township, city, or targeted 
245.1   neighborhood within a city, or a consortium of towns, townships, 
245.2   cities, or targeted neighborhoods within cities. 
245.3      (b) "Older adult services" means any services available 
245.4   under the elderly waiver program or alternative care grant 
245.5   programs; nursing facility services; transportation services; 
245.6   respite services; and other community-based services identified 
245.7   as necessary either to maintain lifestyle choices for older 
245.8   Minnesotans, or to promote independence. 
245.9      (c) "Older adult" refers to individuals 65 years of age and 
245.10  older. 
245.11     Subd. 2.  [CREATION.] The community services development 
245.12  grants program is created under the administration of the 
245.13  commissioner of human services.  
245.14     Subd. 3.  [PROVISION OF GRANTS.] The commissioner shall 
245.15  make grants available to communities, providers of older adult 
245.16  services identified in subdivision 1, or to a consortium of 
245.17  providers of older adult services, to establish older adult 
245.18  services.  Grants may be provided for capital and other costs 
245.19  including, but not limited to, start-up and training costs, 
245.20  equipment, and supplies related to older adult services or other 
245.21  residential or service alternatives to nursing facility care.  
245.22  Grants may also be made to renovate current buildings, provide 
245.23  transportation services, fund programs that would allow older 
245.24  adults or disabled individuals to stay in their own homes by 
245.25  sharing a home, fund programs that coordinate and manage formal 
245.26  and informal services to older adults in their homes to enable 
245.27  them to live as independently as possible in their own homes as 
245.28  an alternative to nursing home care, or expand state-funded 
245.29  programs in the area. 
245.30     Subd. 4.  [ELIGIBILITY.] Grants may be awarded only to 
245.31  communities and providers or to a consortium of providers that 
245.32  have a local match of 50 percent of the costs for the project in 
245.33  the form of donations, local tax dollars, in-kind donations, 
245.34  fundraising, or other local matches. 
245.35     Subd. 5.  [GRANT PREFERENCE.] The commissioner of human 
245.36  services shall give preference when awarding grants under this 
246.1   section to areas where nursing facility closures have occurred 
246.2   or are occurring.  The commissioner may award grants to the 
246.3   extent grant funds are available and to the extent applications 
246.4   are approved by the commissioner.  Denial of approval of an 
246.5   application in one year does not preclude submission of an 
246.6   application in a subsequent year.  The maximum grant amount is 
246.7   limited to $750,000. 
246.8      Sec. 4.  Minnesota Statutes 2000, section 256B.0911, 
246.9   subdivision 1, is amended to read: 
246.10     Subdivision 1.  [PURPOSE AND GOAL.] (a) The purpose of the 
246.11  preadmission screening program long-term care consultation 
246.12  services is to assist persons with long-term or chronic care 
246.13  needs in making long-term care decisions and selecting options 
246.14  that meet their needs and reflect their preferences.  The 
246.15  availability of, and access to, information and other types of 
246.16  assistance is also intended to prevent or delay certified 
246.17  nursing facility placements by assessing applicants and 
246.18  residents and offering cost-effective alternatives appropriate 
246.19  for the person's needs and to provide transition assistance 
246.20  after admission.  Further, the goal of the program these 
246.21  services is to contain costs associated with unnecessary 
246.22  certified nursing facility admissions.  The commissioners of 
246.23  human services and health shall seek to maximize use of 
246.24  available federal and state funds and establish the broadest 
246.25  program possible within the funding available. 
246.26     (b) These services must be coordinated with services 
246.27  provided under sections 256.975, subdivision 7, and 256.9772, 
246.28  and with services provided by other public and private agencies 
246.29  in the community to offer a variety of cost-effective 
246.30  alternatives to persons with disabilities and elderly persons.  
246.31  The county agency providing long-term care consultation services 
246.32  shall encourage the use of volunteers from families, religious 
246.33  organizations, social clubs, and similar civic and service 
246.34  organizations to provide community-based services. 
246.35     Sec. 5.  Minnesota Statutes 2000, section 256B.0911, is 
246.36  amended by adding a subdivision to read: 
247.1      Subd. 1a.  [DEFINITIONS.] For purposes of this section, the 
247.2   following definitions apply: 
247.3      (a) "Long-term care consultation services" means: 
247.4      (1) providing information and education to the general 
247.5   public regarding availability of the services authorized under 
247.6   this section; 
247.7      (2) an intake process that provides access to the services 
247.8   described in this section; 
247.9      (3) assessment of the health, psychological, and social 
247.10  needs of referred individuals; 
247.11     (4) assistance in identifying services needed to maintain 
247.12  an individual in the least restrictive environment; 
247.13     (5) providing recommendations on cost-effective community 
247.14  services that are available to the individual; 
247.15     (6) development of an individual's community support plan; 
247.16     (7) providing information regarding eligibility for 
247.17  Minnesota health care programs; 
247.18     (8) preadmission screening to determine the need for a 
247.19  nursing facility level of care; 
247.20     (9) preliminary determination of Minnesota health care 
247.21  programs eligibility for individuals who need a nursing facility 
247.22  level of care, with appropriate referrals for final 
247.23  determination; 
247.24     (10) providing recommendations for nursing facility 
247.25  placement when there are no cost-effective community services 
247.26  available; and 
247.27     (11) assistance to transition people back to community 
247.28  settings after facility admission. 
247.29     (b) "Minnesota health care programs" means the medical 
247.30  assistance program under chapter 256B, the alternative care 
247.31  program under section 256B.0913, and the prescription drug 
247.32  program under section 256.955. 
247.33     Sec. 6.  Minnesota Statutes 2000, section 256B.0911, 
247.34  subdivision 3, is amended to read: 
247.35     Subd. 3.  [PERSONS RESPONSIBLE FOR CONDUCTING THE 
247.36  PREADMISSION SCREENING LONG-TERM CARE CONSULTATION TEAM.] (a) A 
248.1   local screening long-term care consultation team shall be 
248.2   established by the county board of commissioners.  Each local 
248.3   screening consultation team shall consist of screeners who are a 
248.4   at least one social worker and a at least one public health 
248.5   nurse from their respective county agencies.  The board may 
248.6   designate public health or social services as the lead agency 
248.7   for long-term care consultation services.  If a county does not 
248.8   have a public health nurse available, it may request approval 
248.9   from the commissioner to assign a county registered nurse with 
248.10  at least one year experience in home care to participate on the 
248.11  team.  The screening team members must confer regarding the most 
248.12  appropriate care for each individual screened.  Two or more 
248.13  counties may collaborate to establish a joint local screening 
248.14  consultation team or teams. 
248.15     (b) In assessing a person's needs, screeners shall have a 
248.16  physician available for consultation and shall consider the 
248.17  assessment of the individual's attending physician, if any.  The 
248.18  individual's physician shall be included if the physician 
248.19  chooses to participate.  Other personnel may be included on the 
248.20  team as deemed appropriate by the county agencies.  The team is 
248.21  responsible for providing long-term care consultation services 
248.22  to all persons located in the county who request the services, 
248.23  regardless of eligibility for Minnesota health care programs. 
248.24     Sec. 7.  Minnesota Statutes 2000, section 256B.0911, is 
248.25  amended by adding a subdivision to read: 
248.26     Subd. 3a.  [ASSESSMENT AND SUPPORT PLANNING.] (a) Persons 
248.27  requesting assessment, services planning, or other assistance 
248.28  intended to support community-based living must be visited by a 
248.29  long-term care consultation team within ten working days after 
248.30  the date on which an assessment was requested or recommended.  
248.31  Assessments must be conducted according to paragraphs (b) to (g).
248.32     (b) The county may utilize a team of either the social 
248.33  worker or public health nurse, or both, to conduct the 
248.34  assessment in a face-to-face interview.  The consultation team 
248.35  members must confer regarding the most appropriate care for each 
248.36  individual screened or assessed. 
249.1      (c) The long-term care consultation team must assess the 
249.2   health and social needs of the person, using an assessment form 
249.3   provided by the commissioner. 
249.4      (d) The team must conduct the assessment in a face-to-face 
249.5   interview with the person being assessed and the person's legal 
249.6   representative, if applicable. 
249.7      (e) The team must provide the person, or the person's legal 
249.8   representative, with written recommendations for facility- or 
249.9   community-based services.  The team must document that the most 
249.10  cost-effective alternatives available were offered to the 
249.11  individual.  For purposes of this requirement, "cost-effective 
249.12  alternatives" means community services and living arrangements 
249.13  that cost the same as or less than nursing facility care. 
249.14     (f) If the person chooses to use community-based services, 
249.15  the team must provide the person or the person's legal 
249.16  representative with a written community support plan, regardless 
249.17  of whether the individual is eligible for Minnesota health care 
249.18  programs.  The person may request assistance in developing a 
249.19  community support plan without participating in a complete 
249.20  assessment. 
249.21     (g) The team must give the person receiving assessment or 
249.22  support planning, or the person's legal representative, 
249.23  materials supplied by the commissioner containing the following 
249.24  information: 
249.25     (1) the purpose of preadmission screening and assessment; 
249.26     (2) information about Minnesota health care programs; 
249.27     (3) the person's freedom to accept or reject the 
249.28  recommendations of the team; 
249.29     (4) the person's right to confidentiality under the 
249.30  Minnesota Government Data Practices Act, chapter 13; and 
249.31     (5) the person's right to appeal the decision regarding the 
249.32  need for nursing facility level of care or the county's final 
249.33  decisions regarding public programs eligibility according to 
249.34  section 256.045, subdivision 3. 
249.35     Sec. 8.  Minnesota Statutes 2000, section 256B.0911, is 
249.36  amended by adding a subdivision to read: 
250.1      Subd. 3b.  [TRANSITION ASSISTANCE.] (a) A long-term care 
250.2   consultation team shall provide assistance to persons residing 
250.3   in a nursing facility, hospital, regional treatment center, or 
250.4   intermediate care facility for persons with mental retardation 
250.5   who request or are referred for assistance.  Transition 
250.6   assistance must include assessment, community support plan 
250.7   development, referrals to Minnesota health care programs, and 
250.8   referrals to programs that provide assistance with housing. 
250.9      (b) The county shall develop transition processes with 
250.10  institutional social workers and discharge planners to ensure 
250.11  that: 
250.12     (1) persons admitted to facilities receive information 
250.13  about transition assistance that is available; 
250.14     (2) the assessment is completed for persons within ten 
250.15  working days of the date of request or recommendation for 
250.16  assessment; and 
250.17     (3) there is a plan for transition and follow-up for the 
250.18  individual's return to the community.  The plan must require 
250.19  notification of other local agencies when a person who may 
250.20  require assistance is screened by one county for admission to a 
250.21  facility located in another county. 
250.22     (c) If a person who is eligible for a Minnesota health care 
250.23  program is admitted to a nursing facility, the nursing facility 
250.24  must include a consultation team member or the case manager in 
250.25  the discharge planning process. 
250.26     Sec. 9.  Minnesota Statutes 2000, section 256B.0911, is 
250.27  amended by adding a subdivision to read: 
250.28     Subd. 4a.  [PREADMISSION SCREENING ACTIVITIES RELATED TO 
250.29  NURSING FACILITY ADMISSIONS.] (a) All applicants to Medicaid 
250.30  certified nursing facilities, including certified boarding care 
250.31  facilities, must be screened prior to admission regardless of 
250.32  income, assets, or funding sources for nursing facility care, 
250.33  except as described in subdivision 4b.  The purpose of the 
250.34  screening is to determine the need for nursing facility level of 
250.35  care as described in paragraph (d) and to complete activities 
250.36  required under federal law related to mental illness and mental 
251.1   retardation as outlined in paragraph (b). 
251.2      (b) A person who has a diagnosis or possible diagnosis of 
251.3   mental illness, mental retardation, or a related condition must 
251.4   receive a preadmission screening before admission regardless of 
251.5   the exemptions outlined in subdivision 4b, paragraph (b), to 
251.6   identify the need for further evaluation and specialized 
251.7   services, unless the admission prior to screening is authorized 
251.8   by the local mental health authority or the local developmental 
251.9   disabilities case manager, or unless authorized by the county 
251.10  agency according to Public Law Number 100-508.  
251.11     The following criteria apply to the preadmission screening: 
251.12     (1) the county must use forms and criteria developed by the 
251.13  commissioner to identify persons who require referral for 
251.14  further evaluation and determination of the need for specialized 
251.15  services; and 
251.16     (2) the evaluation and determination of the need for 
251.17  specialized services must be done by: 
251.18     (i) a qualified independent mental health professional, for 
251.19  persons with a primary or secondary diagnosis of a serious 
251.20  mental illness; or 
251.21     (ii) a qualified mental retardation professional, for 
251.22  persons with a primary or secondary diagnosis of mental 
251.23  retardation or related conditions.  For purposes of this 
251.24  requirement, a qualified mental retardation professional must 
251.25  meet the standards for a qualified mental retardation 
251.26  professional under Code of Federal Regulations, title 42, 
251.27  section 483.430. 
251.28     (c) The local county mental health authority or the state 
251.29  mental retardation authority under Public Law Numbers 100-203 
251.30  and 101-508 may prohibit admission to a nursing facility if the 
251.31  individual does not meet the nursing facility level of care 
251.32  criteria or needs specialized services as defined in Public Law 
251.33  Numbers 100-203 and 101-508.  For purposes of this section, 
251.34  "specialized services" for a person with mental retardation or a 
251.35  related condition means active treatment as that term is defined 
251.36  under Code of Federal Regulations, title 42, section 483.440 
252.1   (a)(1). 
252.2      (d) The determination of the need for nursing facility 
252.3   level of care must be made according to criteria developed by 
252.4   the commissioner.  In assessing a person's needs, consultation 
252.5   team members shall have a physician available for consultation 
252.6   and shall consider the assessment of the individual's attending 
252.7   physician, if any.  The individual's physician must be included 
252.8   if the physician chooses to participate.  Other personnel may be 
252.9   included on the team as deemed appropriate by the county. 
252.10     Sec. 10.  Minnesota Statutes 2000, section 256B.0911, is 
252.11  amended by adding a subdivision to read: 
252.12     Subd. 4b.  [EXEMPTIONS AND EMERGENCY ADMISSIONS.] (a) 
252.13  Exemptions from the federal screening requirements outlined in 
252.14  subdivision 4a, paragraphs (b) and (c), are limited to: 
252.15     (1) a person who, having entered an acute care facility 
252.16  from a certified nursing facility, is returning to a certified 
252.17  nursing facility; and 
252.18     (2) a person transferring from one certified nursing 
252.19  facility in Minnesota to another certified nursing facility in 
252.20  Minnesota. 
252.21     (b) Persons who are exempt from preadmission screening for 
252.22  purposes of level of care determination include: 
252.23     (1) persons described in paragraph (a); 
252.24     (2) an individual who has a contractual right to have 
252.25  nursing facility care paid for indefinitely by the veterans' 
252.26  administration; 
252.27     (3) an individual enrolled in a demonstration project under 
252.28  section 256B.69, subdivision 8, at the time of application to a 
252.29  nursing facility; 
252.30     (4) an individual currently being served under the 
252.31  alternative care program or under a home and community-based 
252.32  services waiver authorized under section 1915(c) of the federal 
252.33  Social Security Act; and 
252.34     (5) individuals admitted to a certified nursing facility 
252.35  for a short-term stay, which is expected to be 14 days or less 
252.36  in duration based upon a physician's certification, and who have 
253.1   been assessed and approved for nursing facility admission within 
253.2   the previous six months.  This exemption applies only if the 
253.3   consultation team member determines at the time of the initial 
253.4   assessment of the six-month period that it is appropriate to use 
253.5   the nursing facility for short-term stays and that there is an 
253.6   adequate plan of care for return to the home or community-based 
253.7   setting.  If a stay exceeds 14 days, the individual must be 
253.8   referred no later than the first county working day following 
253.9   the 14th resident day for a screening, which must be completed 
253.10  within five working days of the referral.  The payment 
253.11  limitations in subdivision 7 apply to an individual found at 
253.12  screening to not meet the level of care criteria for admission 
253.13  to a certified nursing facility. 
253.14     (c) Persons admitted to a Medicaid-certified nursing 
253.15  facility from the community on an emergency basis as described 
253.16  in paragraph (d) or from an acute care facility on a nonworking 
253.17  day must be screened the first working day after admission. 
253.18     (d) Emergency admission to a nursing facility prior to 
253.19  screening is permitted when all of the following conditions are 
253.20  met: 
253.21     (1) a person is admitted from the community to a certified 
253.22  nursing or certified boarding care facility during county 
253.23  nonworking hours; 
253.24     (2) a physician has determined that delaying admission 
253.25  until preadmission screening is completed would adversely affect 
253.26  the person's health and safety; 
253.27     (3) there is a recent precipitating event that precludes 
253.28  the client from living safely in the community, such as 
253.29  sustaining an injury, sudden onset of acute illness, or a 
253.30  caregiver's inability to continue to provide care; 
253.31     (4) the attending physician has authorized the emergency 
253.32  placement and has documented the reason that the emergency 
253.33  placement is recommended; and 
253.34     (5) the county is contacted on the first working day 
253.35  following the emergency admission. 
253.36  Transfer of a patient from an acute care hospital to a nursing 
254.1   facility is not considered an emergency except for a person who 
254.2   has received hospital services in the following situations: 
254.3   hospital admission for observation, care in an emergency room 
254.4   without hospital admission, or following hospital 24-hour bed 
254.5   care. 
254.6      Sec. 11.  Minnesota Statutes 2000, section 256B.0911, is 
254.7   amended by adding a subdivision to read: 
254.8      Subd. 4c.  [SCREENING REQUIREMENTS.] (a) A person may be 
254.9   screened for nursing facility admission by telephone or in a 
254.10  face-to-face screening interview.  Consultation team members 
254.11  shall identify each individual's needs using the following 
254.12  categories: 
254.13     (1) the person needs no face-to-face screening interview to 
254.14  determine the need for nursing facility level of care based on 
254.15  information obtained from other health care professionals; 
254.16     (2) the person needs an immediate face-to-face screening 
254.17  interview to determine the need for nursing facility level of 
254.18  care and complete activities required under subdivision 4a; or 
254.19     (3) the person may be exempt from screening requirements as 
254.20  outlined in subdivision 4b, but will need transitional 
254.21  assistance after admission or in-person follow-along after a 
254.22  return home. 
254.23     (b) Persons admitted on a nonemergency basis to a 
254.24  Medicaid-certified nursing facility must be screened prior to 
254.25  admission. 
254.26     (c) The long-term care consultation team shall recommend a 
254.27  case mix classification for persons admitted to a certified 
254.28  nursing facility when sufficient information is received to make 
254.29  that classification.  The nursing facility is authorized to 
254.30  conduct all case mix assessments for persons who have been 
254.31  screened prior to admission for whom the county did not 
254.32  recommend a case mix classification.  The nursing facility is 
254.33  authorized to conduct all case mix assessments for persons 
254.34  admitted to the facility prior to a preadmission screening.  The 
254.35  county retains the responsibility of distributing appropriate 
254.36  case mix forms to the nursing facility. 
255.1      (d) The county screening or intake activity must include 
255.2   processes to identify persons who may require transition 
255.3   assistance as described in subdivision 3b. 
255.4      Sec. 12.  Minnesota Statutes 2000, section 256B.0911, 
255.5   subdivision 5, is amended to read: 
255.6      Subd. 5.  [SIMPLIFICATION OF FORMS ADMINISTRATIVE 
255.7   ACTIVITY.] The commissioner shall minimize the number of forms 
255.8   required in the preadmission screening process provision of 
255.9   long-term care consultation services and shall limit the 
255.10  screening document to items necessary for care community support 
255.11  plan approval, reimbursement, program planning, evaluation, and 
255.12  policy development. 
255.13     Sec. 13.  Minnesota Statutes 2000, section 256B.0911, 
255.14  subdivision 6, is amended to read: 
255.15     Subd. 6.  [PAYMENT FOR PREADMISSION SCREENING LONG-TERM 
255.16  CARE CONSULTATION SERVICES.] (a) The total screening payment for 
255.17  each county must be paid monthly by certified nursing facilities 
255.18  in the county.  The monthly amount to be paid by each nursing 
255.19  facility for each fiscal year must be determined by dividing the 
255.20  county's annual allocation for screenings long-term care 
255.21  consultation services by 12 to determine the monthly payment and 
255.22  allocating the monthly payment to each nursing facility based on 
255.23  the number of licensed beds in the nursing facility.  Payments 
255.24  to counties in which there is no certified nursing facility must 
255.25  be made by increasing the payment rate of the two facilities 
255.26  located nearest to the county seat. 
255.27     (b) The commissioner shall include the total annual payment 
255.28  for screening determined under paragraph (a) for each nursing 
255.29  facility reimbursed under section 256B.431 or 256B.434 according 
255.30  to section 256B.431, subdivision 2b, paragraph (g), or 256B.435. 
255.31     (c) In the event of the layaway, delicensure and 
255.32  decertification, or removal from layaway of 25 percent or more 
255.33  of the beds in a facility, the commissioner may adjust the per 
255.34  diem payment amount in paragraph (b) and may adjust the monthly 
255.35  payment amount in paragraph (a). The effective date of an 
255.36  adjustment made under this paragraph shall be on or after the 
256.1   first day of the month following the effective date of the 
256.2   layaway, delicensure and decertification, or removal from 
256.3   layaway. 
256.4      (d) Payments for screening activities long-term care 
256.5   consultation services are available to the county or counties to 
256.6   cover staff salaries and expenses to provide the screening 
256.7   function services described in subdivision 1a.  The lead agency 
256.8   county shall employ, or contract with other agencies to employ, 
256.9   within the limits of available funding, sufficient personnel 
256.10  to conduct the preadmission screening activity provide long-term 
256.11  care consultation services while meeting the state's long-term 
256.12  care outcomes and objectives as defined in section 256B.0917, 
256.13  subdivision 1.  The local agency county shall be accountable for 
256.14  meeting local objectives as approved by the commissioner in the 
256.15  CSSA biennial plan. 
256.16     (d) (e) Notwithstanding section 256B.0641, overpayments 
256.17  attributable to payment of the screening costs under the medical 
256.18  assistance program may not be recovered from a facility.  
256.19     (e) (f) The commissioner of human services shall amend the 
256.20  Minnesota medical assistance plan to include reimbursement for 
256.21  the local screening consultation teams. 
256.22     (g) The county may bill, as case management services, 
256.23  assessments, support planning, and follow-along provided to 
256.24  persons determined to be eligible for case management under 
256.25  Minnesota health care programs.  No individual or family member 
256.26  shall be charged for an initial assessment or initial support 
256.27  plan development provided under subdivision 3a or 3b. 
256.28     Sec. 14.  Minnesota Statutes 2000, section 256B.0911, 
256.29  subdivision 7, is amended to read: 
256.30     Subd. 7.  [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 
256.31  (a) Medical assistance reimbursement for nursing facilities 
256.32  shall be authorized for a medical assistance recipient only if a 
256.33  preadmission screening has been conducted prior to admission or 
256.34  the local county agency has authorized an exemption.  Medical 
256.35  assistance reimbursement for nursing facilities shall not be 
256.36  provided for any recipient who the local screener has determined 
257.1   does not meet the level of care criteria for nursing facility 
257.2   placement or, if indicated, has not had a level II PASARR OBRA 
257.3   evaluation as required under the federal Omnibus Budget 
257.4   Reconciliation Act of 1987 completed unless an admission for a 
257.5   recipient with mental illness is approved by the local mental 
257.6   health authority or an admission for a recipient with mental 
257.7   retardation or related condition is approved by the state mental 
257.8   retardation authority. 
257.9      (b) The nursing facility must not bill a person who is not 
257.10  a medical assistance recipient for resident days that preceded 
257.11  the date of completion of screening activities as required under 
257.12  subdivisions 4a, 4b, and 4c.  The nursing facility must include 
257.13  unreimbursed resident days in the nursing facility resident day 
257.14  totals reported to the commissioner. 
257.15     (c) The commissioner shall make a request to the health 
257.16  care financing administration for a waiver allowing screening 
257.17  team approval of Medicaid payments for certified nursing 
257.18  facility care.  An individual has a choice and makes the final 
257.19  decision between nursing facility placement and community 
257.20  placement after the screening team's recommendation, except as 
257.21  provided in paragraphs (b) and (c) subdivision 4a, paragraph (c).
257.22     (c) The local county mental health authority or the state 
257.23  mental retardation authority under Public Law Numbers 100-203 
257.24  and 101-508 may prohibit admission to a nursing facility, if the 
257.25  individual does not meet the nursing facility level of care 
257.26  criteria or needs specialized services as defined in Public Law 
257.27  Numbers 100-203 and 101-508.  For purposes of this section, 
257.28  "specialized services" for a person with mental retardation or a 
257.29  related condition means "active treatment" as that term is 
257.30  defined in Code of Federal Regulations, title 42, section 
257.31  483.440(a)(1). 
257.32     (e) Appeals from the screening team's recommendation or the 
257.33  county agency's final decision shall be made according to 
257.34  section 256.045, subdivision 3. 
257.35     Sec. 15.  Minnesota Statutes 2000, section 256B.0913, 
257.36  subdivision 1, is amended to read: 
258.1      Subdivision 1.  [PURPOSE AND GOALS.] The purpose of the 
258.2   alternative care program is to provide funding for or access to 
258.3   home and community-based services for frail elderly persons, in 
258.4   order to limit nursing facility placements.  The program is 
258.5   designed to support frail elderly persons in their desire to 
258.6   remain in the community as independently and as long as possible 
258.7   and to support informal caregivers in their efforts to provide 
258.8   care for frail elderly people.  Further, the goals of the 
258.9   program are: 
258.10     (1) to contain medical assistance expenditures by providing 
258.11  funding care in the community at a cost the same or less than 
258.12  nursing facility costs; and 
258.13     (2) to maintain the moratorium on new construction of 
258.14  nursing home beds. 
258.15     Sec. 16.  Minnesota Statutes 2000, section 256B.0913, 
258.16  subdivision 2, is amended to read: 
258.17     Subd. 2.  [ELIGIBILITY FOR SERVICES.] Alternative care 
258.18  services are available to all frail older Minnesotans.  This 
258.19  includes: 
258.20     (1) persons who are receiving medical assistance and served 
258.21  under the medical assistance program or the Medicaid waiver 
258.22  program; 
258.23     (2) persons age 65 or older who are not eligible for 
258.24  medical assistance without a spenddown or waiver obligation but 
258.25  who would be eligible for medical assistance within 180 days of 
258.26  admission to a nursing facility and served under subject to 
258.27  subdivisions 4 to 13; and 
258.28     (3) persons who are paying for their services out-of-pocket.
258.29     Sec. 17.  Minnesota Statutes 2000, section 256B.0913, 
258.30  subdivision 4, is amended to read: 
258.31     Subd. 4.  [ELIGIBILITY FOR FUNDING FOR SERVICES FOR 
258.32  NONMEDICAL ASSISTANCE RECIPIENTS.] (a) Funding for services 
258.33  under the alternative care program is available to persons who 
258.34  meet the following criteria: 
258.35     (1) the person has been screened by the county screening 
258.36  team or, if previously screened and served under the alternative 
259.1   care program, assessed by the local county social worker or 
259.2   public health nurse determined by a community assessment under 
259.3   section 256B.0911, to be a person who would require the level of 
259.4   care provided in a nursing facility, but for the provision of 
259.5   services under the alternative care program; 
259.6      (2) the person is age 65 or older; 
259.7      (3) the person would be financially eligible for medical 
259.8   assistance within 180 days of admission to a nursing facility; 
259.9      (4) the person meets the asset transfer requirements of is 
259.10  not ineligible for the medical assistance program due to an 
259.11  asset transfer penalty; 
259.12     (5) the screening team would recommend nursing facility 
259.13  admission or continued stay for the person if alternative care 
259.14  services were not available; 
259.15     (6) the person needs services that are not available at 
259.16  that time in the county funded through other county, state, or 
259.17  federal funding sources; and 
259.18     (7) (6) the monthly cost of the alternative care services 
259.19  funded by the program for this person does not exceed 75 percent 
259.20  of the statewide average monthly medical assistance payment for 
259.21  nursing facility care at the individual's case mix 
259.22  classification weighted average monthly nursing facility rate of 
259.23  the case mix resident class to which the individual alternative 
259.24  care client would be assigned under Minnesota Rules, parts 
259.25  9549.0050 to 9549.0059, less the recipient's maintenance needs 
259.26  allowance as described in section 256B.0915, subdivision 1d, 
259.27  paragraph (a), until the first day of the state fiscal year in 
259.28  which the resident assessment system, under section 256B.437, 
259.29  for nursing home rate determination is implemented.  Effective 
259.30  on the first day of the state fiscal year in which a resident 
259.31  assessment system, under section 256B.437, for nursing home rate 
259.32  determination is implemented and the first day of each 
259.33  subsequent state fiscal year, the monthly cost of alternative 
259.34  care services for this person shall not exceed the alternative 
259.35  care monthly cap for the case mix resident class to which the 
259.36  alternative care client would be assigned under Minnesota Rules, 
260.1   parts 9549.0050 to 9549.0059, which was in effect on the last 
260.2   day of the previous state fiscal year, and adjusted by the 
260.3   greater of any legislatively adopted home and community-based 
260.4   services cost-of-living percentage increase or any legislatively 
260.5   adopted statewide percent rate increase for nursing facilities.  
260.6   This monthly limit does not prohibit the alternative care client 
260.7   from payment for additional services, but in no case may the 
260.8   cost of additional services purchased under this section exceed 
260.9   the difference between the client's monthly service limit 
260.10  defined under section 256B.0915, subdivision 3, and the 
260.11  alternative care program monthly service limit defined in this 
260.12  paragraph.  If medical supplies and equipment or adaptations 
260.13  environmental modifications are or will be purchased for an 
260.14  alternative care services recipient, the costs may be prorated 
260.15  on a monthly basis throughout the year in which they are 
260.16  purchased for up to 12 consecutive months beginning with the 
260.17  month of purchase.  If the monthly cost of a recipient's other 
260.18  alternative care services exceeds the monthly limit established 
260.19  in this paragraph, the annual cost of the alternative care 
260.20  services shall be determined.  In this event, the annual cost of 
260.21  alternative care services shall not exceed 12 times the monthly 
260.22  limit calculated described in this paragraph. 
260.23     (b) Individuals who meet the criteria in paragraph (a) and 
260.24  who have been approved for alternative care funding are called 
260.25  180-day eligible clients. 
260.26     (c) The statewide average payment for nursing facility care 
260.27  is the statewide average monthly nursing facility rate in effect 
260.28  on July 1 of the fiscal year in which the cost is incurred, less 
260.29  the statewide average monthly income of nursing facility 
260.30  residents who are age 65 or older and who are medical assistance 
260.31  recipients in the month of March of the previous fiscal year.  
260.32  This monthly limit does not prohibit the 180-day eligible client 
260.33  from paying for additional services needed or desired.  
260.34     (d) In determining the total costs of alternative care 
260.35  services for one month, the costs of all services funded by the 
260.36  alternative care program, including supplies and equipment, must 
261.1   be included. 
261.2      (e) Alternative care funding under this subdivision is not 
261.3   available for a person who is a medical assistance recipient or 
261.4   who would be eligible for medical assistance without a 
261.5   spenddown, unless authorized by the commissioner or waiver 
261.6   obligation.  A person whose initial application for medical 
261.7   assistance is being processed may be served under the 
261.8   alternative care program for a period up to 60 days.  If the 
261.9   individual is found to be eligible for medical assistance, the 
261.10  county must bill medical assistance must be billed for services 
261.11  payable under the federally approved elderly waiver plan and 
261.12  delivered from the date the individual was found eligible 
261.13  for services reimbursable under the federally approved elderly 
261.14  waiver program plan.  Notwithstanding this provision, upon 
261.15  federal approval, alternative care funds may not be used to pay 
261.16  for any service the cost of which is payable by medical 
261.17  assistance or which is used by a recipient to meet a medical 
261.18  assistance income spenddown or waiver obligation.  
261.19     (f) (c) Alternative care funding is not available for a 
261.20  person who resides in a licensed nursing home or, certified 
261.21  boarding care home, hospital, or intermediate care facility, 
261.22  except for case management services which are being provided in 
261.23  support of the discharge planning process to a nursing home 
261.24  resident or certified boarding care home resident who is 
261.25  ineligible for case management funded by medical assistance. 
261.26     Sec. 18.  Minnesota Statutes 2000, section 256B.0913, 
261.27  subdivision 5, is amended to read: 
261.28     Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
261.29  Alternative care funding may be used for payment of costs of: 
261.30     (1) adult foster care; 
261.31     (2) adult day care; 
261.32     (3) home health aide; 
261.33     (4) homemaker services; 
261.34     (5) personal care; 
261.35     (6) case management; 
261.36     (7) respite care; 
262.1      (8) assisted living; 
262.2      (9) residential care services; 
262.3      (10) care-related supplies and equipment; 
262.4      (11) meals delivered to the home; 
262.5      (12) transportation; 
262.6      (13) skilled nursing; 
262.7      (14) chore services; 
262.8      (15) companion services; 
262.9      (16) nutrition services; 
262.10     (17) training for direct informal caregivers; 
262.11     (18) telemedicine devices to monitor recipients in their 
262.12  own homes as an alternative to hospital care, nursing home care, 
262.13  or home visits; and 
262.14     (19) other services including which includes discretionary 
262.15  funds and direct cash payments to clients, approved by the 
262.16  county agency following approval by the commissioner, subject to 
262.17  the provisions of paragraph (m) (j).  Total annual payments for "
262.18  other services" for all clients within a county may not exceed 
262.19  either ten percent of that county's annual alternative care 
262.20  program base allocation or $5,000, whichever is greater.  In no 
262.21  case shall this amount exceed the county's total annual 
262.22  alternative care program base allocation; and 
262.23     (20) environmental modifications. 
262.24     (b) The county agency must ensure that the funds are not 
262.25  used only to supplement and not to supplant services available 
262.26  through other public assistance or services programs. 
262.27     (c) Unless specified in statute, the service definitions 
262.28  and standards for alternative care services shall be the same as 
262.29  the service definitions and standards defined specified in the 
262.30  federally approved elderly waiver plan.  Except for the county 
262.31  agencies' approval of direct cash payments to clients as 
262.32  described in paragraph (j) or for a provider of supplies and 
262.33  equipment when the monthly cost of the supplies and equipment is 
262.34  less than $250, persons or agencies must be employed by or under 
262.35  a contract with the county agency or the public health nursing 
262.36  agency of the local board of health in order to receive funding 
263.1   under the alternative care program.  Supplies and equipment may 
263.2   be purchased from a vendor not certified to participate in the 
263.3   Medicaid program if the cost for the item is less than that of a 
263.4   Medicaid vendor.  
263.5      (d) The adult foster care rate shall be considered a 
263.6   difficulty of care payment and shall not include room and 
263.7   board.  The adult foster care daily rate shall be negotiated 
263.8   between the county agency and the foster care provider.  The 
263.9   rate established under this section shall not exceed 75 percent 
263.10  of the state average monthly nursing home payment for the case 
263.11  mix classification to which the individual receiving foster care 
263.12  is assigned, and it must allow for other alternative care 
263.13  services to be authorized by the case manager.  The alternative 
263.14  care payment for the foster care service in combination with the 
263.15  payment for other alternative care services, including case 
263.16  management, must not exceed the limit specified in subdivision 
263.17  4, paragraph (a), clause (6). 
263.18     (e) Personal care services may be provided by a personal 
263.19  care provider organization. must meet the service standards 
263.20  defined in the federally approved elderly waiver plan, except 
263.21  that a county agency may contract with a client's relative of 
263.22  the client who meets the relative hardship waiver requirement as 
263.23  defined in section 256B.0627, subdivision 4, paragraph (b), 
263.24  clause (10), to provide personal care services, but must ensure 
263.25  nursing if the county agency ensures supervision of this service 
263.26  by a registered nurse or mental health practitioner.  Covered 
263.27  personal care services defined in section 256B.0627, subdivision 
263.28  4, must meet applicable standards in Minnesota Rules, part 
263.29  9505.0335. 
263.30     (f) A county may use alternative care funds to purchase 
263.31  medical supplies and equipment without prior approval from the 
263.32  commissioner when:  (1) there is no other funding source; (2) 
263.33  the supplies and equipment are specified in the individual's 
263.34  care plan as medically necessary to enable the individual to 
263.35  remain in the community according to the criteria in Minnesota 
263.36  Rules, part 9505.0210, item A; and (3) the supplies and 
264.1   equipment represent an effective and appropriate use of 
264.2   alternative care funds.  A county may use alternative care funds 
264.3   to purchase supplies and equipment from a non-Medicaid certified 
264.4   vendor if the cost for the items is less than that of a Medicaid 
264.5   vendor.  A county is not required to contract with a provider of 
264.6   supplies and equipment if the monthly cost of the supplies and 
264.7   equipment is less than $250.  
264.8      (g) For purposes of this section, residential care services 
264.9   are services which are provided to individuals living in 
264.10  residential care homes.  Residential care homes are currently 
264.11  licensed as board and lodging establishments and are registered 
264.12  with the department of health as providing special 
264.13  services under section 157.17 and are not subject to 
264.14  registration under chapter 144D.  Residential care services are 
264.15  defined as "supportive services" and "health-related services."  
264.16  "Supportive services" means the provision of up to 24-hour 
264.17  supervision and oversight.  Supportive services includes:  (1) 
264.18  transportation, when provided by the residential care center 
264.19  home only; (2) socialization, when socialization is part of the 
264.20  plan of care, has specific goals and outcomes established, and 
264.21  is not diversional or recreational in nature; (3) assisting 
264.22  clients in setting up meetings and appointments; (4) assisting 
264.23  clients in setting up medical and social services; (5) providing 
264.24  assistance with personal laundry, such as carrying the client's 
264.25  laundry to the laundry room.  Assistance with personal laundry 
264.26  does not include any laundry, such as bed linen, that is 
264.27  included in the room and board rate.  "Health-related services" 
264.28  are limited to minimal assistance with dressing, grooming, and 
264.29  bathing and providing reminders to residents to take medications 
264.30  that are self-administered or providing storage for medications, 
264.31  if requested.  Individuals receiving residential care services 
264.32  cannot receive homemaking services funded under this section.  
264.33     (h) (g) For the purposes of this section, "assisted living" 
264.34  refers to supportive services provided by a single vendor to 
264.35  clients who reside in the same apartment building of three or 
264.36  more units which are not subject to registration under chapter 
265.1   144D and are licensed by the department of health as a class A 
265.2   home care provider or a class E home care provider.  Assisted 
265.3   living services are defined as up to 24-hour supervision, and 
265.4   oversight, supportive services as defined in clause (1), 
265.5   individualized home care aide tasks as defined in clause (2), 
265.6   and individualized home management tasks as defined in clause 
265.7   (3) provided to residents of a residential center living in 
265.8   their units or apartments with a full kitchen and bathroom.  A 
265.9   full kitchen includes a stove, oven, refrigerator, food 
265.10  preparation counter space, and a kitchen utensil storage 
265.11  compartment.  Assisted living services must be provided by the 
265.12  management of the residential center or by providers under 
265.13  contract with the management or with the county. 
265.14     (1) Supportive services include:  
265.15     (i) socialization, when socialization is part of the plan 
265.16  of care, has specific goals and outcomes established, and is not 
265.17  diversional or recreational in nature; 
265.18     (ii) assisting clients in setting up meetings and 
265.19  appointments; and 
265.20     (iii) providing transportation, when provided by the 
265.21  residential center only.  
265.22     Individuals receiving assisted living services will not 
265.23  receive both assisted living services and homemaking services.  
265.24  Individualized means services are chosen and designed 
265.25  specifically for each resident's needs, rather than provided or 
265.26  offered to all residents regardless of their illnesses, 
265.27  disabilities, or physical conditions.  
265.28     (2) Home care aide tasks means:  
265.29     (i) preparing modified diets, such as diabetic or low 
265.30  sodium diets; 
265.31     (ii) reminding residents to take regularly scheduled 
265.32  medications or to perform exercises; 
265.33     (iii) household chores in the presence of technically 
265.34  sophisticated medical equipment or episodes of acute illness or 
265.35  infectious disease; 
265.36     (iv) household chores when the resident's care requires the 
266.1   prevention of exposure to infectious disease or containment of 
266.2   infectious disease; and 
266.3      (v) assisting with dressing, oral hygiene, hair care, 
266.4   grooming, and bathing, if the resident is ambulatory, and if the 
266.5   resident has no serious acute illness or infectious disease.  
266.6   Oral hygiene means care of teeth, gums, and oral prosthetic 
266.7   devices.  
266.8      (3) Home management tasks means:  
266.9      (i) housekeeping; 
266.10     (ii) laundry; 
266.11     (iii) preparation of regular snacks and meals; and 
266.12     (iv) shopping.  
266.13     Individuals receiving assisted living services shall not 
266.14  receive both assisted living services and homemaking services.  
266.15  Individualized means services are chosen and designed 
266.16  specifically for each resident's needs, rather than provided or 
266.17  offered to all residents regardless of their illnesses, 
266.18  disabilities, or physical conditions.  Assisted living services 
266.19  as defined in this section shall not be authorized in boarding 
266.20  and lodging establishments licensed according to sections 
266.21  157.011 and 157.15 to 157.22. 
266.22     (i) (h) For establishments registered under chapter 144D, 
266.23  assisted living services under this section means either the 
266.24  services described and licensed in paragraph (g) and delivered 
266.25  by a class E home care provider licensed by the department of 
266.26  health or the services described under section 144A.4605 and 
266.27  delivered by an assisted living home care provider or a class A 
266.28  home care provider licensed by the commissioner of health. 
266.29     (j) For the purposes of this section, reimbursement (i) 
266.30  Payment for assisted living services and residential care 
266.31  services shall be a monthly rate negotiated and authorized by 
266.32  the county agency based on an individualized service plan for 
266.33  each resident and may not cover direct rent or food costs.  The 
266.34  rate 
266.35     (1) The individualized monthly negotiated payment for 
266.36  assisted living services as described in paragraph (g) or (h), 
267.1   and residential care services as described in paragraph (f), 
267.2   shall not exceed the nonfederal share in effect on July 1 of the 
267.3   state fiscal year for which the rate limit is being calculated 
267.4   of the greater of either the statewide or any of the geographic 
267.5   groups' weighted average monthly medical assistance nursing 
267.6   facility payment rate of the case mix resident class to which 
267.7   the 180-day alternative care eligible client would be assigned 
267.8   under Minnesota Rules, parts 9549.0050 to 9549.0059, unless the 
267.9   less the maintenance needs allowance as described in section 
267.10  256B.0915, subdivision 1d, paragraph (a), until the first day of 
267.11  the state fiscal year in which a resident assessment system, 
267.12  under section 256B.437, of nursing home rate determination is 
267.13  implemented.  Effective on the first day of the state fiscal 
267.14  year in which a resident assessment system, under section 
267.15  256B.437, of nursing home rate determination is implemented and 
267.16  the first day of each subsequent state fiscal year, the 
267.17  individualized monthly negotiated payment for the services 
267.18  described in this clause shall not exceed the limit described in 
267.19  this clause which was in effect on the last day of the previous 
267.20  state fiscal year and which has been adjusted by the greater of 
267.21  any legislatively adopted home and community-based services 
267.22  cost-of-living percentage increase or any legislatively adopted 
267.23  statewide percent rate increase for nursing facilities. 
267.24     (2) The individualized monthly negotiated payment for 
267.25  assisted living services are provided by a home care described 
267.26  under section 144A.4605 and delivered by a provider licensed by 
267.27  the department of health as a class A home care provider or an 
267.28  assisted living home care provider and are provided in a 
267.29  building that is registered as a housing with services 
267.30  establishment under chapter 144D and that provides 24-hour 
267.31  supervision in combination with the payment for other 
267.32  alternative care services, including case management, must not 
267.33  exceed the limit specified in subdivision 4, paragraph (a), 
267.34  clause (6). 
267.35     (k) For purposes of this section, companion services are 
267.36  defined as nonmedical care, supervision and oversight, provided 
268.1   to a functionally impaired adult.  Companions may assist the 
268.2   individual with such tasks as meal preparation, laundry and 
268.3   shopping, but do not perform these activities as discrete 
268.4   services.  The provision of companion services does not entail 
268.5   hands-on medical care.  Providers may also perform light 
268.6   housekeeping tasks which are incidental to the care and 
268.7   supervision of the recipient.  This service must be approved by 
268.8   the case manager as part of the care plan.  Companion services 
268.9   must be provided by individuals or organizations who are under 
268.10  contract with the local agency to provide the service.  Any 
268.11  person related to the waiver recipient by blood, marriage or 
268.12  adoption cannot be reimbursed under this service.  Persons 
268.13  providing companion services will be monitored by the case 
268.14  manager. 
268.15     (l) For purposes of this section, training for direct 
268.16  informal caregivers is defined as a classroom or home course of 
268.17  instruction which may include:  transfer and lifting skills, 
268.18  nutrition, personal and physical cares, home safety in a home 
268.19  environment, stress reduction and management, behavioral 
268.20  management, long-term care decision making, care coordination 
268.21  and family dynamics.  The training is provided to an informal 
268.22  unpaid caregiver of a 180-day eligible client which enables the 
268.23  caregiver to deliver care in a home setting with high levels of 
268.24  quality.  The training must be approved by the case manager as 
268.25  part of the individual care plan.  Individuals, agencies, and 
268.26  educational facilities which provide caregiver training and 
268.27  education will be monitored by the case manager. 
268.28     (m) (j) A county agency may make payment from their 
268.29  alternative care program allocation for "other services" 
268.30  provided to an alternative care program recipient if those 
268.31  services prevent, shorten, or delay institutionalization.  These 
268.32  services may which include use of "discretionary funds" for 
268.33  services that are not otherwise defined in this section and 
268.34  direct cash payments to the recipient client for the purpose of 
268.35  purchasing the recipient's services.  The following provisions 
268.36  apply to payments under this paragraph: 
269.1      (1) a cash payment to a client under this provision cannot 
269.2   exceed 80 percent of the monthly payment limit for that client 
269.3   as specified in subdivision 4, paragraph (a), clause (7) (6); 
269.4      (2) a county may not approve any cash payment for a client 
269.5   who meets either of the following: 
269.6      (i) has been assessed as having a dependency in 
269.7   orientation, unless the client has an authorized 
269.8   representative under section 256.476, subdivision 2, paragraph 
269.9   (g), or for a client who.  An "authorized representative" means 
269.10  an individual who is at least 18 years of age and is designated 
269.11  by the person or the person's legal representative to act on the 
269.12  person's behalf.  This individual may be a family member, 
269.13  guardian, representative payee, or other individual designated 
269.14  by the person or the person's legal representative, if any, to 
269.15  assist in purchasing and arranging for supports; or 
269.16     (ii) is concurrently receiving adult foster care, 
269.17  residential care, or assisted living services; 
269.18     (3) any service approved under this section must be a 
269.19  service which meets the purpose and goals of the program as 
269.20  listed in subdivision 1; 
269.21     (4) cash payments must also meet the criteria of and are 
269.22  governed by the procedures and liability protection established 
269.23  in section 256.476, subdivision 4, paragraphs (b) through (h), 
269.24  and recipients of cash grants must meet the requirements in 
269.25  section 256.476, subdivision 10; and cash payments to a person 
269.26  or a person's family will be provided through a monthly payment 
269.27  and be in the form of cash, voucher, or direct county payment to 
269.28  a vendor.  Fees or premiums assessed to the person for 
269.29  eligibility for health and human services are not reimbursable 
269.30  through this service option.  Services and goods purchased 
269.31  through cash payments must be identified in the person's 
269.32  individualized care plan and must meet all of the following 
269.33  criteria: 
269.34     (i) they must be over and above the normal cost of caring 
269.35  for the person if the person did not have functional 
269.36  limitations; 
270.1      (ii) they must be directly attributable to the person's 
270.2   functional limitations; 
270.3      (iii) they must have the potential to be effective at 
270.4   meeting the goals of the program; 
270.5      (iv) they must be consistent with the needs identified in 
270.6   the individualized service plan.  The service plan shall specify 
270.7   the needs of the person and family, the form and amount of 
270.8   payment, the items and services to be reimbursed, and the 
270.9   arrangements for management of the individual grant; and 
270.10     (v) the person, the person's family, or the legal 
270.11  representative shall be provided sufficient information to 
270.12  ensure an informed choice of alternatives.  The local agency 
270.13  shall document this information in the person's care plan, 
270.14  including the type and level of expenditures to be reimbursed; 
270.15     (4) the county, lead agency under contract, or tribal 
270.16  government under contract to administer the alternative care 
270.17  program shall not be liable for damages, injuries, or 
270.18  liabilities sustained through the purchase of direct supports or 
270.19  goods by the person, the person's family, or the authorized 
270.20  representative with funds received through the cash payments 
270.21  under this section.  Liabilities include, but are not limited 
270.22  to, workers' compensation, the Federal Insurance Contributions 
270.23  Act (FICA), or the Federal Unemployment Tax Act (FUTA); 
270.24     (5) persons receiving grants under this section shall have 
270.25  the following responsibilities: 
270.26     (i) spend the grant money in a manner consistent with their 
270.27  individualized service plan with the local agency; 
270.28     (ii) notify the local agency of any necessary changes in 
270.29  the grant-expenditures; 
270.30     (iii) arrange and pay for supports; and 
270.31     (iv) inform the local agency of areas where they have 
270.32  experienced difficulty securing or maintaining supports; and 
270.33     (5) (6) the county shall report client outcomes, services, 
270.34  and costs under this paragraph in a manner prescribed by the 
270.35  commissioner. 
270.36     (k) Upon implementation of direct cash payments to clients 
271.1   under this section, any person determined eligible for the 
271.2   alternative care program who chooses a cash payment approved by 
271.3   the county agency shall receive the cash payment under this 
271.4   section and not under section 256.476 unless the person was 
271.5   receiving a consumer support grant under section 256.476 before 
271.6   implementation of direct cash payments under this section. 
271.7      Sec. 19.  Minnesota Statutes 2000, section 256B.0913, 
271.8   subdivision 6, is amended to read: 
271.9      Subd. 6.  [ALTERNATIVE CARE PROGRAM ADMINISTRATION.] The 
271.10  alternative care program is administered by the county agency.  
271.11  This agency is the lead agency responsible for the local 
271.12  administration of the alternative care program as described in 
271.13  this section.  However, it may contract with the public health 
271.14  nursing service to be the lead agency.  The commissioner may 
271.15  contract with federally recognized Indian tribes with a 
271.16  reservation in Minnesota to serve as the lead agency responsible 
271.17  for the local administration of the alternative care program as 
271.18  described in the contract. 
271.19     Sec. 20.  Minnesota Statutes 2000, section 256B.0913, 
271.20  subdivision 7, is amended to read: 
271.21     Subd. 7.  [CASE MANAGEMENT.] Providers of case management 
271.22  services for persons receiving services funded by the 
271.23  alternative care program must meet the qualification 
271.24  requirements and standards specified in section 256B.0915, 
271.25  subdivision 1b.  The case manager must ensure the health and 
271.26  safety of the individual client and not approve alternative care 
271.27  funding for a client in any setting in which the case manager 
271.28  cannot reasonably ensure the client's health and safety.  The 
271.29  case manager is responsible for the cost-effectiveness of the 
271.30  alternative care individual care plan and must not approve any 
271.31  care plan in which the cost of services funded by alternative 
271.32  care and client contributions exceeds the limit specified in 
271.33  section 256B.0915, subdivision 3, paragraph (b).  The county may 
271.34  allow a case manager employed by the county to delegate certain 
271.35  aspects of the case management activity to another individual 
271.36  employed by the county provided there is oversight of the 
272.1   individual by the case manager.  The case manager may not 
272.2   delegate those aspects which require professional judgment 
272.3   including assessments, reassessments, and care plan development. 
272.4      Sec. 21.  Minnesota Statutes 2000, section 256B.0913, 
272.5   subdivision 8, is amended to read: 
272.6      Subd. 8.  [REQUIREMENTS FOR INDIVIDUAL CARE PLAN.] (a) The 
272.7   case manager shall implement the plan of care for each 180-day 
272.8   eligible alternative care client and ensure that a client's 
272.9   service needs and eligibility are reassessed at least every 12 
272.10  months.  The plan shall include any services prescribed by the 
272.11  individual's attending physician as necessary to allow the 
272.12  individual to remain in a community setting.  In developing the 
272.13  individual's care plan, the case manager should include the use 
272.14  of volunteers from families and neighbors, religious 
272.15  organizations, social clubs, and civic and service organizations 
272.16  to support the formal home care services.  The county shall be 
272.17  held harmless for damages or injuries sustained through the use 
272.18  of volunteers under this subdivision including workers' 
272.19  compensation liability.  The lead agency shall provide 
272.20  documentation to the commissioner verifying that the 
272.21  individual's alternative care is not available at that time 
272.22  through any other public assistance or service program.  The 
272.23  lead agency shall provide documentation in each individual's 
272.24  plan of care and, if requested, to the commissioner that the 
272.25  most cost-effective alternatives available have been offered to 
272.26  the individual and that the individual was free to choose among 
272.27  available qualified providers, both public and private.  The 
272.28  case manager must give the individual a ten-day written notice 
272.29  of any decrease in or termination of alternative care services. 
272.30     (b) If the county administering alternative care services 
272.31  is different than the county of financial responsibility, the 
272.32  care plan may be implemented without the approval of the county 
272.33  of financial responsibility. 
272.34     Sec. 22.  Minnesota Statutes 2000, section 256B.0913, 
272.35  subdivision 9, is amended to read: 
272.36     Subd. 9.  [CONTRACTING PROVISIONS FOR PROVIDERS.] The lead 
273.1   agency shall document to the commissioner that the agency made 
273.2   reasonable efforts to inform potential providers of the 
273.3   anticipated need for services under the alternative care program 
273.4   or waiver programs under sections 256B.0915 and 256B.49, 
273.5   including a minimum of 14 days' written advance notice of the 
273.6   opportunity to be selected as a service provider and an annual 
273.7   public meeting with providers to explain and review the criteria 
273.8   for selection.  The lead agency shall also document to the 
273.9   commissioner that the agency allowed potential providers an 
273.10  opportunity to be selected to contract with the county agency.  
273.11  Funds reimbursed to counties under this subdivision Alternative 
273.12  care funds paid to service providers are subject to audit by the 
273.13  commissioner for fiscal and utilization control.  
273.14     The lead agency must select providers for contracts or 
273.15  agreements using the following criteria and other criteria 
273.16  established by the county: 
273.17     (1) the need for the particular services offered by the 
273.18  provider; 
273.19     (2) the population to be served, including the number of 
273.20  clients, the length of time services will be provided, and the 
273.21  medical condition of clients; 
273.22     (3) the geographic area to be served; 
273.23     (4) quality assurance methods, including appropriate 
273.24  licensure, certification, or standards, and supervision of 
273.25  employees when needed; 
273.26     (5) rates for each service and unit of service exclusive of 
273.27  county administrative costs; 
273.28     (6) evaluation of services previously delivered by the 
273.29  provider; and 
273.30     (7) contract or agreement conditions, including billing 
273.31  requirements, cancellation, and indemnification. 
273.32     The county must evaluate its own agency services under the 
273.33  criteria established for other providers.  The county shall 
273.34  provide a written statement of the reasons for not selecting 
273.35  providers. 
273.36     Sec. 23.  Minnesota Statutes 2000, section 256B.0913, 
274.1   subdivision 10, is amended to read: 
274.2      Subd. 10.  [ALLOCATION FORMULA.] (a) The alternative care 
274.3   appropriation for fiscal years 1992 and beyond shall cover 
274.4   only 180-day alternative care eligible clients.  Prior to July 1 
274.5   of each year, the commissioner shall allocate to county agencies 
274.6   the state funds available for alternative care for persons 
274.7   eligible under subdivision 2. 
274.8      (b) Prior to July 1 of each year, the commissioner shall 
274.9   allocate to county agencies the state funds available for 
274.10  alternative care for persons eligible under subdivision 2.  The 
274.11  allocation for fiscal year 1992 shall be calculated using a base 
274.12  that is adjusted to exclude the medical assistance share of 
274.13  alternative care expenditures.  The adjusted base is calculated 
274.14  by multiplying each county's allocation for fiscal year 1991 by 
274.15  the percentage of county alternative care expenditures for 
274.16  180-day eligible clients.  The percentage is determined based on 
274.17  expenditures for services rendered in fiscal year 1989 or 
274.18  calendar year 1989, whichever is greater.  The adjusted base for 
274.19  each county is the county's current fiscal year base allocation 
274.20  plus any targeted funds approved during the current fiscal 
274.21  year.  Calculations for paragraphs (c) and (d) are to be made as 
274.22  follows:  for each county, the determination of alternative care 
274.23  program expenditures shall be based on payments for services 
274.24  rendered from April 1 through March 31 in the base year, to the 
274.25  extent that claims have been submitted and paid by June 1 of 
274.26  that year.  
274.27     (c) If the county alternative care program expenditures for 
274.28  180-day eligible clients as defined in paragraph (b) are 95 
274.29  percent or more of its the county's adjusted base allocation, 
274.30  the allocation for the next fiscal year is 100 percent of the 
274.31  adjusted base, plus inflation to the extent that inflation is 
274.32  included in the state budget. 
274.33     (d) If the county alternative care program expenditures for 
274.34  180-day eligible clients as defined in paragraph (b) are less 
274.35  than 95 percent of its the county's adjusted base allocation, 
274.36  the allocation for the next fiscal year is the adjusted base 
275.1   allocation less the amount of unspent funds below the 95 percent 
275.2   level. 
275.3      (e) For fiscal year 1992 only, a county may receive an 
275.4   increased allocation if annualized service costs for the month 
275.5   of May 1991 for 180-day eligible clients are greater than the 
275.6   allocation otherwise determined.  A county may apply for this 
275.7   increase by reporting projected expenditures for May to the 
275.8   commissioner by June 1, 1991.  The amount of the allocation may 
275.9   exceed the amount calculated in paragraph (b).  The projected 
275.10  expenditures for May must be based on actual 180-day eligible 
275.11  client caseload and the individual cost of clients' care plans.  
275.12  If a county does not report its expenditures for May, the amount 
275.13  in paragraph (c) or (d) shall be used. 
275.14     (f) Calculations for paragraphs (c) and (d) are to be made 
275.15  as follows:  for each county, the determination of expenditures 
275.16  shall be based on payments for services rendered from April 1 
275.17  through March 31 in the base year, to the extent that claims 
275.18  have been submitted by June 1 of that year.  Calculations for 
275.19  paragraphs (c) and (d) must also include the funds transferred 
275.20  to the consumer support grant program for clients who have 
275.21  transferred to that program from April 1 through March 31 in the 
275.22  base year.  
275.23     (g) For the biennium ending June 30, 2001, the allocation 
275.24  of state funds to county agencies shall be calculated as 
275.25  described in paragraphs (c) and (d).  If the annual legislative 
275.26  appropriation for the alternative care program is inadequate to 
275.27  fund the combined county allocations for fiscal year 2000 or 
275.28  2001 a biennium, the commissioner shall distribute to each 
275.29  county the entire annual appropriation as that county's 
275.30  percentage of the computed base as calculated in paragraph 
275.31  (f) paragraphs (c) and (d). 
275.32     Sec. 24.  Minnesota Statutes 2000, section 256B.0913, 
275.33  subdivision 11, is amended to read: 
275.34     Subd. 11.  [TARGETED FUNDING.] (a) The purpose of targeted 
275.35  funding is to make additional money available to counties with 
275.36  the greatest need.  Targeted funds are not intended to be 
276.1   distributed equitably among all counties, but rather, allocated 
276.2   to those with long-term care strategies that meet state goals. 
276.3      (b) The funds available for targeted funding shall be the 
276.4   total appropriation for each fiscal year minus county 
276.5   allocations determined under subdivision 10 as adjusted for any 
276.6   inflation increases provided in appropriations for the biennium. 
276.7      (c) The commissioner shall allocate targeted funds to 
276.8   counties that demonstrate to the satisfaction of the 
276.9   commissioner that they have developed feasible plans to increase 
276.10  alternative care spending.  In making targeted funding 
276.11  allocations, the commissioner shall use the following priorities:
276.12     (1) counties that received a lower allocation in fiscal 
276.13  year 1991 than in fiscal year 1990.  Counties remain in this 
276.14  priority until they have been restored to their fiscal year 1990 
276.15  level plus inflation; 
276.16     (2) counties that sustain a base allocation reduction for 
276.17  failure to spend 95 percent of the allocation if they 
276.18  demonstrate that the base reduction should be restored; 
276.19     (3) counties that propose projects to divert community 
276.20  residents from nursing home placement or convert nursing home 
276.21  residents to community living; and 
276.22     (4) counties that can otherwise justify program growth by 
276.23  demonstrating the existence of waiting lists, demographically 
276.24  justified needs, or other unmet needs. 
276.25     (d) Counties that would receive targeted funds according to 
276.26  paragraph (c) must demonstrate to the commissioner's 
276.27  satisfaction that the funds would be appropriately spent by 
276.28  showing how the funds would be used to further the state's 
276.29  alternative care goals as described in subdivision 1, and that 
276.30  the county has the administrative and service delivery 
276.31  capability to use them.  
276.32     (e) The commissioner shall request applications by June 1 
276.33  each year, for county agencies to apply for targeted funds by 
276.34  November 1 of each year.  The counties selected for targeted 
276.35  funds shall be notified of the amount of their additional 
276.36  funding by August 1 of each year.  Targeted funds allocated to a 
277.1   county agency in one year shall be treated as part of the 
277.2   county's base allocation for that year in determining 
277.3   allocations for subsequent years.  No reallocations between 
277.4   counties shall be made. 
277.5      (f) The allocation for each year after fiscal year 1992 
277.6   shall be determined using the previous fiscal year's allocation, 
277.7   including any targeted funds, as the base and then applying the 
277.8   criteria under subdivision 10, paragraphs (c), (d), and (f), to 
277.9   the current year's expenditures. 
277.10     Sec. 25.  Minnesota Statutes 2000, section 256B.0913, 
277.11  subdivision 12, is amended to read: 
277.12     Subd. 12.  [CLIENT PREMIUMS.] (a) A premium is required for 
277.13  all 180-day alternative care eligible clients to help pay for 
277.14  the cost of participating in the program.  The amount of the 
277.15  premium for the alternative care client shall be determined as 
277.16  follows: 
277.17     (1) when the alternative care client's income less 
277.18  recurring and predictable medical expenses is greater than the 
277.19  medical assistance income standard recipient's maintenance needs 
277.20  allowance as defined in section 256B.0915, subdivision 1d, 
277.21  paragraph (a), but less than 150 percent of the federal poverty 
277.22  guideline effective on July 1 of the state fiscal year in which 
277.23  the premium is being computed, and total assets are less than 
277.24  $10,000, the fee is zero; 
277.25     (2) when the alternative care client's income less 
277.26  recurring and predictable medical expenses is greater than 150 
277.27  percent of the federal poverty guideline effective on July 1 of 
277.28  the state fiscal year in which the premium is being computed, 
277.29  and total assets are less than $10,000, the fee is 25 percent of 
277.30  the cost of alternative care services or the difference between 
277.31  150 percent of the federal poverty guideline effective on July 1 
277.32  of the state fiscal year in which the premium is being computed 
277.33  and the client's income less recurring and predictable medical 
277.34  expenses, whichever is less; and 
277.35     (3) when the alternative care client's total assets are 
277.36  greater than $10,000, the fee is 25 percent of the cost of 
278.1   alternative care services.  
278.2      For married persons, total assets are defined as the total 
278.3   marital assets less the estimated community spouse asset 
278.4   allowance, under section 256B.059, if applicable.  For married 
278.5   persons, total income is defined as the client's income less the 
278.6   monthly spousal allotment, under section 256B.058. 
278.7      All alternative care services except case management shall 
278.8   be included in the estimated costs for the purpose of 
278.9   determining 25 percent of the costs. 
278.10     The monthly premium shall be calculated based on the cost 
278.11  of the first full month of alternative care services and shall 
278.12  continue unaltered until the next reassessment is completed or 
278.13  at the end of 12 months, whichever comes first.  Premiums are 
278.14  due and payable each month alternative care services are 
278.15  received unless the actual cost of the services is less than the 
278.16  premium. 
278.17     (b) The fee shall be waived by the commissioner when: 
278.18     (1) a person who is residing in a nursing facility is 
278.19  receiving case management only; 
278.20     (2) a person is applying for medical assistance; 
278.21     (3) a married couple is requesting an asset assessment 
278.22  under the spousal impoverishment provisions; 
278.23     (4) a person is a medical assistance recipient, but has 
278.24  been approved for alternative care-funded assisted living 
278.25  services; 
278.26     (5) a person is found eligible for alternative care, but is 
278.27  not yet receiving alternative care services; or 
278.28     (6) (5) a person's fee under paragraph (a) is less than $25.
278.29     (c) The county agency must record in the state's receivable 
278.30  system the client's assessed premium amount or the reason the 
278.31  premium has been waived.  The commissioner will bill and collect 
278.32  the premium from the client and forward the amounts collected to 
278.33  the commissioner in the manner and at the times prescribed by 
278.34  the commissioner.  Money collected must be deposited in the 
278.35  general fund and is appropriated to the commissioner for the 
278.36  alternative care program.  The client must supply the county 
279.1   with the client's social security number at the time of 
279.2   application.  If a client fails or refuses to pay the premium 
279.3   due, The county shall supply the commissioner with the client's 
279.4   social security number and other information the commissioner 
279.5   requires to collect the premium from the client.  The 
279.6   commissioner shall collect unpaid premiums using the Revenue 
279.7   Recapture Act in chapter 270A and other methods available to the 
279.8   commissioner.  The commissioner may require counties to inform 
279.9   clients of the collection procedures that may be used by the 
279.10  state if a premium is not paid.  This paragraph does not apply 
279.11  to alternative care pilot projects authorized in Laws 1993, 
279.12  First Special Session chapter 1, article 5, section 133, if a 
279.13  county operating under the pilot project reports the following 
279.14  dollar amounts to the commissioner quarterly: 
279.15     (1) total premiums billed to clients; 
279.16     (2) total collections of premiums billed; and 
279.17     (3) balance of premiums owed by clients. 
279.18  If a county does not adhere to these reporting requirements, the 
279.19  commissioner may terminate the billing, collecting, and 
279.20  remitting portions of the pilot project and require the county 
279.21  involved to operate under the procedures set forth in this 
279.22  paragraph. 
279.23     (d) The commissioner shall begin to adopt emergency or 
279.24  permanent rules governing client premiums within 30 days after 
279.25  July 1, 1991, including criteria for determining when services 
279.26  to a client must be terminated due to failure to pay a premium.  
279.27     Sec. 26.  Minnesota Statutes 2000, section 256B.0913, 
279.28  subdivision 13, is amended to read: 
279.29     Subd. 13.  [COUNTY BIENNIAL PLAN.] The county biennial plan 
279.30  for the preadmission screening program long-term care 
279.31  consultation services under section 256B.0911, the alternative 
279.32  care program under this section, and waivers for the elderly 
279.33  under section 256B.0915, and waivers for the disabled under 
279.34  section 256B.49, shall be incorporated into the biennial 
279.35  Community Social Services Act plan and shall meet the 
279.36  regulations and timelines of that plan.  This county biennial 
280.1   plan shall include: 
280.2      (1) information on the administration of the preadmission 
280.3   screening program; 
280.4      (2) information on the administration of the home and 
280.5   community-based services waivers for the elderly under section 
280.6   256B.0915, and for the disabled under section 256B.49; and 
280.7      (3) information on the administration of the alternative 
280.8   care program. 
280.9      Sec. 27.  Minnesota Statutes 2000, section 256B.0913, 
280.10  subdivision 14, is amended to read: 
280.11     Subd. 14.  [REIMBURSEMENT PAYMENT AND RATE ADJUSTMENTS.] (a)
280.12  Reimbursement Payment for expenditures for the provided 
280.13  alternative care services as approved by the client's case 
280.14  manager shall be through the invoice processing procedures of 
280.15  the department's Medicaid Management Information System (MMIS).  
280.16  To receive reimbursement payment, the county or vendor must 
280.17  submit invoices within 12 months following the date of service.  
280.18  The county agency and its vendors under contract shall not be 
280.19  reimbursed for services which exceed the county allocation. 
280.20     (b) If a county collects less than 50 percent of the client 
280.21  premiums due under subdivision 12, the commissioner may withhold 
280.22  up to three percent of the county's final alternative care 
280.23  program allocation determined under subdivisions 10 and 11. 
280.24     (c) The county shall negotiate individual rates with 
280.25  vendors and may be reimbursed authorize service payment for 
280.26  actual costs up to the greater of the county's current approved 
280.27  rate or 60 percent of the maximum rate in fiscal year 1994 and 
280.28  65 percent of the maximum rate in fiscal year 1995 for each 
280.29  alternative care service.  Notwithstanding any other rule or 
280.30  statutory provision to the contrary, the commissioner shall not 
280.31  be authorized to increase rates by an annual inflation factor, 
280.32  unless so authorized by the legislature. 
280.33     (d) On July 1, 1993, the commissioner shall increase the 
280.34  maximum rate for home delivered meals to $4.50 per meal.  To 
280.35  improve access to community services and eliminate payment 
280.36  disparities between the alternative care program and the elderly 
281.1   waiver program, the commissioner shall establish statewide 
281.2   maximum service rate limits and eliminate county-specific 
281.3   service rate limits. 
281.4      (1) Effective July 1, 2001, for service rate limits, except 
281.5   those in subdivision 5, paragraphs (d) and (i), the rate limit 
281.6   for each service shall be the greater of the alternative care 
281.7   statewide maximum rate or the elderly waiver statewide maximum 
281.8   rate. 
281.9      (2) Counties may negotiate individual service rates with 
281.10  vendors for actual costs up to the statewide maximum service 
281.11  rate limit. 
281.12     Sec. 28.  Minnesota Statutes 2000, section 256B.0915, 
281.13  subdivision 1d, is amended to read: 
281.14     Subd. 1d.  [POSTELIGIBILITY TREATMENT OF INCOME AND 
281.15  RESOURCES FOR ELDERLY WAIVER.] (a) Notwithstanding the 
281.16  provisions of section 256B.056, the commissioner shall make the 
281.17  following amendment to the medical assistance elderly waiver 
281.18  program effective July 1, 1999, or upon federal approval, 
281.19  whichever is later. 
281.20     A recipient's maintenance needs will be an amount equal to 
281.21  the Minnesota supplemental aid equivalent rate as defined in 
281.22  section 256I.03, subdivision 5, plus the medical assistance 
281.23  personal needs allowance as defined in section 256B.35, 
281.24  subdivision 1, paragraph (a), when applying posteligibility 
281.25  treatment of income rules to the gross income of elderly waiver 
281.26  recipients, except for individuals whose income is in excess of 
281.27  the special income standard according to Code of Federal 
281.28  Regulations, title 42, section 435.236.  Recipient maintenance 
281.29  needs shall be adjusted under this provision each July 1. 
281.30     (b) The commissioner of human services shall secure 
281.31  approval of additional elderly waiver slots sufficient to serve 
281.32  persons who will qualify under the revised income standard 
281.33  described in paragraph (a) before implementing section 
281.34  256B.0913, subdivision 16. 
281.35     (c) In implementing this subdivision, the commissioner 
281.36  shall consider allowing persons who would otherwise be eligible 
282.1   for the alternative care program but would qualify for the 
282.2   elderly waiver with a spenddown to remain on the alternative 
282.3   care program. 
282.4      Sec. 29.  Minnesota Statutes 2000, section 256B.0915, 
282.5   subdivision 3, is amended to read: 
282.6      Subd. 3.  [LIMITS OF CASES, RATES, REIMBURSEMENT PAYMENTS, 
282.7   AND FORECASTING.] (a) The number of medical assistance waiver 
282.8   recipients that a county may serve must be allocated according 
282.9   to the number of medical assistance waiver cases open on July 1 
282.10  of each fiscal year.  Additional recipients may be served with 
282.11  the approval of the commissioner. 
282.12     (b) The monthly limit for the cost of waivered services to 
282.13  an individual elderly waiver client shall be the statewide 
282.14  average payment weighted average monthly nursing facility rate 
282.15  of the case mix resident class to which the elderly waiver 
282.16  client would be assigned under the medical assistance case mix 
282.17  reimbursement system.  Minnesota Rules, parts 9549.0050 to 
282.18  9549.0059, less the recipient's maintenance needs allowance as 
282.19  described in subdivision 1d, paragraph (a), until the first day 
282.20  of the state fiscal year in which the resident assessment system 
282.21  as described in section 256B.437 for nursing home rate 
282.22  determination is implemented.  Effective on the first day of the 
282.23  state fiscal year in which the resident assessment system as 
282.24  described in section 256B.437 for nursing home rate 
282.25  determination is implemented and the first day of each 
282.26  subsequent state fiscal year, the monthly limit for the cost of 
282.27  waivered services to an individual elderly waiver client shall 
282.28  be the rate of the case mix resident class to which the waiver 
282.29  client would be assigned under Minnesota Rules, parts 9549.0050 
282.30  to 9549.0059, in effect on the last day of the previous state 
282.31  fiscal year, adjusted by the greater of any legislatively 
282.32  adopted home and community-based services cost-of-living 
282.33  percentage increase or any legislatively adopted statewide 
282.34  percent rate increase for nursing facilities. 
282.35     (c) If extended medical supplies and equipment or 
282.36  adaptations environmental modifications are or will be purchased 
283.1   for an elderly waiver services recipient client, the costs may 
283.2   be prorated on a monthly basis throughout the year in which they 
283.3   are purchased for up to 12 consecutive months beginning with the 
283.4   month of purchase.  If the monthly cost of a recipient's other 
283.5   waivered services exceeds the monthly limit established in this 
283.6   paragraph (b), the annual cost of the all waivered services 
283.7   shall be determined.  In this event, the annual cost of all 
283.8   waivered services shall not exceed 12 times the monthly 
283.9   limit calculated in this paragraph.  The statewide average 
283.10  payment rate is calculated by determining the statewide average 
283.11  monthly nursing home rate, effective July 1 of the fiscal year 
283.12  in which the cost is incurred, less the statewide average 
283.13  monthly income of nursing home residents who are age 65 or 
283.14  older, and who are medical assistance recipients in the month of 
283.15  March of the previous state fiscal year.  The annual cost 
283.16  divided by 12 of elderly or disabled waivered services of 
283.17  waivered services as described in paragraph (b).  
283.18     (d) For a person who is a nursing facility resident at the 
283.19  time of requesting a determination of eligibility for elderly or 
283.20  disabled waivered services shall be the greater of the monthly 
283.21  payment for:  (i), a monthly conversion limit for the cost of 
283.22  elderly waivered services may be requested.  The monthly 
283.23  conversion limit for the cost of elderly waiver services shall 
283.24  be the resident class assigned under Minnesota Rules, parts 
283.25  9549.0050 to 9549.0059, for that resident in the nursing 
283.26  facility where the resident currently resides; or (ii) the 
283.27  statewide average payment of the case mix resident class to 
283.28  which the resident would be assigned under the medical 
283.29  assistance case mix reimbursement system, provided that until 
283.30  July 1 of the state fiscal year in which the resident assessment 
283.31  system as described in section 256B.437 for nursing home rate 
283.32  determination is implemented.  Effective on July 1 of the state 
283.33  fiscal year in which the resident assessment system as described 
283.34  in section 256B.437 for nursing home rate determination is 
283.35  implemented, the monthly conversion limit for the cost of 
283.36  elderly waiver services shall be the per diem nursing facility 
284.1   rate as determined by the resident assessment system as 
284.2   described in section 256B.437 for that resident in the nursing 
284.3   facility where the resident currently resides multiplied by 365 
284.4   and divided by 12, less the recipient's maintenance needs 
284.5   allowance as described in subdivision 1d.  The limit under this 
284.6   clause only applies to persons discharged from a nursing 
284.7   facility after a minimum 30-day stay and found eligible for 
284.8   waivered services on or after July 1, 1997.  The following costs 
284.9   must be included in determining the total monthly costs for the 
284.10  waiver client: 
284.11     (1) cost of all waivered services, including extended 
284.12  medical supplies and equipment and environmental modifications; 
284.13  and 
284.14     (2) cost of skilled nursing, home health aide, and personal 
284.15  care services reimbursable by medical assistance.  
284.16     (c) (e) Medical assistance funding for skilled nursing 
284.17  services, private duty nursing, home health aide, and personal 
284.18  care services for waiver recipients must be approved by the case 
284.19  manager and included in the individual care plan. 
284.20     (d) For both the elderly waiver and the nursing facility 
284.21  disabled waiver, a county may purchase extended supplies and 
284.22  equipment without prior approval from the commissioner when 
284.23  there is no other funding source and the supplies and equipment 
284.24  are specified in the individual's care plan as medically 
284.25  necessary to enable the individual to remain in the community 
284.26  according to the criteria in Minnesota Rules, part 9505.0210, 
284.27  items A and B.  (f) A county is not required to contract with a 
284.28  provider of supplies and equipment if the monthly cost of the 
284.29  supplies and equipment is less than $250.  
284.30     (e) (g) The adult foster care daily rate for the elderly 
284.31  and disabled waivers shall be considered a difficulty of care 
284.32  payment and shall not include room and board.  The adult foster 
284.33  care service rate shall be negotiated between the county agency 
284.34  and the foster care provider.  The rate established under this 
284.35  section shall not exceed the state average monthly nursing home 
284.36  payment for the case mix classification to which the individual 
285.1   receiving foster care is assigned; the rate must allow for other 
285.2   waiver and medical assistance home care services to be 
285.3   authorized by the case manager.  The elderly waiver payment for 
285.4   the foster care service in combination with the payment for all 
285.5   other elderly waiver services, including case management, must 
285.6   not exceed the limit specified in paragraph (b). 
285.7      (f) The assisted living and residential care service rates 
285.8   for elderly and community alternatives for disabled individuals 
285.9   (CADI) waivers shall be made to the vendor as a monthly rate 
285.10  negotiated with the county agency based on an individualized 
285.11  service plan for each resident.  The rate shall not exceed the 
285.12  nonfederal share of the greater of either the statewide or any 
285.13  of the geographic groups' weighted average monthly medical 
285.14  assistance nursing facility payment rate of the case mix 
285.15  resident class to which the elderly or disabled client would be 
285.16  assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, 
285.17  unless the services are provided by a home care provider 
285.18  licensed by the department of health and are provided in a 
285.19  building that is registered as a housing with services 
285.20  establishment under chapter 144D and that provides 24-hour 
285.21  supervision.  For alternative care assisted living projects 
285.22  established under Laws 1988, chapter 689, article 2, section 
285.23  256, monthly rates may not exceed 65 percent of the greater of 
285.24  either the statewide or any of the geographic groups' weighted 
285.25  average monthly medical assistance nursing facility payment rate 
285.26  for the case mix resident class to which the elderly or disabled 
285.27  client would be assigned under Minnesota Rules, parts 9549.0050 
285.28  to 9549.0059.  The rate may not cover direct rent or food costs. 
285.29     (h) Payment for assisted living service shall be a monthly 
285.30  rate negotiated and authorized by the county agency based on an 
285.31  individualized service plan for each resident and may not cover 
285.32  direct rent or food costs. 
285.33     (1) The individualized monthly negotiated payment for 
285.34  assisted living services as described in section 256B.0913, 
285.35  subdivision 5, paragraph (g) or (h), and residential care 
285.36  services as described in section 256B.0913, subdivision 5, 
286.1   paragraph (f), shall not exceed the nonfederal share, in effect 
286.2   on July 1 of the state fiscal year for which the rate limit is 
286.3   being calculated, of the greater of either the statewide or any 
286.4   of the geographic groups' weighted average monthly nursing 
286.5   facility rate of the case mix resident class to which the 
286.6   elderly waiver eligible client would be assigned under Minnesota 
286.7   Rules, parts 9549.0050 to 9549.0059, less the maintenance needs 
286.8   allowance as described in subdivision 1d, paragraph (a), until 
286.9   the July 1 of the state fiscal year in which the resident 
286.10  assessment system as described in section 256B.437 for nursing 
286.11  home rate determination is implemented.  Effective on July 1 of 
286.12  the state fiscal year in which the resident assessment system as 
286.13  described in section 256B.437 for nursing home rate 
286.14  determination is implemented and July 1 of each subsequent state 
286.15  fiscal year, the individualized monthly negotiated payment for 
286.16  the services described in this clause shall not exceed the limit 
286.17  described in this clause which was in effect on June 30 of the 
286.18  previous state fiscal year and which has been adjusted by the 
286.19  greater of any legislatively adopted home and community-based 
286.20  services cost-of-living percentage increase or any legislatively 
286.21  adopted statewide percent rate increase for nursing facilities. 
286.22     (2) The individualized monthly negotiated payment for 
286.23  assisted living services described in section 144A.4605 and 
286.24  delivered by a provider licensed by the department of health as 
286.25  a class A home care provider or an assisted living home care 
286.26  provider and provided in a building that is registered as a 
286.27  housing with services establishment under chapter 144D and that 
286.28  provides 24-hour supervision in combination with the payment for 
286.29  other elderly waiver services, including case management, must 
286.30  not exceed the limit specified in paragraph (b). 
286.31     (g) (i) The county shall negotiate individual service rates 
286.32  with vendors and may be reimbursed authorize payment for actual 
286.33  costs up to the greater of the county's current approved rate or 
286.34  60 percent of the maximum rate in fiscal year 1994 and 65 
286.35  percent of the maximum rate in fiscal year 1995 for each service 
286.36  within each program.  Persons or agencies must be employed by or 
287.1   under a contract with the county agency or the public health 
287.2   nursing agency of the local board of health in order to receive 
287.3   funding under the elderly waiver program, except as a provider 
287.4   of supplies and equipment when the monthly cost of the supplies 
287.5   and equipment is less than $250.  
287.6      (h) On July 1, 1993, the commissioner shall increase the 
287.7   maximum rate for home-delivered meals to $4.50 per meal. 
287.8      (i) (j) Reimbursement for the medical assistance recipients 
287.9   under the approved waiver shall be made from the medical 
287.10  assistance account through the invoice processing procedures of 
287.11  the department's Medicaid Management Information System (MMIS), 
287.12  only with the approval of the client's case manager.  The budget 
287.13  for the state share of the Medicaid expenditures shall be 
287.14  forecasted with the medical assistance budget, and shall be 
287.15  consistent with the approved waiver.  
287.16     (k) To improve access to community services and eliminate 
287.17  payment disparities between the alternative care program and the 
287.18  elderly waiver, the commissioner shall establish statewide 
287.19  maximum service rate limits and eliminate county-specific 
287.20  service rate limits. 
287.21     (1) Effective July 1, 2001, for service rate limits, except 
287.22  those described or defined in paragraphs (g) and (h), the rate 
287.23  limit for each service shall be the greater of the alternative 
287.24  care statewide maximum rate or the elderly waiver statewide 
287.25  maximum rate. 
287.26     (2) Counties may negotiate individual service rates with 
287.27  vendors for actual costs up to the statewide maximum service 
287.28  rate limit. 
287.29     (j) (l) Beginning July 1, 1991, the state shall reimburse 
287.30  counties according to the payment schedule in section 256.025 
287.31  for the county share of costs incurred under this subdivision on 
287.32  or after January 1, 1991, for individuals who are receiving 
287.33  medical assistance. 
287.34     (k) For the community alternatives for disabled individuals 
287.35  waiver, and nursing facility disabled waivers, county may use 
287.36  waiver funds for the cost of minor adaptations to a client's 
288.1   residence or vehicle without prior approval from the 
288.2   commissioner if there is no other source of funding and the 
288.3   adaptation: 
288.4      (1) is necessary to avoid institutionalization; 
288.5      (2) has no utility apart from the needs of the client; and 
288.6      (3) meets the criteria in Minnesota Rules, part 9505.0210, 
288.7   items A and B.  
288.8   For purposes of this subdivision, "residence" means the client's 
288.9   own home, the client's family residence, or a family foster 
288.10  home.  For purposes of this subdivision, "vehicle" means the 
288.11  client's vehicle, the client's family vehicle, or the client's 
288.12  family foster home vehicle. 
288.13     (l) The commissioner shall establish a maximum rate unit 
288.14  for baths provided by an adult day care provider that are not 
288.15  included in the provider's contractual daily or hourly rate. 
288.16  This maximum rate must equal the home health aide extended rate 
288.17  and shall be paid for baths provided to clients served under the 
288.18  elderly and disabled waivers. 
288.19     Sec. 30.  Minnesota Statutes 2000, section 256B.0915, 
288.20  subdivision 5, is amended to read: 
288.21     Subd. 5.  [REASSESSMENTS FOR WAIVER CLIENTS.] A 
288.22  reassessment of a client served under the elderly or disabled 
288.23  waiver must be conducted at least every 12 months and at other 
288.24  times when the case manager determines that there has been 
288.25  significant change in the client's functioning.  This may 
288.26  include instances where the client is discharged from the 
288.27  hospital.  
288.28     Sec. 31.  Minnesota Statutes 2000, section 256B.0917, 
288.29  subdivision 7, is amended to read: 
288.30     Subd. 7.  [CONTRACT.] (a) The commissioner of human 
288.31  services shall execute a contract with Living at Home/Block 
288.32  Nurse Program, Inc. (LAH/BN, Inc.).  The contract shall require 
288.33  LAH/BN, Inc. to: 
288.34     (1) develop criteria for and award grants to establish 
288.35  community-based organizations that will implement 
288.36  living-at-home/block nurse programs throughout the state; 
289.1      (2) award grants to enable current living-at-home/block 
289.2   nurse programs to continue to implement the combined 
289.3   living-at-home/block nurse program model; 
289.4      (3) serve as a state technical assistance center to assist 
289.5   and coordinate the living-at-home/block nurse programs 
289.6   established; and 
289.7      (4) manage contracts with individual living-at-home/block 
289.8   nurse programs. 
289.9      (b) The contract shall be effective July 1, 1997, and 
289.10  section 16B.17 shall not apply. 
289.11     Sec. 32.  Minnesota Statutes 2000, section 256B.0917, is 
289.12  amended by adding a subdivision to read: 
289.13     Subd. 13.  [COMMUNITY SERVICE GRANTS.] The commissioner 
289.14  shall award contracts for grants to public and private nonprofit 
289.15  agencies to establish services that strengthen a community's 
289.16  ability to provide a system of home and community-based services 
289.17  for elderly persons.  The commissioner shall use a request for 
289.18  proposal process.  The commissioner shall give preference when 
289.19  awarding grants under this section to areas where nursing 
289.20  facility closures have occurred or are occurring.  The 
289.21  commissioner shall consider grants for: 
289.22     (1) caregiver support and respite care projects under 
289.23  subdivision 6; 
289.24     (2) on-site coordination under section 256.9731; 
289.25     (3) the living-at-home/block nurse grant under subdivisions 
289.26  7 to 10; and 
289.27     (4) services identified as needed for community transition. 
289.28     Sec. 33.  [RESPITE CARE.] 
289.29     The Minnesota board on aging shall report to the 
289.30  legislature by February 1, 2002, on the provision of in-home and 
289.31  out-of-home respite care services on a sliding scale basis under 
289.32  the federal Older Americans Act. 
289.33     Sec. 34.  [REPEALER.] 
289.34     (a) Minnesota Statutes 2000, sections 256B.0911, 
289.35  subdivisions 2, 2a, 4, and 9; 256B.0913, subdivisions 3, 15a, 
289.36  15b, 15c, and 16; and 256B.0915, subdivisions 3a, 3b, and 3c, 
290.1   are repealed. 
290.2      (b) Minnesota Rules, parts 9505.2390; 9505.2395; 9505.2396; 
290.3   9505.2400; 9505.2405; 9505.2410; 9505.2413; 9505.2415; 
290.4   9505.2420; 9505.2425; 9505.2426; 9505.2430; 9505.2435; 
290.5   9505.2440; 9505.2445; 9505.2450; 9505.2455; 9505.2458; 
290.6   9505.2460; 9505.2465; 9505.2470; 9505.2473; 9505.2475; 
290.7   9505.2480; 9505.2485; 9505.2486; 9505.2490; 9505.2495; 
290.8   9505.2496; and 9505.2500, are repealed. 
290.9                              ARTICLE 5 
290.10           LONG-TERM CARE SYSTEM REFORM AND REIMBURSEMENT 
290.11     Section 1.  Minnesota Statutes 2000, section 144.0721, 
290.12  subdivision 1, is amended to read: 
290.13     Subdivision 1.  [APPROPRIATENESS AND QUALITY.] Until the 
290.14  date of implementation of the revised case mix system based on 
290.15  the minimum data set, the commissioner of health shall assess 
290.16  the appropriateness and quality of care and services furnished 
290.17  to private paying residents in nursing homes and boarding care 
290.18  homes that are certified for participation in the medical 
290.19  assistance program under United States Code, title 42, sections 
290.20  1396-1396p.  These assessments shall be conducted until the date 
290.21  of implementation of the revised case mix system based on the 
290.22  minimum data set, in accordance with section 144.072, with the 
290.23  exception of provisions requiring recommendations for changes in 
290.24  the level of care provided to the private paying residents. 
290.25     Sec. 2.  [144.0724] [RESIDENT REIMBURSEMENT 
290.26  CLASSIFICATION.] 
290.27     Subdivision 1.  [RESIDENT REIMBURSEMENT 
290.28  CLASSIFICATIONS.] The commissioner of health shall establish 
290.29  resident reimbursement classifications based upon the 
290.30  assessments of residents of nursing homes and boarding care 
290.31  homes conducted under this section and according to section 
290.32  256B.438.  The reimbursement classifications established under 
290.33  this section shall be implemented after June 30, 2002, but no 
290.34  later than January 1, 2003. 
290.35     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
290.36  following terms have the meanings given. 
291.1      (a) [ASSESSMENT REFERENCE DATE.] "Assessment reference 
291.2   date" means the last day of the minimum data set observation 
291.3   period.  The date sets the designated endpoint of the common 
291.4   observation period, and all minimum data set items refer back in 
291.5   time from that point. 
291.6      (b) [CASE MIX INDEX.] "Case mix index" means the weighting 
291.7   factors assigned to the RUG-III classifications. 
291.8      (c) [INDEX MAXIMIZATION.] "Index maximization" means 
291.9   classifying a resident who could be assigned to more than one 
291.10  category, to the category with the highest case mix index. 
291.11     (d) [MINIMUM DATA SET.] "Minimum data set" means the 
291.12  assessment instrument specified by the Health Care Financing 
291.13  Administration and designated by the Minnesota department of 
291.14  health. 
291.15     (e) [REPRESENTATIVE.] "Representative" means a person who 
291.16  is the resident's guardian or conservator, the person authorized 
291.17  to pay the nursing home expenses of the resident, a 
291.18  representative of the nursing home ombudsman's office whose 
291.19  assistance has been requested, or any other individual 
291.20  designated by the resident. 
291.21     (f) [RESOURCE UTILIZATION GROUPS OR RUG.] "Resource 
291.22  utilization groups" or "RUG" means the system for grouping a 
291.23  nursing facility's residents according to their clinical and 
291.24  functional status identified in data supplied by the facility's 
291.25  minimum data set. 
291.26     Subd. 3.  [RESIDENT REIMBURSEMENT CLASSIFICATIONS.] (a) 
291.27  Resident reimbursement classifications shall be based on the 
291.28  minimum data set, version 2.0 assessment instrument, or its 
291.29  successor version mandated by the Health Care Financing 
291.30  Administration that nursing facilities are required to complete 
291.31  for all residents.  The commissioner of health shall establish 
291.32  resident classes according to the 34 group, resource utilization 
291.33  groups, version III or RUG-III model.  Resident classes must be 
291.34  established based on the individual items on the minimum data 
291.35  set and must be completed according to the facility manual for 
291.36  case mix classification issued by the Minnesota department of 
292.1   health.  The facility manual for case mix classification shall 
292.2   be drafted by the Minnesota department of health and presented 
292.3   to the chairs of health and human services legislative 
292.4   committees by December 31, 2001. 
292.5      (b) Each resident must be classified based on the 
292.6   information from the minimum data set according to general 
292.7   domains in clauses (1) to (7): 
292.8      (1) extensive services where a resident requires 
292.9   intravenous feeding or medications, suctioning, tracheostomy 
292.10  care, or is on a ventilator or respirator; 
292.11     (2) rehabilitation where a resident requires physical, 
292.12  occupational, or speech therapy; 
292.13     (3) special care where a resident has cerebral palsy; 
292.14  quadriplegia; multiple sclerosis; pressure ulcers; fever with 
292.15  vomiting, weight loss, or dehydration; tube feeding and aphasia; 
292.16  or is receiving radiation therapy; 
292.17     (4) clinically complex status where a resident has burns, 
292.18  coma, septicemia, pneumonia, internal bleeding, chemotherapy, 
292.19  wounds, kidney failure, urinary tract infections, oxygen, or 
292.20  transfusions; 
292.21     (5) impaired cognition where a resident has poor cognitive 
292.22  performance; 
292.23     (6) behavior problems where a resident exhibits wandering, 
292.24  has hallucinations, or is physically or verbally abusive toward 
292.25  others, unless the resident's other condition would place the 
292.26  resident in other categories; and 
292.27     (7) reduced physical functioning where a resident has no 
292.28  special clinical conditions. 
292.29     (c) The commissioner of health shall establish resident 
292.30  classification according to a 34 group model based on the 
292.31  information on the minimum data set and within the general 
292.32  domains listed in paragraph (b), clauses (1) to (7).  Detailed 
292.33  descriptions of each resource utilization group shall be defined 
292.34  in the facility manual for case mix classification issued by the 
292.35  Minnesota department of health.  The 34 groups are described as 
292.36  follows: 
293.1      (1) SE3:  requires four or five extensive services; 
293.2      (2) SE2:  requires two or three extensive services; 
293.3      (3) SE1:  requires one extensive service; 
293.4      (4) RAD:  requires rehabilitation services and is dependent 
293.5   in activity of daily living (ADL) at a count of 17 or 18; 
293.6      (5) RAC:  requires rehabilitation services and ADL count is 
293.7   14 to 16; 
293.8      (6) RAB:  requires rehabilitation services and ADL count is 
293.9   ten to 13; 
293.10     (7) RAA:  requires rehabilitation services and ADL count is 
293.11  four to nine; 
293.12     (8) SSC:  requires special care and ADL count is 17 or 18; 
293.13     (9) SSB:  requires special care and ADL count is 15 or 16; 
293.14     (10) SSA:  requires special care and ADL count is seven to 
293.15  14; 
293.16     (11) CC2:  clinically complex with depression and ADL count 
293.17  is 17 or 18; 
293.18     (12) CC1:  clinically complex with no depression and ADL 
293.19  count is 17 or 18; 
293.20     (13) CB2:  clinically complex with depression and ADL count 
293.21  is 12 to 16; 
293.22     (14) CB1:  clinically complex with no depression and ADL 
293.23  count is 12 to 16; 
293.24     (15) CA2:  clinically complex with depression and ADL count 
293.25  is four to 11; 
293.26     (16) CA1:  clinically complex with no depression and ADL 
293.27  count is four to 11; 
293.28     (17) IB2:  impaired cognition with nursing rehabilitation 
293.29  and ADL count is six to ten; 
293.30     (18) IB1:  impaired cognition with no nursing 
293.31  rehabilitation and ADL count is six to ten; 
293.32     (19) IA2:  impaired cognition with nursing rehabilitation 
293.33  and ADL count is four or five; 
293.34     (20) IA1:  impaired cognition with no nursing 
293.35  rehabilitation and ADL count is four or five; 
293.36     (21) BB2:  behavior problems with nursing rehabilitation 
294.1   and ADL count is six to ten; 
294.2      (22) BB1:  behavior problems with no nursing rehabilitation 
294.3   and ADL count is six to ten; 
294.4      (23) BA2:  behavior problems with nursing rehabilitation 
294.5   and ADL count is four to five; 
294.6      (24) BA1:  behavior problems with no nursing rehabilitation 
294.7   and ADL count is four to five; 
294.8      (25) PE2:  reduced physical functioning with nursing 
294.9   rehabilitation and ADL count is 16 to 18; 
294.10     (26) PE1:  reduced physical functioning with no nursing 
294.11  rehabilitation and ADL count is 16 to 18; 
294.12     (27) PD2:  reduced physical functioning with nursing 
294.13  rehabilitation and ADL count is 11 to 15; 
294.14     (28) PD1:  reduced physical functioning with no nursing 
294.15  rehabilitation and ADL count is 11 to 15; 
294.16     (29) PC2:  reduced physical functioning with nursing 
294.17  rehabilitation and ADL count is nine or ten; 
294.18     (30) PC1:  reduced physical functioning with no nursing 
294.19  rehabilitation and ADL count is nine or ten; 
294.20     (31) PB2:  reduced physical functioning with nursing 
294.21  rehabilitation and ADL count is six to eight; 
294.22     (32) PB1:  reduced physical functioning with no nursing 
294.23  rehabilitation and ADL count is six to eight; 
294.24     (33) PA2:  reduced physical functioning with nursing 
294.25  rehabilitation and ADL count is four or five; and 
294.26     (34) PA1:  reduced physical functioning with no nursing 
294.27  rehabilitation and ADL count is four or five. 
294.28     Subd. 4.  [RESIDENT ASSESSMENT SCHEDULE.] (a) A facility 
294.29  must conduct and electronically submit to the commissioner of 
294.30  health case mix assessments that conform with the assessment 
294.31  schedule defined by the Code of Federal Regulations, title 42, 
294.32  section 483.20, and published by the United States Department of 
294.33  Health and Human Services, Health Care Financing Administration, 
294.34  in the Long Term Care Assessment Instrument User's Manual, 
294.35  version 2.0, October 1995, and subsequent clarifications made in 
294.36  the Long-Term Care Assessment Instrument Questions and Answers, 
295.1   version 2.0, August 1996.  The commissioner of health may 
295.2   substitute successor manuals or question and answer documents 
295.3   published by the United States Department of Health and Human 
295.4   Services, Health Care Financing Administration, to replace or 
295.5   supplement the current version of the manual or document. 
295.6      (b) The assessments used to determine a case mix 
295.7   classification for reimbursement include the following: 
295.8      (1) a new admission assessment must be completed by day 14 
295.9   following admission; 
295.10     (2) an annual assessment must be completed within 366 days 
295.11  of the last comprehensive assessment; 
295.12     (3) a significant change assessment must be completed 
295.13  within 14 days of the identification of a significant change; 
295.14  and 
295.15     (4) the second quarterly assessment following either a new 
295.16  admission assessment, an annual assessment, or a significant 
295.17  change assessment.  Each quarterly assessment must be completed 
295.18  within 92 days of the previous assessment. 
295.19     Subd. 5.  [SHORT STAYS.] (a) A facility must submit to the 
295.20  commissioner of health an initial admission assessment for all 
295.21  residents who stay in the facility less than 14 days. 
295.22     (b) Notwithstanding the admission assessment requirements 
295.23  of paragraph (a), a facility may elect to accept a default rate 
295.24  with a case mix index of 1.0 for all facility residents who stay 
295.25  less than 14 days in lieu of submitting an initial assessment.  
295.26  Facilities may make this election to be effective on the day of 
295.27  implementation of the revised case mix system. 
295.28     (c) After implementation of the revised case mix system, 
295.29  nursing facilities must elect one of the options described in 
295.30  paragraphs (a) and (b) on the annual report to the commissioner 
295.31  of human services filed for each report year ending September 
295.32  30.  The election shall be effective on the following July 1. 
295.33     (d) For residents who are admitted or readmitted and leave 
295.34  the facility on a frequent basis and for whom readmission is 
295.35  expected, the resident may be discharged on an extended leave 
295.36  status.  This status does not require reassessment each time the 
296.1   resident returns to the facility unless a significant change in 
296.2   the resident's status has occurred since the last assessment.  
296.3   The case mix classification for these residents is determined by 
296.4   the facility election made in paragraphs (a) and (b). 
296.5      Subd. 6.  [PENALTIES FOR LATE OR NONSUBMISSION.] A facility 
296.6   that fails to complete or submit an assessment for a RUG-III 
296.7   classification within seven days of the time requirements in 
296.8   subdivisions 4 and 5 is subject to a reduced rate for that 
296.9   resident.  The reduced rate shall be the lowest rate for that 
296.10  facility.  The reduced rate is effective on the day of admission 
296.11  for new admission assessments or on the day that the assessment 
296.12  was due for all other assessments and continues in effect until 
296.13  the first day of the month following the date of submission of 
296.14  the resident's assessment. 
296.15     Subd. 7.  [NOTICE OF RESIDENT REIMBURSEMENT 
296.16  CLASSIFICATION.] (a) A facility must elect between the options 
296.17  in clauses (1) and (2) to provide notice to a resident of the 
296.18  resident's case mix classification. 
296.19     (1) The commissioner of health shall provide to a nursing 
296.20  facility a notice for each resident of the reimbursement 
296.21  classification established under subdivision 1.  The notice must 
296.22  inform the resident of the classification that was assigned, the 
296.23  opportunity to review the documentation supporting the 
296.24  classification, the opportunity to obtain clarification from the 
296.25  commissioner, and the opportunity to request a reconsideration 
296.26  of the classification.  The commissioner must send notice of 
296.27  resident classification by first class mail.  A nursing facility 
296.28  is responsible for the distribution of the notice to each 
296.29  resident, to the person responsible for the payment of the 
296.30  resident's nursing home expenses, or to another person 
296.31  designated by the resident.  This notice must be distributed 
296.32  within three working days after the facility's receipt of the 
296.33  notice from the commissioner of health. 
296.34     (2) A facility may choose to provide a classification 
296.35  notice, as prescribed by the commissioner of health, to a 
296.36  resident upon receipt of the confirmation of the case mix 
297.1   classification calculated by a facility or a corrected case mix 
297.2   classification as indicated on the final validation report from 
297.3   the commissioner.  A nursing facility is responsible for the 
297.4   distribution of the notice to each resident, to the person 
297.5   responsible for the payment of the resident's nursing home 
297.6   expenses, or to another person designated by the resident.  This 
297.7   notice must be distributed within three working days after the 
297.8   facility's receipt of the validation report from the 
297.9   commissioner.  If a facility elects this option, the 
297.10  commissioner of health shall provide the facility with a list of 
297.11  residents and their case mix classifications as determined by 
297.12  the commissioner.  A nursing facility may make this election to 
297.13  be effective on the day of implementation of the revised case 
297.14  mix system. 
297.15     (3) After implementation of the revised case mix system, a 
297.16  nursing facility shall elect a notice of resident reimbursement 
297.17  classification procedure as described in clause (1) or (2) on 
297.18  the annual report to the commissioner of human services filed 
297.19  for each report year ending September 30.  The election will be 
297.20  effective the following July 1. 
297.21     (b) If a facility submits a correction to an assessment 
297.22  conducted under subdivision 3 that results in a change in case 
297.23  mix classification, the facility shall give written notice to 
297.24  the resident or the resident's representative about the item 
297.25  that was corrected and the reason for the correction.  The 
297.26  notice of corrected assessment may be provided at the same time 
297.27  that the resident or resident's representative is provided the 
297.28  resident's corrected notice of classification. 
297.29     Subd. 8.  [REQUEST FOR RECONSIDERATION OF RESIDENT 
297.30  CLASSIFICATIONS.] (a) The resident, or resident's 
297.31  representative, or the nursing facility or boarding care home 
297.32  may request that the commissioner of health reconsider the 
297.33  assigned reimbursement classification.  The request for 
297.34  reconsideration must be submitted in writing to the commissioner 
297.35  within 30 days of the day the resident or the resident's 
297.36  representative receives the resident classification notice.  The 
298.1   request for reconsideration must include the name of the 
298.2   resident, the name and address of the facility in which the 
298.3   resident resides, the reasons for the reconsideration, the 
298.4   requested classification changes, and documentation supporting 
298.5   the requested classification.  The documentation accompanying 
298.6   the reconsideration request is limited to documentation which 
298.7   establishes that the needs of the resident at the time of the 
298.8   assessment justify a classification which is different than the 
298.9   classification established by the commissioner of health. 
298.10     (b) Upon request, the nursing facility must give the 
298.11  resident or the resident's representative a copy of the 
298.12  assessment form and the other documentation that was given to 
298.13  the commissioner of health to support the assessment findings.  
298.14  The nursing facility shall also provide access to and a copy of 
298.15  other information from the resident's record that has been 
298.16  requested by or on behalf of the resident to support a 
298.17  resident's reconsideration request.  A copy of any requested 
298.18  material must be provided within three working days of receipt 
298.19  of a written request for the information.  If a facility fails 
298.20  to provide the material within this time, it is subject to the 
298.21  issuance of a correction order and penalty assessment under 
298.22  sections 144.653 and 144A.10.  Notwithstanding those sections, 
298.23  any correction order issued under this subdivision must require 
298.24  that the nursing facility immediately comply with the request 
298.25  for information and that as of the date of the issuance of the 
298.26  correction order, the facility shall forfeit to the state a $100 
298.27  fine for the first day of noncompliance, and an increase in the 
298.28  $100 fine by $50 increments for each day the noncompliance 
298.29  continues. 
298.30     (c) In addition to the information required under 
298.31  paragraphs (a) and (b), a reconsideration request from a nursing 
298.32  facility must contain the following information:  (i) the date 
298.33  the reimbursement classification notices were received by the 
298.34  facility; (ii) the date the classification notices were 
298.35  distributed to the resident or the resident's representative; 
298.36  and (iii) a copy of a notice sent to the resident or to the 
299.1   resident's representative.  This notice must inform the resident 
299.2   or the resident's representative that a reconsideration of the 
299.3   resident's classification is being requested, the reason for the 
299.4   request, that the resident's rate will change if the request is 
299.5   approved by the commissioner, the extent of the change, that 
299.6   copies of the facility's request and supporting documentation 
299.7   are available for review, and that the resident also has the 
299.8   right to request a reconsideration.  If the facility fails to 
299.9   provide the required information with the reconsideration 
299.10  request, the request must be denied, and the facility may not 
299.11  make further reconsideration requests on that specific 
299.12  reimbursement classification. 
299.13     (d) Reconsideration by the commissioner must be made by 
299.14  individuals not involved in reviewing the assessment, audit, or 
299.15  reconsideration that established the disputed classification.  
299.16  The reconsideration must be based upon the initial assessment 
299.17  and upon the information provided to the commissioner under 
299.18  paragraphs (a) and (b).  If necessary for evaluating the 
299.19  reconsideration request, the commissioner may conduct on-site 
299.20  reviews.  Within 15 working days of receiving the request for 
299.21  reconsideration, the commissioner shall affirm or modify the 
299.22  original resident classification.  The original classification 
299.23  must be modified if the commissioner determines that the 
299.24  assessment resulting in the classification did not accurately 
299.25  reflect the needs or assessment characteristics of the resident 
299.26  at the time of the assessment.  The resident and the nursing 
299.27  facility or boarding care home shall be notified within five 
299.28  working days after the decision is made.  A decision by the 
299.29  commissioner under this subdivision is the final administrative 
299.30  decision of the agency for the party requesting reconsideration. 
299.31     (e) The resident classification established by the 
299.32  commissioner shall be the classification that applies to the 
299.33  resident while the request for reconsideration is pending. 
299.34     (f) The commissioner may request additional documentation 
299.35  regarding a reconsideration necessary to make an accurate 
299.36  reconsideration determination. 
300.1      Subd. 9.  [AUDIT AUTHORITY.] (a) The commissioner shall 
300.2   audit the accuracy of resident assessments performed under 
300.3   section 256B.438 through desk audits, on-site review of 
300.4   residents and their records, and interviews with staff and 
300.5   families.  The commissioner shall reclassify a resident if the 
300.6   commissioner determines that the resident was incorrectly 
300.7   classified. 
300.8      (b) The commissioner is authorized to conduct on-site 
300.9   audits on an unannounced basis. 
300.10     (c) A facility must grant the commissioner access to 
300.11  examine the medical records relating to the resident assessments 
300.12  selected for audit under this subdivision.  The commissioner may 
300.13  also observe and speak to facility staff and residents. 
300.14     (d) The commissioner shall consider documentation under the 
300.15  time frames for coding items on the minimum data set as set out 
300.16  in the Resident Assessment Instrument Manual published by the 
300.17  Health Care Financing Administration. 
300.18     (e) The commissioner shall develop an audit selection 
300.19  procedure that includes the following factors: 
300.20     (1) The commissioner may target facilities that demonstrate 
300.21  an atypical pattern of scoring minimum data set items, 
300.22  nonsubmission of assessments, late submission of assessments, or 
300.23  a previous history of audit changes of greater than 35 percent.  
300.24  The commissioner shall select at least 20 percent of the most 
300.25  current assessments submitted to the state for audit.  Audits of 
300.26  assessments selected in the targeted facilities must focus on 
300.27  the factors leading to the audit.  If the number of targeted 
300.28  assessments selected does not meet the threshold of 20 percent 
300.29  of the facility residents, then a stratified sample of the 
300.30  remainder of assessments shall be drawn to meet the quota.  If 
300.31  the total change exceeds 35 percent, the commissioner may 
300.32  conduct an expanded audit up to 100 percent of the remaining 
300.33  current assessments. 
300.34     (2) Facilities that are not a part of the targeted group 
300.35  shall be placed in a general pool from which facilities will be 
300.36  selected on a random basis for audit.  Every facility shall be 
301.1   audited annually.  If a facility has two successive audits in 
301.2   which the percentage of change is five percent or less and the 
301.3   facility has not been the subject of a targeted audit in the 
301.4   past 36 months, the facility may be audited biannually.  A 
301.5   stratified sample of 15 percent of the most current assessments 
301.6   shall be selected for audit.  If more than 20 percent of the 
301.7   RUGS-III classifications after the audit are changed, the audit 
301.8   shall be expanded to a second 15 percent sample.  If the total 
301.9   change between the first and second samples exceed 35 percent, 
301.10  the commissioner may expand the audit to all of the remaining 
301.11  assessments. 
301.12     (3) If a facility qualifies for an expanded audit, the 
301.13  commissioner may audit the facility again within six months.  If 
301.14  a facility has two expanded audits within a 24-month period, 
301.15  that facility will be audited at least every six months for the 
301.16  next 18 months. 
301.17     (4) The commissioner may conduct special audits if the 
301.18  commissioner determines that circumstances exist that could 
301.19  alter or affect the validity of case mix classifications of 
301.20  residents.  These circumstances include, but are not limited to, 
301.21  the following:  
301.22     (i) frequent changes in the administration or management of 
301.23  the facility; 
301.24     (ii) an unusually high percentage of residents in a 
301.25  specific case mix classification; 
301.26     (iii) a high frequency in the number of reconsideration 
301.27  requests received from a facility; 
301.28     (iv) frequent adjustments of case mix classifications as 
301.29  the result of reconsiderations or audits; 
301.30     (v) a criminal indictment alleging provider fraud; or 
301.31     (vi) other similar factors that relate to a facility's 
301.32  ability to conduct accurate assessments. 
301.33     (f) Within 15 working days of completing the audit process, 
301.34  the commissioner shall mail the written results of the audit to 
301.35  the facility, along with a written notice for each resident 
301.36  affected to be forwarded by the facility.  The notice must 
302.1   contain the resident's classification and a statement informing 
302.2   the resident, the resident's authorized representative, and the 
302.3   facility of their right to review the commissioner's documents 
302.4   supporting the classification and to request a reconsideration 
302.5   of the classification.  This notice must also include the 
302.6   address and telephone number of the area nursing home ombudsman. 
302.7      Subd. 10.  [TRANSITION.] After implementation of this 
302.8   section, reconsiderations requested for classifications made 
302.9   under section 144.0722, subdivision 1, shall be determined under 
302.10  section 144.0722, subdivision 3. 
302.11     Sec. 3.  Minnesota Statutes 2000, section 144A.071, 
302.12  subdivision 1, is amended to read: 
302.13     Subdivision 1.  [FINDINGS.] The legislature declares that a 
302.14  moratorium on the licensure and medical assistance certification 
302.15  of new nursing home beds and construction projects that 
302.16  exceed $750,000 $1,000,000 is necessary to control nursing home 
302.17  expenditure growth and enable the state to meet the needs of its 
302.18  elderly by providing high quality services in the most 
302.19  appropriate manner along a continuum of care.  
302.20     Sec. 4.  Minnesota Statutes 2000, section 144A.071, 
302.21  subdivision 1a, is amended to read: 
302.22     Subd. 1a.  [DEFINITIONS.] For purposes of sections 144A.071 
302.23  to 144A.073, the following terms have the meanings given them: 
302.24     (a) "attached fixtures" has the meaning given in Minnesota 
302.25  Rules, part 9549.0020, subpart 6. 
302.26     (b) "buildings" has the meaning given in Minnesota Rules, 
302.27  part 9549.0020, subpart 7. 
302.28     (c) "capital assets" has the meaning given in section 
302.29  256B.421, subdivision 16. 
302.30     (d) "commenced construction" means that all of the 
302.31  following conditions were met:  the final working drawings and 
302.32  specifications were approved by the commissioner of health; the 
302.33  construction contracts were let; a timely construction schedule 
302.34  was developed, stipulating dates for beginning, achieving 
302.35  various stages, and completing construction; and all zoning and 
302.36  building permits were applied for. 
303.1      (e) "completion date" means the date on which a certificate 
303.2   of occupancy is issued for a construction project, or if a 
303.3   certificate of occupancy is not required, the date on which the 
303.4   construction project is available for facility use. 
303.5      (f) "construction" means any erection, building, 
303.6   alteration, reconstruction, modernization, or improvement 
303.7   necessary to comply with the nursing home licensure rules. 
303.8      (g) "construction project" means: 
303.9      (1) a capital asset addition to, or replacement of a 
303.10  nursing home or certified boarding care home that results in new 
303.11  space or the remodeling of or renovations to existing facility 
303.12  space; 
303.13     (2) the remodeling or renovation of existing facility space 
303.14  the use of which is modified as a result of the project 
303.15  described in clause (1).  This existing space and the project 
303.16  described in clause (1) must be used for the functions as 
303.17  designated on the construction plans on completion of the 
303.18  project described in clause (1) for a period of not less than 24 
303.19  months; or 
303.20     (3) capital asset additions or replacements that are 
303.21  completed within 12 months before or after the completion date 
303.22  of the project described in clause (1). 
303.23     (h) "new licensed" or "new certified beds" means: 
303.24     (1) newly constructed beds in a facility or the 
303.25  construction of a new facility that would increase the total 
303.26  number of licensed nursing home beds or certified boarding care 
303.27  or nursing home beds in the state; or 
303.28     (2) newly licensed nursing home beds or newly certified 
303.29  boarding care or nursing home beds that result from remodeling 
303.30  of the facility that involves relocation of beds but does not 
303.31  result in an increase in the total number of beds, except when 
303.32  the project involves the upgrade of boarding care beds to 
303.33  nursing home beds, as defined in section 144A.073, subdivision 
303.34  1.  "Remodeling" includes any of the type of conversion, 
303.35  renovation, replacement, or upgrading projects as defined in 
303.36  section 144A.073, subdivision 1. 
304.1      (i) "project construction costs" means the cost of the 
304.2   facility capital asset additions, replacements, renovations, or 
304.3   remodeling projects, construction site preparation costs, and 
304.4   related soft costs.  Project construction costs also include the 
304.5   cost of any remodeling or renovation of existing facility space 
304.6   which is modified as a result of the construction 
304.7   project.  Project construction costs also includes the cost of 
304.8   new technology implemented as part of the construction project. 
304.9      (j) "technology" means information systems or devices that 
304.10  make documentation, charting, and staff time more efficient or 
304.11  encourage and allow for care through alternative settings 
304.12  including, but not limited to, touch screens, monitors, 
304.13  hand-helds, swipe cards, motion detectors, pagers, telemedicine, 
304.14  medication dispensers, and equipment to monitor vital signs and 
304.15  self-injections, and to observe skin and other conditions. 
304.16     Sec. 5.  Minnesota Statutes 2000, section 144A.071, 
304.17  subdivision 2, is amended to read: 
304.18     Subd. 2.  [MORATORIUM.] The commissioner of health, in 
304.19  coordination with the commissioner of human services, shall deny 
304.20  each request for new licensed or certified nursing home or 
304.21  certified boarding care beds except as provided in subdivision 3 
304.22  or 4a, or section 144A.073.  "Certified bed" means a nursing 
304.23  home bed or a boarding care bed certified by the commissioner of 
304.24  health for the purposes of the medical assistance program, under 
304.25  United States Code, title 42, sections 1396 et seq.  
304.26     The commissioner of human services, in coordination with 
304.27  the commissioner of health, shall deny any request to issue a 
304.28  license under section 252.28 and chapter 245A to a nursing home 
304.29  or boarding care home, if that license would result in an 
304.30  increase in the medical assistance reimbursement amount.  
304.31     In addition, the commissioner of health must not approve 
304.32  any construction project whose cost exceeds $750,000 $1,000,000, 
304.33  unless: 
304.34     (a) any construction costs exceeding $750,000 $1,000,000 
304.35  are not added to the facility's appraised value and are not 
304.36  included in the facility's payment rate for reimbursement under 
305.1   the medical assistance program; or 
305.2      (b) the project: 
305.3      (1) has been approved through the process described in 
305.4   section 144A.073; 
305.5      (2) meets an exception in subdivision 3 or 4a; 
305.6      (3) is necessary to correct violations of state or federal 
305.7   law issued by the commissioner of health; 
305.8      (4) is necessary to repair or replace a portion of the 
305.9   facility that was damaged by fire, lightning, groundshifts, or 
305.10  other such hazards, including environmental hazards, provided 
305.11  that the provisions of subdivision 4a, clause (a), are met; 
305.12     (5) as of May 1, 1992, the facility has submitted to the 
305.13  commissioner of health written documentation evidencing that the 
305.14  facility meets the "commenced construction" definition as 
305.15  specified in subdivision 1a, clause (d), or that substantial 
305.16  steps have been taken prior to April 1, 1992, relating to the 
305.17  construction project.  "Substantial steps" require that the 
305.18  facility has made arrangements with outside parties relating to 
305.19  the construction project and include the hiring of an architect 
305.20  or construction firm, submission of preliminary plans to the 
305.21  department of health or documentation from a financial 
305.22  institution that financing arrangements for the construction 
305.23  project have been made; or 
305.24     (6) is being proposed by a licensed nursing facility that 
305.25  is not certified to participate in the medical assistance 
305.26  program and will not result in new licensed or certified beds. 
305.27     Prior to the final plan approval of any construction 
305.28  project, the commissioner of health shall be provided with an 
305.29  itemized cost estimate for the project construction costs.  If a 
305.30  construction project is anticipated to be completed in phases, 
305.31  the total estimated cost of all phases of the project shall be 
305.32  submitted to the commissioner and shall be considered as one 
305.33  construction project.  Once the construction project is 
305.34  completed and prior to the final clearance by the commissioner, 
305.35  the total project construction costs for the construction 
305.36  project shall be submitted to the commissioner.  If the final 
306.1   project construction cost exceeds the dollar threshold in this 
306.2   subdivision, the commissioner of human services shall not 
306.3   recognize any of the project construction costs or the related 
306.4   financing costs in excess of this threshold in establishing the 
306.5   facility's property-related payment rate. 
306.6      The dollar thresholds for construction projects are as 
306.7   follows:  for construction projects other than those authorized 
306.8   in clauses (1) to (6), the dollar threshold 
306.9   is $750,000 $1,000,000.  For projects authorized after July 1, 
306.10  1993, under clause (1), the dollar threshold is the cost 
306.11  estimate submitted with a proposal for an exception under 
306.12  section 144A.073, plus inflation as calculated according to 
306.13  section 256B.431, subdivision 3f, paragraph (a).  For projects 
306.14  authorized under clauses (2) to (4), the dollar threshold is the 
306.15  itemized estimate project construction costs submitted to the 
306.16  commissioner of health at the time of final plan approval, plus 
306.17  inflation as calculated according to section 256B.431, 
306.18  subdivision 3f, paragraph (a). 
306.19     The commissioner of health shall adopt rules to implement 
306.20  this section or to amend the emergency rules for granting 
306.21  exceptions to the moratorium on nursing homes under section 
306.22  144A.073.  
306.23     Sec. 6.  Minnesota Statutes 2000, section 144A.071, 
306.24  subdivision 4a, is amended to read: 
306.25     Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
306.26  best interest of the state to ensure that nursing homes and 
306.27  boarding care homes continue to meet the physical plant 
306.28  licensing and certification requirements by permitting certain 
306.29  construction projects.  Facilities should be maintained in 
306.30  condition to satisfy the physical and emotional needs of 
306.31  residents while allowing the state to maintain control over 
306.32  nursing home expenditure growth. 
306.33     The commissioner of health in coordination with the 
306.34  commissioner of human services, may approve the renovation, 
306.35  replacement, upgrading, or relocation of a nursing home or 
306.36  boarding care home, under the following conditions: 
307.1      (a) to license or certify beds in a new facility 
307.2   constructed to replace a facility or to make repairs in an 
307.3   existing facility that was destroyed or damaged after June 30, 
307.4   1987, by fire, lightning, or other hazard provided:  
307.5      (i) destruction was not caused by the intentional act of or 
307.6   at the direction of a controlling person of the facility; 
307.7      (ii) at the time the facility was destroyed or damaged the 
307.8   controlling persons of the facility maintained insurance 
307.9   coverage for the type of hazard that occurred in an amount that 
307.10  a reasonable person would conclude was adequate; 
307.11     (iii) the net proceeds from an insurance settlement for the 
307.12  damages caused by the hazard are applied to the cost of the new 
307.13  facility or repairs; 
307.14     (iv) the new facility is constructed on the same site as 
307.15  the destroyed facility or on another site subject to the 
307.16  restrictions in section 144A.073, subdivision 5; 
307.17     (v) the number of licensed and certified beds in the new 
307.18  facility does not exceed the number of licensed and certified 
307.19  beds in the destroyed facility; and 
307.20     (vi) the commissioner determines that the replacement beds 
307.21  are needed to prevent an inadequate supply of beds. 
307.22  Project construction costs incurred for repairs authorized under 
307.23  this clause shall not be considered in the dollar threshold 
307.24  amount defined in subdivision 2; 
307.25     (b) to license or certify beds that are moved from one 
307.26  location to another within a nursing home facility, provided the 
307.27  total costs of remodeling performed in conjunction with the 
307.28  relocation of beds does not exceed $750,000 $1,000,000; 
307.29     (c) to license or certify beds in a project recommended for 
307.30  approval under section 144A.073; 
307.31     (d) to license or certify beds that are moved from an 
307.32  existing state nursing home to a different state facility, 
307.33  provided there is no net increase in the number of state nursing 
307.34  home beds; 
307.35     (e) to certify and license as nursing home beds boarding 
307.36  care beds in a certified boarding care facility if the beds meet 
308.1   the standards for nursing home licensure, or in a facility that 
308.2   was granted an exception to the moratorium under section 
308.3   144A.073, and if the cost of any remodeling of the facility does 
308.4   not exceed $750,000 $1,000,000.  If boarding care beds are 
308.5   licensed as nursing home beds, the number of boarding care beds 
308.6   in the facility must not increase beyond the number remaining at 
308.7   the time of the upgrade in licensure.  The provisions contained 
308.8   in section 144A.073 regarding the upgrading of the facilities do 
308.9   not apply to facilities that satisfy these requirements; 
308.10     (f) to license and certify up to 40 beds transferred from 
308.11  an existing facility owned and operated by the Amherst H. Wilder 
308.12  Foundation in the city of St. Paul to a new unit at the same 
308.13  location as the existing facility that will serve persons with 
308.14  Alzheimer's disease and other related disorders.  The transfer 
308.15  of beds may occur gradually or in stages, provided the total 
308.16  number of beds transferred does not exceed 40.  At the time of 
308.17  licensure and certification of a bed or beds in the new unit, 
308.18  the commissioner of health shall delicense and decertify the 
308.19  same number of beds in the existing facility.  As a condition of 
308.20  receiving a license or certification under this clause, the 
308.21  facility must make a written commitment to the commissioner of 
308.22  human services that it will not seek to receive an increase in 
308.23  its property-related payment rate as a result of the transfers 
308.24  allowed under this paragraph; 
308.25     (g) to license and certify nursing home beds to replace 
308.26  currently licensed and certified boarding care beds which may be 
308.27  located either in a remodeled or renovated boarding care or 
308.28  nursing home facility or in a remodeled, renovated, newly 
308.29  constructed, or replacement nursing home facility within the 
308.30  identifiable complex of health care facilities in which the 
308.31  currently licensed boarding care beds are presently located, 
308.32  provided that the number of boarding care beds in the facility 
308.33  or complex are decreased by the number to be licensed as nursing 
308.34  home beds and further provided that, if the total costs of new 
308.35  construction, replacement, remodeling, or renovation exceed ten 
308.36  percent of the appraised value of the facility or $200,000, 
309.1   whichever is less, the facility makes a written commitment to 
309.2   the commissioner of human services that it will not seek to 
309.3   receive an increase in its property-related payment rate by 
309.4   reason of the new construction, replacement, remodeling, or 
309.5   renovation.  The provisions contained in section 144A.073 
309.6   regarding the upgrading of facilities do not apply to facilities 
309.7   that satisfy these requirements; 
309.8      (h) to license as a nursing home and certify as a nursing 
309.9   facility a facility that is licensed as a boarding care facility 
309.10  but not certified under the medical assistance program, but only 
309.11  if the commissioner of human services certifies to the 
309.12  commissioner of health that licensing the facility as a nursing 
309.13  home and certifying the facility as a nursing facility will 
309.14  result in a net annual savings to the state general fund of 
309.15  $200,000 or more; 
309.16     (i) to certify, after September 30, 1992, and prior to July 
309.17  1, 1993, existing nursing home beds in a facility that was 
309.18  licensed and in operation prior to January 1, 1992; 
309.19     (j) to license and certify new nursing home beds to replace 
309.20  beds in a facility acquired by the Minneapolis community 
309.21  development agency as part of redevelopment activities in a city 
309.22  of the first class, provided the new facility is located within 
309.23  three miles of the site of the old facility.  Operating and 
309.24  property costs for the new facility must be determined and 
309.25  allowed under section 256B.431 or 256B.434; 
309.26     (k) to license and certify up to 20 new nursing home beds 
309.27  in a community-operated hospital and attached convalescent and 
309.28  nursing care facility with 40 beds on April 21, 1991, that 
309.29  suspended operation of the hospital in April 1986.  The 
309.30  commissioner of human services shall provide the facility with 
309.31  the same per diem property-related payment rate for each 
309.32  additional licensed and certified bed as it will receive for its 
309.33  existing 40 beds; 
309.34     (l) to license or certify beds in renovation, replacement, 
309.35  or upgrading projects as defined in section 144A.073, 
309.36  subdivision 1, so long as the cumulative total costs of the 
310.1   facility's remodeling projects do not 
310.2   exceed $750,000 $1,000,000; 
310.3      (m) to license and certify beds that are moved from one 
310.4   location to another for the purposes of converting up to five 
310.5   four-bed wards to single or double occupancy rooms in a nursing 
310.6   home that, as of January 1, 1993, was county-owned and had a 
310.7   licensed capacity of 115 beds; 
310.8      (n) to allow a facility that on April 16, 1993, was a 
310.9   106-bed licensed and certified nursing facility located in 
310.10  Minneapolis to layaway all of its licensed and certified nursing 
310.11  home beds.  These beds may be relicensed and recertified in a 
310.12  newly-constructed teaching nursing home facility affiliated with 
310.13  a teaching hospital upon approval by the legislature.  The 
310.14  proposal must be developed in consultation with the interagency 
310.15  committee on long-term care planning.  The beds on layaway 
310.16  status shall have the same status as voluntarily delicensed and 
310.17  decertified beds, except that beds on layaway status remain 
310.18  subject to the surcharge in section 256.9657.  This layaway 
310.19  provision expires July 1, 1998; 
310.20     (o) to allow a project which will be completed in 
310.21  conjunction with an approved moratorium exception project for a 
310.22  nursing home in southern Cass county and which is directly 
310.23  related to that portion of the facility that must be repaired, 
310.24  renovated, or replaced, to correct an emergency plumbing problem 
310.25  for which a state correction order has been issued and which 
310.26  must be corrected by August 31, 1993; 
310.27     (p) to allow a facility that on April 16, 1993, was a 
310.28  368-bed licensed and certified nursing facility located in 
310.29  Minneapolis to layaway, upon 30 days prior written notice to the 
310.30  commissioner, up to 30 of the facility's licensed and certified 
310.31  beds by converting three-bed wards to single or double 
310.32  occupancy.  Beds on layaway status shall have the same status as 
310.33  voluntarily delicensed and decertified beds except that beds on 
310.34  layaway status remain subject to the surcharge in section 
310.35  256.9657, remain subject to the license application and renewal 
310.36  fees under section 144A.07 and shall be subject to a $100 per 
311.1   bed reactivation fee.  In addition, at any time within three 
311.2   years of the effective date of the layaway, the beds on layaway 
311.3   status may be: 
311.4      (1) relicensed and recertified upon relocation and 
311.5   reactivation of some or all of the beds to an existing licensed 
311.6   and certified facility or facilities located in Pine River, 
311.7   Brainerd, or International Falls; provided that the total 
311.8   project construction costs related to the relocation of beds 
311.9   from layaway status for any facility receiving relocated beds 
311.10  may not exceed the dollar threshold provided in subdivision 2 
311.11  unless the construction project has been approved through the 
311.12  moratorium exception process under section 144A.073; 
311.13     (2) relicensed and recertified, upon reactivation of some 
311.14  or all of the beds within the facility which placed the beds in 
311.15  layaway status, if the commissioner has determined a need for 
311.16  the reactivation of the beds on layaway status. 
311.17     The property-related payment rate of a facility placing 
311.18  beds on layaway status must be adjusted by the incremental 
311.19  change in its rental per diem after recalculating the rental per 
311.20  diem as provided in section 256B.431, subdivision 3a, paragraph 
311.21  (c).  The property-related payment rate for a facility 
311.22  relicensing and recertifying beds from layaway status must be 
311.23  adjusted by the incremental change in its rental per diem after 
311.24  recalculating its rental per diem using the number of beds after 
311.25  the relicensing to establish the facility's capacity day 
311.26  divisor, which shall be effective the first day of the month 
311.27  following the month in which the relicensing and recertification 
311.28  became effective.  Any beds remaining on layaway status more 
311.29  than three years after the date the layaway status became 
311.30  effective must be removed from layaway status and immediately 
311.31  delicensed and decertified; 
311.32     (q) to license and certify beds in a renovation and 
311.33  remodeling project to convert 12 four-bed wards into 24 two-bed 
311.34  rooms, expand space, and add improvements in a nursing home 
311.35  that, as of January 1, 1994, met the following conditions:  the 
311.36  nursing home was located in Ramsey county; had a licensed 
312.1   capacity of 154 beds; and had been ranked among the top 15 
312.2   applicants by the 1993 moratorium exceptions advisory review 
312.3   panel.  The total project construction cost estimate for this 
312.4   project must not exceed the cost estimate submitted in 
312.5   connection with the 1993 moratorium exception process; 
312.6      (r) to license and certify up to 117 beds that are 
312.7   relocated from a licensed and certified 138-bed nursing facility 
312.8   located in St. Paul to a hospital with 130 licensed hospital 
312.9   beds located in South St. Paul, provided that the nursing 
312.10  facility and hospital are owned by the same or a related 
312.11  organization and that prior to the date the relocation is 
312.12  completed the hospital ceases operation of its inpatient 
312.13  hospital services at that hospital.  After relocation, the 
312.14  nursing facility's status under section 256B.431, subdivision 
312.15  2j, shall be the same as it was prior to relocation.  The 
312.16  nursing facility's property-related payment rate resulting from 
312.17  the project authorized in this paragraph shall become effective 
312.18  no earlier than April 1, 1996.  For purposes of calculating the 
312.19  incremental change in the facility's rental per diem resulting 
312.20  from this project, the allowable appraised value of the nursing 
312.21  facility portion of the existing health care facility physical 
312.22  plant prior to the renovation and relocation may not exceed 
312.23  $2,490,000; 
312.24     (s) to license and certify two beds in a facility to 
312.25  replace beds that were voluntarily delicensed and decertified on 
312.26  June 28, 1991; 
312.27     (t) to allow 16 licensed and certified beds located on July 
312.28  1, 1994, in a 142-bed nursing home and 21-bed boarding care home 
312.29  facility in Minneapolis, notwithstanding the licensure and 
312.30  certification after July 1, 1995, of the Minneapolis facility as 
312.31  a 147-bed nursing home facility after completion of a 
312.32  construction project approved in 1993 under section 144A.073, to 
312.33  be laid away upon 30 days' prior written notice to the 
312.34  commissioner.  Beds on layaway status shall have the same status 
312.35  as voluntarily delicensed or decertified beds except that they 
312.36  shall remain subject to the surcharge in section 256.9657.  The 
313.1   16 beds on layaway status may be relicensed as nursing home beds 
313.2   and recertified at any time within five years of the effective 
313.3   date of the layaway upon relocation of some or all of the beds 
313.4   to a licensed and certified facility located in Watertown, 
313.5   provided that the total project construction costs related to 
313.6   the relocation of beds from layaway status for the Watertown 
313.7   facility may not exceed the dollar threshold provided in 
313.8   subdivision 2 unless the construction project has been approved 
313.9   through the moratorium exception process under section 144A.073. 
313.10     The property-related payment rate of the facility placing 
313.11  beds on layaway status must be adjusted by the incremental 
313.12  change in its rental per diem after recalculating the rental per 
313.13  diem as provided in section 256B.431, subdivision 3a, paragraph 
313.14  (c).  The property-related payment rate for the facility 
313.15  relicensing and recertifying beds from layaway status must be 
313.16  adjusted by the incremental change in its rental per diem after 
313.17  recalculating its rental per diem using the number of beds after 
313.18  the relicensing to establish the facility's capacity day 
313.19  divisor, which shall be effective the first day of the month 
313.20  following the month in which the relicensing and recertification 
313.21  became effective.  Any beds remaining on layaway status more 
313.22  than five years after the date the layaway status became 
313.23  effective must be removed from layaway status and immediately 
313.24  delicensed and decertified; 
313.25     (u) to license and certify beds that are moved within an 
313.26  existing area of a facility or to a newly constructed addition 
313.27  which is built for the purpose of eliminating three- and 
313.28  four-bed rooms and adding space for dining, lounge areas, 
313.29  bathing rooms, and ancillary service areas in a nursing home 
313.30  that, as of January 1, 1995, was located in Fridley and had a 
313.31  licensed capacity of 129 beds; 
313.32     (v) to relocate 36 beds in Crow Wing county and four beds 
313.33  from Hennepin county to a 160-bed facility in Crow Wing county, 
313.34  provided all the affected beds are under common ownership; 
313.35     (w) to license and certify a total replacement project of 
313.36  up to 49 beds located in Norman county that are relocated from a 
314.1   nursing home destroyed by flood and whose residents were 
314.2   relocated to other nursing homes.  The operating cost payment 
314.3   rates for the new nursing facility shall be determined based on 
314.4   the interim and settle-up payment provisions of Minnesota Rules, 
314.5   part 9549.0057, and the reimbursement provisions of section 
314.6   256B.431, except that subdivision 26, paragraphs (a) and (b), 
314.7   shall not apply until the second rate year after the settle-up 
314.8   cost report is filed.  Property-related reimbursement rates 
314.9   shall be determined under section 256B.431, taking into account 
314.10  any federal or state flood-related loans or grants provided to 
314.11  the facility; 
314.12     (x) to license and certify a total replacement project of 
314.13  up to 129 beds located in Polk county that are relocated from a 
314.14  nursing home destroyed by flood and whose residents were 
314.15  relocated to other nursing homes.  The operating cost payment 
314.16  rates for the new nursing facility shall be determined based on 
314.17  the interim and settle-up payment provisions of Minnesota Rules, 
314.18  part 9549.0057, and the reimbursement provisions of section 
314.19  256B.431, except that subdivision 26, paragraphs (a) and (b), 
314.20  shall not apply until the second rate year after the settle-up 
314.21  cost report is filed.  Property-related reimbursement rates 
314.22  shall be determined under section 256B.431, taking into account 
314.23  any federal or state flood-related loans or grants provided to 
314.24  the facility; 
314.25     (y) to license and certify beds in a renovation and 
314.26  remodeling project to convert 13 three-bed wards into 13 two-bed 
314.27  rooms and 13 single-bed rooms, expand space, and add 
314.28  improvements in a nursing home that, as of January 1, 1994, met 
314.29  the following conditions:  the nursing home was located in 
314.30  Ramsey county, was not owned by a hospital corporation, had a 
314.31  licensed capacity of 64 beds, and had been ranked among the top 
314.32  15 applicants by the 1993 moratorium exceptions advisory review 
314.33  panel.  The total project construction cost estimate for this 
314.34  project must not exceed the cost estimate submitted in 
314.35  connection with the 1993 moratorium exception process; 
314.36     (z) to license and certify up to 150 nursing home beds to 
315.1   replace an existing 285 bed nursing facility located in St. 
315.2   Paul.  The replacement project shall include both the renovation 
315.3   of existing buildings and the construction of new facilities at 
315.4   the existing site.  The reduction in the licensed capacity of 
315.5   the existing facility shall occur during the construction 
315.6   project as beds are taken out of service due to the construction 
315.7   process.  Prior to the start of the construction process, the 
315.8   facility shall provide written information to the commissioner 
315.9   of health describing the process for bed reduction, plans for 
315.10  the relocation of residents, and the estimated construction 
315.11  schedule.  The relocation of residents shall be in accordance 
315.12  with the provisions of law and rule; 
315.13     (aa) to allow the commissioner of human services to license 
315.14  an additional 36 beds to provide residential services for the 
315.15  physically handicapped under Minnesota Rules, parts 9570.2000 to 
315.16  9570.3400, in a 198-bed nursing home located in Red Wing, 
315.17  provided that the total number of licensed and certified beds at 
315.18  the facility does not increase; 
315.19     (bb) to license and certify a new facility in St. Louis 
315.20  county with 44 beds constructed to replace an existing facility 
315.21  in St. Louis county with 31 beds, which has resident rooms on 
315.22  two separate floors and an antiquated elevator that creates 
315.23  safety concerns for residents and prevents nonambulatory 
315.24  residents from residing on the second floor.  The project shall 
315.25  include the elimination of three- and four-bed rooms; 
315.26     (cc) to license and certify four beds in a 16-bed certified 
315.27  boarding care home in Minneapolis to replace beds that were 
315.28  voluntarily delicensed and decertified on or before March 31, 
315.29  1992.  The licensure and certification is conditional upon the 
315.30  facility periodically assessing and adjusting its resident mix 
315.31  and other factors which may contribute to a potential 
315.32  institution for mental disease declaration.  The commissioner of 
315.33  human services shall retain the authority to audit the facility 
315.34  at any time and shall require the facility to comply with any 
315.35  requirements necessary to prevent an institution for mental 
315.36  disease declaration, including delicensure and decertification 
316.1   of beds, if necessary; or 
316.2      (dd) to license and certify 72 beds in an existing facility 
316.3   in Mille Lacs county with 80 beds as part of a renovation 
316.4   project.  The renovation must include construction of an 
316.5   addition to accommodate ten residents with beginning and 
316.6   midstage dementia in a self-contained living unit; creation of 
316.7   three resident households where dining, activities, and support 
316.8   spaces are located near resident living quarters; designation of 
316.9   four beds for rehabilitation in a self-contained area; 
316.10  designation of 30 private rooms; and other improvements.; 
316.11     (ee) to license and certify beds in a facility that has 
316.12  undergone replacement or remodeling as part of a planned closure 
316.13  under section 256B.437; 
316.14     (ff) to license and certify a total replacement project of 
316.15  up to 124 beds located in Wilkin county that are in need of 
316.16  relocation from a nursing home significantly damaged by flood.  
316.17  The operating cost payment rates for the new nursing facility 
316.18  shall be determined based on the interim and settle-up payment 
316.19  provisions of Minnesota Rules, part 9549.0057, and the 
316.20  reimbursement provisions of section 256B.431, except that 
316.21  section 256B.431, subdivision 26, paragraphs (a) and (b), shall 
316.22  not apply until the second rate year after the settle-up cost 
316.23  report is filed.  Property-related reimbursement rates shall be 
316.24  determined under section 256B.431, taking into account any 
316.25  federal or state flood-related loans or grants provided to the 
316.26  facility; 
316.27     (gg) to allow the commissioner of human services to license 
316.28  an additional nine beds to provide residential services for the 
316.29  physically handicapped under Minnesota Rules, parts 9570.2000 to 
316.30  9570.3400, in a 240-bed nursing home located in Duluth, provided 
316.31  that the total number of licensed and certified beds at the 
316.32  facility does not increase; 
316.33     (hh) to license and certify up to 120 new nursing facility 
316.34  beds to replace beds in a facility in Anoka county, which was 
316.35  licensed for 98 beds as of July 1, 2000, provided the new 
316.36  facility is located within four miles of the existing facility 
317.1   and is in Anoka county.  Operating and property rates shall be 
317.2   determined and allowed under section 256B.431 and Minnesota 
317.3   Rules, parts 9549.0010 to 9549.0080, or section 256B.434 or 
317.4   256B.435.  The provisions of section 256B.431, subdivision 26, 
317.5   paragraphs (a) and (b), do not apply until the second rate year 
317.6   following settle-up; or 
317.7      (ii) to transfer up to 98 beds of a 129-licensed bed 
317.8   facility located in Anoka county that, as of March 25, 2001, is 
317.9   in the active process of closing, to a 122-licensed bed 
317.10  nonprofit nursing facility located in the city of Columbia 
317.11  Heights or its affiliate.  The transfer is effective when the 
317.12  receiving facility notifies the commissioner in writing of the 
317.13  number of beds accepted.  The commissioner shall place all 
317.14  transferred beds on layaway status held in the name of the 
317.15  receiving facility.  The layaway adjustment provisions of 
317.16  section 256B.431, subdivision 30, do not apply to this layaway.  
317.17  The receiving facility may only remove the beds from layaway for 
317.18  recertification and relicensure at the receiving facility's 
317.19  current site, or at a newly constructed facility located in 
317.20  Anoka county.  The receiving facility must receive statutory 
317.21  authorization before removing these beds from layaway status. 
317.22     Sec. 7.  Minnesota Statutes 2000, section 144A.073, 
317.23  subdivision 2, as amended by Laws 2001, chapter 161, section 22, 
317.24  is amended to read: 
317.25     Subd. 2.  [REQUEST FOR PROPOSALS.] At the authorization by 
317.26  the legislature of additional medical assistance expenditures 
317.27  for exceptions to the moratorium on nursing homes, the 
317.28  commissioner shall publish in the State Register a request for 
317.29  proposals for nursing home projects to be licensed or certified 
317.30  under section 144A.071, subdivision 4a, clause (c).  The public 
317.31  notice of this funding and the request for proposals must 
317.32  specify how the approval criteria will be prioritized by the 
317.33  commissioner.  The notice must describe the information that 
317.34  must accompany a request and state that proposals must be 
317.35  submitted to the commissioner within 90 days of the date of 
317.36  publication.  The notice must include the amount of the 
318.1   legislative appropriation available for the additional costs to 
318.2   the medical assistance program of projects approved under this 
318.3   section.  If no money is appropriated for a year, the 
318.4   commissioner shall publish a notice to that effect, and no 
318.5   proposals shall be requested.  If money is appropriated, the 
318.6   commissioner shall initiate the application and review process 
318.7   described in this section at least twice each biennium and up to 
318.8   four times each biennium, according to dates established by 
318.9   rule.  Authorized funds shall be allocated proportionally to the 
318.10  number of processes.  Funds not encumbered by an earlier process 
318.11  within a biennium shall carry forward to subsequent iterations 
318.12  of the process.  Authorization for expenditures does not carry 
318.13  forward into the following biennium.  To be considered for 
318.14  approval, a proposal must include the following information: 
318.15     (1) whether the request is for renovation, replacement, 
318.16  upgrading, conversion, or relocation; 
318.17     (2) a description of the problem the project is designed to 
318.18  address; 
318.19     (3) a description of the proposed project; 
318.20     (4) an analysis of projected costs of the nursing facility 
318.21  proposal, which are not required to exceed the cost threshold 
318.22  referred to in section 144A.071, subdivision 1, to be considered 
318.23  under this section, including initial construction and 
318.24  remodeling costs; site preparation costs; technology costs; 
318.25  financing costs, including the current estimated long-term 
318.26  financing costs of the proposal, which consists of estimates of 
318.27  the amount and sources of money, reserves if required under the 
318.28  proposed funding mechanism, annual payments schedule, interest 
318.29  rates, length of term, closing costs and fees, insurance costs, 
318.30  and any completed marketing study or underwriting review; and 
318.31  estimated operating costs during the first two years after 
318.32  completion of the project; 
318.33     (5) for proposals involving replacement of all or part of a 
318.34  facility, the proposed location of the replacement facility and 
318.35  an estimate of the cost of addressing the problem through 
318.36  renovation; 
319.1      (6) for proposals involving renovation, an estimate of the 
319.2   cost of addressing the problem through replacement; 
319.3      (7) the proposed timetable for commencing construction and 
319.4   completing the project; 
319.5      (8) a statement of any licensure or certification issues, 
319.6   such as certification survey deficiencies; 
319.7      (9) the proposed relocation plan for current residents if 
319.8   beds are to be closed so that the department of human services 
319.9   can estimate the total costs of a proposal; and 
319.10     (10) other information required by permanent rule of the 
319.11  commissioner of health in accordance with subdivisions 4 and 8. 
319.12     Sec. 8.  Minnesota Statutes 2000, section 144A.073, 
319.13  subdivision 4, is amended to read: 
319.14     Subd. 4.  [CRITERIA FOR REVIEW.] The following criteria 
319.15  shall be used in a consistent manner to compare, evaluate, and 
319.16  rank all proposals submitted.  Except for the criteria specified 
319.17  in clause (3), the application of criteria listed under this 
319.18  subdivision shall not reflect any distinction based on the 
319.19  geographic location of the proposed project: 
319.20     (1) the extent to which the proposal furthers state 
319.21  long-term care goals, including the goals stated in section 
319.22  144A.31, and including the goal of enhancing the availability 
319.23  and use of alternative care services and the goal of reducing 
319.24  the number of long-term care resident rooms with more than two 
319.25  beds; 
319.26     (2) the proposal's long-term effects on state costs 
319.27  including the cost estimate of the project according to section 
319.28  144A.071, subdivision 5a; 
319.29     (3) the extent to which the proposal promotes equitable 
319.30  access to long-term care services in nursing homes through 
319.31  redistribution of the nursing home bed supply, as measured by 
319.32  the number of beds relative to the population 85 or older, 
319.33  projected to the year 2000 by the state demographer, and 
319.34  according to items (i) to (iv): 
319.35     (i) reduce beds in counties where the supply is high, 
319.36  relative to the statewide mean, and increase beds in counties 
320.1   where the supply is low, relative to the statewide mean; 
320.2      (ii) adjust the bed supply so as to create the greatest 
320.3   benefits in improving the distribution of beds; 
320.4      (iii) adjust the existing bed supply in counties so that 
320.5   the bed supply in a county moves toward the statewide mean; and 
320.6      (iv) adjust the existing bed supply so that the 
320.7   distribution of beds as projected for the year 2020 would be 
320.8   consistent with projected need, based on the methodology 
320.9   outlined in the interagency long-term care committee's 1993 
320.10  nursing home bed distribution study; 
320.11     (4) the extent to which the project improves conditions 
320.12  that affect the health or safety of residents, such as narrow 
320.13  corridors, narrow door frames, unenclosed fire exits, and wood 
320.14  frame construction, and similar provisions contained in fire and 
320.15  life safety codes and licensure and certification rules; 
320.16     (5) the extent to which the project improves conditions 
320.17  that affect the comfort or quality of life of residents in a 
320.18  facility or the ability of the facility to provide efficient 
320.19  care, such as a relatively high number of residents in a room; 
320.20  inadequate lighting or ventilation; poor access to bathing or 
320.21  toilet facilities; a lack of available ancillary space for 
320.22  dining rooms, day rooms, or rooms used for other activities; 
320.23  problems relating to heating, cooling, or energy efficiency; 
320.24  inefficient location of nursing stations; narrow corridors; or 
320.25  other provisions contained in the licensure and certification 
320.26  rules; 
320.27     (6) the extent to which the applicant demonstrates the 
320.28  delivery of quality care, as defined in state and federal 
320.29  statutes and rules, to residents as evidenced by the two most 
320.30  recent state agency certification surveys and the applicants' 
320.31  response to those surveys; 
320.32     (7) the extent to which the project removes the need for 
320.33  waivers or variances previously granted by either the licensing 
320.34  agency, certifying agency, fire marshal, or local government 
320.35  entity; and 
320.36     (8) the extent to which the project increases the number of 
321.1   private or single bed rooms; and 
321.2      (9) other factors that may be developed in permanent rule 
321.3   by the commissioner of health that evaluate and assess how the 
321.4   proposed project will further promote or protect the health, 
321.5   safety, comfort, treatment, or well-being of the facility's 
321.6   residents. 
321.7      Sec. 9.  [144A.161] [NURSING FACILITY RESIDENT RELOCATION.] 
321.8      Subdivision 1.  [DEFINITIONS.] The definitions in this 
321.9   subdivision apply to subdivisions 2 to 10. 
321.10     (a) "Closure" means the cessation of operations of a 
321.11  facility and the delicensure and decertification of all beds 
321.12  within the facility. 
321.13     (b) "Curtailment," "reduction," or "change" refers to any 
321.14  change in operations which would result in or encourage the 
321.15  relocation of residents. 
321.16     (c) "Facility" means a nursing home licensed pursuant to 
321.17  this chapter, or a certified boarding care home licensed 
321.18  pursuant to sections 144.50 to 144.56. 
321.19     (d) "Licensee" means the owner of the facility or the 
321.20  owner's designee or the commissioner of health for a facility in 
321.21  receivership.  
321.22     (e) "Local agency" means the county or multicounty social 
321.23  service agency authorized under sections 393.01 and 393.07, as 
321.24  the agency responsible for providing social services for the 
321.25  county in which the nursing home is located. 
321.26     (f) "Plan" means a process developed under subdivision 3, 
321.27  paragraph (b), for the closure, curtailment, reduction, or 
321.28  change in operations in a facility and the subsequent relocation 
321.29  of residents. 
321.30     (g) "Relocation" means the discharge of a resident and 
321.31  movement of the resident to another facility or living 
321.32  arrangement as a result of the closing, curtailment, reduction, 
321.33  or change in operations of a nursing home or boarding care home. 
321.34     Subd. 2.  [INITIAL NOTICE FROM LICENSEE.] (a) A licensee 
321.35  shall notify the following parties in writing when there is an 
321.36  intent to close or curtail, reduce, or change operations which 
322.1   would result in or encourage the relocation of residents:  
322.2      (1) the commissioner of health; 
322.3      (2) the commissioner of human services; 
322.4      (3) the local agency; 
322.5      (4) the office of the ombudsman for older Minnesotans; and 
322.6      (5) the office of the ombudsman for mental health and 
322.7   mental retardation.  
322.8      (b) The written notice shall include the names, telephone 
322.9   numbers, facsimile numbers, and e-mail addresses of the persons 
322.10  in the facility responsible for coordinating the licensee's 
322.11  efforts in the planning process, and the number of residents 
322.12  potentially affected by the closure or curtailment, reduction, 
322.13  or change in operations. 
322.14     Subd. 3.  [PLANNING PROCESS.] (a) The local agency shall, 
322.15  within five working days of receiving initial notice of the 
322.16  licensee's intent to close or curtail, reduce, or change 
322.17  operations, provide the licensee and all parties identified in 
322.18  subdivision 2, paragraph (a), with the names, telephone numbers, 
322.19  facsimile numbers, and e-mail addresses of those persons 
322.20  responsible for coordinating local agency efforts in the 
322.21  planning process. 
322.22     (b) Within ten working days of receipt of the notice under 
322.23  paragraph (a), the local agency and licensee shall meet to 
322.24  develop the relocation plan.  The local agency shall inform the 
322.25  departments of health and human services, the office of the 
322.26  ombudsman for older Minnesotans, and the office of the ombudsman 
322.27  for mental health and mental retardation of the date, time, and 
322.28  location of the meeting so that their representatives may 
322.29  attend.  The relocation plan must be completed within 45 days of 
322.30  receipt of the initial notice.  However, the plan may be 
322.31  finalized on an earlier schedule agreed to by all parties.  To 
322.32  the extent practicable, consistent with requirements to protect 
322.33  the safety and health of residents, the commissioner may 
322.34  authorize the planning process under this subdivision to occur 
322.35  concurrent with the 60-day notice required under subdivision 
322.36  5a.  The plan shall: 
323.1      (1) identify the expected date of closure, curtailment, 
323.2   reduction, or change in operations; 
323.3      (2) outline the process for public notification of the 
323.4   closure, curtailment, reduction, or change in operations; 
323.5      (3) identify efforts that will be made to include other 
323.6   stakeholders in the relocation process; 
323.7      (4) outline the process to ensure 60-day advance written 
323.8   notice to residents, family members, and designated 
323.9   representatives; 
323.10     (5) present an aggregate description of the resident 
323.11  population remaining to be relocated and the population's needs; 
323.12     (6) outline the individual resident assessment process to 
323.13  be utilized; 
323.14     (7) identify an inventory of available relocation options, 
323.15  including home and community-based services; 
323.16     (8) identify a timeline for submission of the list 
323.17  identified in subdivision 5c, paragraph (b); and 
323.18     (9) identify a schedule for the timely completion of each 
323.19  element of the plan.  
323.20     (c) All parties to the plan shall refrain from any public 
323.21  notification of the intent to close or curtail, reduce, or 
323.22  change operations until a relocation plan has been established.  
323.23  If the planning process occurs concurrently with the 60-day 
323.24  notice period, this requirement does not apply once 60-day 
323.25  notice is given. 
323.26     Subd. 4.  [RESPONSIBILITIES OF LICENSEE FOR RESIDENT 
323.27  RELOCATIONS.] The licensee shall provide for the safe, orderly, 
323.28  and appropriate relocation of residents.  The licensee and 
323.29  facility staff shall cooperate with representatives from the 
323.30  local agency, the department of health, the department of human 
323.31  services, the office of ombudsman for older Minnesotans, and 
323.32  ombudsman for mental health and mental retardation in planning 
323.33  for and implementing the relocation of residents. 
323.34     Subd. 5.  [LICENSEE RESPONSIBILITIES PRIOR TO 
323.35  RELOCATION.] (a) The licensee shall establish an 
323.36  interdisciplinary team responsible for coordinating and 
324.1   implementing the plan.  The interdisciplinary team shall include 
324.2   representatives from the local agency, the office of ombudsman 
324.3   for older Minnesotans, facility staff that provide direct care 
324.4   services to the residents, and facility administration. 
324.5      (b) The licensee shall provide a list to the local agency 
324.6   that includes the following information on each resident to be 
324.7   relocated: 
324.8      (1) name; 
324.9      (2) date of birth; 
324.10     (3) social security number; 
324.11     (4) medical assistance identification number; 
324.12     (5) all diagnoses; and 
324.13     (6) the name and contact information for the resident's 
324.14  family or other designated representative. 
324.15     (c) The licensee shall consult with the local agency on the 
324.16  availability and development of available resources and on the 
324.17  resident relocation process. 
324.18     Subd. 5a.  [LICENSEE RESPONSIBILITIES TO PROVIDE 
324.19  NOTICE.] At least 60 days before the proposed date of closing, 
324.20  curtailment, reduction, or change in operations as agreed to in 
324.21  the plan, the licensee shall send a written notice of closure or 
324.22  curtailment, reduction, or change in operations to each resident 
324.23  being relocated, the resident's family member or designated 
324.24  representative, and the resident's attending physician.  The 
324.25  notice must include the following: 
324.26     (1) the date of the proposed closure, curtailment, 
324.27  reduction, or change in operations; 
324.28     (2) the name, address, telephone number, facsimile number, 
324.29  and e-mail address of the individual or individuals in the 
324.30  facility responsible for providing assistance and information; 
324.31     (3) notification of upcoming meetings for residents, 
324.32  families and designated representatives, and resident and family 
324.33  councils to discuss the relocation of residents; 
324.34     (4) the name, address, and telephone number of the local 
324.35  agency contact person; and 
324.36     (5) the name, address, and telephone number of the office 
325.1   of ombudsman for older Minnesotans and the ombudsman for mental 
325.2   health and mental retardation. 
325.3      The notice must comply with all applicable state and 
325.4   federal requirements for notice of transfer or discharge of 
325.5   nursing home residents. 
325.6      Subd. 5b.  [LICENSEE RESPONSIBILITY REGARDING MEDICAL 
325.7   INFORMATION.] The licensee shall request the attending physician 
325.8   provide or arrange for the release of medical information needed 
325.9   to update resident medical records and prepare all required 
325.10  forms and discharge summaries. 
325.11     Subd. 5c.  [LICENSEE RESPONSIBILITY REGARDING PLACEMENT 
325.12  INFORMATION.] (a) The licensee shall provide sufficient 
325.13  preparation to residents to ensure safe, orderly, and 
325.14  appropriate discharge and relocation.  The licensee shall assist 
325.15  residents in finding placements that respond to personal 
325.16  preferences, such as desired geographic location.  
325.17     (b) The licensee shall prepare a resource list with several 
325.18  relocation options for each resident.  The list must contain the 
325.19  following information for each relocation option, when 
325.20  applicable: 
325.21     (1) the name, address, and telephone and facsimile numbers 
325.22  of each facility with appropriate, available beds or services; 
325.23     (2) the certification level of the available beds; 
325.24     (3) the types of services available; and 
325.25     (4) the name, address, and telephone and facsimile numbers 
325.26  of appropriate available home and community-based placements, 
325.27  services, and settings or other options for individuals with 
325.28  special needs.  
325.29  The list shall be made available to residents and their families 
325.30  or designated representatives, and upon request to the office of 
325.31  ombudsman for older Minnesotans, the ombudsman for mental health 
325.32  and mental retardation, and the local agency. 
325.33     (c) The Senior LinkAge line may make available via a Web 
325.34  site the name, address, and telephone and facsimile numbers of 
325.35  each facility with available beds, the certification level of 
325.36  the available beds, the types of services available, and the 
326.1   number of beds that are available as updated daily by the listed 
326.2   facilities.  The licensee must provide residents, their families 
326.3   or designated representatives, the office of the ombudsman for 
326.4   older Minnesotans, the office of the ombudsman for mental health 
326.5   and mental retardation, and the local agency with the toll-free 
326.6   number and Web site address for the Senior LinkAge line.  
326.7      Subd. 5d.  [LICENSEE RESPONSIBILITY TO MEET WITH RESIDENTS 
326.8   AND FAMILIES.] Following the establishment of the plan, the 
326.9   licensee shall conduct meetings with residents, families and 
326.10  designated representatives, and resident and family councils to 
326.11  notify them of the process for resident relocation.  
326.12  Representatives from the local county social services agency, 
326.13  the office of ombudsman for older Minnesotans, the ombudsman for 
326.14  mental health and mental retardation, the commissioner of 
326.15  health, and the commissioner of human services shall receive 
326.16  advance notice of the meetings.  
326.17     Subd. 5e.  [LICENSEE RESPONSIBILITY FOR SITE VISITS.] The 
326.18  licensee shall assist residents desiring to make site visits to 
326.19  facilities with available beds or other appropriate living 
326.20  options to which the resident may relocate, unless it is 
326.21  medically inadvisable, as documented by the attending physician 
326.22  in the resident's care record.  The licensee shall provide or 
326.23  arrange transportation for site visits to facilities or other 
326.24  living options within a 50-mile radius to which the resident may 
326.25  relocate, or within a larger radius if no suitable options are 
326.26  available within 50 miles.  The licensee shall provide available 
326.27  written materials to residents on a potential new facility or 
326.28  living option. 
326.29     Subd. 5f.  [LICENSEE RESPONSIBILITY FOR PERSONAL PROPERTY, 
326.30  PERSONAL FUNDS, AND TELEPHONE SERVICE.] (a) The licensee shall 
326.31  complete an inventory of resident personal possessions and 
326.32  provide a copy of the final inventory to the resident and the 
326.33  resident's designated representative prior to relocation.  The 
326.34  licensee shall be responsible for the transfer of the resident's 
326.35  possessions for all relocations within a 50-mile radius of the 
326.36  facility, or within a larger radius if no suitable options are 
327.1   available within 50 miles.  The licensee shall complete the 
327.2   transfer of resident possessions in a timely manner, but no 
327.3   later than the date of the actual physical relocation of the 
327.4   resident. 
327.5      (b) The licensee shall complete a final accounting of 
327.6   personal funds held in trust by the facility and provide a copy 
327.7   of this accounting to the resident and the resident's family or 
327.8   the resident's designated representative.  The licensee shall be 
327.9   responsible for the transfer of all personal funds held in trust 
327.10  by the facility.  The licensee shall complete the transfer of 
327.11  all personal funds in a timely manner. 
327.12     (c) The licensee shall assist residents with the transfer 
327.13  and reconnection of service for telephones or, for residents who 
327.14  are deaf or blind, other personal communication devices or 
327.15  services.  The licensee shall pay the costs associated with 
327.16  reestablishing service for telephones or other personal 
327.17  communication devices or services, such as connection fees or 
327.18  other one-time charges.  The transfer or reconnection of 
327.19  personal communication devices or services shall be completed in 
327.20  a timely manner. 
327.21     Subd. 5g.  [LICENSEE RESPONSIBILITIES FOR FINAL NOTICE AND 
327.22  RECORDS TRANSFER.] (a) The licensee shall provide the resident, 
327.23  the resident's family or designated representative, and the 
327.24  resident's attending physician final written notice prior to the 
327.25  relocation of the resident.  The notice must: 
327.26     (1) be provided seven days prior to the actual relocation, 
327.27  unless the resident agrees to waive the right to advance notice; 
327.28  and 
327.29     (2) identify the date of the anticipated relocation and the 
327.30  destination to which the resident is being relocated. 
327.31     (b) The licensee shall provide the receiving facility or 
327.32  other health, housing, or care entity with complete and accurate 
327.33  resident records including information on family members, 
327.34  designated representatives, guardians, social service 
327.35  caseworkers, or other contact information.  These records must 
327.36  also include all information necessary to provide appropriate 
328.1   medical care and social services.  This includes, but is not 
328.2   limited to, information on preadmission screening, Level I and 
328.3   Level II screening, minimum data set (MDS), and all other 
328.4   assessments, resident diagnoses, social, behavioral, and 
328.5   medication information. 
328.6      (c) For residents with special care needs, the licensee 
328.7   shall consult with the receiving facility or other placement 
328.8   entity and provide staff training or other preparation as needed 
328.9   to assist in providing for the special needs.  
328.10     Subd. 6.  [RESPONSIBILITIES OF THE LICENSEE DURING 
328.11  RELOCATION.] (a) The licensee shall make arrangements or provide 
328.12  for the transportation of residents to the new facility or 
328.13  placement within a 50-mile radius, or within a larger radius if 
328.14  no suitable options are available within 50 miles.  The licensee 
328.15  shall provide a staff person to accompany the resident during 
328.16  transportation, upon request of the resident, the resident's 
328.17  family, or designated representative.  The discharge and 
328.18  relocation of residents must comply with all applicable state 
328.19  and federal requirements and must be conducted in a safe, 
328.20  orderly, and appropriate manner.  The licensee must ensure that 
328.21  there is no disruption in providing meals, medications, or 
328.22  treatments of a resident during the relocation process.  
328.23     (b) Beginning the week following development of the initial 
328.24  relocation plan, the licensee shall submit biweekly status 
328.25  reports to the commissioners of health and human services or 
328.26  their designees and to the local agency.  The initial status 
328.27  report must identify: 
328.28     (1) the relocation plan developed; 
328.29     (2) the interdisciplinary team members; and 
328.30     (3) the number of residents to be relocated. 
328.31     (c) Subsequent status reports must identify: 
328.32     (1) any modifications to the plan; 
328.33     (2) any change of interdisciplinary team members; 
328.34     (3) the number of residents relocated; 
328.35     (4) the destination to which residents have been relocated; 
328.36     (5) the number of residents remaining to be relocated; and 
329.1      (6) issues or problems encountered during the process and 
329.2   resolution of these issues. 
329.3      Subd. 7.  [RESPONSIBILITIES OF THE LICENSEE FOLLOWING 
329.4   RELOCATION.] The licensee shall retain or make arrangements for 
329.5   the retention of all remaining resident records for the period 
329.6   required by law.  The licensee shall provide the department of 
329.7   health access to these records.  The licensee shall notify the 
329.8   department of health of the location of any resident records 
329.9   that have not been transferred to the new facility or other 
329.10  health care entity. 
329.11     Subd. 8.  [RESPONSIBILITIES OF THE LOCAL AGENCY.] (a) The 
329.12  local agency shall participate in the meeting as outlined in 
329.13  subdivision 3, paragraph (b), to develop a relocation plan. 
329.14     (b) The local agency shall designate a representative to 
329.15  the interdisciplinary team established by the licensee 
329.16  responsible for coordinating the relocation efforts. 
329.17     (c) The local agency shall serve as a resource in the 
329.18  relocation process. 
329.19     (d) Concurrent with the notice sent to residents from the 
329.20  licensee as provided in subdivision 5a, the local agency shall 
329.21  provide written notice to residents, family, or designated 
329.22  representatives describing: 
329.23     (1) the county's role in the relocation process and in the 
329.24  follow-up to relocations; 
329.25     (2) a local agency contact name, address, and telephone 
329.26  number; and 
329.27     (3) the name, address, and telephone number of the office 
329.28  of ombudsman for older Minnesotans and the ombudsman for mental 
329.29  health and mental retardation. 
329.30     (e) The local agency designee shall meet with appropriate 
329.31  facility staff to coordinate any assistance in the relocation 
329.32  process.  This coordination shall include participating in group 
329.33  meetings with residents, families, and designated 
329.34  representatives to explain the relocation process. 
329.35     (f) The local agency shall monitor compliance with all 
329.36  components of the plan.  If the licensee is not in compliance, 
330.1   the local agency shall notify the commissioners of the 
330.2   department of health and the department of human services. 
330.3      (g) Except as requested by the resident, family member, or 
330.4   designated representative and within the parameters of the 
330.5   Vulnerable Adults Act, the local agency may halt a relocation 
330.6   that it deems inappropriate or dangerous to the health or safety 
330.7   of a resident.  The local agency shall pursue remedies to 
330.8   protect the resident during the relocation process, including, 
330.9   but not limited to, assisting the resident with filing an appeal 
330.10  of transfer or discharge, notification of all appropriate 
330.11  licensing boards and agencies, and other remedies available to 
330.12  the county under section 626.557, subdivision 10. 
330.13     (h) A member of the local agency staff shall visit 
330.14  residents relocated within 100 miles of the county within 30 
330.15  days after the relocation.  Local agency staff shall interview 
330.16  the resident and family or designated representative, observe 
330.17  the resident on site, and review and discuss pertinent medical 
330.18  or social records with appropriate facility staff to: 
330.19     (1) assess the adjustment of the resident to the new 
330.20  placement; 
330.21     (2) recommend services or methods to meet any special needs 
330.22  of the resident; and 
330.23     (3) identify residents at risk. 
330.24     (i) The local agency may conduct subsequent follow-up 
330.25  visits in cases where the adjustment of the resident to the new 
330.26  placement is in question. 
330.27     (j) Within 60 days of the completion of the follow-up 
330.28  visits, the local agency shall submit a written summary of the 
330.29  follow-up work to the department of health and the department of 
330.30  human services in a manner approved by the commissioners. 
330.31     (k) The local agency shall submit to the department of 
330.32  health and the department of human services a report of any 
330.33  issues that may require further review or monitoring. 
330.34     (l) The local agency shall be responsible for the safe and 
330.35  orderly relocation of residents in cases where an emergent need 
330.36  arises or when the licensee has abrogated its responsibilities 
331.1   under the plan. 
331.2      Subd. 9.  [PENALTIES.] Upon the recommendation of the 
331.3   commissioner of health, the commissioner of human services may 
331.4   eliminate a closure rate adjustment under subdivision 10 for 
331.5   violations of this section. 
331.6      Subd. 10.  [FACILITY CLOSURE RATE ADJUSTMENT.] Upon the 
331.7   request of a closing facility, the commissioner of human 
331.8   services must allow the facility a closure rate adjustment equal 
331.9   to a 50 percent payment rate increase to reimburse relocation 
331.10  costs or other costs related to facility closure.  This rate 
331.11  increase is effective on the date the facility's occupancy 
331.12  decreases to 90 percent of capacity days after the written 
331.13  notice of closure is distributed under subdivision 5 and shall 
331.14  remain in effect for a period of up to 60 days.  The 
331.15  commissioner shall delay the implementation of rate adjustments 
331.16  under section 256B.437, subdivisions 3, paragraph (b), and 6, 
331.17  paragraph (a), to offset the cost of this rate adjustment. 
331.18     Subd. 11.  [COUNTY COSTS.] The commissioner of human 
331.19  services shall allocate up to $450 in total state and federal 
331.20  funds per nursing facility bed that is closing, within the 
331.21  limits of the appropriation specified for this purpose, to be 
331.22  used for relocation costs incurred by counties for resident 
331.23  relocation under this section or planned closures under section 
331.24  256B.437.  To be eligible for this allocation, a county in which 
331.25  a nursing facility closes must provide to the commissioner a 
331.26  detailed statement in a form provided by the commissioner of 
331.27  additional costs, not to exceed $450 in total state and federal 
331.28  funds per bed closed, that are directly incurred related to the 
331.29  county's role in the relocation process. 
331.30     Sec. 10.  [144A.162] [TRANSFER OF RESIDENTS WITHIN 
331.31  FACILITIES.] 
331.32     The licensee shall provide for the safe, orderly, and 
331.33  appropriate transfer of residents within the facility.  In 
331.34  situations where there is a curtailment, reduction, capital 
331.35  improvement, or change in operations within a facility, the 
331.36  licensee shall minimize the number of intra-facility transfers 
332.1   needed to complete the project or change in operations, consider 
332.2   individual resident needs and preferences, and provide 
332.3   reasonable accommodation for individual resident requests 
332.4   regarding their room transfer.  The licensee shall provide 
332.5   notice to the office of ombudsman for older Minnesotans and, 
332.6   when appropriate, the office of ombudsman for mental health and 
332.7   mental retardation, in advance of any notice to residents and 
332.8   family, when all of the following circumstances apply: 
332.9      (1) the transfers of residents within the facility are 
332.10  being proposed due to curtailment, reduction, capital 
332.11  improvements or change in operations; 
332.12     (2) the transfers of residents within the facility are not 
332.13  temporary moves to accommodate physical plan upgrades or 
332.14  renovation; and 
332.15     (3) the transfers involve multiple residents being moved 
332.16  simultaneously. 
332.17     Sec. 11.  [144A.1888] [REUSE OF FACILITIES.] 
332.18     Notwithstanding any local ordinance related to development, 
332.19  planning, or zoning to the contrary, the conversion or reuse of 
332.20  a nursing home that closes or that curtails, reduces, or changes 
332.21  operations shall be considered a conforming use permitted under 
332.22  local law, provided that the facility is converted to another 
332.23  long-term care service approved by a regional planning group 
332.24  under section 256B.437 that serves a smaller number of persons 
332.25  than the number of persons served before the closure or 
332.26  curtailment, reduction, or change in operations. 
332.27     Sec. 12.  [144A.36] [TRANSITION PLANNING GRANTS.] 
332.28     Subdivision 1.  [DEFINITIONS.] "Eligible nursing home" 
332.29  means any nursing home licensed under sections 144A.01 to 
332.30  144A.16 and certified by the appropriate authority under United 
332.31  States Code, title 42, sections 1396-1396p, to participate as a 
332.32  vendor in the medical assistance program established under 
332.33  chapter 256B. 
332.34     Subd. 2.  [GRANTS AUTHORIZED.] (a) The commissioner shall 
332.35  establish a program of transition planning grants to assist 
332.36  eligible nursing homes in implementing the provisions in 
333.1   paragraphs (b) and (c).  
333.2      (b) Transition planning grants may be used by nursing homes 
333.3   to develop strategic plans which identify the appropriate 
333.4   institutional and noninstitutional settings necessary to meet 
333.5   the older adult service needs of the community.  
333.6      (c) At a minimum, a strategic plan must consist of: 
333.7      (1) a needs assessment to determine what older adult 
333.8   services are needed and desired by the community; 
333.9      (2) an assessment of the appropriate settings in which to 
333.10  provide needed older adult services; 
333.11     (3) an assessment identifying currently available services 
333.12  and their settings in the community; and 
333.13     (4) a transition plan to achieve the needed outcome 
333.14  identified by the assessment. 
333.15     Subd. 3.  [ALLOCATION OF GRANTS.] (a) Eligible nursing 
333.16  homes must apply to the commissioner no later than September 1 
333.17  of each fiscal year for grants awarded in that fiscal year.  A 
333.18  grant shall be awarded upon signing of a grant contract. 
333.19     (b) The commissioner must make a final decision on the 
333.20  funding of each application within 60 days of the deadline for 
333.21  receiving applications. 
333.22     Subd. 4.  [EVALUATION.] The commissioner shall evaluate the 
333.23  overall effectiveness of the grant program.  The commissioner 
333.24  may collect, from the nursing homes receiving grants, the 
333.25  information necessary to evaluate the grant program.  
333.26  Information related to the financial condition of individual 
333.27  nursing homes shall be classified as nonpublic data. 
333.28     Sec. 13.  [144A.37] [ALTERNATIVE NURSING HOME SURVEY 
333.29  PROCESS.] 
333.30     Subdivision 1.  [ALTERNATIVE NURSING HOME SURVEY 
333.31  SCHEDULES.] (a) The commissioner of health shall implement 
333.32  alternative procedures for the nursing home survey process as 
333.33  authorized under this section.  
333.34     (b) These alternative survey process procedures seek to:  
333.35  (1) use department resources more effectively and efficiently to 
333.36  target problem areas; (2) use other existing or new mechanisms 
334.1   to provide objective assessments of quality and to measure 
334.2   quality improvement; (3) provide for frequent collaborative 
334.3   interaction of facility staff and surveyors rather than a 
334.4   punitive approach; and (4) reward a nursing home that has 
334.5   performed very well by extending intervals between full surveys. 
334.6      (c) The commissioner shall pursue changes in federal law 
334.7   necessary to accomplish this process and shall apply for any 
334.8   necessary federal waivers or approval.  If a federal waiver is 
334.9   approved, the commissioner shall promptly submit, to the house 
334.10  and senate committees with jurisdiction over health and human 
334.11  services policy and finance, fiscal estimates for implementing 
334.12  the alternative survey process waiver.  The commissioner shall 
334.13  also pursue any necessary federal law changes during the 107th 
334.14  Congress. 
334.15     (d) The alternative nursing home survey schedule and 
334.16  related educational activities shall not be implemented until 
334.17  funding is appropriated by the legislature. 
334.18     Subd. 2.  [SURVEY INTERVALS.] The commissioner of health 
334.19  must extend the time period between standard surveys up to 30 
334.20  months based on the criteria established in subdivision 4.  In 
334.21  using the alternative survey schedule, the requirement for the 
334.22  statewide average to not exceed 12 months does not apply. 
334.23     Subd. 3.  [COMPLIANCE HISTORY.] The commissioner shall 
334.24  develop a process for identifying the survey cycles for skilled 
334.25  nursing facilities based upon the compliance history of the 
334.26  facility.  This process can use a range of months for survey 
334.27  intervals.  At a minimum, the process must be based on 
334.28  information from the last two survey cycles and shall take into 
334.29  consideration any deficiencies issued as the result of a survey 
334.30  or a complaint investigation during the interval.  A skilled 
334.31  nursing facility with a finding of substandard quality of care 
334.32  or a finding of immediate jeopardy is not entitled to a survey 
334.33  interval greater than 12 months.  The commissioner shall alter 
334.34  the survey cycle for a specific skilled nursing facility based 
334.35  on findings identified through the completion of a survey, a 
334.36  monitoring visit, or a complaint investigation.  The 
335.1   commissioner must also take into consideration information other 
335.2   than the facility's compliance history. 
335.3      Subd. 4.  [CRITERIA FOR SURVEY INTERVAL 
335.4   CLASSIFICATION.] (a) The commissioner shall provide public 
335.5   notice of the classification process and shall identify the 
335.6   selected survey cycles for each skilled nursing facility.  The 
335.7   classification system must be based on an analysis of the 
335.8   findings made during the past two standard survey intervals, but 
335.9   it only takes one survey or complaint finding to modify the 
335.10  interval. 
335.11     (b) The commissioner shall also take into consideration 
335.12  information obtained from residents and family members in each 
335.13  skilled nursing facility and from other sources such as 
335.14  employees and ombudsmen in determining the appropriate survey 
335.15  intervals for facilities. 
335.16     Subd. 5.  [REQUIRED MONITORING.] (a) The commissioner shall 
335.17  conduct at least one monitoring visit on an annual basis for 
335.18  every skilled nursing facility which has been selected for a 
335.19  survey cycle greater than 12 months.  The commissioner shall 
335.20  develop protocols for the monitoring visits which shall be less 
335.21  extensive than the requirements for a standard survey.  The 
335.22  commissioner shall use the criteria in paragraph (b) to 
335.23  determine whether additional monitoring visits to a facility 
335.24  will be required.  
335.25     (b) The criteria shall include, but not be limited to, the 
335.26  following: 
335.27     (1) changes in ownership, administration of the facility, 
335.28  or direction of the facility's nursing service; 
335.29     (2) changes in the facility's quality indicators which 
335.30  might evidence a decline in the facility's quality of care; 
335.31     (3) reductions in staffing or an increase in the 
335.32  utilization of temporary nursing personnel; and 
335.33     (4) complaint information or other information that 
335.34  identifies potential concerns for the quality of the care and 
335.35  services provided in the skilled nursing facility. 
335.36     Subd. 6.  [SURVEY REQUIREMENTS FOR FACILITIES NOT APPROVED 
336.1   FOR EXTENDED SURVEY INTERVALS.] The commissioner shall establish 
336.2   a process for surveying and monitoring of facilities which 
336.3   require a survey interval of less than 15 months.  This 
336.4   information shall identify the steps that the commissioner must 
336.5   take to monitor the facility in addition to the standard survey. 
336.6      Subd. 7.  [IMPACT ON SURVEY AGENCY'S BUDGET.] The 
336.7   implementation of an alternative survey process for the state 
336.8   must not result in any reduction of funding that would have been 
336.9   provided to the state survey agency for survey and enforcement 
336.10  activity based upon the completion of full standard surveys for 
336.11  each skilled nursing facility in the state. 
336.12     Subd. 8.  [EDUCATIONAL ACTIVITIES.] The commissioner shall 
336.13  expand the state survey agency's ability to conduct training and 
336.14  educational efforts for skilled nursing facilities, residents 
336.15  and family members, residents and family councils, long-term 
336.16  care ombudsman programs, and the general public. 
336.17     Subd. 9.  [EVALUATION.] The commissioner shall develop a 
336.18  process for the evaluation of the effectiveness of an 
336.19  alternative survey process conducted under this section. 
336.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
336.21  following final enactment. 
336.22     Sec. 14.  [144A.38] [INNOVATIONS IN QUALITY DEMONSTRATION 
336.23  GRANTS.] 
336.24     Subdivision 1.  [PROGRAM ESTABLISHED.] The commissioner of 
336.25  health and the commissioner of human services shall establish a 
336.26  long-term care grant program that demonstrates best practices 
336.27  and innovation for long-term care service delivery and housing.  
336.28  The grants must fund demonstrations that create new means and 
336.29  models for serving the elderly or demonstrate creativity in 
336.30  service provision through the scope of their program or service. 
336.31     Subd. 2.  [ELIGIBILITY.] Grants may only be made to those 
336.32  who provide direct service or housing to the elderly within the 
336.33  state.  Grants may only be made for projects that show 
336.34  innovations and measurable improvement in resident care, quality 
336.35  of life, use of technology, or customer satisfaction. 
336.36     Subd. 3.  [AWARDING OF GRANTS.] (a) Applications for grants 
337.1   must be made to the commissioners on forms prescribed by the 
337.2   commissioners. 
337.3      (b) The commissioners shall review applications and award 
337.4   grants based on the following criteria: 
337.5      (1) improvement in direct care to residents; 
337.6      (2) increase in efficiency through the use of technology; 
337.7      (3) increase in quality of care through the use of 
337.8   technology; 
337.9      (4) increase in the access and delivery of service; 
337.10     (5) enhancement of nursing staff training; 
337.11     (6) the effectiveness of the project as a demonstration; 
337.12  and 
337.13     (7) the immediate transferability of the project to scale. 
337.14     (c) In reviewing applications and awarding grants, the 
337.15  commissioners shall consult with long-term care providers, 
337.16  consumers of long-term care, long-term care researchers, and 
337.17  staff of other state agencies. 
337.18     (d) Grants for eligible projects may not exceed $100,000. 
337.19     Sec. 15.  Minnesota Statutes 2000, section 256B.431, 
337.20  subdivision 2e, is amended to read: 
337.21     Subd. 2e.  [CONTRACTS FOR SERVICES FOR VENTILATOR-DEPENDENT 
337.22  PERSONS.] The commissioner may contract with a nursing facility 
337.23  eligible to receive medical assistance payments to provide 
337.24  services to a ventilator-dependent person identified by the 
337.25  commissioner according to criteria developed by the 
337.26  commissioner, including:  
337.27     (1) nursing facility care has been recommended for the 
337.28  person by a preadmission screening team; 
337.29     (2) the person has been assessed at case mix classification 
337.30  K; 
337.31     (3) the person has been hospitalized for at least six 
337.32  months and no longer requires inpatient acute care hospital 
337.33  services; and 
337.34     (4) (3) the commissioner has determined that necessary 
337.35  services for the person cannot be provided under existing 
337.36  nursing facility rates.  
338.1      The commissioner may issue a request for proposals to 
338.2   provide services to a ventilator-dependent person to nursing 
338.3   facilities eligible to receive medical assistance payments and 
338.4   shall select nursing facilities from among respondents according 
338.5   to criteria developed by the commissioner, including:  
338.6      (1) the cost-effectiveness and appropriateness of services; 
338.7      (2) the nursing facility's compliance with federal and 
338.8   state licensing and certification standards; and 
338.9      (3) the proximity of the nursing facility to a 
338.10  ventilator-dependent person identified by the commissioner who 
338.11  requires nursing facility placement.  
338.12     The commissioner may negotiate an adjustment to the 
338.13  operating cost payment rate for a nursing facility selected by 
338.14  the commissioner from among respondents to the request for 
338.15  proposals.  The negotiated adjustment must reflect only the 
338.16  actual additional cost of meeting the specialized care needs of 
338.17  a ventilator-dependent person identified by the commissioner for 
338.18  whom necessary services cannot be provided under existing 
338.19  nursing facility rates and which are not otherwise covered under 
338.20  Minnesota Rules, parts 9549.0010 to 9549.0080 or 9505.0170 to 
338.21  9505.0475.  For persons who are initially admitted to a nursing 
338.22  facility before July 1, 2001, and have their payment rate under 
338.23  this subdivision negotiated after July 1, 2001, the negotiated 
338.24  payment rate must not exceed 200 percent of the highest multiple 
338.25  bedroom payment rate for a Minnesota nursing the facility, as 
338.26  initially established by the commissioner for the rate year for 
338.27  case mix classification K.  For persons initially admitted to a 
338.28  nursing facility on or after July 1, 2001, the negotiated 
338.29  payment rate must not exceed 300 percent of the facility's 
338.30  multiple bedroom payment rate for case mix classification K.  
338.31  The negotiated adjustment shall not affect the payment rate 
338.32  charged to private paying residents under the provisions of 
338.33  section 256B.48, subdivision 1. 
338.34     Sec. 16.  Minnesota Statutes 2000, section 256B.431, 
338.35  subdivision 17, is amended to read: 
338.36     Subd. 17.  [SPECIAL PROVISIONS FOR MORATORIUM EXCEPTIONS.] 
339.1   (a) Notwithstanding Minnesota Rules, part 9549.0060, subpart 3, 
339.2   for rate periods beginning on October 1, 1992, and for rate 
339.3   years beginning after June 30, 1993, a nursing facility that (1) 
339.4   has completed a construction project approved under section 
339.5   144A.071, subdivision 4a, clause (m); (2) has completed a 
339.6   construction project approved under section 144A.071, 
339.7   subdivision 4a, and effective after June 30, 1995; or (3) has 
339.8   completed a renovation, replacement, or upgrading project 
339.9   approved under the moratorium exception process in section 
339.10  144A.073 shall be reimbursed for costs directly identified to 
339.11  that project as provided in subdivision 16 and this subdivision. 
339.12     (b) Notwithstanding Minnesota Rules, part 9549.0060, 
339.13  subparts 5, item A, subitems (1) and (3), and 7, item D, 
339.14  allowable interest expense on debt shall include: 
339.15     (1) interest expense on debt related to the cost of 
339.16  purchasing or replacing depreciable equipment, excluding 
339.17  vehicles, not to exceed six percent of the total historical cost 
339.18  of the project; and 
339.19     (2) interest expense on debt related to financing or 
339.20  refinancing costs, including costs related to points, loan 
339.21  origination fees, financing charges, legal fees, and title 
339.22  searches; and issuance costs including bond discounts, bond 
339.23  counsel, underwriter's counsel, corporate counsel, printing, and 
339.24  financial forecasts.  Allowable debt related to items in this 
339.25  clause shall not exceed seven percent of the total historical 
339.26  cost of the project.  To the extent these costs are financed, 
339.27  the straight-line amortization of the costs in this clause is 
339.28  not an allowable cost; and 
339.29     (3) interest on debt incurred for the establishment of a 
339.30  debt reserve fund, net of the interest earned on the debt 
339.31  reserve fund. 
339.32     (c) Debt incurred for costs under paragraph (b) is not 
339.33  subject to Minnesota Rules, part 9549.0060, subpart 5, item A, 
339.34  subitem (5) or (6). 
339.35     (d) The incremental increase in a nursing facility's rental 
339.36  rate, determined under Minnesota Rules, parts 9549.0010 to 
340.1   9549.0080, and this section, resulting from the acquisition of 
340.2   allowable capital assets, and allowable debt and interest 
340.3   expense under this subdivision shall be added to its 
340.4   property-related payment rate and shall be effective on the 
340.5   first day of the month following the month in which the 
340.6   moratorium project was completed. 
340.7      (e) Notwithstanding subdivision 3f, paragraph (a), for rate 
340.8   periods beginning on October 1, 1992, and for rate years 
340.9   beginning after June 30, 1993, the replacement-costs-new per bed 
340.10  limit to be used in Minnesota Rules, part 9549.0060, subpart 4, 
340.11  item B, for a nursing facility that has completed a renovation, 
340.12  replacement, or upgrading project that has been approved under 
340.13  the moratorium exception process in section 144A.073, or that 
340.14  has completed an addition to or replacement of buildings, 
340.15  attached fixtures, or land improvements for which the total 
340.16  historical cost exceeds the lesser of $150,000 or ten percent of 
340.17  the most recent appraised value, must be $47,500 per licensed 
340.18  bed in multiple-bed rooms and $71,250 per licensed bed in a 
340.19  single-bed room.  These amounts must be adjusted annually as 
340.20  specified in subdivision 3f, paragraph (a), beginning January 1, 
340.21  1993. 
340.22     (f) For purposes of this paragraph, a total replacement 
340.23  means the complete replacement of the nursing facility's 
340.24  physical plant through the construction of a new physical plant, 
340.25  the transfer of the nursing facility's license from one physical 
340.26  plant location to another, or a new building addition to 
340.27  relocate beds from three- and four-bed wards.  For total 
340.28  replacement projects completed on or after July 1, 1992, the 
340.29  commissioner shall compute the incremental change in the nursing 
340.30  facility's rental per diem, for rate years beginning on or after 
340.31  July 1, 1995, by replacing its appraised value, including the 
340.32  historical capital asset costs, and the capital debt and 
340.33  interest costs with the new nursing facility's allowable capital 
340.34  asset costs and the related allowable capital debt and interest 
340.35  costs.  If the new nursing facility has decreased its licensed 
340.36  capacity, the aggregate investment per bed limit in subdivision 
341.1   3a, paragraph (c), shall apply.  If the new nursing facility has 
341.2   retained a portion of the original physical plant for nursing 
341.3   facility usage, then a portion of the appraised value prior to 
341.4   the replacement must be retained and included in the calculation 
341.5   of the incremental change in the nursing facility's rental per 
341.6   diem.  For purposes of this part, the original nursing facility 
341.7   means the nursing facility prior to the total replacement 
341.8   project.  The portion of the appraised value to be retained 
341.9   shall be calculated according to clauses (1) to (3): 
341.10     (1) The numerator of the allocation ratio shall be the 
341.11  square footage of the area in the original physical plant which 
341.12  is being retained for nursing facility usage. 
341.13     (2) The denominator of the allocation ratio shall be the 
341.14  total square footage of the original nursing facility physical 
341.15  plant. 
341.16     (3) Each component of the nursing facility's allowable 
341.17  appraised value prior to the total replacement project shall be 
341.18  multiplied by the allocation ratio developed by dividing clause 
341.19  (1) by clause (2). 
341.20     In the case of either type of total replacement as 
341.21  authorized under section 144A.071 or 144A.073, the provisions of 
341.22  this subdivision shall also apply.  For purposes of the 
341.23  moratorium exception authorized under section 144A.071, 
341.24  subdivision 4a, paragraph (s), if the total replacement involves 
341.25  the renovation and use of an existing health care facility 
341.26  physical plant, the new allowable capital asset costs and 
341.27  related debt and interest costs shall include first the 
341.28  allowable capital asset costs and related debt and interest 
341.29  costs of the renovation, to which shall be added the allowable 
341.30  capital asset costs of the existing physical plant prior to the 
341.31  renovation, and if reported by the facility, the related 
341.32  allowable capital debt and interest costs. 
341.33     (g) Notwithstanding Minnesota Rules, part 9549.0060, 
341.34  subpart 11, item C, subitem (2), for a total replacement, as 
341.35  defined in paragraph (f), authorized under section 144A.071 or 
341.36  144A.073 after July 1, 1999, or any building project that is a 
342.1   relocation, renovation, upgrading, or conversion authorized 
342.2   under section 144A.073, completed on or after July 1, 2001, the 
342.3   replacement-costs-new per bed limit shall be $74,280 per 
342.4   licensed bed in multiple-bed rooms, $92,850 per licensed bed in 
342.5   semiprivate rooms with a fixed partition separating the resident 
342.6   beds, and $111,420 per licensed bed in single rooms.  Minnesota 
342.7   Rules, part 9549.0060, subpart 11, item C, subitem (2), does not 
342.8   apply.  These amounts must be adjusted annually as specified in 
342.9   subdivision 3f, paragraph (a), beginning January 1, 2000.  
342.10     (h) For a total replacement, as defined in paragraph (f), 
342.11  authorized under section 144A.073 for a 96-bed nursing home in 
342.12  Carlton county, the replacement-costs-new per bed limit shall be 
342.13  $74,280 per licensed bed in multiple-bed rooms, $92,850 per 
342.14  licensed bed in semiprivate rooms with a fixed partition 
342.15  separating the resident's beds, and $111,420 per licensed bed in 
342.16  a single room.  Minnesota Rules, part 9549.0060, subpart 11, 
342.17  item C, subitem (2), does not apply.  The resulting maximum 
342.18  allowable replacement-costs-new multiplied by 1.25 shall 
342.19  constitute the project's dollar threshold for purposes of 
342.20  application of the limit set forth in section 144A.071, 
342.21  subdivision 2.  The commissioner of health may waive the 
342.22  requirements of section 144A.073, subdivision 3b, paragraph (b), 
342.23  clause (2), on the condition that the other requirements of that 
342.24  paragraph are met. 
342.25     (i) For a renovation authorized under section 144A.073 for 
342.26  a 65-bed nursing home in St. Louis county, the incremental 
342.27  increase in rental rate for purposes of paragraph (d) shall be 
342.28  $8.16, and the total replacement cost, allowable appraised 
342.29  value, allowable debt, and allowable interest shall be increased 
342.30  according to the incremental increase. 
342.31     (j) For a total replacement, as defined in paragraph (f), 
342.32  authorized under section 144A.073 involving a new building 
342.33  addition that relocates beds from three-bed wards for an 80-bed 
342.34  nursing home in Redwood county, the replacement-costs-new per 
342.35  bed limit shall be $74,280 per licensed bed for multiple-bed 
342.36  rooms; $92,850 per licensed bed for semiprivate rooms with a 
343.1   fixed partition separating the beds; and $111,420 per licensed 
343.2   bed for single rooms.  These amounts shall be adjusted annually, 
343.3   beginning January 1, 2001.  Minnesota Rules, part 9549.0060, 
343.4   subpart 11, item C, subitem (2), does not apply.  The resulting 
343.5   maximum allowable replacement-costs-new multiplied by 1.25 shall 
343.6   constitute the project's dollar threshold for purposes of 
343.7   application of the limit set forth in section 144A.071, 
343.8   subdivision 2.  The commissioner of health may waive the 
343.9   requirements of section 144A.073, subdivision 3b, paragraph (b), 
343.10  clause (2), on the condition that the other requirements of that 
343.11  paragraph are met. 
343.12     Sec. 17.  Minnesota Statutes 2000, section 256B.431, is 
343.13  amended by adding a subdivision to read: 
343.14     Subd. 31.  [NURSING FACILITY RATE INCREASES BEGINNING JULY 
343.15  1, 2001, AND JULY 1, 2002.] For the rate years beginning July 1, 
343.16  2001, and July 1, 2002, the commissioner shall provide to each 
343.17  nursing facility reimbursed under this section or section 
343.18  256B.434 an adjustment equal to 3.0 percent of the total 
343.19  operating payment rate.  The operating payment rates in effect 
343.20  on June 30, 2001, shall include the adjustment in subdivision 
343.21  2i, paragraph (c). 
343.22     Sec. 18.  Minnesota Statutes 2000, section 256B.431, is 
343.23  amended by adding a subdivision to read: 
343.24     Subd. 32.  [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 
343.25  years beginning on or after July 1, 2001, the total payment rate 
343.26  for a facility reimbursed under this section, section 256B.434, 
343.27  or any other section for the first 90 paid days after admission 
343.28  shall be: 
343.29     (1) for the first 30 paid days, the rate shall be 120 
343.30  percent of the facility's medical assistance rate for each case 
343.31  mix class; and 
343.32     (2) for the next 60 paid days after the first 30 paid days, 
343.33  the rate shall be 110 percent of the facility's medical 
343.34  assistance rate for each case mix class. 
343.35     (b) Beginning with the 91st paid day after admission, the 
343.36  payment rate shall be the rate otherwise determined under this 
344.1   section, section 256B.434, or any other section. 
344.2      (c) This subdivision applies to admissions occurring on or 
344.3   after July 1, 2001. 
344.4      Sec. 19.  Minnesota Statutes 2000, section 256B.431, is 
344.5   amended by adding a subdivision to read: 
344.6      Subd. 33.  [STAGED REDUCTION IN RATE DISPARITIES.] (a) For 
344.7   the rate years beginning July 1, 2001, and July 1, 2002, the 
344.8   commissioner shall adjust the operating payment rates for 
344.9   low-rate nursing facilities reimbursed under this section or 
344.10  section 256B.434.  
344.11     (b) For the rate year beginning July 1, 2001, for each case 
344.12  mix level, if the amount computed under subdivision 32 is less 
344.13  than the amount in clause (1), the commissioner shall make 
344.14  available the lesser of the amount in clause (1) or an increase 
344.15  of ten percent over the rate in effect on June 30, 2001, as an 
344.16  adjustment to the operating payment rate.  For the rate year 
344.17  beginning July 1, 2002, for each case mix level, if the amount 
344.18  computed under subdivision 32 is less than the amount in clause 
344.19  (2), the commissioner shall make available the lesser of the 
344.20  amount in clause (2) or an increase of ten percent over the rate 
344.21  in effect on June 30, 2002, as an adjustment to the operating 
344.22  payment rate.  For purposes of this subdivision, nursing 
344.23  facilities shall be considered to be metro if they are located 
344.24  in Anoka, Carver, Dakota, Hennepin, Olmsted, Ramsey, Scott, or 
344.25  Washington counties; or in the cities of Moorhead or 
344.26  Breckenridge; or in St. Louis county, north of Toivola and south 
344.27  of Cook; or in Itasca county, east of a north south line two 
344.28  miles west of Grand Rapids:  
344.29     (1) Operating Payment Rate Target Level for July 1, 2001: 
344.30      Case Mix Classification        Metro       Nonmetro
344.31                A                    $ 76.00     $ 68.13
344.32                B                    $ 83.40     $ 74.46
344.33                C                    $ 91.67     $ 81.63
344.34                D                    $ 99.51     $ 88.04
344.35                E                    $107.46     $ 94.87
344.36                F                    $107.96     $ 95.29
345.1                 G                    $114.67     $100.98
345.2                 H                    $126.99     $111.31
345.3                 I                    $131.42     $115.06
345.4                 J                    $138.34     $120.85
345.5                 K                    $152.26     $133.10
345.6      (2) Operating Payment Rate Target Level for July 1, 2002: 
345.7       Case Mix Classification        Metro       Nonmetro
345.8                 A                    $ 78.28     $ 70.51
345.9                 B                    $ 85.91     $ 77.16
345.10                C                    $ 94.42     $ 84.62
345.11                D                    $102.50     $ 91.42
345.12                E                    $110.68     $ 98.40
345.13                F                    $111.20     $ 98.84
345.14                G                    $118.11     $104.77
345.15                H                    $130.80     $115.64
345.16                I                    $135.38     $119.50
345.17                J                    $142.49     $125.38
345.18                K                    $156.85     $137.77
345.19     Sec. 20.  Minnesota Statutes 2000, section 256B.431, is 
345.20  amended by adding a subdivision to read: 
345.21     Subd. 34.  [NURSING FACILITY RATE INCREASES BEGINNING JULY 
345.22  1, 2001, AND JULY 1, 2002.] (a) For the rate years beginning 
345.23  July 1, 2001, and July 1, 2002, two-thirds of the money 
345.24  resulting from the rate adjustment under subdivision 31 and 
345.25  one-half of the money resulting from the rate adjustment under 
345.26  subdivisions 32 and 33 must be used to increase the wages and 
345.27  benefits and pay associated costs of all employees except 
345.28  management fees, the administrator, and central office staff. 
345.29     (b) Money received by a facility as a result of the rate 
345.30  adjustments provided in subdivisions 31 to 33, which must be 
345.31  used as provided in paragraph (a), must be used only for wage 
345.32  and benefit increases implemented on or after July 1, 2001, or 
345.33  July 1, 2002, respectively, and must not be used for wage 
345.34  increases implemented prior to those dates. 
345.35     (c) Nursing facilities may apply for the portions of the 
345.36  rate adjustments under subdivisions 31 to 33, which must be used 
346.1   as provided in paragraph (a).  The application must be made to 
346.2   the commissioner and contain a plan by which the nursing 
346.3   facility will distribute to employees of the nursing facility 
346.4   the funds, which must be used as provided in paragraph (a).  For 
346.5   nursing facilities in which the employees are represented by an 
346.6   exclusive bargaining representative, an agreement negotiated and 
346.7   agreed to by the employer and the exclusive bargaining 
346.8   representative constitutes the plan.  A negotiated agreement may 
346.9   constitute the plan only if the agreement is finalized after the 
346.10  date of enactment of all increases for the rate year.  The 
346.11  commissioner shall review the plan to ensure that the rate 
346.12  adjustments are used as provided in paragraph (a).  To be 
346.13  eligible, a facility must submit its plan for the wage and 
346.14  benefit distribution by December 31 each year.  If a facility's 
346.15  plan for wage and benefit distribution is effective for its 
346.16  employees after July 1 of the year that the funds are available, 
346.17  the portion of the rate adjustments, which must be used as 
346.18  provided in paragraph (a), are effective the same date as its 
346.19  plan. 
346.20     (d) A hospital-attached nursing facility may include costs 
346.21  in their distribution plan for wages and benefits and associated 
346.22  costs of employees in the organization's shared services 
346.23  departments, provided that: 
346.24     (1) the nursing facility and the hospital share common 
346.25  ownership; and 
346.26     (2) adjustments for hospital services using the 
346.27  diagnostic-related grouping payment rates per admission under 
346.28  Medicare are less than three percent during the 12 months prior 
346.29  to the effective date of these rate adjustments. 
346.30     If a hospital-attached facility meets the qualifications in 
346.31  this paragraph, the difference between the rate adjustments 
346.32  approved for nursing facility services and the rate increase 
346.33  approved for hospital services may be permitted as a 
346.34  distribution in the hospital-attached facility's plan regardless 
346.35  of whether the use of those funds is shown as being attributable 
346.36  to employee hours worked in the nursing facility or employee 
347.1   hours worked in the hospital. 
347.2      For the purposes of this paragraph, a hospital-attached 
347.3   
347.4   nursing facility is one that meets the definition under 
347.5   subdivision 2j, or, in the case of a facility reimbursed under 
347.6   section 256B.434, met this definition at the time their last 
347.7   payment rate was established under Minnesota Rules, parts 
347.8   9549.0010 to 9549.0080, and this section. 
347.9      (e) A copy of the approved distribution plan must be made 
347.10  available to all employees by giving each employee a copy or by 
347.11  posting it in an area of the nursing facility to which all 
347.12  employees have access.  If an employee does not receive the wage 
347.13  and benefit adjustment described in the facility's approved plan 
347.14  and is unable to resolve the problem with the facility's 
347.15  management or through the employee's union representative, the 
347.16  employee may contact the commissioner at an address or telephone 
347.17  number provided by the commissioner and included in the approved 
347.18  plan.  
347.19     (f) Notwithstanding section 256B.48, subdivision 1, clause 
347.20  (a), upon the request of a nursing facility, the commissioner 
347.21  may authorize the facility to raise per diem rates for 
347.22  private-pay residents on July 1 by the amount anticipated to be 
347.23  required upon implementation of the rate adjustments allowable 
347.24  under subdivisions 31 to 33.  The commissioner shall require any 
347.25  amounts collected under this paragraph, which must be used as 
347.26  provided in paragraph (a), to be placed in an escrow account 
347.27  established for this purpose with a financial institution that 
347.28  provides deposit insurance until the medical assistance rate is 
347.29  finalized.  The commissioner shall conduct audits as necessary 
347.30  to ensure that: 
347.31     (1) the amounts collected are retained in escrow until 
347.32  medical assistance rates are increased to reflect the 
347.33  wage-related adjustment; and 
347.34     (2) any amounts collected from private-pay residents in 
347.35  excess of the final medical assistance rate are repaid to the 
347.36  private-pay residents with interest at the rate used by the 
347.37  commissioner of revenue for the late payment of taxes and in 
348.1   effect on the date the distribution plan is approved by the 
348.2   commissioner of human services. 
348.3      Sec. 21.  Minnesota Statutes 2000, section 256B.431, is 
348.4   amended by adding a subdivision to read: 
348.5      Subd. 35.  [EXCLUSION OF RAW FOOD COST ADJUSTMENT.] For 
348.6   rate years beginning on or after July 1, 2001, in calculating a 
348.7   nursing facility's operating cost per diem for the purposes of 
348.8   constructing an array, determining a median, or otherwise 
348.9   performing a statistical measure of nursing facility payment 
348.10  rates to be used to determine future rate increases under this 
348.11  section, section 256B.434, or any other section, the 
348.12  commissioner shall exclude adjustments for raw food costs under 
348.13  subdivision 2b, paragraph (h), that are related to providing 
348.14  special diets based on religious beliefs. 
348.15     Sec. 22.  Minnesota Statutes 2000, section 256B.433, 
348.16  subdivision 3a, is amended to read: 
348.17     Subd. 3a.  [EXEMPTION FROM REQUIREMENT FOR SEPARATE THERAPY 
348.18  BILLING.] The provisions of subdivision 3 do not apply to 
348.19  nursing facilities that are reimbursed according to the 
348.20  provisions of section 256B.431 and are located in a county 
348.21  participating in the prepaid medical assistance program.  
348.22  Nursing facilities that are reimbursed according to the 
348.23  provisions of section 256B.434 and are located in a county 
348.24  participating in the prepaid medical assistance program are 
348.25  exempt from the maximum therapy rent revenue provisions of 
348.26  subdivision 3, paragraph (c). 
348.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
348.28  following final enactment. 
348.29     Sec. 23.  Minnesota Statutes 2000, section 256B.434, 
348.30  subdivision 4, is amended to read: 
348.31     Subd. 4.  [ALTERNATE RATES FOR NURSING FACILITIES.] (a) For 
348.32  nursing facilities which have their payment rates determined 
348.33  under this section rather than section 256B.431, the 
348.34  commissioner shall establish a rate under this subdivision.  The 
348.35  nursing facility must enter into a written contract with the 
348.36  commissioner. 
349.1      (b) A nursing facility's case mix payment rate for the 
349.2   first rate year of a facility's contract under this section is 
349.3   the payment rate the facility would have received under section 
349.4   256B.431. 
349.5      (c) A nursing facility's case mix payment rates for the 
349.6   second and subsequent years of a facility's contract under this 
349.7   section are the previous rate year's contract payment rates plus 
349.8   an inflation adjustment and, for facilities reimbursed under 
349.9   this section or section 256B.431, an adjustment to include the 
349.10  cost of any increase in health department licensing fees for the 
349.11  facility taking effect on or after July 1, 2001.  The index for 
349.12  the inflation adjustment must be based on the change in the 
349.13  Consumer Price Index-All Items (United States City average) 
349.14  (CPI-U) forecasted by Data Resources, Inc., as forecasted in the 
349.15  fourth quarter of the calendar year preceding the rate year.  
349.16  The inflation adjustment must be based on the 12-month period 
349.17  from the midpoint of the previous rate year to the midpoint of 
349.18  the rate year for which the rate is being determined.  For the 
349.19  rate years beginning on July 1, 1999, and July 1, 2000, July 1, 
349.20  2001, and July 1, 2002, this paragraph shall apply only to the 
349.21  property-related payment rate, except that adjustments to 
349.22  include the cost of any increase in health department licensing 
349.23  fees taking effect on or after July 1, 2001, shall be provided.  
349.24  In determining the amount of the property-related payment rate 
349.25  adjustment under this paragraph, the commissioner shall 
349.26  determine the proportion of the facility's rates that are 
349.27  property-related based on the facility's most recent cost report.
349.28     (d) The commissioner shall develop additional 
349.29  incentive-based payments of up to five percent above the 
349.30  standard contract rate for achieving outcomes specified in each 
349.31  contract.  The specified facility-specific outcomes must be 
349.32  measurable and approved by the commissioner.  The commissioner 
349.33  may establish, for each contract, various levels of achievement 
349.34  within an outcome.  After the outcomes have been specified the 
349.35  commissioner shall assign various levels of payment associated 
349.36  with achieving the outcome.  Any incentive-based payment cancels 
350.1   if there is a termination of the contract.  In establishing the 
350.2   specified outcomes and related criteria the commissioner shall 
350.3   consider the following state policy objectives: 
350.4      (1) improved cost effectiveness and quality of life as 
350.5   measured by improved clinical outcomes; 
350.6      (2) successful diversion or discharge to community 
350.7   alternatives; 
350.8      (3) decreased acute care costs; 
350.9      (4) improved consumer satisfaction; 
350.10     (5) the achievement of quality; or 
350.11     (6) any additional outcomes proposed by a nursing facility 
350.12  that the commissioner finds desirable. 
350.13     Sec. 24.  Minnesota Statutes 2000, section 256B.434, is 
350.14  amended by adding a subdivision to read: 
350.15     Subd. 4c.  [FACILITY RATE INCREASES EFFECTIVE JANUARY 1, 
350.16  2002.] For the rate period beginning January 1, 2002, and for 
350.17  the rate year beginning July 1, 2002, a nursing facility in 
350.18  Morrison county licensed for 83 beds as of March 1, 2001, shall 
350.19  receive an increase of $2.54 in each case mix payment rate to 
350.20  offset property tax payments due as a result of the facility's 
350.21  conversion from nonprofit to for-profit status.  The increase 
350.22  under this subdivision shall be added following the 
350.23  determination under this chapter of the payment rate for the 
350.24  rate year beginning July 1, 2001, and shall be included in the 
350.25  facility's total payment rates for the purposes of determining 
350.26  future rates under this section or any other section. 
350.27     Sec. 25.  Minnesota Statutes 2000, section 256B.434, is 
350.28  amended by adding a subdivision to read: 
350.29     Subd. 4d.  [FACILITY RATE INCREASES EFFECTIVE JULY 1, 
350.30  2001.] For the rate year beginning July 1, 2001, a nursing 
350.31  facility in Hennepin county licensed for 302 beds shall receive 
350.32  an increase of 29 cents in each case mix payment rate to correct 
350.33  an error in the cost-reporting system that occurred prior to the 
350.34  date that the facility entered the alternative payment 
350.35  demonstration project.  The increase under this subdivision 
350.36  shall be added following the determination under this chapter of 
351.1   the payment rate for the rate year beginning July 1, 2001, and 
351.2   shall be included in the facility's total payment rates for the 
351.3   purposes of determining future rates under this section or any 
351.4   other section. 
351.5      Sec. 26.  Minnesota Statutes 2000, section 256B.434, is 
351.6   amended by adding a subdivision to read: 
351.7      Subd. 4e.  [RATE INCREASE EFFECTIVE JULY 1, 2001.] A 
351.8   nursing facility in Anoka county licensed for 98 beds as of July 
351.9   1, 2000, shall receive a total increase of $10 in each case mix 
351.10  rate for the rate year beginning July 1, 2001, as a result of 
351.11  increases provided under this subdivision and section 256B.431, 
351.12  subdivision 33.  The increases under this subdivision shall be 
351.13  added prior to the determination under section 256B.431, 
351.14  subdivision 33, of the payment rate for the rate year beginning 
351.15  July 1, 2001, and shall be included in the facility's total 
351.16  payment rate for purposes of determining future rates under this 
351.17  section or any other section through June 30, 2004. 
351.18     Sec. 27.  [256B.437] [NURSING FACILITY VOLUNTARY CLOSURES; 
351.19  PLANNING AND DEVELOPMENT OF COMMUNITY-BASED ALTERNATIVES.] 
351.20     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
351.21  subdivision apply to subdivisions 2 to 9. 
351.22     (b) "Closure" means the cessation of operations of a 
351.23  nursing facility and delicensure and decertification of all beds 
351.24  within the facility. 
351.25     (c) "Closure plan" means a plan to close a nursing facility 
351.26  and reallocate a portion of the resulting savings to provide 
351.27  planned closure rate adjustments at other facilities. 
351.28     (d) "Commencement of closure" means the date on which 
351.29  residents and designated representatives are notified of a 
351.30  planned closure as provided in section 144A.161, subdivision 5a, 
351.31  as part of an approved closure plan. 
351.32     (e) "Completion of closure" means the date on which the 
351.33  final resident of the nursing facility designated for closure in 
351.34  an approved closure plan is discharged from the facility. 
351.35     (f) "Partial closure" means the delicensure and 
351.36  decertification of a portion of the beds within the facility. 
352.1      (g) "Planned closure rate adjustment" means an increase in 
352.2   a nursing facility's operating rates resulting from a planned 
352.3   closure or a planned partial closure of another facility. 
352.4      Subd. 2.  [PLANNING AND DEVELOPMENT OF COMMUNITY-BASED 
352.5   SERVICES.] (a) The commissioner of human services shall 
352.6   establish a process to adjust the capacity and distribution of 
352.7   long-term care services to equalize the supply and demand for 
352.8   different types of services.  This process must include 
352.9   community planning, expansion or establishment of needed 
352.10  services, and analysis of voluntary nursing facility closures. 
352.11     (b) The purpose of this process is to support the planning 
352.12  and development of community-based services.  This process must 
352.13  support early intervention, advocacy, and consumer protection 
352.14  while providing resources and incentives for expanded county 
352.15  planning and for nursing facilities to transition to meet 
352.16  community needs. 
352.17     (c) The process shall support and facilitate expansion of 
352.18  community-based services under the county-administered 
352.19  alternative care program under section 256B.0913 and waivers for 
352.20  elderly under section 256B.0915, including, but not limited to, 
352.21  the development of supportive services such as housing and 
352.22  transportation.  The process shall utilize community assessments 
352.23  and planning developed for the community health services plan 
352.24  and plan update and for the community social services act plan, 
352.25  and other relevant information. 
352.26     (d) The commissioners of health and human services as 
352.27  appropriate shall provide, by July 15, 2001, available data 
352.28  necessary for the county, including, but not limited to, data on 
352.29  nursing facility bed distribution, housing with services 
352.30  options, the closure of nursing facilities that occur outside of 
352.31  the planned closure process, and approval of planned closures in 
352.32  the county and contiguous counties. 
352.33     (e) Each county shall submit to the commissioner of human 
352.34  services, by October 15, 2001, a gaps analysis that identifies 
352.35  local service needs, pending development of services, and any 
352.36  other issues that would contribute to or impede further 
353.1   development of community-based services.  The gaps analysis must 
353.2   also be sent to the local area agency on aging and, if 
353.3   applicable, local SAIL projects, for review and comment.  The 
353.4   review and comment must assess needs across county boundaries.  
353.5   The area agencies on aging and SAIL projects must provide the 
353.6   commissioner and the counties with their review and analyses by 
353.7   November 15, 2001. 
353.8      (f) The addendum to the biennial plan shall be submitted 
353.9   annually, beginning December 31, 2001, and each December 31 
353.10  thereafter, and shall include recommendations for development of 
353.11  community-based services.  Both planning and implementation 
353.12  shall be implemented within the amount of funding made available 
353.13  to the county board for these purposes. 
353.14     (g) The plan, within the funding allocated, shall: 
353.15     (1) include the gaps analysis required by paragraph (e); 
353.16     (2) involve providers, consumers, cities, townships, 
353.17  businesses, and area agencies on aging in the planning process; 
353.18     (3) address the availability of alternative care and 
353.19  elderly waiver services for eligible recipients; 
353.20     (4) address the development of other supportive services, 
353.21  such as transit, housing, and workforce and economic 
353.22  development; and 
353.23     (5) estimate the cost and timelines for development. 
353.24     (h) The biennial plan addendum shall be coordinated with 
353.25  the county mental health plan for inclusion in the community 
353.26  health services plan and included as an addendum to the 
353.27  community social services plan. 
353.28     (i) The county board having financial responsibility for 
353.29  persons present in another county shall cooperate with that 
353.30  county for planning and development of services. 
353.31     (j) The county board shall cooperate in planning and 
353.32  development of community-based services with other counties, as 
353.33  necessary, and coordinate planning for long-term care services 
353.34  that involve more than one county, within the funding allocated 
353.35  for these purposes. 
353.36     (k) The commissioners of health and human services, in 
354.1   cooperation with county boards, shall report to the legislature 
354.2   by February 1 of each year, beginning February 1, 2002, 
354.3   regarding the development of community-based services, 
354.4   transition or closure of nursing facilities, and specific gaps 
354.5   in services in identified geographic areas that may require 
354.6   additional resources or flexibility, as documented by the 
354.7   process in this subdivision and reported to the commissioners by 
354.8   December 31 of each year. 
354.9      Subd. 3.  [APPLICATIONS FOR PLANNED CLOSURE OF NURSING 
354.10  FACILITIES.] (a) By August 15, 2001, the commissioner of human 
354.11  services shall implement and announce a program for closure or 
354.12  partial closure of nursing facilities.  Names and identifying 
354.13  information provided in response to the announcement shall 
354.14  remain private unless approved, according to the timelines 
354.15  established in the plan.  The announcement must specify: 
354.16     (1) the criteria in subdivision 4 that will be used by the 
354.17  commissioner to approve or reject applications; 
354.18     (2) a requirement for the submission of a letter of intent 
354.19  before the submission of an application; 
354.20     (3) the information that must accompany an application; and 
354.21     (4) that applications may combine planned closure rate 
354.22  adjustments with moratorium exception funding, in which case a 
354.23  single application may serve both purposes. 
354.24  Between August 1, 2001, and June 30, 2003, the commissioner may 
354.25  approve planned closures of up to 5,140 nursing facility beds, 
354.26  less the number of licensed beds in facilities that close during 
354.27  the same time period without approved closure plans or that have 
354.28  notified the commissioner of health of their intent to close 
354.29  without an approved closure plan. 
354.30     (b) A facility or facilities reimbursed under section 
354.31  256B.431 or 256B.434 with a closure plan approved by the 
354.32  commissioner under subdivision 5 may assign a planned closure 
354.33  rate adjustment to another facility or facilities that are not 
354.34  closing or in the case of a partial closure, to the facility 
354.35  undertaking the partial closure.  A facility may also elect to 
354.36  have a planned closure rate adjustment shared equally by the 
355.1   five nursing facilities with the lowest total operating payment 
355.2   rates in the state development region designated under section 
355.3   462.385, in which the facility that is closing is located.  The 
355.4   planned closure rate adjustment must be calculated under 
355.5   subdivision 6.  Facilities that close without a closure plan, or 
355.6   whose closure plan is not approved by the commissioner, are not 
355.7   eligible to assign a planned closure rate adjustment under 
355.8   subdivision 6.  The commissioner shall calculate the amount the 
355.9   facility would have been eligible to assign under subdivision 6, 
355.10  and shall use this amount to provide equal rate adjustments to 
355.11  the five nursing facilities with the lowest total operating 
355.12  payment rates in the state development region designated under 
355.13  section 462.385, in which the facility that closed is located. 
355.14     (c) To be considered for approval, an application must 
355.15  include: 
355.16     (1) a description of the proposed closure plan, which must 
355.17  include identification of the facility or facilities to receive 
355.18  a planned closure rate adjustment and the amount and timing of a 
355.19  planned closure rate adjustment proposed for each facility; 
355.20     (2) the proposed timetable for any proposed closure, 
355.21  including the proposed dates for announcement to residents, 
355.22  commencement of closure, and completion of closure; 
355.23     (3) the proposed relocation plan for current residents of 
355.24  any facility designated for closure.  The proposed relocation 
355.25  plan must be designed to comply with all applicable state and 
355.26  federal statutes and regulations, including, but not limited to, 
355.27  section 144A.161; 
355.28     (4) a description of the relationship between the nursing 
355.29  facility that is proposed for closure and the nursing facility 
355.30  or facilities proposed to receive the planned closure rate 
355.31  adjustment.  If these facilities are not under common ownership, 
355.32  copies of any contracts, purchase agreements, or other documents 
355.33  establishing a relationship or proposed relationship must be 
355.34  provided; 
355.35     (5) documentation, in a format approved by the 
355.36  commissioner, that all the nursing facilities receiving a 
356.1   planned closure rate adjustment under the plan have accepted 
356.2   joint and several liability for recovery of overpayments under 
356.3   section 256B.0641, subdivision 2, for the facilities designated 
356.4   for closure under the plan; and 
356.5      (6) an explanation of how the application coordinates with 
356.6   planning efforts under subdivision 2.  If the planning group 
356.7   does not support a level of nursing facility closures that the 
356.8   commissioner considers to be reasonable, the commissioner may 
356.9   approve a planned closure proposal without its support. 
356.10     (d) The application must address the criteria listed in 
356.11  subdivision 4. 
356.12     Subd. 4.  [CRITERIA FOR REVIEW OF APPLICATION.] In 
356.13  reviewing and approving closure proposals, the commissioner 
356.14  shall consider, but not be limited to, the following criteria: 
356.15     (1) improved quality of care and quality of life for 
356.16  consumers; 
356.17     (2) closure of a nursing facility that has a poor physical 
356.18  plant, which may be evidenced by the conditions referred to in 
356.19  section 144A.073, subdivision 4, clauses (4) and (5); 
356.20     (3) the existence of excess nursing facility beds, measured 
356.21  in terms of beds per thousand persons aged 85 or older.  The 
356.22  excess must be measured in reference to: 
356.23     (i) the county in which the facility is located; 
356.24     (ii) the county and all contiguous counties; 
356.25     (iii) the region in which the facility is located; or 
356.26     (iv) the facility's service area; 
356.27  the facility shall indicate in its application the service area 
356.28  it believes is appropriate for this measurement.  A facility in 
356.29  a county that is in the lowest quartile of counties with 
356.30  reference to beds per thousand persons aged 85 or older is not 
356.31  in an area of excess capacity; 
356.32     (4) low-occupancy rates, provided that the unoccupied beds 
356.33  are not the result of a personnel shortage.  In analyzing 
356.34  occupancy rates, the commissioner shall examine waiting lists in 
356.35  the applicant facility and at facilities in the surrounding 
356.36  area, as determined under clause (3); 
357.1      (5) evidence of coordination between the community planning 
357.2   process and the facility application.  If the planning group 
357.3   does not support a level of nursing facility closures that the 
357.4   commissioner considers to be reasonable, the commissioner may 
357.5   approve a planned closure proposal without its support; 
357.6      (6) proposed usage of funds available from a planned 
357.7   closure rate adjustment for care-related purposes; 
357.8      (7) innovative use planned for the closed facility's 
357.9   physical plant; 
357.10     (8) evidence that the proposal serves the interests of the 
357.11  state; and 
357.12     (9) evidence of other factors that affect the viability of 
357.13  the facility, including excessive nursing pool costs. 
357.14     Subd. 5.  [REVIEW AND APPROVAL OF APPLICATIONS.] (a) The 
357.15  commissioner of human services, in consultation with the 
357.16  commissioner of health, shall approve or disapprove an 
357.17  application within 30 days after receiving it.  The commissioner 
357.18  may appoint an advisory review panel composed of representatives 
357.19  of counties, SAIL projects, consumers, and providers to review 
357.20  proposals and provide comments and recommendations to the 
357.21  committee.  The commissioners of human services and health shall 
357.22  provide staff and technical assistance to the committee for the 
357.23  review and analysis of proposals. 
357.24     (b) Approval of a planned closure expires 18 months after 
357.25  approval by the commissioner of human services, unless 
357.26  commencement of closure has begun. 
357.27     (c) The commissioner of human services may change any 
357.28  provision of the application to which the applicant, the 
357.29  regional planning group, and the commissioner agree. 
357.30     Subd. 6.  [PLANNED CLOSURE RATE ADJUSTMENT.] (a) The 
357.31  commissioner of human services shall calculate the amount of the 
357.32  planned closure rate adjustment available under subdivision 3, 
357.33  paragraph (b), for up to 5,140 beds according to clauses (1) to 
357.34  (4): 
357.35     (1) the amount available is the net reduction of nursing 
357.36  facility beds multiplied by $2,080; 
358.1      (2) the total number of beds in the nursing facility or 
358.2   facilities receiving the planned closure rate adjustment must be 
358.3   identified; 
358.4      (3) capacity days are determined by multiplying the number 
358.5   determined under clause (2) by 365; and 
358.6      (4) the planned closure rate adjustment is the amount 
358.7   available in clause (1), divided by capacity days determined 
358.8   under clause (3). 
358.9      (b) A planned closure rate adjustment under this section is 
358.10  effective on the first day of the month following completion of 
358.11  closure of the facility designated for closure in the 
358.12  application and becomes part of the nursing facility's total 
358.13  operating payment rate. 
358.14     (c) Applicants may use the planned closure rate adjustment 
358.15  to allow for a property payment for a new nursing facility or an 
358.16  addition to an existing nursing facility or as an operating 
358.17  payment rate adjustment.  Applications approved under this 
358.18  subdivision are exempt from other requirements for moratorium 
358.19  exceptions under section 144A.073, subdivisions 2 and 3. 
358.20     (d) Upon the request of a closing facility, the 
358.21  commissioner must allow the facility a closure rate adjustment 
358.22  as provided under section 144A.161, subdivision 10. 
358.23     Subd. 7.  [OTHER RATE ADJUSTMENTS.] Facilities receiving 
358.24  planned closure rate adjustments remain eligible for any 
358.25  applicable rate adjustments provided under section 256B.431, 
358.26  256B.434, or any other section. 
358.27     Subd. 8.  [COUNTY COSTS.] The commissioner of human 
358.28  services shall allocate funds for relocation costs incurred by 
358.29  counties for planned closures under this section as provided 
358.30  under section 144A.161, subdivision 11. 
358.31     Sec. 28.  [256B.438] [IMPLEMENTATION OF A CASE MIX SYSTEM 
358.32  FOR NURSING FACILITIES BASED ON THE MINIMUM DATA SET.] 
358.33     Subdivision 1.  [SCOPE.] This section establishes the 
358.34  method and criteria used to determine resident reimbursement 
358.35  classifications based upon the assessments of residents of 
358.36  nursing homes and boarding care homes whose payment rates are 
359.1   established under section 256B.431, 256B.434, or 256B.435.  
359.2   Resident reimbursement classifications shall be established 
359.3   according to the 34 group, resource utilization groups, version 
359.4   III or RUG-III model as described in section 144.0724.  
359.5   Reimbursement classifications established under this section 
359.6   shall be implemented after June 30, 2002, but no later than 
359.7   January 1, 2003. 
359.8      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
359.9   following terms have the meanings given. 
359.10     (a) [ASSESSMENT REFERENCE DATE.] "Assessment reference 
359.11  date" has the meaning given in section 144.0724, subdivision 2, 
359.12  paragraph (a). 
359.13     (b) [CASE MIX INDEX.] "Case mix index" has the meaning 
359.14  given in section 144.0724, subdivision 2, paragraph (b). 
359.15     (c) [INDEX MAXIMIZATION.] "Index maximization" has the 
359.16  meaning given in section 144.0724, subdivision 2, paragraph (c). 
359.17     (d) [MINIMUM DATA SET.] "Minimum data set" has the meaning 
359.18  given in section 144.0724, subdivision 2, paragraph (d). 
359.19     (e) [REPRESENTATIVE.] "Representative" has the meaning 
359.20  given in section 144.0724, subdivision 2, paragraph (e). 
359.21     (f) [RESOURCE UTILIZATION GROUPS OR RUG.] "Resource 
359.22  utilization groups" or "RUG" has the meaning given in section 
359.23  144.0724, subdivision 2, paragraph (f). 
359.24     Subd. 3.  [CASE MIX INDICES.] (a) The commissioner of human 
359.25  services shall assign a case mix index to each resident class 
359.26  based on the Health Care Financing Administration's staff time 
359.27  measurement study and adjusted for Minnesota-specific wage 
359.28  indices.  The case mix indices assigned to each resident class 
359.29  shall be published in the Minnesota State Register at least 120 
359.30  days prior to the implementation of the 34 group, RUG-III 
359.31  resident classification system. 
359.32     (b) An index maximization approach shall be used to 
359.33  classify residents. 
359.34     (c) After implementation of the revised case mix system, 
359.35  the commissioner of human services may annually rebase case mix 
359.36  indices and base rates using more current data on average wage 
360.1   rates and staff time measurement studies.  This rebasing shall 
360.2   be calculated under subdivision 7, paragraph (b).  The 
360.3   commissioner shall publish in the Minnesota State Register 
360.4   adjusted case mix indices at least 45 days prior to the 
360.5   effective date of the adjusted case mix indices. 
360.6      Subd. 4.  [RESIDENT ASSESSMENT SCHEDULE.] (a) Nursing 
360.7   facilities shall conduct and submit case mix assessments 
360.8   according to the schedule established by the commissioner of 
360.9   health under section 144.0724, subdivisions 4 and 5. 
360.10     (b) The resident reimbursement classifications established 
360.11  under section 144.0724, subdivision 3, shall be effective the 
360.12  day of admission for new admission assessments.  The effective 
360.13  date for significant change assessments shall be the assessment 
360.14  reference date.  The effective date for annual and second 
360.15  quarterly assessments shall be the first day of the month 
360.16  following assessment reference date. 
360.17     Subd. 5.  [NOTICE OF RESIDENT REIMBURSEMENT 
360.18  CLASSIFICATION.] Nursing facilities shall provide notice to a 
360.19  resident of the resident's case mix classification according to 
360.20  procedures established by the commissioner of health under 
360.21  section 144.0724, subdivision 7. 
360.22     Subd. 6.  [RECONSIDERATION OF RESIDENT CLASSIFICATION.] Any 
360.23  request for reconsideration of a resident classification must be 
360.24  made under section 144.0724, subdivision 8. 
360.25     Subd. 7.  [RATE DETERMINATION UPON TRANSITION TO RUG-III 
360.26  PAYMENT RATES.] (a) The commissioner of human services shall 
360.27  determine payment rates at the time of transition to the RUG 
360.28  based payment model in a facility-specific, budget-neutral 
360.29  manner.  The case mix indices as defined in subdivision 3 shall 
360.30  be used to allocate the case mix adjusted component of total 
360.31  payment across all case mix groups.  To transition from the 
360.32  current calculation methodology to the RUG based methodology, 
360.33  the commissioner of health shall report to the commissioner of 
360.34  human services the resident days classified according to the 
360.35  categories defined in subdivision 3 for the 12-month reporting 
360.36  period ending September 30, 2001, for each nursing facility.  
361.1   The commissioner of human services shall use this data to 
361.2   compute the standardized days for the reporting period under the 
361.3   RUG system. 
361.4      (b) The commissioner of human services shall determine the 
361.5   case mix adjusted component of the rate as follows: 
361.6      (1) determine the case mix portion of the 11 case mix rates 
361.7   in effect on June 30, 2002, or the 34 case mix rates in effect 
361.8   on or after June 30, 2003; 
361.9      (2) multiply each amount in clause (1) by the number of 
361.10  resident days assigned to each group for the reporting period 
361.11  ending September 30, 2001, or the most recent year for which 
361.12  data is available; 
361.13     (3) compute the sum of the amounts in clause (2); 
361.14     (4) determine the total RUG standardized days for the 
361.15  reporting period ending September 30, 2001, or the most recent 
361.16  year for which data is available using the new indices 
361.17  calculated under subdivision 3, paragraph (c); 
361.18     (5) divide the amount in clause (3) by the amount in clause 
361.19  (4) which shall be the average case mix adjusted component of 
361.20  the rate under the RUG method; and 
361.21     (6) multiply this average rate by the case mix weight in 
361.22  subdivision 3 for each RUG group. 
361.23     (c) The noncase mix component will be allocated to each RUG 
361.24  group as a constant amount to determine the transition payment 
361.25  rate.  Any other rate adjustments that are effective on or after 
361.26  July 1, 2002, shall be applied to the transition rates 
361.27  determined under this section. 
361.28     Sec. 29.  [256B.439] [LONG-TERM CARE QUALITY PROFILES.] 
361.29     Subdivision l.  [DEVELOPMENT AND IMPLEMENTATION OF QUALITY 
361.30  PROFILES.] (a) The commissioner of human services, in 
361.31  cooperation with the commissioner of health, shall develop and 
361.32  implement a quality profile system for nursing facilities and, 
361.33  beginning not later than July 1, 2003, other providers of 
361.34  long-term care services, except when the quality profile system 
361.35  would duplicate requirements under section 256B.5011, 256B.5012, 
361.36  or 256B.5013.  The system must be developed and implemented to 
362.1   the extent possible without the collection of significant 
362.2   amounts of new data.  To the extent possible, the system must 
362.3   incorporate or be coordinated with information on quality 
362.4   maintained by area agencies on aging, long-term care trade 
362.5   associations, and other entities.  The system must be designed 
362.6   to provide information on quality to: 
362.7      (1) consumers and their families to facilitate informed 
362.8   choices of service providers; 
362.9      (2) providers to enable them to measure the results of 
362.10  their quality improvement efforts and compare quality 
362.11  achievements with other service providers; and 
362.12     (3) public and private purchasers of long-term care 
362.13  services to enable them to purchase high-quality care. 
362.14     (b) The system must be developed in consultation with the 
362.15  long-term care task force, area agencies on aging, and 
362.16  representatives of consumers, providers, and labor unions.  
362.17  Within the limits of available appropriations, the commissioners 
362.18  may employ consultants to assist with this project. 
362.19     Subd. 2.  [QUALITY MEASUREMENT TOOLS.] The commissioners 
362.20  shall identify and apply existing quality measurement tools to: 
362.21     (1) emphasize quality of care and its relationship to 
362.22  quality of life; and 
362.23     (2) address the needs of various users of long-term care 
362.24  services, including, but not limited to, short-stay residents, 
362.25  persons with behavioral problems, persons with dementia, and 
362.26  persons who are members of minority groups. 
362.27  The tools must be identified and applied, to the extent 
362.28  possible, without requiring providers to supply information 
362.29  beyond current state and federal requirements. 
362.30     Subd. 3.  [CONSUMER SURVEYS.] Following identification of 
362.31  the quality measurement tool, the commissioners shall conduct 
362.32  surveys of long-term care service consumers to develop quality 
362.33  profiles of providers.  To the extent possible, surveys must be 
362.34  conducted face-to-face by state employees or contractors.  At 
362.35  the discretion of the commissioners, surveys may be conducted by 
362.36  telephone or by provider staff.  Surveys must be conducted 
363.1   periodically to update quality profiles of individual service 
363.2   providers. 
363.3      Subd. 4.  [DISSEMINATION OF QUALITY PROFILES.] By July 1, 
363.4   2002, the commissioners shall implement a system to disseminate 
363.5   the quality profiles developed from consumer surveys using the 
363.6   quality measurement tool.  Profiles may be disseminated to the 
363.7   Senior LinkAge line and to consumers, providers, and purchasers 
363.8   of long-term care services through all feasible printed and 
363.9   electronic outlets.  The commissioners may conduct a public 
363.10  awareness campaign to inform potential users regarding profile 
363.11  contents and potential uses. 
363.12     Sec. 30.  Minnesota Statutes 2000, section 256B.5012, is 
363.13  amended by adding a subdivision to read: 
363.14     Subd. 4.  [ICF/MR RATE INCREASES BEGINNING JULY 1, 2001, 
363.15  AND JULY 1, 2002.] (a) For the rate years beginning July 1, 
363.16  2001, and July 1, 2002, the commissioner shall make available to 
363.17  each facility reimbursed under this section an adjustment to the 
363.18  total operating payment rate of 3.5 percent.  Of this 
363.19  adjustment, two-thirds must be used as provided under paragraph 
363.20  (b) and one-third must be used for operating costs. 
363.21     (b) The adjustment under this paragraph must be used to 
363.22  increase the wages and benefits and pay associated costs of all 
363.23  employees except administrative and central office employees, 
363.24  provided that this increase must be used only for wage and 
363.25  benefit increases implemented on or after the first day of the 
363.26  rate year and must not be used for increases implemented prior 
363.27  to that date. 
363.28     (c) For each facility, the commissioner shall make 
363.29  available an adjustment using the percentage specified in 
363.30  paragraph (a) multiplied by the total payment rate, excluding 
363.31  the property-related payment rate, in effect on the preceding 
363.32  June 30.  The total payment rate shall include the adjustment 
363.33  provided in section 256B.501, subdivision 12. 
363.34     (d) A facility whose payment rates are governed by closure 
363.35  agreements, receivership agreements, or Minnesota Rules, part 
363.36  9553.0075, is not eligible for an adjustment otherwise granted 
364.1   under this subdivision.  
364.2      (e) A facility may apply for the payment rate adjustment 
364.3   provided under paragraph (b).  The application must be made to 
364.4   the commissioner and contain a plan by which the facility will 
364.5   distribute the adjustment in paragraph (b) to employees of the 
364.6   facility.  For facilities in which the employees are represented 
364.7   by an exclusive bargaining representative, an agreement 
364.8   negotiated and agreed to by the employer and the exclusive 
364.9   bargaining representative constitutes the plan.  A negotiated 
364.10  agreement may constitute the plan only if the agreement is 
364.11  finalized after the date of enactment of all rate increases for 
364.12  the rate year.  The commissioner shall review the plan to ensure 
364.13  that the payment rate adjustment per diem is used as provided in 
364.14  this subdivision.  To be eligible, a facility must submit its 
364.15  plan by March 31, 2002, and March 31, 2003, respectively.  If a 
364.16  facility's plan is effective for its employees after the first 
364.17  day of the applicable rate year that the funds are available, 
364.18  the payment rate adjustment per diem is effective the same date 
364.19  as its plan. 
364.20     (f) A copy of the approved distribution plan must be made 
364.21  available to all employees by giving each employee a copy or by 
364.22  posting it in an area of the facility to which all employees 
364.23  have access.  If an employee does not receive the wage and 
364.24  benefit adjustment described in the facility's approved plan and 
364.25  is unable to resolve the problem with the facility's management 
364.26  or through the employee's union representative, the employee may 
364.27  contact the commissioner at an address or telephone number 
364.28  provided by the commissioner and included in the approved plan. 
364.29     Sec. 31.  Minnesota Statutes 2000, section 626.557, 
364.30  subdivision 12b, is amended to read: 
364.31     Subd. 12b.  [DATA MANAGEMENT.] (a)  [COUNTY DATA.] In 
364.32  performing any of the duties of this section as a lead agency, 
364.33  the county social service agency shall maintain appropriate 
364.34  records.  Data collected by the county social service agency 
364.35  under this section are welfare data under section 13.46.  
364.36  Notwithstanding section 13.46, subdivision 1, paragraph (a), 
365.1   data under this paragraph that are inactive investigative data 
365.2   on an individual who is a vendor of services are private data on 
365.3   individuals, as defined in section 13.02.  The identity of the 
365.4   reporter may only be disclosed as provided in paragraph (c). 
365.5      Data maintained by the common entry point are confidential 
365.6   data on individuals or protected nonpublic data as defined in 
365.7   section 13.02.  Notwithstanding section 138.163, the common 
365.8   entry point shall destroy data three calendar years after date 
365.9   of receipt. 
365.10     (b)  [LEAD AGENCY DATA.] The commissioners of health and 
365.11  human services shall prepare an investigation memorandum for 
365.12  each report alleging maltreatment investigated under this 
365.13  section.  During an investigation by the commissioner of health 
365.14  or the commissioner of human services, data collected under this 
365.15  section are confidential data on individuals or protected 
365.16  nonpublic data as defined in section 13.02.  Upon completion of 
365.17  the investigation, the data are classified as provided in 
365.18  clauses (1) to (3) and paragraph (c). 
365.19     (1) The investigation memorandum must contain the following 
365.20  data, which are public: 
365.21     (i) the name of the facility investigated; 
365.22     (ii) a statement of the nature of the alleged maltreatment; 
365.23     (iii) pertinent information obtained from medical or other 
365.24  records reviewed; 
365.25     (iv) the identity of the investigator; 
365.26     (v) a summary of the investigation's findings; 
365.27     (vi) statement of whether the report was found to be 
365.28  substantiated, inconclusive, false, or that no determination 
365.29  will be made; 
365.30     (vii) a statement of any action taken by the facility; 
365.31     (viii) a statement of any action taken by the lead agency; 
365.32  and 
365.33     (ix) when a lead agency's determination has substantiated 
365.34  maltreatment, a statement of whether an individual, individuals, 
365.35  or a facility were responsible for the substantiated 
365.36  maltreatment, if known. 
366.1      The investigation memorandum must be written in a manner 
366.2   which protects the identity of the reporter and of the 
366.3   vulnerable adult and may not contain the names or, to the extent 
366.4   possible, data on individuals or private data listed in clause 
366.5   (2). 
366.6      (2) Data on individuals collected and maintained in the 
366.7   investigation memorandum are private data, including: 
366.8      (i) the name of the vulnerable adult; 
366.9      (ii) the identity of the individual alleged to be the 
366.10  perpetrator; 
366.11     (iii) the identity of the individual substantiated as the 
366.12  perpetrator; and 
366.13     (iv) the identity of all individuals interviewed as part of 
366.14  the investigation. 
366.15     (3) Other data on individuals maintained as part of an 
366.16  investigation under this section are private data on individuals 
366.17  upon completion of the investigation. 
366.18     (c)  [IDENTITY OF REPORTER.] The subject of the report may 
366.19  compel disclosure of the name of the reporter only with the 
366.20  consent of the reporter or upon a written finding by a court 
366.21  that the report was false and there is evidence that the report 
366.22  was made in bad faith.  This subdivision does not alter 
366.23  disclosure responsibilities or obligations under the rules of 
366.24  criminal procedure, except that where the identity of the 
366.25  reporter is relevant to a criminal prosecution, the district 
366.26  court shall do an in-camera review prior to determining whether 
366.27  to order disclosure of the identity of the reporter. 
366.28     (d)  [DESTRUCTION OF DATA.] Notwithstanding section 
366.29  138.163, data maintained under this section by the commissioners 
366.30  of health and human services must be destroyed under the 
366.31  following schedule: 
366.32     (1) data from reports determined to be false, two years 
366.33  after the finding was made; 
366.34     (2) data from reports determined to be inconclusive, four 
366.35  years after the finding was made; 
366.36     (3) data from reports determined to be substantiated, seven 
367.1   years after the finding was made; and 
367.2      (4) data from reports which were not investigated by a lead 
367.3   agency and for which there is no final disposition, two years 
367.4   from the date of the report. 
367.5      (e)  [SUMMARY OF REPORTS.] The commissioners of health and 
367.6   human services shall each annually prepare a summary of report 
367.7   to the legislature and the governor on the number and type of 
367.8   reports of alleged maltreatment involving licensed facilities 
367.9   reported under this section, the number of those requiring 
367.10  investigation under this section, and the resolution of those 
367.11  investigations.  The report shall identify: 
367.12     (1) whether and where backlogs of cases result in a failure 
367.13  to conform with statutory time frames; 
367.14     (2) where adequate coverage requires additional 
367.15  appropriations and staffing; and 
367.16     (3) any other trends that affect the safety of vulnerable 
367.17  adults. 
367.18     (f)  [RECORD RETENTION POLICY.] Each lead agency must have 
367.19  a record retention policy. 
367.20     (g)  [EXCHANGE OF INFORMATION.] Lead agencies, prosecuting 
367.21  authorities, and law enforcement agencies may exchange not 
367.22  public data, as defined in section 13.02, if the agency or 
367.23  authority requesting the data determines that the data are 
367.24  pertinent and necessary to the requesting agency in initiating, 
367.25  furthering, or completing an investigation under this section.  
367.26  Data collected under this section must be made available to 
367.27  prosecuting authorities and law enforcement officials, local 
367.28  county agencies, and licensing agencies investigating the 
367.29  alleged maltreatment under this section.  The lead agency shall 
367.30  exchange not public data with the vulnerable adult maltreatment 
367.31  review panel established in section 256.021 if the data are 
367.32  pertinent and necessary for a review requested under that 
367.33  section.  Upon completion of the review, not public data 
367.34  received by the review panel must be returned to the lead agency.
367.35     (h)  [COMPLETION TIME.] Each lead agency shall keep records 
367.36  of the length of time it takes to complete its investigations. 
368.1      (i)  [NOTIFICATION OF OTHER AFFECTED PARTIES.] A lead 
368.2   agency may notify other affected parties and their authorized 
368.3   representative if the agency has reason to believe maltreatment 
368.4   has occurred and determines the information will safeguard the 
368.5   well-being of the affected parties or dispel widespread rumor or 
368.6   unrest in the affected facility. 
368.7      (j)  [FEDERAL REQUIREMENTS.] Under any notification 
368.8   provision of this section, where federal law specifically 
368.9   prohibits the disclosure of patient identifying information, a 
368.10  lead agency may not provide any notice unless the vulnerable 
368.11  adult has consented to disclosure in a manner which conforms to 
368.12  federal requirements. 
368.13     Sec. 32.  Laws 1995, chapter 207, article 3, section 21, as 
368.14  amended by Laws 1999, chapter 245, article 3, section 43, is 
368.15  amended to read:  
368.16     Sec. 21.  [FACILITY CERTIFICATION.] 
368.17     (a) Notwithstanding Minnesota Statutes, section 252.291, 
368.18  subdivisions 1 and 2, the commissioner of health shall inspect 
368.19  to certify a large community-based facility currently licensed 
368.20  under Minnesota Rules, parts 9525.0215 to 9525.0355, for more 
368.21  than 16 beds and located in Northfield.  The facility may be 
368.22  certified for up to 44 beds.  The commissioner of health must 
368.23  inspect to certify the facility as soon as possible after the 
368.24  effective date of this section.  The commissioner of human 
368.25  services shall work with the facility and affected counties to 
368.26  relocate any current residents of the facility who do not meet 
368.27  the admission criteria for an ICF/MR.  Until January 1, 1999, in 
368.28  order to fund the ICF/MR services and relocations of current 
368.29  residents authorized, the commissioner of human services may 
368.30  transfer on a quarterly basis to the medical assistance account 
368.31  from each affected county's community social service allocation, 
368.32  an amount equal to the state share of medical assistance 
368.33  reimbursement for the residential and day habilitation services 
368.34  funded by medical assistance and provided to clients for whom 
368.35  the county is financially responsible.  
368.36     (b) After January 1, 1999, the commissioner of human 
369.1   services shall fund the services under the state medical 
369.2   assistance program and may transfer on a quarterly basis to the 
369.3   medical assistance account from each affected county's community 
369.4   social service allocation, an amount equal to one-half of the 
369.5   state share of medical assistance reimbursement for the 
369.6   residential and day habilitation services funded by medical 
369.7   assistance and provided to clients for whom the county is 
369.8   financially responsible.  
369.9      (c) Effective July 1, 2001, the commissioner of human 
369.10  services shall fund the entire state share of medical assistance 
369.11  reimbursement for the residential and day habilitation services 
369.12  funded by medical assistance and provided to clients for whom 
369.13  counties are financially responsible from the medical assistance 
369.14  account, and shall not make any transfer from the community 
369.15  social service allocations of affected counties.  
369.16     (d) For nonresidents of Minnesota seeking admission to the 
369.17  facility, Rice county shall be notified in order to assure that 
369.18  appropriate funding is guaranteed from their state or country of 
369.19  residence. 
369.20     Sec. 33.  Laws 1999, chapter 245, article 3, section 45, as 
369.21  amended by Laws 2000, chapter 312, section 3, is amended to read:
369.22     Sec. 45.  [STATE LICENSURE CONFLICTS WITH FEDERAL 
369.23  REGULATIONS.] 
369.24     (a) Notwithstanding the provisions of Minnesota Rules, part 
369.25  4658.0520, an incontinent resident must be checked according to 
369.26  a specific time interval written in the resident's care plan.  
369.27  The resident's attending physician must authorize in writing any 
369.28  interval longer than two hours unless the resident, if 
369.29  competent, or a family member or legally appointed conservator, 
369.30  guardian, or health care agent of a resident who is not 
369.31  competent, agrees in writing to waive physician involvement in 
369.32  determining this interval. 
369.33     (b) This section expires July 1, 2001 2003. 
369.34     Sec. 34.  Laws 2000, chapter 364, section 2, is amended to 
369.35  read: 
369.36     Sec. 2.  [MORATORIUM EXCEPTION PROCESS.] 
370.1      For fiscal year the biennium beginning July 1, 2000 2001, 
370.2   when approving nursing home moratorium exception projects under 
370.3   Minnesota Statutes, section 144A.073, the commissioner of health 
370.4   shall give priority to proposals a proposal to build a 
370.5   replacement facilities facility in the city of Anoka or within 
370.6   ten miles of the city of Anoka. 
370.7      Sec. 35.  [DEVELOPMENT OF NEW NURSING FACILITY 
370.8   REIMBURSEMENT SYSTEM.] 
370.9      (a) The commissioner of human services shall develop and 
370.10  report to the legislature by January 15, 2003, a system to 
370.11  replace the current nursing facility reimbursement system 
370.12  established under Minnesota Statutes, sections 256B.431, 
370.13  256B.434, and 256B.435. 
370.14     (b) The system must be developed in consultation with the 
370.15  long-term care task force and with representatives of consumers, 
370.16  providers, and labor unions.  Within the limits of available 
370.17  appropriations, the commissioner may employ consultants to 
370.18  assist with this project. 
370.19     (c) The new reimbursement system must: 
370.20     (1) provide incentives to enhance quality of life and 
370.21  quality of care; 
370.22     (2) recognize cost differences in the care of different 
370.23  types of populations, including subacute care and dementia care; 
370.24     (3) establish rates that are sufficient without being 
370.25  excessive; 
370.26     (4) be affordable for the state and for private-pay 
370.27  residents; 
370.28     (5) be sensitive to changing conditions in the long-term 
370.29  care environment; 
370.30     (6) avoid creating access problems related to insufficient 
370.31  funding; 
370.32     (7) allow providers maximum flexibility in their business 
370.33  operations; 
370.34     (8) recognize the need for capital investment to improve 
370.35  physical plants; and 
370.36     (9) provide incentives for the development and use of 
371.1   private rooms. 
371.2      (d) Notwithstanding Minnesota Statutes, section 256B.435, 
371.3   the commissioner must not implement a performance-based 
371.4   contracting system for nursing facilities prior to July 1, 2003. 
371.5   The commissioner shall continue to reimburse nursing facilities 
371.6   under Minnesota Statutes, section 256B.431 or 256B.434, until 
371.7   otherwise directed by law. 
371.8      (e) The commissioner of human services, in consultation 
371.9   with the commissioner of health, shall conduct or contract for a 
371.10  time study to determine staff time being spent on various case 
371.11  mix categories; recommend adjustments to the case mix weights 
371.12  based on the time study data; and determine whether current 
371.13  staffing standards are adequate for providing quality care based 
371.14  on professional best practice and consumer experience.  If the 
371.15  commissioner determines the current standards are inadequate, 
371.16  the commissioner shall determine an appropriate staffing 
371.17  standard for the various case mix categories and the financial 
371.18  implications of phasing into this standard over the next four 
371.19  years. 
371.20     Sec. 36.  [MINIMUM STAFFING STANDARDS REPORT.] 
371.21     By January 15, 2002, the commissioner of health and the 
371.22  commissioner of human services shall report to the legislature 
371.23  on whether they should translate the minimum nurse staffing 
371.24  requirement in Minnesota Statutes, section 144A.04, subdivision 
371.25  7, paragraph (a), upon the transition to the RUG-III 
371.26  classification system, or whether they should establish 
371.27  different time-based standards, and how to accomplish either. 
371.28     Sec. 37.  [PROVIDER RATE INCREASES.] 
371.29     (a) The commissioner of human services shall increase 
371.30  reimbursement rates by three percent each year of the biennium 
371.31  for the providers listed in paragraph (b) and 3.5 percent for 
371.32  the providers listed in paragraph (c).  The increases are 
371.33  effective for services rendered on or after July 1 of each year. 
371.34     (b) The three percent rate increases described in this 
371.35  section must be provided to: 
371.36     (1) home and community-based waivered services for persons 
372.1   with mental retardation or related conditions under Minnesota 
372.2   Statutes, section 256B.501; 
372.3      (2) home and community-based waivered services for the 
372.4   elderly under Minnesota Statutes, section 256B.0915; 
372.5      (3) waivered services under community alternatives for 
372.6   disabled individuals under Minnesota Statutes, section 256B.49; 
372.7      (4) community alternative care waivered services under 
372.8   Minnesota Statutes, section 256B.49; 
372.9      (5) traumatic brain injury waivered services under 
372.10  Minnesota Statutes, section 256B.49; 
372.11     (6) nursing services and home health services under 
372.12  Minnesota Statutes, section 256B.0625, subdivision 6a; 
372.13     (7) personal care services and nursing supervision of 
372.14  personal care services under Minnesota Statutes, section 
372.15  256B.0625, subdivision 19a; 
372.16     (8) private duty nursing services under Minnesota Statutes, 
372.17  section 256B.0625, subdivision 7; 
372.18     (9) day training and habilitation services for adults with 
372.19  mental retardation or related conditions under Minnesota 
372.20  Statutes, sections 252.40 to 252.46; 
372.21     (10) alternative care services under Minnesota Statutes, 
372.22  section 256B.0913; 
372.23     (11) adult residential program grants under Minnesota 
372.24  Rules, parts 9535.2000 to 9535.3000; 
372.25     (12) adult and family community support grants under 
372.26  Minnesota Rules, parts 9535.1700 to 9535.1760; 
372.27     (13) the group residential housing supplementary service 
372.28  rate under Minnesota Statutes, section 256I.05, subdivision 1a; 
372.29     (14) adult mental health integrated fund grants under 
372.30  Minnesota Statutes, section 245.4661; 
372.31     (15) semi-independent living services under Minnesota 
372.32  Statutes, section 252.275, including SILS funding under county 
372.33  social services grants formerly funded under Minnesota Statutes, 
372.34  chapter 256I; 
372.35     (16) community support services for deaf and 
372.36  hard-of-hearing adults with mental illness who use or wish to 
373.1   use sign language as their primary means of communication; and 
373.2      (17) living skills training programs for persons with 
373.3   intractable epilepsy who need assistance in the transition to 
373.4   independent living. 
373.5      (c) The 3.5 percent rate increases described in this 
373.6   section must be provided to day training and habilitation 
373.7   services under Minnesota Statutes, chapter 256B. 
373.8      (d) Providers that receive a rate increase under this 
373.9   section shall use one-third of the additional revenue for 
373.10  operating cost increases and two-thirds of the additional 
373.11  revenue to increase wages and benefits and pay associated costs 
373.12  for all employees other than the administrator and central 
373.13  office staff.  For public employees, the portion of this 
373.14  increase reserved to increase wages and benefits for certain 
373.15  staff is available and pay rates shall be increased only to the 
373.16  extent that they comply with laws governing public employees 
373.17  collective bargaining.  Money received by a provider for pay 
373.18  increases under this section must be used only for increases 
373.19  implemented on or after the first day of the state fiscal year 
373.20  in which the increase is available and must not be used for 
373.21  increases implemented prior to that date. 
373.22     (e) A copy of the provider's plan for complying with 
373.23  paragraph (d) must be made available to all employees by giving 
373.24  each employee a copy or by posting it in an area of the 
373.25  provider's operation to which all employees have access.  If an 
373.26  employee does not receive the adjustment described in the plan 
373.27  and is unable to resolve the problem with the provider, the 
373.28  employee may contact the employee's union representative.  If 
373.29  the employee is not covered by a collective bargaining 
373.30  agreement, the employee may contact the commissioner at a phone 
373.31  number provided by the commissioner and included in the 
373.32  provider's plan. 
373.33     Sec. 38.  [REGULATORY FLEXIBILITY.] 
373.34     (a) By September 1, 2001, the commissioners of health and 
373.35  human services shall: 
373.36     (1) develop a summary of federal nursing facility and 
374.1   community long-term care regulations that hamper state 
374.2   flexibility and place burdens on the goal of achieving 
374.3   high-quality care and optimum outcomes for consumers of 
374.4   services; and 
374.5      (2) share this summary with the legislature, other states, 
374.6   national groups that advocate for state interests with Congress, 
374.7   and the Minnesota congressional delegation. 
374.8      (b) The commissioners shall conduct ongoing follow-up with 
374.9   the entities to which this summary is provided and with the 
374.10  health care financing administration to achieve maximum 
374.11  regulatory flexibility, including the possibility of pilot 
374.12  projects to demonstrate regulatory flexibility on less than a 
374.13  statewide basis. 
374.14     Sec. 39.  [REPORT.] 
374.15     By January 15, 2003, the commissioner of health and the 
374.16  commissioner of human services shall report to the senate health 
374.17  and family security committee and the house health and human 
374.18  services policy committee on the number of closures that have 
374.19  taken place under Minnesota Statutes, section 256B.437, and any 
374.20  other nursing facility closures that may have taken place, 
374.21  alternatives to nursing facility care that have been developed, 
374.22  any problems with access to long-term care services that have 
374.23  resulted, and any recommendations for continuation of the 
374.24  regional long-term care planning process and the closure process 
374.25  after June 30, 2003. 
374.26     Sec. 40.  [INSTRUCTION TO REVISOR.] 
374.27     The revisor of statutes shall delete any reference to 
374.28  Minnesota Statutes, section 144A.16, in Minnesota Statutes and 
374.29  Minnesota Rules. 
374.30     Sec. 41.  [REPEALER.] 
374.31     (a) Minnesota Statutes 2000, sections 144A.16; and 
374.32  256B.434, subdivision 5, are repealed. 
374.33     (b) Minnesota Rules, parts 4655.6810; 4655.6820; 4655.6830; 
374.34  4658.1600; 4658.1605; 4658.1610; 4658.1690; 9546.0010; 
374.35  9546.0020; 9546.0030; 9546.0040; 9546.0050; and 9546.0060, are 
374.36  repealed. 
375.1                              ARTICLE 6 
375.2                 WORKFORCE RECRUITMENT AND RETENTION 
375.3      Section 1.  Minnesota Statutes 2000, section 116L.11, 
375.4   subdivision 4, is amended to read: 
375.5      Subd. 4.  [QUALIFYING CONSORTIUM.] "Qualifying consortium" 
375.6   means an entity that may include includes a public or private 
375.7   institution of higher education, work force center, county, and 
375.8   one or more eligible employers, but must include a public or 
375.9   private institution of higher education and one or more eligible 
375.10  employers employer. 
375.11     Sec. 2.  Minnesota Statutes 2000, section 116L.12, 
375.12  subdivision 4, is amended to read: 
375.13     Subd. 4.  [GRANTS.] Within the limits of available 
375.14  appropriations, the board shall make grants not to exceed 
375.15  $400,000 each to qualifying consortia to operate local, 
375.16  regional, or statewide training and retention programs.  Grants 
375.17  may be made from TANF funds, general fund appropriations, and 
375.18  any other funding sources available to the board, provided the 
375.19  requirements of those funding sources are satisfied.  Grant 
375.20  awards must establish specific, measurable outcomes and 
375.21  timelines for achieving those outcomes. 
375.22     Sec. 3.  Minnesota Statutes 2000, section 116L.12, 
375.23  subdivision 5, is amended to read: 
375.24     Subd. 5.  [LOCAL MATCH REQUIREMENTS.] A consortium must 
375.25  provide at least a 50 percent match from local resources for 
375.26  money appropriated under this section.  The local match 
375.27  requirement must be satisfied on an overall program basis but 
375.28  need not be satisfied for each particular client.  The local 
375.29  match requirement may be reduced for consortia that include a 
375.30  relatively large number of small employers whose financial 
375.31  contribution has been reduced in accordance with section 116L.15.
375.32  In-kind services and expenditures under section 116L.13, 
375.33  subdivision 2, may be used to meet this local match 
375.34  requirement.  The grant application must specify the financial 
375.35  contribution from each member of the consortium satisfy the 
375.36  match requirements established in section 116L.02, paragraph (a).
376.1      Sec. 4.  Minnesota Statutes 2000, section 116L.13, 
376.2   subdivision 1, is amended to read: 
376.3      Subdivision 1.  [MARKETING AND RECRUITMENT.] A qualifying 
376.4   consortium must implement a marketing and outreach strategy to 
376.5   recruit into the health care and human services fields persons 
376.6   from one or more of the potential employee target groups.  
376.7   Recruitment strategies must include: 
376.8      (1) a screening process to evaluate whether potential 
376.9   employees may be disqualified as the result of a required 
376.10  background check or are otherwise unlikely to succeed in the 
376.11  position for which they are being recruited; and 
376.12     (2) a process for modifying course work to meet the 
376.13  training needs of non-English-speaking persons, when appropriate.
376.14     Sec. 5.  [116L.146] [EXPEDITED GRANT PROCESS.] 
376.15     (a) The board may authorize grants not to exceed $50,000 
376.16  each through an expedited grant approval process to: 
376.17     (1) eligible employers to provide training programs for up 
376.18  to 50 workers; or 
376.19     (2) a public or private institution of higher education to: 
376.20     (i) do predevelopment or curriculum development for 
376.21  training programs prior to submission for program funding under 
376.22  section 116L.12; 
376.23     (ii) convert an existing curriculum for distance learning 
376.24  through interactive television or other communication methods; 
376.25  or 
376.26     (iii) enable a training program to be offered when it would 
376.27  otherwise be canceled due to an enrollment shortfall of one or 
376.28  two students when the program is offered in a health-related 
376.29  field with a documented worker shortage and is part of a 
376.30  training program not exceeding two years in length. 
376.31     (b) The board shall develop application procedures and 
376.32  evaluation policies for grants made under this section. 
376.33     Sec. 6.  Minnesota Statutes 2000, section 256B.431, is 
376.34  amended by adding a subdivision to read: 
376.35     Subd. 35.  [EMPLOYEE SCHOLARSHIP COSTS AND TRAINING IN 
376.36  ENGLISH AS A SECOND LANGUAGE.] (a) For the period between July 
377.1   1, 2001, and June 30, 2003, the commissioner shall provide to 
377.2   each nursing facility reimbursed under this section, section 
377.3   256B.434, or any other section, a scholarship per diem of 25 
377.4   cents to the total operating payment rate to be used: 
377.5      (1) for employee scholarships that satisfy the following 
377.6   requirements: 
377.7      (i) scholarships are available to all employees who work an 
377.8   average of at least 20 hours per week at the facility except the 
377.9   administrator, department supervisors, and registered nurses; 
377.10  and 
377.11     (ii) the course of study is expected to lead to career 
377.12  advancement with the facility or in long-term care, including 
377.13  medical care interpreter services and social work; and 
377.14     (2) to provide job-related training in English as a second 
377.15  language. 
377.16     (b) A facility receiving a rate adjustment under this 
377.17  subdivision may submit to the commissioner on a schedule 
377.18  determined by the commissioner and on a form supplied by the 
377.19  commissioner a calculation of the scholarship per diem, 
377.20  including:  the amount received from this rate adjustment; the 
377.21  amount used for training in English as a second language; the 
377.22  number of persons receiving the training; the name of the person 
377.23  or entity providing the training; and for each scholarship 
377.24  recipient, the name of the recipient, the amount awarded, the 
377.25  educational institution attended, the nature of the educational 
377.26  program, the program completion date, and a determination of the 
377.27  per diem amount of these costs based on actual resident days. 
377.28     (c) On July 1, 2003, the commissioner shall remove the 25 
377.29  cent scholarship per diem from the total operating payment rate 
377.30  of each facility. 
377.31     (d) For rate years beginning after June 30, 2003, the 
377.32  commissioner shall provide to each facility the scholarship per 
377.33  diem determined in paragraph (b). 
377.34     Sec. 7.  [CHIP WAIVER.] 
377.35     The commissioner of human services shall seek all waivers 
377.36  necessary to obtain enhanced matching funds under the state 
378.1   children's health insurance program established as title XXI of 
378.2   the Social Security Act, United States Code, title 42, section 
378.3   1397aa et seq. for a program to develop a long-term care 
378.4   employee health insurance program.  Upon receipt of federal 
378.5   approval, the commissioner, in consultation with the long-term 
378.6   care task force, shall report to the legislature with 
378.7   recommendations on implementing the program. 
378.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
378.9   following final enactment.  
378.10     Sec. 8.  [REPEALER.] 
378.11     Minnesota Statutes 2000, section 116L.12, subdivisions 2 
378.12  and 7, are repealed. 
378.13                             ARTICLE 7 
378.14                     REGULATION OF SUPPLEMENTAL 
378.15                     NURSING SERVICES AGENCIES 
378.16     Section 1.  Minnesota Statutes 2000, section 144.057, is 
378.17  amended to read: 
378.18     144.057 [BACKGROUND STUDIES ON LICENSEES AND SUPPLEMENTAL 
378.19  NURSING SERVICES AGENCY PERSONNEL.] 
378.20     Subdivision 1.  [BACKGROUND STUDIES REQUIRED.] The 
378.21  commissioner of health shall contract with the commissioner of 
378.22  human services to conduct background studies of: 
378.23     (1) individuals providing services which have direct 
378.24  contact, as defined under section 245A.04, subdivision 3, with 
378.25  patients and residents in hospitals, boarding care homes, 
378.26  outpatient surgical centers licensed under sections 144.50 to 
378.27  144.58; nursing homes and home care agencies licensed under 
378.28  chapter 144A; residential care homes licensed under chapter 
378.29  144B, and board and lodging establishments that are registered 
378.30  to provide supportive or health supervision services under 
378.31  section 157.17; and 
378.32     (2) beginning July 1, 1999, all other employees in nursing 
378.33  homes licensed under chapter 144A, and boarding care homes 
378.34  licensed under sections 144.50 to 144.58.  A disqualification of 
378.35  an individual in this section shall disqualify the individual 
378.36  from positions allowing direct contact or access to patients or 
379.1   residents receiving services; 
379.2      (3) individuals employed by a supplemental nursing services 
379.3   agency, as defined under section 144A.70, who are providing 
379.4   services in health care facilities; and 
379.5      (4) controlling persons of a supplemental nursing services 
379.6   agency, as defined under section 144A.70. 
379.7      If a facility or program is licensed by the department of 
379.8   human services and subject to the background study provisions of 
379.9   chapter 245A and is also licensed by the department of health, 
379.10  the department of human services is solely responsible for the 
379.11  background studies of individuals in the jointly licensed 
379.12  programs. 
379.13     Subd. 2.  [RESPONSIBILITIES OF DEPARTMENT OF HUMAN 
379.14  SERVICES.] The department of human services shall conduct the 
379.15  background studies required by subdivision 1 in compliance with 
379.16  the provisions of chapter 245A and Minnesota Rules, parts 
379.17  9543.3000 to 9543.3090.  For the purpose of this section, the 
379.18  term "residential program" shall include all facilities 
379.19  described in subdivision 1.  The department of human services 
379.20  shall provide necessary forms and instructions, shall conduct 
379.21  the necessary background studies of individuals, and shall 
379.22  provide notification of the results of the studies to the 
379.23  facilities, supplemental nursing services agencies, individuals, 
379.24  and the commissioner of health.  Individuals shall be 
379.25  disqualified under the provisions of chapter 245A and Minnesota 
379.26  Rules, parts 9543.3000 to 9543.3090.  If an individual is 
379.27  disqualified, the department of human services shall notify the 
379.28  facility, the supplemental nursing services agency, and the 
379.29  individual and shall inform the individual of the right to 
379.30  request a reconsideration of the disqualification by submitting 
379.31  the request to the department of health. 
379.32     Subd. 3.  [RECONSIDERATIONS.] The commissioner of health 
379.33  shall review and decide reconsideration requests, including the 
379.34  granting of variances, in accordance with the procedures and 
379.35  criteria contained in chapter 245A and Minnesota Rules, parts 
379.36  9543.3000 to 9543.3090.  The commissioner's decision shall be 
380.1   provided to the individual and to the department of human 
380.2   services.  The commissioner's decision to grant or deny a 
380.3   reconsideration of disqualification is the final administrative 
380.4   agency action, except for the provisions under section 245A.04, 
380.5   subdivisions 3b, paragraphs (e) and (f); and 3c, paragraph (a). 
380.6      <b>[EFFECTIVE DATE.]</b> This subdivision is effective January 1, 
380.7   2002. 
380.8      Subd. 4.  [RESPONSIBILITIES OF FACILITIES AND AGENCIES.] 
380.9   Facilities and agencies described in subdivision 1 shall be 
380.10  responsible for cooperating with the departments in implementing 
380.11  the provisions of this section.  The responsibilities imposed on 
380.12  applicants and licensees under chapter 245A and Minnesota Rules, 
380.13  parts 9543.3000 to 9543.3090, shall apply to these 
380.14  facilities and supplemental nursing services agencies.  The 
380.15  provision of section 245A.04, subdivision 3, paragraph (e), 
380.16  shall apply to applicants, licensees, registrants, or an 
380.17  individual's refusal to cooperate with the completion of the 
380.18  background studies.  Supplemental nursing services agencies 
380.19  subject to the registration requirements in section 144A.71 must 
380.20  maintain records verifying compliance with the background study 
380.21  requirements under this section. 
380.22     Sec. 2.  [144A.70] [REGISTRATION OF SUPPLEMENTAL NURSING 
380.23  SERVICES AGENCIES; DEFINITIONS.] 
380.24     Subdivision 1.  [SCOPE.] As used in sections 144A.70 to 
380.25  144A.74, the terms defined in this section have the meanings 
380.26  given them. 
380.27     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
380.28  commissioner of health. 
380.29     Subd. 3.  [CONTROLLING PERSON.] "Controlling person" means 
380.30  a business entity, officer, program administrator, or director 
380.31  whose responsibilities include the direction of the management 
380.32  or policies of a supplemental nursing services agency.  
380.33  Controlling person also means an individual who, directly or 
380.34  indirectly, beneficially owns an interest in a corporation, 
380.35  partnership, or other business association that is a controlling 
380.36  person. 
381.1      Subd. 4.  [HEALTH CARE FACILITY.] "Health care facility" 
381.2   means a hospital, boarding care home, or outpatient surgical 
381.3   center licensed under sections 144.50 to 144.58; a nursing home 
381.4   or home care agency licensed under this chapter; a housing with 
381.5   services establishment registered under chapter 144D; or a board 
381.6   and lodging establishment that is registered to provide 
381.7   supportive or health supervision services under section 157.17. 
381.8      Subd. 5.  [PERSON.] "Person" includes an individual, firm, 
381.9   corporation, partnership, or association. 
381.10     Subd. 6.  [SUPPLEMENTAL NURSING SERVICES 
381.11  AGENCY.] "Supplemental nursing services agency" means a person, 
381.12  firm, corporation, partnership, or association engaged for hire 
381.13  in the business of providing or procuring temporary employment 
381.14  in health care facilities for nurses, nursing assistants, nurse 
381.15  aides, and orderlies.  Supplemental nursing services agency does 
381.16  not include an individual who only engages in providing the 
381.17  individual's services on a temporary basis to health care 
381.18  facilities.  Supplemental nursing services agency also does not 
381.19  include any nursing service agency that is limited to providing 
381.20  temporary nursing personnel solely to one or more health care 
381.21  facilities owned or operated by the same person, firm, 
381.22  corporation, or partnership. 
381.23     Sec. 3.  [144A.71] [SUPPLEMENTAL NURSING SERVICES AGENCY 
381.24  REGISTRATION.] 
381.25     Subdivision 1.  [DUTY TO REGISTER.] A person who operates a 
381.26  supplemental nursing services agency shall register the agency 
381.27  with the commissioner.  Each separate location of the business 
381.28  of a supplemental nursing services agency shall register the 
381.29  agency with the commissioner.  Each separate location of the 
381.30  business of a supplemental nursing services agency shall have a 
381.31  separate registration. 
381.32     Subd. 2.  [APPLICATION INFORMATION AND FEE.] The 
381.33  commissioner shall establish forms and procedures for processing 
381.34  each supplemental nursing services agency registration 
381.35  application.  An application for a supplemental nursing services 
381.36  agency registration must include at least the following: 
382.1      (1) the names and addresses of the owner or owners of the 
382.2   supplemental nursing services agency; 
382.3      (2) if the owner is a corporation, copies of its articles 
382.4   of incorporation and current bylaws, together with the names and 
382.5   addresses of its officers and directors; 
382.6      (3) any other relevant information that the commissioner 
382.7   determines is necessary to properly evaluate an application for 
382.8   registration; and 
382.9      (4) the annual registration fee for a supplemental nursing 
382.10  services agency, which is $891. 
382.11     Subd. 3.  [REGISTRATION NOT TRANSFERABLE.] A registration 
382.12  issued by the commissioner according to this section is 
382.13  effective for a period of one year from the date of its issuance 
382.14  unless the registration is revoked or suspended under section 
382.15  144A.72, subdivision 2, or unless the supplemental nursing 
382.16  services agency is sold or ownership or management is 
382.17  transferred.  When a supplemental nursing services agency is 
382.18  sold or ownership or management is transferred, the registration 
382.19  of the agency must be voided and the new owner or operator may 
382.20  apply for a new registration. 
382.21     Sec. 4.  [144A.72] [REGISTRATION REQUIREMENTS; PENALTIES.] 
382.22     Subdivision 1.  [MINIMUM CRITERIA.] The commissioner shall 
382.23  require that, as a condition of registration: 
382.24     (1) the supplemental nursing services agency shall document 
382.25  that each temporary employee provided to health care facilities 
382.26  currently meets the minimum licensing, training, and continuing 
382.27  education standards for the position in which the employee will 
382.28  be working; 
382.29     (2) the supplemental nursing services agency shall comply 
382.30  with all pertinent requirements relating to the health and other 
382.31  qualifications of personnel employed in health care facilities; 
382.32     (3) the supplemental nursing services agency must not 
382.33  restrict in any manner the employment opportunities of its 
382.34  employees; 
382.35     (4) the supplemental nursing services agency, when 
382.36  supplying temporary employees to a health care facility, and 
383.1   when requested by the facility to do so, shall agree that at 
383.2   least 30 percent of the total personnel hours supplied are 
383.3   during night, holiday, or weekend shifts; 
383.4      (5) the supplemental nursing services agency shall carry 
383.5   medical malpractice insurance to insure against the loss, 
383.6   damage, or expense incident to a claim arising out of the death 
383.7   or injury of any person as the result of negligence or 
383.8   malpractice in the provision of health care services by the 
383.9   supplemental nursing services agency or by any employee of the 
383.10  agency; and 
383.11     (6) the supplemental nursing services agency must not, in 
383.12  any contract with any employee or health care facility, require 
383.13  the payment of liquidated damages, employment fees, or other 
383.14  compensation should the employee be hired as a permanent 
383.15  employee of a health care facility. 
383.16     Subd. 2.  [PENALTIES.] A pattern of failure to comply with 
383.17  this section shall subject the supplemental nursing services 
383.18  agency to revocation or nonrenewal of its registration.  
383.19  Violations of section 144A.74 are subject to a fine equal to 200 
383.20  percent of the amount billed or received in excess of the 
383.21  maximum permitted under that section. 
383.22     Sec. 5.  [144A.73] [COMPLAINT SYSTEM.] 
383.23     The commissioner shall establish a system for reporting 
383.24  complaints against a supplemental nursing services agency or its 
383.25  employees.  Complaints may be made by any member of the public.  
383.26  Written complaints must be forwarded to the employer of each 
383.27  person against whom a complaint is made.  The employer shall 
383.28  promptly report to the commissioner any corrective action taken. 
383.29     Sec. 6.  [144A.74] [MAXIMUM CHARGES.] 
383.30     A supplemental nursing services agency must not bill or 
383.31  receive payments from a nursing home licensed under this chapter 
383.32  at a rate higher than 150 percent of the weighted average wage 
383.33  rate for the applicable employee classification for the 
383.34  geographic group to which the nursing home is assigned under 
383.35  Minnesota Rules, part 9549.0052.  The weighted average wage 
383.36  rates must be determined by the commissioner of human services 
384.1   and reported to the commissioner of health on an annual basis.  
384.2   Facilities shall provide information necessary to determine 
384.3   weighted average wage rates to the commissioner of human 
384.4   services in a format requested by the commissioner.  The maximum 
384.5   rate must include all charges for administrative fees, contract 
384.6   fees, or other special charges in addition to the hourly rates 
384.7   for the temporary nursing pool personnel supplied to a nursing 
384.8   home. 
384.9      <b>[EFFECTIVE DATE.]</b> This section is effective August 31, 2001.
384.10     Sec. 7.  [256B.039] [REPORTING OF SUPPLEMENTAL NURSING 
384.11  SERVICES AGENCY USE.] 
384.12     Beginning March 1, 2002, the commissioner shall to report 
384.13  to the legislature annually on the use of supplemental nursing 
384.14  services, including the number of hours worked by supplemental 
384.15  nursing services agency personnel and payments to supplemental 
384.16  nursing services agencies. 
384.17                             ARTICLE 8 
384.18                      LONG-TERM CARE INSURANCE 
384.19     Section 1.  Minnesota Statutes 2000, section 62A.48, 
384.20  subdivision 4, is amended to read: 
384.21     Subd. 4.  [LOSS RATIO.] The anticipated loss ratio for 
384.22  long-term care policies must not be less than 65 percent for 
384.23  policies issued on a group basis or 60 percent for policies 
384.24  issued on an individual or mass-market basis.  This subdivision 
384.25  does not apply to policies issued on or after January 1, 2002, 
384.26  that comply with sections 62S.021 and 62S.081. 
384.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
384.28  following final enactment. 
384.29     Sec. 2.  Minnesota Statutes 2000, section 62A.48, is 
384.30  amended by adding a subdivision to read: 
384.31     Subd. 10.  [REGULATION OF PREMIUMS AND PREMIUM 
384.32  INCREASES.] Policies issued under sections 62A.46 to 62A.56 on 
384.33  or after January 1, 2002, must comply with sections 62S.021, 
384.34  62S.081, 62S.265, and 62S.266 to the same extent as policies 
384.35  issued under chapter 62S. 
384.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
385.1   following final enactment. 
385.2      Sec. 3.  Minnesota Statutes 2000, section 62A.48, is 
385.3   amended by adding a subdivision to read: 
385.4      Subd. 11.  [NONFORFEITURE BENEFITS.] Policies issued under 
385.5   sections 62A.46 to 62A.56 on or after January 1, 2002, must 
385.6   comply with section 62S.02, subdivision 2, to the same extent as 
385.7   policies issued under chapter 62S. 
385.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
385.9   following final enactment. 
385.10     Sec. 4.  Minnesota Statutes 2000, section 62S.01, is 
385.11  amended by adding a subdivision to read: 
385.12     Subd. 13a.  [EXCEPTIONAL INCREASE.] (a) "Exceptional 
385.13  increase" means only those premium rate increases filed by an 
385.14  insurer as exceptional for which the commissioner determines 
385.15  that the need for the premium rate increase is justified due to 
385.16  changes in laws or rules applicable to long-term care coverage 
385.17  in this state, or due to increased and unexpected utilization 
385.18  that affects the majority of insurers of similar products. 
385.19     (b) Except as provided in section 62S.265, exceptional 
385.20  increases are subject to the same requirements as other premium 
385.21  rate schedule increases.  The commissioner may request a review 
385.22  by an independent actuary or a professional actuarial body of 
385.23  the basis for a request that an increase be considered an 
385.24  exceptional increase.  The commissioner, in determining that the 
385.25  necessary basis for an exceptional increase exists, shall also 
385.26  determine any potential offsets to higher claims costs. 
385.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
385.28  following final enactment. 
385.29     Sec. 5.  Minnesota Statutes 2000, section 62S.01, is 
385.30  amended by adding a subdivision to read: 
385.31     Subd. 17a.  [INCIDENTAL.] "Incidental," as used in section 
385.32  62S.265, subdivision 10, means that the value of the long-term 
385.33  care benefits provided is less than ten percent of the total 
385.34  value of the benefits provided over the life of the policy.  
385.35  These values must be measured as of the date of issue. 
385.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
386.1   following final enactment. 
386.2      Sec. 6.  Minnesota Statutes 2000, section 62S.01, is 
386.3   amended by adding a subdivision to read: 
386.4      Subd. 23a.  [QUALIFIED ACTUARY.] "Qualified actuary" means 
386.5   a member in good standing of the American Academy of Actuaries. 
386.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
386.7   following final enactment. 
386.8      Sec. 7.  Minnesota Statutes 2000, section 62S.01, is 
386.9   amended by adding a subdivision to read: 
386.10     Subd. 25a.  [SIMILAR POLICY FORMS.] "Similar policy forms" 
386.11  means all of the long-term care insurance policies and 
386.12  certificates issued by an insurer in the same long-term care 
386.13  benefit classification as the policy form being considered.  
386.14  Certificates of groups that meet the definition in section 
386.15  62S.01, subdivision 15, clause (1), are not considered similar 
386.16  to certificates or policies otherwise issued as long-term care 
386.17  insurance, but are similar to other comparable certificates with 
386.18  the same long-term care benefit classifications.  For purposes 
386.19  of determining similar policy forms, long-term care benefit 
386.20  classifications are defined as follows:  institutional long-term 
386.21  care benefits only, noninstitutional long-term care benefits 
386.22  only, or comprehensive long-term care benefits. 
386.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
386.24  following final enactment. 
386.25     Sec. 8.  [62S.021] [LONG-TERM CARE INSURANCE; INITIAL 
386.26  FILING.] 
386.27     Subdivision 1.  [APPLICABILITY.] This section applies to 
386.28  any long-term care policy issued in this state on or after 
386.29  January 1, 2002, under this chapter or sections 62A.46 to 62A.56.
386.30     Subd. 2.  [REQUIRED SUBMISSION TO COMMISSIONER.] An insurer 
386.31  shall provide the following information to the commissioner 30 
386.32  days prior to making a long-term care insurance form available 
386.33  for sale: 
386.34     (1) a copy of the disclosure documents required in section 
386.35  62S.081; and 
386.36     (2) an actuarial certification consisting of at least the 
387.1   following: 
387.2      (i) a statement that the initial premium rate schedule is 
387.3   sufficient to cover anticipated costs under moderately adverse 
387.4   experience and that the premium rate schedule is reasonably 
387.5   expected to be sustainable over the life of the form with no 
387.6   future premium increases anticipated; 
387.7      (ii) a statement that the policy design and coverage 
387.8   provided have been reviewed and taken into consideration; 
387.9      (iii) a statement that the underwriting and claims 
387.10  adjudication processes have been reviewed and taken into 
387.11  consideration; and 
387.12     (iv) a complete description of the basis for contract 
387.13  reserves that are anticipated to be held under the form, to 
387.14  include: 
387.15     (A) sufficient detail or sample calculations provided so as 
387.16  to have a complete depiction of the reserve amounts to be held; 
387.17     (B) a statement that the assumptions used for reserves 
387.18  contain reasonable margins for adverse experience; 
387.19     (C) a statement that the net valuation premium for renewal 
387.20  years does not increase, except for attained age rating where 
387.21  permitted; 
387.22     (D) a statement that the difference between the gross 
387.23  premium and the net valuation premium for renewal years is 
387.24  sufficient to cover expected renewal expenses, or if such a 
387.25  statement cannot be made, a complete description of the 
387.26  situations in which this does not occur.  An aggregate 
387.27  distribution of anticipated issues may be used as long as the 
387.28  underlying gross premiums maintain a reasonably consistent 
387.29  relationship.  If the gross premiums for certain age groups 
387.30  appear to be inconsistent with this requirement, the 
387.31  commissioner may request a demonstration under item (i) based on 
387.32  a standard age distribution; and 
387.33     (E) either a statement that the premium rate schedule is 
387.34  not less than the premium rate schedule for existing similar 
387.35  policy forms also available from the insurer except for 
387.36  reasonable differences attributable to benefits, or a comparison 
388.1   of the premium schedules for similar policy forms that are 
388.2   currently available from the insurer with an explanation of the 
388.3   differences. 
388.4      Subd. 3.  [ACTUARIAL DEMONSTRATION.] The commissioner may 
388.5   request an actuarial demonstration that benefits are reasonable 
388.6   in relation to premiums.  The actuarial demonstration must 
388.7   include either premium and claim experience on similar policy 
388.8   forms, adjusted for any premium or benefit differences, relevant 
388.9   and credible data from other studies, or both.  If the 
388.10  commissioner asks for additional information under this 
388.11  subdivision, the 30-day time limit in subdivision 2 does not 
388.12  include the time during which the insurer is preparing the 
388.13  requested information. 
388.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
388.15  following final enactment. 
388.16     Sec. 9.  [62S.081] [REQUIRED DISCLOSURE OF RATING PRACTICES 
388.17  TO CONSUMERS.] 
388.18     Subdivision 1.  [APPLICATION.] This section applies as 
388.19  follows: 
388.20     (a) Except as provided in paragraph (b), this section 
388.21  applies to any long-term care policy or certificate issued in 
388.22  this state on or after January 1, 2002. 
388.23     (b) For certificates issued on or after the effective date 
388.24  of this section under a policy of group long-term care insurance 
388.25  as defined in section 62S.01, subdivision 15, that was in force 
388.26  on the effective date of this section, this section applies on 
388.27  the policy anniversary following June 30, 2002. 
388.28     Subd. 2.  [REQUIRED DISCLOSURES.] Other than policies for 
388.29  which no applicable premium rate or rate schedule increases can 
388.30  be made, insurers shall provide all of the information listed in 
388.31  this subdivision to the applicant at the time of application or 
388.32  enrollment, unless the method of application does not allow for 
388.33  delivery at that time; in this case, an insurer shall provide 
388.34  all of the information listed in this subdivision to the 
388.35  applicant no later than at the time of delivery of the policy or 
388.36  certificate: 
389.1      (1) a statement that the policy may be subject to rate 
389.2   increases in the future; 
389.3      (2) an explanation of potential future premium rate 
389.4   revisions and the policyholder's or certificate holder's option 
389.5   in the event of a premium rate revision; 
389.6      (3) the premium rate or rate schedules applicable to the 
389.7   applicant that will be in effect until a request is made for an 
389.8   increase; 
389.9      (4) a general explanation of applying premium rate or rate 
389.10  schedule adjustments that must include: 
389.11     (i) a description of when premium rate or rate schedule 
389.12  adjustments will be effective, for example the next anniversary 
389.13  date or the next billing date; and 
389.14     (ii) the right to a revised premium rate or rate schedule 
389.15  as provided in clause (3) if the premium rate or rate schedule 
389.16  is changed; and 
389.17     (5)(i) information regarding each premium rate increase on 
389.18  this policy form or similar policy forms over the past ten years 
389.19  for this state or any other state that, at a minimum, identifies:
389.20     (A) the policy forms for which premium rates have been 
389.21  increased; 
389.22     (B) the calendar years when the form was available for 
389.23  purchase; and 
389.24     (C) the amount or percent of each increase.  The percentage 
389.25  may be expressed as a percentage of the premium rate prior to 
389.26  the increase and may also be expressed as minimum and maximum 
389.27  percentages if the rate increase is variable by rating 
389.28  characteristics; 
389.29     (ii) the insurer may, in a fair manner, provide additional 
389.30  explanatory information related to the rate increases; 
389.31     (iii) an insurer has the right to exclude from the 
389.32  disclosure premium rate increases that apply only to blocks of 
389.33  business acquired from other nonaffiliated insurers or the 
389.34  long-term care policies acquired from other nonaffiliated 
389.35  insurers when those increases occurred prior to the acquisition; 
389.36     (iv) if an acquiring insurer files for a rate increase on a 
390.1   long-term care policy form acquired from nonaffiliated insurers 
390.2   or a block of policy forms acquired from nonaffiliated insurers 
390.3   on or before the later of the effective date of this section, or 
390.4   the end of a 24-month period following the acquisition of the 
390.5   block of policies, the acquiring insurer may exclude that rate 
390.6   increase from the disclosure.  However, the nonaffiliated 
390.7   selling company must include the disclosure of that rate 
390.8   increase according to item (i); and 
390.9      (v) if the acquiring insurer in item (iv) files for a 
390.10  subsequent rate increase, even within the 24-month period, on 
390.11  the same policy form acquired from nonaffiliated insurers or 
390.12  block of policy forms acquired from nonaffiliated insurers 
390.13  referenced in item (iv), the acquiring insurer shall make all 
390.14  disclosures required by this subdivision, including disclosure 
390.15  of the earlier rate increase referenced in item (iv). 
390.16     Subd. 3.  [ACKNOWLEDGMENT.] An applicant shall sign an 
390.17  acknowledgment at the time of application, unless the method of 
390.18  application does not allow for signature at that time, that the 
390.19  insurer made the disclosure required under subdivision 2.  If, 
390.20  due to the method of application, the applicant cannot sign an 
390.21  acknowledgment at the time of application, the applicant shall 
390.22  sign no later than at the time of delivery of the policy or 
390.23  certificate. 
390.24     Subd. 4.  [FORMS.] An insurer shall use the forms in 
390.25  Appendices B and F of the Long-term Care Insurance Model 
390.26  Regulation adopted by the National Association of Insurance 
390.27  Commissioners to comply with the requirements of subdivisions 1 
390.28  and 2. 
390.29     Subd. 5.  [NOTICE OF INCREASE.] An insurer shall provide 
390.30  notice of an upcoming premium rate schedule increase, after the 
390.31  increase has been approved by the commissioner, to all 
390.32  policyholders or certificate holders, if applicable, at least 45 
390.33  days prior to the implementation of the premium rate schedule 
390.34  increase by the insurer.  The notice must include the 
390.35  information required by subdivision 2 when the rate increase is 
390.36  implemented. 
391.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
391.2   following final enactment. 
391.3      Sec. 10.  Minnesota Statutes 2000, section 62S.26, is 
391.4   amended to read: 
391.5      62S.26 [LOSS RATIO.] 
391.6      (a) The minimum loss ratio must be at least 60 percent, 
391.7   calculated in a manner which provides for adequate reserving of 
391.8   the long-term care insurance risk.  In evaluating the expected 
391.9   loss ratio, the commissioner shall give consideration to all 
391.10  relevant factors, including: 
391.11     (1) statistical credibility of incurred claims experience 
391.12  and earned premiums; 
391.13     (2) the period for which rates are computed to provide 
391.14  coverage; 
391.15     (3) experienced and projected trends; 
391.16     (4) concentration of experience within early policy 
391.17  duration; 
391.18     (5) expected claim fluctuation; 
391.19     (6) experience refunds, adjustments, or dividends; 
391.20     (7) renewability features; 
391.21     (8) all appropriate expense factors; 
391.22     (9) interest; 
391.23     (10) experimental nature of the coverage; 
391.24     (11) policy reserves; 
391.25     (12) mix of business by risk classification; and 
391.26     (13) product features such as long elimination periods, 
391.27  high deductibles, and high maximum limits. 
391.28     (b) This section does not apply to policies or certificates 
391.29  that are subject to sections 62S.021, 62S.081, and 62S.265, and 
391.30  that comply with those sections. 
391.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
391.32  following final enactment. 
391.33     Sec. 11.  [62S.265] [PREMIUM RATE SCHEDULE INCREASES.] 
391.34     Subdivision 1.  [APPLICABILITY.] (a) Except as provided in 
391.35  paragraph (b), this section applies to any long-term care policy 
391.36  or certificate issued in this state on or after January 1, 2002, 
392.1   under this chapter or sections 62A.46 to 62A.56. 
392.2      (b) For certificates issued on or after the effective date 
392.3   of this section under a group long-term care insurance policy as 
392.4   defined in section 62S.01, subdivision 15, issued under this 
392.5   chapter, that was in force on the effective date of this 
392.6   section, this section applies on the policy anniversary 
392.7   following June 30, 2002. 
392.8      Subd. 2.  [NOTICE.] An insurer shall file a requested 
392.9   premium rate schedule increase, including an exceptional 
392.10  increase, to the commissioner for prior approval at least 60 
392.11  days prior to the notice to the policyholders and shall include: 
392.12     (1) all information required by section 62S.081; 
392.13     (2) certification by a qualified actuary that: 
392.14     (i) if the requested premium rate schedule increase is 
392.15  implemented and the underlying assumptions, which reflect 
392.16  moderately adverse conditions, are realized, no further premium 
392.17  rate schedule increases are anticipated; and 
392.18     (ii) the premium rate filing complies with this section; 
392.19     (3) an actuarial memorandum justifying the rate schedule 
392.20  change request that includes: 
392.21     (i) lifetime projections of earned premiums and incurred 
392.22  claims based on the filed premium rate schedule increase and the 
392.23  method and assumptions used in determining the projected values, 
392.24  including reflection of any assumptions that deviate from those 
392.25  used for pricing other forms currently available for sale; 
392.26     (A) annual values for the five years preceding and the 
392.27  three years following the valuation date must be provided 
392.28  separately; 
392.29     (B) the projections must include the development of the 
392.30  lifetime loss ratio, unless the rate increase is an exceptional 
392.31  increase; 
392.32     (C) the projections must demonstrate compliance with 
392.33  subdivision 3; and 
392.34     (D) for exceptional increases, the projected experience 
392.35  must be limited to the increases in claims expenses attributable 
392.36  to the approved reasons for the exceptional increase and, if the 
393.1   commissioner determines that offsets to higher claim costs may 
393.2   exist, the insurer shall use appropriate net projected 
393.3   experience; 
393.4      (ii) disclosure of how reserves have been incorporated in 
393.5   this rate increase whenever the rate increase will trigger 
393.6   contingent benefit upon lapse; 
393.7      (iii) disclosure of the analysis performed to determine why 
393.8   a rate adjustment is necessary, which pricing assumptions were 
393.9   not realized and why, and what other actions taken by the 
393.10  company have been relied upon by the actuary; 
393.11     (iv) a statement that policy design, underwriting, and 
393.12  claims adjudication practices have been taken into 
393.13  consideration; and 
393.14     (v) if it is necessary to maintain consistent premium rates 
393.15  for new certificates and certificates receiving a rate increase, 
393.16  the insurer shall file composite rates reflecting projections of 
393.17  new certificates; 
393.18     (4) a statement that renewal premium rate schedules are not 
393.19  greater than new business premium rate schedules except for 
393.20  differences attributable to benefits, unless sufficient 
393.21  justification is provided to the commissioner; and 
393.22     (5) sufficient information for review and approval of the 
393.23  premium rate schedule increase by the commissioner. 
393.24     Subd. 3.  [REQUIREMENTS PERTAINING TO RATE INCREASES.] All 
393.25  premium rate schedule increases must be determined according to 
393.26  the following requirements: 
393.27     (1) exceptional increases must provide that 70 percent of 
393.28  the present value of projected additional premiums from the 
393.29  exceptional increase will be returned to policyholders in 
393.30  benefits; 
393.31     (2) premium rate schedule increases must be calculated so 
393.32  that the sum of the accumulated value of incurred claims, 
393.33  without the inclusion of active life reserves, and the present 
393.34  value of future projected incurred claims, without the inclusion 
393.35  of active life reserves, will not be less than the sum of the 
393.36  following: 
394.1      (i) the accumulated value of the initial earned premium 
394.2   times 58 percent; 
394.3      (ii) 85 percent of the accumulated value of prior premium 
394.4   rate schedule increases on an earned basis; 
394.5      (iii) the present value of future projected initial earned 
394.6   premiums times 58 percent; and 
394.7      (iv) 85 percent of the present value of future projected 
394.8   premiums not in item (iii) on an earned basis; 
394.9      (3) if a policy form has both exceptional and other 
394.10  increases, the values in clause (2), items (ii) and (iv), must 
394.11  also include 70 percent for exceptional rate increase amounts; 
394.12  and 
394.13     (4) all present and accumulated values used to determine 
394.14  rate increases must use the maximum valuation interest rate for 
394.15  contract reserves permitted for valuation of whole life 
394.16  insurance policies issued in this state on the same date.  The 
394.17  actuary shall disclose as part of the actuarial memorandum the 
394.18  use of any appropriate averages. 
394.19     Subd. 4.  [PROJECTIONS.] For each rate increase that is 
394.20  implemented, the insurer shall file for approval by the 
394.21  commissioner updated projections, as described in subdivision 2, 
394.22  clause (3), item (i), annually for the next three years and 
394.23  include a comparison of actual results to projected values.  The 
394.24  commissioner may extend the period to greater than three years 
394.25  if actual results are not consistent with projected values from 
394.26  prior projections.  For group insurance policies that meet the 
394.27  conditions in subdivision 11, the projections required by this 
394.28  subdivision must be provided to the policyholder in lieu of 
394.29  filing with the commissioner. 
394.30     Subd. 5.  [LIFETIME PROJECTIONS.] If any premium rate in 
394.31  the revised premium rate schedule is greater than 200 percent of 
394.32  the comparable rate in the initial premium schedule, lifetime 
394.33  projections, as described in subdivision 2, clause (3), item 
394.34  (i), must be filed for approval by the commissioner every five 
394.35  years following the end of the required period in subdivision 
394.36  4.  For group insurance policies that meet the conditions in 
395.1   subdivision 11, the projections required by this subdivision 
395.2   must be provided to the policyholder in lieu of filing with the 
395.3   commissioner. 
395.4      Subd. 6.  [EFFECT OF ACTUAL EXPERIENCE.] (a) If the 
395.5   commissioner has determined that the actual experience following 
395.6   a rate increase does not adequately match the projected 
395.7   experience and that the current projections under moderately 
395.8   adverse conditions demonstrate that incurred claims will not 
395.9   exceed proportions of premiums specified in subdivision 3, the 
395.10  commissioner may require the insurer to implement any of the 
395.11  following: 
395.12     (1) premium rate schedule adjustments; or 
395.13     (2) other measures to reduce the difference between the 
395.14  projected and actual experience. 
395.15     (b) In determining whether the actual experience adequately 
395.16  matches the projected experience, consideration must be given to 
395.17  subdivision 2, clause (3), item (v), if applicable. 
395.18     Subd. 7.  [CONTINGENT BENEFIT UPON LAPSE.] If the majority 
395.19  of the policies or certificates to which the increase is 
395.20  applicable are eligible for the contingent benefit upon lapse, 
395.21  the insurer shall file: 
395.22     (1) a plan, subject to commissioner approval, for improved 
395.23  administration or claims processing designed to eliminate the 
395.24  potential for further deterioration of the policy form requiring 
395.25  further premium rate schedule increases, or both, or a 
395.26  demonstration that appropriate administration and claims 
395.27  processing have been implemented or are in effect; otherwise, 
395.28  the commissioner may impose the condition in subdivision 8, 
395.29  paragraph (b); and 
395.30     (2) the original anticipated lifetime loss ratio, and the 
395.31  premium rate schedule increase that would have been calculated 
395.32  according to subdivision 3 had the greater of the original 
395.33  anticipated lifetime loss ratio or 58 percent been used in the 
395.34  calculations described in subdivision 3, clause (2), items (i) 
395.35  and (iii). 
395.36     Subd. 8.  [PROJECTED LAPSE RATES.] (a) For a rate increase 
396.1   filing that meets the following criteria, the commissioner shall 
396.2   review, for all policies included in the filing, the projected 
396.3   lapse rates and past lapse rates during the 12 months following 
396.4   each increase to determine if significant adverse lapsation has 
396.5   occurred or is anticipated: 
396.6      (1) the rate increase is not the first rate increase 
396.7   requested for the specific policy form or forms; 
396.8      (2) the rate increase is not an exceptional increase; and 
396.9      (3) the majority of the policies or certificates to which 
396.10  the increase is applicable are eligible for the contingent 
396.11  benefit upon lapse. 
396.12     (b) If significant adverse lapsation has occurred, is 
396.13  anticipated in the filing, or is evidenced in the actual results 
396.14  as presented in the updated projections provided by the insurer 
396.15  following the requested rate increase, the commissioner may 
396.16  determine that a rate spiral exists.  Following the 
396.17  determination that a rate spiral exists, the commissioner may 
396.18  require the insurer to offer, without underwriting, to all 
396.19  in-force insureds subject to the rate increase, the option to 
396.20  replace existing coverage with one or more reasonably comparable 
396.21  products being offered by the insurer or its affiliates.  The 
396.22  offer must: 
396.23     (1) be subject to the approval of the commissioner; 
396.24     (2) be based upon actuarially sound principles, but not be 
396.25  based upon attained age; and 
396.26     (3) provide that maximum benefits under any new policy 
396.27  accepted by an insured are reduced by comparable benefits 
396.28  already paid under the existing policy. 
396.29     (c) The insurer shall maintain the experience of all the 
396.30  replacement insureds separate from the experience of insureds 
396.31  originally issued the policy forms.  In the event of a request 
396.32  for a rate increase on the policy form, the rate increase must 
396.33  be limited to the lesser of the maximum rate increase determined 
396.34  based on the combined experience and the maximum rate increase 
396.35  determined based only upon the experience of the insureds 
396.36  originally issued the form plus ten percent. 
397.1      Subd. 9.  [PERSISTENT PRACTICE OF INADEQUATE INITIAL 
397.2   RATES.] If the commissioner determines that the insurer has 
397.3   exhibited a persistent practice of filing inadequate initial 
397.4   premium rates for long-term care insurance, the commissioner 
397.5   may, in addition to the provisions of subdivision 8, prohibit 
397.6   the insurer from either of the following: 
397.7      (1) filing and marketing comparable coverage for a period 
397.8   of up to five years; or 
397.9      (2) offering all other similar coverages and limiting 
397.10  marketing of new applications to the products subject to recent 
397.11  premium rate schedule increases. 
397.12     Subd. 10.  [INCIDENTAL LONG-TERM CARE 
397.13  BENEFITS.] Subdivisions 1 to 9 do not apply to policies for 
397.14  which the long-term care benefits provided by the policy are 
397.15  incidental, as defined in section 62S.01, subdivision 17a, if 
397.16  the policy complies with all of the following provisions: 
397.17     (1) the interest credited internally to determine cash 
397.18  value accumulations, including long-term care, if any, are 
397.19  guaranteed not to be less than the minimum guaranteed interest 
397.20  rate for cash value accumulations without long-term care set 
397.21  forth in the policy; 
397.22     (2) the portion of the policy that provides insurance 
397.23  benefits other than long-term care coverage meets the 
397.24  nonforfeiture requirements as applicable in any of the following:
397.25     (i) for life insurance, section 61A.25; 
397.26     (ii) for individual deferred annuities, section 61A.245; 
397.27  and 
397.28     (iii) for variable annuities, section 61A.21; 
397.29     (3) the policy meets the disclosure requirements of 
397.30  sections 62S.10 and 62S.11 if the policy is governed by chapter 
397.31  62S and of section 62A.50 if the policy is governed by sections 
397.32  62A.46 to 62A.56; 
397.33     (4) the portion of the policy that provides insurance 
397.34  benefits other than long-term care coverage meets the 
397.35  requirements as applicable in the following: 
397.36     (i) policy illustrations to the extent required by state 
398.1   law applicable to life insurance; 
398.2      (ii) disclosure requirements in state law applicable to 
398.3   annuities; and 
398.4      (iii) disclosure requirements applicable to variable 
398.5   annuities; and 
398.6      (5) an actuarial memorandum is filed with the commissioner 
398.7   that includes: 
398.8      (i) a description of the basis on which the long-term care 
398.9   rates were determined; 
398.10     (ii) a description of the basis for the reserves; 
398.11     (iii) a summary of the type of policy, benefits, 
398.12  renewability, general marketing method, and limits on ages of 
398.13  issuance; 
398.14     (iv) a description and a table of each actuarial assumption 
398.15  used.  For expenses, an insurer must include percent of premium 
398.16  dollars per policy and dollars per unit of benefits, if any; 
398.17     (v) a description and a table of the anticipated policy 
398.18  reserves and additional reserves to be held in each future year 
398.19  for active lives; 
398.20     (vi) the estimated average annual premium per policy and 
398.21  the average issue age; 
398.22     (vii) a statement as to whether underwriting is performed 
398.23  at the time of application.  The statement must indicate whether 
398.24  underwriting is used and, if used, the statement shall include a 
398.25  description of the type or types of underwriting used, such as 
398.26  medical underwriting or functional assessment underwriting.  
398.27  Concerning a group policy, the statement must indicate whether 
398.28  the enrollee or any dependent will be underwritten and when 
398.29  underwriting occurs; and 
398.30     (viii) a description of the effect of the long-term care 
398.31  policy provision on the required premiums, nonforfeiture values, 
398.32  and reserves on the underlying insurance policy, both for active 
398.33  lives and those in long-term care claim status. 
398.34     Subd. 11.  [LARGE GROUP POLICIES.] Subdivisions 6 and 9 do 
398.35  not apply to group long-term care insurance policies as defined 
398.36  in section 62S.01, subdivision 15, where: 
399.1      (1) the policies insure 250 or more persons, and the 
399.2   policyholder has 5,000 or more eligible employees of a single 
399.3   employer; or 
399.4      (2) the policyholder, and not the certificate holders, pays 
399.5   a material portion of the premium, which is not less than 20 
399.6   percent of the total premium for the group in the calendar year 
399.7   prior to the year in which a rate increase is filed. 
399.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
399.9   following final enactment. 
399.10     Sec. 12.  [62S.266] [NONFORFEITURE BENEFIT REQUIREMENT.] 
399.11     Subdivision 1.  [APPLICABILITY.] This section does not 
399.12  apply to life insurance policies or riders containing 
399.13  accelerated long-term care benefits. 
399.14     Subd. 2.  [REQUIREMENT.] An insurer must offer each 
399.15  prospective policyholder a nonforfeiture benefit in compliance 
399.16  with the following requirements: 
399.17     (1) a policy or certificate offered with nonforfeiture 
399.18  benefits must have coverage elements, eligibility, benefit 
399.19  triggers, and benefit length that are the same as coverage to be 
399.20  issued without nonforfeiture benefits.  The nonforfeiture 
399.21  benefit included in the offer must be the benefit described in 
399.22  subdivision 5; and 
399.23     (2) the offer must be in writing if the nonforfeiture 
399.24  benefit is not otherwise described in the outline of coverage or 
399.25  other materials given to the prospective policyholder. 
399.26     Subd. 3.  [EFFECT OF REJECTION OF OFFER.] If the offer 
399.27  required to be made under subdivision 2 is rejected, the insurer 
399.28  shall provide the contingent benefit upon lapse described in 
399.29  this section. 
399.30     Subd. 4.  [CONTINGENT BENEFIT UPON LAPSE.] (a) After 
399.31  rejection of the offer required under subdivision 2, for 
399.32  individual and group policies without nonforfeiture benefits 
399.33  issued after the effective date of this section, the insurer 
399.34  shall provide a contingent benefit upon lapse. 
399.35     (b) If a group policyholder elects to make the 
399.36  nonforfeiture benefit an option to the certificate holder, a 
400.1   certificate shall provide either the nonforfeiture benefit or 
400.2   the contingent benefit upon lapse. 
400.3      (c) The contingent benefit on lapse must be triggered every 
400.4   time an insurer increases the premium rates to a level which 
400.5   results in a cumulative increase of the annual premium equal to 
400.6   or exceeding the percentage of the insured's initial annual 
400.7   premium based on the insured's issue age provided in this 
400.8   paragraph, and the policy or certificate lapses within 120 days 
400.9   of the due date of the premium increase.  Unless otherwise 
400.10  required, policyholders shall be notified at least 30 days prior 
400.11  to the due date of the premium reflecting the rate increase. 
400.12           Triggers for a Substantial Premium Increase 
400.13                      Percent Increase
400.14       Issue Age      Over Initial Premium
400.15       29 and Under            200
400.16          30-34                190
400.17          35-39                170
400.18          40-44                150
400.19          45-49                130
400.20          50-54                110
400.21          55-59                 90
400.22             60                 70
400.23             61                 66
400.24             62                 62
400.25             63                 58
400.26             64                 54
400.27             65                 50
400.28             66                 48
400.29             67                 46
400.30             68                 44
400.31             69                 42
400.32             70                 40
400.33             71                 38
400.34             72                 36
400.35             73                 34
400.36             74                 32
401.1              75                 30
401.2              76                 28
401.3              77                 26
401.4              78                 24
401.5              79                 22
401.6              80                 20
401.7              81                 19
401.8              82                 18
401.9              83                 17
401.10             84                 16
401.11             85                 15
401.12             86                 14
401.13             87                 13
401.14             88                 12
401.15             89                 11
401.16         90 and over            10
401.17     (d) On or before the effective date of a substantial 
401.18  premium increase as defined in paragraph (c), the insurer shall: 
401.19     (1) offer to reduce policy benefits provided by the current 
401.20  coverage without the requirement of additional underwriting so 
401.21  that required premium payments are not increased; 
401.22     (2) offer to convert the coverage to a paid-up status with 
401.23  a shortened benefit period according to the terms of subdivision 
401.24  5.  This option may be elected at any time during the 120-day 
401.25  period referenced in paragraph (c); and 
401.26     (3) notify the policyholder or certificate holder that a 
401.27  default or lapse at any time during the 120-day period 
401.28  referenced in paragraph (c) is deemed to be the election of the 
401.29  offer to convert in clause (2). 
401.30     Subd. 5.  [NONFORFEITURE BENEFITS; REQUIREMENTS.] (a) 
401.31  Benefits continued as nonforfeiture benefits, including 
401.32  contingent benefits upon lapse, must be as described in this 
401.33  subdivision. 
401.34     (b) For purposes of this subdivision, "attained age rating" 
401.35  is defined as a schedule of premiums starting from the issue 
401.36  date which increases with age at least one percent per year 
402.1   prior to age 50, and at least three percent per year beyond age 
402.2   50. 
402.3      (c) For purposes of this subdivision, the nonforfeiture 
402.4   benefit must be of a shortened benefit period providing paid-up, 
402.5   long-term care insurance coverage after lapse.  The same 
402.6   benefits, amounts, and frequency in effect at the time of lapse, 
402.7   but not increased thereafter, will be payable for a qualifying 
402.8   claim, but the lifetime maximum dollars or days of benefits must 
402.9   be determined as specified in paragraph (d). 
402.10     (d) The standard nonforfeiture credit will be equal to 100 
402.11  percent of the sum of all premiums paid, including the premiums 
402.12  paid prior to any changes in benefits.  The insurer may offer 
402.13  additional shortened benefit period options, so long as the 
402.14  benefits for each duration equal or exceed the standard 
402.15  nonforfeiture credit for that duration.  However, the minimum 
402.16  nonforfeiture credit must not be less than 30 times the daily 
402.17  nursing home benefit at the time of lapse.  In either event, the 
402.18  calculation of the nonforfeiture credit is subject to the 
402.19  limitation of this subdivision. 
402.20     (e) The nonforfeiture benefit must begin not later than the 
402.21  end of the third year following the policy or certificate issue 
402.22  date.  The contingent benefit upon lapse must be effective 
402.23  during the first three years as well as thereafter. 
402.24     (f) Notwithstanding paragraph (e), for a policy or 
402.25  certificate with attained age rating, the nonforfeiture benefit 
402.26  must begin on the earlier of: 
402.27     (1) the end of the tenth year following the policy or 
402.28  certificate issue date; or 
402.29     (2) the end of the second year following the date the 
402.30  policy or certificate is no longer subject to attained age 
402.31  rating. 
402.32     (g) Nonforfeiture credits may be used for all care and 
402.33  services qualifying for benefits under the terms of the policy 
402.34  or certificate, up to the limits specified in the policy or 
402.35  certificate. 
402.36     Subd. 6.  [BENEFIT LIMIT.] All benefits paid by the insurer 
403.1   while the policy or certificate is in premium-paying status and 
403.2   in the paid-up status will not exceed the maximum benefits which 
403.3   would be payable if the policy or certificate had remained in 
403.4   premium-paying status. 
403.5      Subd. 7.  [MINIMUM BENEFITS; INDIVIDUAL AND GROUP 
403.6   POLICIES.] There must be no difference in the minimum 
403.7   nonforfeiture benefits as required under this section for group 
403.8   and individual policies. 
403.9      Subd. 8.  [APPLICATION; EFFECTIVE DATES.] This section 
403.10  becomes effective January 1, 2002, and applies as follows: 
403.11     (a) Except as provided in paragraph (b), this section 
403.12  applies to any long-term care policy issued in this state on or 
403.13  after the effective date of this section. 
403.14     (b) For certificates issued on or after the effective date 
403.15  of this section, under a group long-term care insurance policy 
403.16  that was in force on the effective date of this section, the 
403.17  provisions of this section do not apply. 
403.18     Subd. 9.  [EFFECT ON LOSS RATIO.] Premiums charged for a 
403.19  policy or certificate containing nonforfeiture benefits or a 
403.20  contingent benefit on lapse are subject to the loss ratio 
403.21  requirements of section 62A.48, subdivision 4, or 62S.26, 
403.22  treating the policy as a whole, except for policies or 
403.23  certificates that are subject to sections 62S.021, 62S.081, and 
403.24  62S.265 and that comply with those sections. 
403.25     Subd. 10.  [PURCHASED BLOCKS OF BUSINESS.] To determine 
403.26  whether contingent nonforfeiture upon lapse provisions are 
403.27  triggered under subdivision 4, paragraph (c), a replacing 
403.28  insurer that purchased or otherwise assumed a block or blocks of 
403.29  long-term care insurance policies from another insurer shall 
403.30  calculate the percentage increase based on the initial annual 
403.31  premium paid by the insured when the policy was first purchased 
403.32  from the original insurer. 
403.33     Subd. 11.  [LEVEL PREMIUM CONTRACTS.] A nonforfeiture 
403.34  benefit for qualified long-term care insurance contracts that 
403.35  are level premium contracts must be offered that meets the 
403.36  following requirements: 
404.1      (1) the nonforfeiture provision must be appropriately 
404.2   captioned; 
404.3      (2) the nonforfeiture provision must provide a benefit 
404.4   available in the event of a default in the payment of any 
404.5   premiums and must state that the amount of the benefit may be 
404.6   adjusted subsequent to being initially granted only as necessary 
404.7   to reflect changes in claims, persistency, and interest as 
404.8   reflected in changes in rates for premium paying contracts 
404.9   approved by the commissioner for the same contract form; and 
404.10     (3) the nonforfeiture provision must provide at least one 
404.11  of the following: 
404.12     (i) reduced paid-up insurance; 
404.13     (ii) extended term insurance; 
404.14     (iii) shortened benefit period; or 
404.15     (iv) other similar offerings approved by the commissioner. 
404.16     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
404.17  following final enactment. 
404.18     Sec. 13.  Minnesota Statutes 2000, section 256.975, is 
404.19  amended by adding a subdivision to read: 
404.20     Subd. 8.  [PROMOTION OF LONG-TERM CARE INSURANCE.] Within 
404.21  the limits of appropriations specifically for this purpose, the 
404.22  Minnesota board on aging, either directly or through contract, 
404.23  shall promote the provision of employer-sponsored, long-term 
404.24  care insurance.  The board shall encourage private and public 
404.25  sector employers to make long-term care insurance available to 
404.26  employees, provide interested employers with information on the 
404.27  long-term care insurance product offered to state employees, and 
404.28  provide technical assistance to employers in designing long-term 
404.29  care insurance products and contacting companies offering 
404.30  long-term care insurance products. 
404.31                             ARTICLE 9 
404.32                 MENTAL HEALTH AND CIVIL COMMITMENT 
404.33     Section 1.  [62Q.471] [EXCLUSION FOR SUICIDE ATTEMPTS 
404.34  PROHIBITED.] 
404.35     (a) No health plan may exclude or reduce coverage for 
404.36  health care for an enrollee that is otherwise covered under the 
405.1   health plan, on the basis that the need for the health care 
405.2   arose out of a suicide or suicide attempt by the enrollee. 
405.3      (b) For purposes of this section, "health plan" has the 
405.4   meaning given in section 62Q.01, subdivision 3, but includes the 
405.5   coverages described in section 62A.011, clauses (7) and (10). 
405.6      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 
405.7   2002, and applies to contracts issued or renewed on or after 
405.8   that date. 
405.9      Sec. 2.  [62Q.527] [COVERAGE OF NONFORMULARY DRUGS FOR 
405.10  MENTAL ILLNESS AND EMOTIONAL DISTURBANCE.] 
405.11     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
405.12  section, the following terms have the meanings given to them. 
405.13     (b) "Emotional disturbance" has the meaning given in 
405.14  section 245.4871, subdivision 15. 
405.15     (c) "Mental illness" has the meaning given in section 
405.16  245.462, subdivision 20, paragraph (a). 
405.17     (d) "Health plan" has the meaning given in section 62Q.01, 
405.18  subdivision 3, but includes the coverages described in section 
405.19  62A.011, subdivision 3, clauses (7) and (10).  
405.20     Subd. 2.  [REQUIRED COVERAGE FOR ANTIPSYCHOTIC DRUGS.] (a) 
405.21  A health plan that provides prescription drug coverage must 
405.22  provide coverage for an antipsychotic drug prescribed to treat 
405.23  emotional disturbance or mental illness regardless of whether 
405.24  the drug is in the health plan's drug formulary, if the health 
405.25  care provider prescribing the drug: 
405.26     (1) indicates to the dispensing pharmacist, orally or in 
405.27  writing according to section 151.21, that the prescription must 
405.28  be dispensed as communicated; and 
405.29     (2) certifies in writing to the health plan company that 
405.30  the health care provider has considered all equivalent drugs in 
405.31  the health plan's drug formulary and has determined that the 
405.32  drug prescribed will best treat the patient's condition.  
405.33     (b) The health plan is not required to provide coverage for 
405.34  a drug if the drug was removed from the health plan's drug 
405.35  formulary for safety reasons.  
405.36     (c) For drugs covered under this section, no health plan 
406.1   company that has received a certification from the health care 
406.2   provider as described in paragraph (a), may: 
406.3      (1) impose a special deductible, co-payment, coinsurance, 
406.4   or other special payment requirement that the health plan does 
406.5   not apply to drugs that are in the health plan's drug formulary; 
406.6   or 
406.7      (2) require written certification from the prescribing 
406.8   provider each time a prescription is refilled or renewed that 
406.9   the drug prescribed will best treat the patient's condition. 
406.10     Subd. 3.  [CONTINUING CARE.] (a) Enrollees receiving a 
406.11  prescribed drug to treat a diagnosed mental illness or emotional 
406.12  disturbance, may continue to receive the prescribed drug for up 
406.13  to one year without the imposition of a special deductible, 
406.14  co-payment, coinsurance, or other special payment requirements, 
406.15  when a health plan's drug formulary changes or an enrollee 
406.16  changes health plans and the medication has been shown to 
406.17  effectively treat the patient's condition.  In order to be 
406.18  eligible for this continuing care benefit: 
406.19     (1) the patient must have been treated with the drug for 90 
406.20  days prior to a change in a health plan's drug formulary or a 
406.21  change in the enrollee's health plan; 
406.22     (2) the health care provider prescribing the drug indicates 
406.23  to the dispensing pharmacist, orally or in writing according to 
406.24  section 151.21, that the prescription must be dispensed as 
406.25  communicated; and 
406.26     (3) the health care provider prescribing the drug certifies 
406.27  in writing to the health plan company that the drug prescribed 
406.28  will best treat the patient's condition.  
406.29     (b) The continuing care benefit shall be extended annually 
406.30  when the health care provider prescribing the drug: 
406.31     (1) indicates to the dispensing pharmacist, orally or in 
406.32  writing according to section 151.21, that the prescription must 
406.33  be dispensed as communicated; and 
406.34     (2) certifies in writing to the health plan company that 
406.35  the drug prescribed will best treat the patient's condition.  
406.36     (c) The health plan company is not required to provide 
407.1   coverage for a drug if the drug was removed from the health 
407.2   plan's drug formulary for safety reasons.  
407.3      Subd. 4.  [EXCEPTION TO FORMULARY.] A health plan company 
407.4   must promptly grant an exception to the health plan's drug 
407.5   formulary for an enrollee when the health care provider 
407.6   prescribing the drug indicates to the health plan company that: 
407.7      (1) the formulary drug causes an adverse reaction in the 
407.8   patient; 
407.9      (2) the formulary drug is contraindicated for the patient; 
407.10  or 
407.11     (3) the health care provider demonstrates to the health 
407.12  plan that the prescription drug must be dispensed as written to 
407.13  provide maximum medical benefit to the patient. 
407.14     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 
407.15  2002, and applies to contracts issued or renewed on or after 
407.16  that date. 
407.17     Sec. 3.  [62Q.535] [COVERAGE FOR COURT-ORDERED MENTAL 
407.18  HEALTH SERVICES.] 
407.19     Subdivision 1.  [MENTAL HEALTH SERVICES.] For purposes of 
407.20  this section, mental health services means all covered services 
407.21  that are intended to treat or ameliorate an emotional, 
407.22  behavioral, or psychiatric condition and that are covered by the 
407.23  policy, contract, or certificate of coverage of the enrollee's 
407.24  health plan company or by law. 
407.25     Subd. 2.  [COVERAGE REQUIRED.] (a) All health plan 
407.26  companies that provide coverage for mental health services must 
407.27  cover or provide mental health services ordered by a court of 
407.28  competent jurisdiction under a court order that is issued on the 
407.29  basis of a behavioral care evaluation performed by a licensed 
407.30  psychiatrist or a doctoral level licensed psychologist, which 
407.31  includes a diagnosis and an individual treatment plan for care 
407.32  in the most appropriate, least restrictive environment.  The 
407.33  health plan company must be given a copy of the court order and 
407.34  the behavioral care evaluation.  The health plan company shall 
407.35  be financially liable for the evaluation if performed by a 
407.36  participating provider of the health plan company and shall be 
408.1   financially liable for the care included in the court-ordered 
408.2   individual treatment plan if the care is covered by the health 
408.3   plan and ordered to be provided by a participating provider or 
408.4   another provider as required by rule or law.  This court-ordered 
408.5   coverage must not be subject to a separate medical necessity 
408.6   determination by a health plan company under its utilization 
408.7   procedures.  
408.8      (b) A party or interested person, including a health plan 
408.9   company or its designee, may make a motion for modification of 
408.10  the court-ordered plan of care pursuant to the applicable rules 
408.11  of procedure for modification of the court's order.  The motion 
408.12  may include a request for a new behavioral care evaluation 
408.13  according to this section. 
408.14     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
408.15  and applies to contracts issued or renewed on or after that date.
408.16     Sec. 4.  [244.054] [DISCHARGE PLANS; OFFENDERS WITH SERIOUS 
408.17  AND PERSISTENT MENTAL ILLNESS.] 
408.18     Subdivision 1.  [OFFER TO DEVELOP PLAN.] The commissioner 
408.19  of human services, in collaboration with the commissioner of 
408.20  corrections, shall offer to develop a discharge plan for 
408.21  community-based services for every offender with serious and 
408.22  persistent mental illness, as defined in section 245.462, 
408.23  subdivision 20, paragraph (c), who is being released from a 
408.24  correctional facility.  If an offender is being released 
408.25  pursuant to section 244.05, the offender may choose to have the 
408.26  discharge plan made one of the conditions of the offender's 
408.27  supervised release and shall follow the conditions to the extent 
408.28  that services are available and offered to the offender. 
408.29     Subd. 2.  [CONTENT OF PLAN.] If an offender chooses to have 
408.30  a discharge plan developed, the commissioner of human services 
408.31  shall develop and implement a discharge plan, which must include 
408.32  at least the following: 
408.33     (1) at least 90 days before the offender is due to be 
408.34  discharged, the commissioner of human services shall designate 
408.35  an agent of the department of human services with mental health 
408.36  training to serve as the primary person responsible for carrying 
409.1   out discharge planning activities; 
409.2      (2) at least 75 days before the offender is due to be 
409.3   discharged, the offender's designated agent shall: 
409.4      (i) obtain informed consent and releases of information 
409.5   from the offender that are needed for transition services; 
409.6      (ii) contact the county human services department in the 
409.7   community where the offender expects to reside following 
409.8   discharge, and inform the department of the offender's impending 
409.9   discharge and the planned date of the offender's return to the 
409.10  community; determine whether the county or a designated 
409.11  contracted provider will provide case management services to the 
409.12  offender; refer the offender to the case management services 
409.13  provider; and confirm that the case management services provider 
409.14  will have opened the offender's case prior to the offender's 
409.15  discharge; and 
409.16     (iii) refer the offender to appropriate staff in the county 
409.17  human services department in the community where the offender 
409.18  expects to reside following discharge, for enrollment of the 
409.19  offender if eligible in medical assistance or general assistance 
409.20  medical care, using special procedures established by process 
409.21  and department of human services bulletin; 
409.22     (3) at least 2-1/2 months before discharge, the offender's 
409.23  designated agent shall secure timely appointments for the 
409.24  offender with a psychiatrist no later than 30 days following 
409.25  discharge, and with other program staff at a community mental 
409.26  health provider that is able to serve former offenders with 
409.27  serious and persistent mental illness; 
409.28     (4) at least 30 days before discharge, the offender's 
409.29  designated agent shall convene a predischarge assessment and 
409.30  planning meeting of key staff from the programs in which the 
409.31  offender has participated while in the correctional facility, 
409.32  the offender, and the supervising agent assigned to the 
409.33  offender.  At the meeting, attendees shall provide background 
409.34  information and continuing care recommendations for the 
409.35  offender, including information on the offender's risk for 
409.36  relapse; current medications, including dosage and frequency; 
410.1   therapy and behavioral goals; diagnostic and assessment 
410.2   information, including results of a chemical dependency 
410.3   evaluation; confirmation of appointments with a psychiatrist and 
410.4   other program staff in the community; a relapse prevention plan; 
410.5   continuing care needs; needs for housing, employment, and 
410.6   finance support and assistance; and recommendations for 
410.7   successful community integration, including chemical dependency 
410.8   treatment or support if chemical dependency is a risk factor.  
410.9   Immediately following this meeting, the offender's designated 
410.10  agent shall summarize this background information and continuing 
410.11  care recommendations in a written report; 
410.12     (5) immediately following the predischarge assessment and 
410.13  planning meeting, the provider of mental health case management 
410.14  services who will serve the offender following discharge shall 
410.15  offer to make arrangements and referrals for housing, financial 
410.16  support, benefits assistance, employment counseling, and other 
410.17  services required in sections 245.461 to 245.486; 
410.18     (6) at least ten days before the offender's first scheduled 
410.19  postdischarge appointment with a mental health provider, the 
410.20  offender's designated agent shall transfer the following records 
410.21  to the offender's case management services provider and 
410.22  psychiatrist:  the predischarge assessment and planning report, 
410.23  medical records, and pharmacy records.  These records may be 
410.24  transferred only if the offender provides informed consent for 
410.25  their release; 
410.26     (7) upon discharge, the offender's designated agent shall 
410.27  ensure that the offender leaves the correctional facility with 
410.28  at least a ten-day supply of all necessary medications; and 
410.29     (8) upon discharge, the prescribing authority at the 
410.30  offender's correctional facility shall telephone in 
410.31  prescriptions for all necessary medications to a pharmacy in the 
410.32  community where the offender plans to reside.  The prescriptions 
410.33  must provide at least a 30-day supply of all necessary 
410.34  medications, and must be able to be refilled once for one 
410.35  additional 30-day supply. 
410.36     Sec. 5.  Minnesota Statutes 2000, section 245.462, 
411.1   subdivision 8, is amended to read: 
411.2      Subd. 8.  [DAY TREATMENT SERVICES.] "Day treatment," "day 
411.3   treatment services," or "day treatment program" means a 
411.4   structured program of treatment and care provided to an adult in 
411.5   or by:  (1) a hospital accredited by the joint commission on 
411.6   accreditation of health organizations and licensed under 
411.7   sections 144.50 to 144.55; (2) a community mental health center 
411.8   under section 245.62; or (3) an entity that is under contract 
411.9   with the county board to operate a program that meets the 
411.10  requirements of section 245.4712, subdivision 2, and Minnesota 
411.11  Rules, parts 9505.0170 to 9505.0475.  Day treatment consists of 
411.12  group psychotherapy and other intensive therapeutic services 
411.13  that are provided at least one day a week by a multidisciplinary 
411.14  staff under the clinical supervision of a mental health 
411.15  professional.  Day treatment may include education and 
411.16  consultation provided to families and other individuals as part 
411.17  of the treatment process.  The services are aimed at stabilizing 
411.18  the adult's mental health status, providing mental health 
411.19  services, and developing and improving the adult's independent 
411.20  living and socialization skills.  The goal of day treatment is 
411.21  to reduce or relieve mental illness and to enable the adult to 
411.22  live in the community.  Day treatment services are not a part of 
411.23  inpatient or residential treatment services.  Day treatment 
411.24  services are distinguished from day care by their structured 
411.25  therapeutic program of psychotherapy services.  The commissioner 
411.26  may limit medical assistance reimbursement for day treatment to 
411.27  15 hours per week per person instead of the three hours per day 
411.28  per person specified in Minnesota Rules, part 9505.0323, subpart 
411.29  15. 
411.30     Sec. 6.  Minnesota Statutes 2000, section 245.462, is 
411.31  amended by adding a subdivision to read: 
411.32     Subd. 14c.  [MENTAL HEALTH CRISIS SERVICES.] "Mental health 
411.33  crisis services" means crisis assessment, crisis intervention, 
411.34  and crisis stabilization services.  
411.35     Sec. 7.  Minnesota Statutes 2000, section 245.462, 
411.36  subdivision 18, is amended to read: 
412.1      Subd. 18.  [MENTAL HEALTH PROFESSIONAL.] "Mental health 
412.2   professional" means a person providing clinical services in the 
412.3   treatment of mental illness who is qualified in at least one of 
412.4   the following ways:  
412.5      (1) in psychiatric nursing:  a registered nurse who is 
412.6   licensed under sections 148.171 to 148.285, and who is certified 
412.7   as a clinical specialist in adult psychiatric and mental health 
412.8   nursing by a national nurse certification organization or who 
412.9   has a master's degree in nursing or one of the behavioral 
412.10  sciences or related fields from an accredited college or 
412.11  university or its equivalent, with at least 4,000 hours of 
412.12  post-master's supervised experience in the delivery of clinical 
412.13  services in the treatment of mental illness; 
412.14     (2) in clinical social work:  a person licensed as an 
412.15  independent clinical social worker under section 148B.21, 
412.16  subdivision 6, or a person with a master's degree in social work 
412.17  from an accredited college or university, with at least 4,000 
412.18  hours of post-master's supervised experience in the delivery of 
412.19  clinical services in the treatment of mental illness; 
412.20     (3) in psychology:  a psychologist an individual licensed 
412.21  by the board of psychology under sections 148.88 to 148.98 who 
412.22  has stated to the board of psychology competencies in the 
412.23  diagnosis and treatment of mental illness; 
412.24     (4) in psychiatry:  a physician licensed under chapter 147 
412.25  and certified by the American board of psychiatry and neurology 
412.26  or eligible for board certification in psychiatry; 
412.27     (5) in marriage and family therapy:  the mental health 
412.28  professional must be a marriage and family therapist licensed 
412.29  under sections 148B.29 to 148B.39 with at least two years of 
412.30  post-master's supervised experience in the delivery of clinical 
412.31  services in the treatment of mental illness; or 
412.32     (6) in allied fields:  a person with a master's degree from 
412.33  an accredited college or university in one of the behavioral 
412.34  sciences or related fields, with at least 4,000 hours of 
412.35  post-master's supervised experience in the delivery of clinical 
412.36  services in the treatment of mental illness.  
413.1      Sec. 8.  Minnesota Statutes 2000, section 245.462, is 
413.2   amended by adding a subdivision to read: 
413.3      Subd. 25a.  [SIGNIFICANT IMPAIRMENT IN FUNCTIONING.] 
413.4   "Significant impairment in functioning" means a condition, 
413.5   including significant suicidal ideation or thoughts of harming 
413.6   self or others, which harmfully affects, recurrently or 
413.7   consistently, a person's activities of daily living in 
413.8   employment, housing, family, and social relationships, or 
413.9   education. 
413.10     Sec. 9.  Minnesota Statutes 2000, section 245.474, is 
413.11  amended by adding a subdivision to read: 
413.12     Subd. 4.  [STAFF SAFETY TRAINING.] The commissioner shall 
413.13  by rule require all staff in mental health and support units at 
413.14  regional treatment centers who have contact with persons with 
413.15  mental illness or severe emotional disturbance to be 
413.16  appropriately trained in violence reduction and violence 
413.17  prevention, and shall establish criteria for such training.  
413.18  Training programs shall be developed with input from consumer 
413.19  advocacy organizations, and shall employ violence prevention 
413.20  techniques as preferable to physical interaction. 
413.21     Sec. 10.  Minnesota Statutes 2000, section 245.4871, 
413.22  subdivision 10, is amended to read: 
413.23     Subd. 10.  [DAY TREATMENT SERVICES.] "Day treatment," "day 
413.24  treatment services," or "day treatment program" means a 
413.25  structured program of treatment and care provided to a child in: 
413.26     (1) an outpatient hospital accredited by the joint 
413.27  commission on accreditation of health organizations and licensed 
413.28  under sections 144.50 to 144.55; 
413.29     (2) a community mental health center under section 245.62; 
413.30     (3) an entity that is under contract with the county board 
413.31  to operate a program that meets the requirements of section 
413.32  245.4884, subdivision 2, and Minnesota Rules, parts 9505.0170 to 
413.33  9505.0475; or 
413.34     (4) an entity that operates a program that meets the 
413.35  requirements of section 245.4884, subdivision 2, and Minnesota 
413.36  Rules, parts 9505.0170 to 9505.0475, that is under contract with 
414.1   an entity that is under contract with a county board. 
414.2      Day treatment consists of group psychotherapy and other 
414.3   intensive therapeutic services that are provided for a minimum 
414.4   three-hour time block by a multidisciplinary staff under the 
414.5   clinical supervision of a mental health professional.  Day 
414.6   treatment may include education and consultation provided to 
414.7   families and other individuals as an extension of the treatment 
414.8   process.  The services are aimed at stabilizing the child's 
414.9   mental health status, and developing and improving the child's 
414.10  daily independent living and socialization skills.  Day 
414.11  treatment services are distinguished from day care by their 
414.12  structured therapeutic program of psychotherapy services.  Day 
414.13  treatment services are not a part of inpatient hospital or 
414.14  residential treatment services.  Day treatment services for a 
414.15  child are an integrated set of education, therapy, and family 
414.16  interventions. 
414.17     A day treatment service must be available to a child at 
414.18  least five days a week throughout the year and must be 
414.19  coordinated with, integrated with, or part of an education 
414.20  program offered by the child's school. 
414.21     Sec. 11.  Minnesota Statutes 2000, section 245.4871, is 
414.22  amended by adding a subdivision to read: 
414.23     Subd. 24c.  [MENTAL HEALTH CRISIS SERVICES.] "Mental health 
414.24  crisis services" means crisis assessment, crisis intervention, 
414.25  and crisis stabilization services.  
414.26     Sec. 12.  Minnesota Statutes 2000, section 245.4871, 
414.27  subdivision 27, is amended to read: 
414.28     Subd. 27.  [MENTAL HEALTH PROFESSIONAL.] "Mental health 
414.29  professional" means a person providing clinical services in the 
414.30  diagnosis and treatment of children's emotional disorders.  A 
414.31  mental health professional must have training and experience in 
414.32  working with children consistent with the age group to which the 
414.33  mental health professional is assigned.  A mental health 
414.34  professional must be qualified in at least one of the following 
414.35  ways:  
414.36     (1) in psychiatric nursing, the mental health professional 
415.1   must be a registered nurse who is licensed under sections 
415.2   148.171 to 148.285 and who is certified as a clinical specialist 
415.3   in child and adolescent psychiatric or mental health nursing by 
415.4   a national nurse certification organization or who has a 
415.5   master's degree in nursing or one of the behavioral sciences or 
415.6   related fields from an accredited college or university or its 
415.7   equivalent, with at least 4,000 hours of post-master's 
415.8   supervised experience in the delivery of clinical services in 
415.9   the treatment of mental illness; 
415.10     (2) in clinical social work, the mental health professional 
415.11  must be a person licensed as an independent clinical social 
415.12  worker under section 148B.21, subdivision 6, or a person with a 
415.13  master's degree in social work from an accredited college or 
415.14  university, with at least 4,000 hours of post-master's 
415.15  supervised experience in the delivery of clinical services in 
415.16  the treatment of mental disorders; 
415.17     (3) in psychology, the mental health professional must be a 
415.18  psychologist an individual licensed by the board of psychology 
415.19  under sections 148.88 to 148.98 who has stated to the board of 
415.20  psychology competencies in the diagnosis and treatment of mental 
415.21  disorders; 
415.22     (4) in psychiatry, the mental health professional must be a 
415.23  physician licensed under chapter 147 and certified by the 
415.24  American board of psychiatry and neurology or eligible for board 
415.25  certification in psychiatry; 
415.26     (5) in marriage and family therapy, the mental health 
415.27  professional must be a marriage and family therapist licensed 
415.28  under sections 148B.29 to 148B.39 with at least two years of 
415.29  post-master's supervised experience in the delivery of clinical 
415.30  services in the treatment of mental disorders or emotional 
415.31  disturbances; or 
415.32     (6) in allied fields, the mental health professional must 
415.33  be a person with a master's degree from an accredited college or 
415.34  university in one of the behavioral sciences or related fields, 
415.35  with at least 4,000 hours of post-master's supervised experience 
415.36  in the delivery of clinical services in the treatment of 
416.1   emotional disturbances. 
416.2      Sec. 13.  Minnesota Statutes 2000, section 245.4875, 
416.3   subdivision 2, is amended to read: 
416.4      Subd. 2.  [CHILDREN'S MENTAL HEALTH SERVICES.] The 
416.5   children's mental health service system developed by each county 
416.6   board must include the following services:  
416.7      (1) education and prevention services according to section 
416.8   245.4877; 
416.9      (2) mental health identification and intervention services 
416.10  according to section 245.4878; 
416.11     (3) emergency services according to section 245.4879; 
416.12     (4) outpatient services according to section 245.488; 
416.13     (5) family community support services according to section 
416.14  245.4881; 
416.15     (6) day treatment services according to section 245.4884, 
416.16  subdivision 2; 
416.17     (7) residential treatment services according to section 
416.18  245.4882; 
416.19     (8) acute care hospital inpatient treatment services 
416.20  according to section 245.4883; 
416.21     (9) screening according to section 245.4885; 
416.22     (10) case management according to section 245.4881; 
416.23     (11) therapeutic support of foster care according to 
416.24  section 245.4884, subdivision 4; and 
416.25     (12) professional home-based family treatment according to 
416.26  section 245.4884, subdivision 4; and 
416.27     (13) mental health crisis services according to section 
416.28  245.488, subdivision 3. 
416.29     Sec. 14.  Minnesota Statutes 2000, section 245.4876, 
416.30  subdivision 1, is amended to read: 
416.31     Subdivision 1.  [CRITERIA.] Children's mental health 
416.32  services required by sections 245.487 to 245.4888 must be:  
416.33     (1) based, when feasible, on research findings; 
416.34     (2) based on individual clinical, cultural, and ethnic 
416.35  needs, and other special needs of the children being served; 
416.36     (3) delivered in a manner that improves family functioning 
417.1   when clinically appropriate; 
417.2      (4) provided in the most appropriate, least restrictive 
417.3   setting that meets the requirements in subdivision 1a, and that 
417.4   is available to the county board to meet the child's treatment 
417.5   needs; 
417.6      (5) accessible to all age groups of children; 
417.7      (6) appropriate to the developmental age of the child being 
417.8   served; 
417.9      (7) delivered in a manner that provides accountability to 
417.10  the child for the quality of service delivered and continuity of 
417.11  services to the child during the years the child needs services 
417.12  from the local system of care; 
417.13     (8) provided by qualified individuals as required in 
417.14  sections 245.487 to 245.4888; 
417.15     (9) coordinated with children's mental health services 
417.16  offered by other providers; 
417.17     (10) provided under conditions that protect the rights and 
417.18  dignity of the individuals being served; and 
417.19     (11) provided in a manner and setting most likely to 
417.20  facilitate progress toward treatment goals. 
417.21     Sec. 15.  Minnesota Statutes 2000, section 245.4876, is 
417.22  amended by adding a subdivision to read: 
417.23     Subd. 1a.  [APPROPRIATE SETTING TO RECEIVE SERVICES.] A 
417.24  child must be provided with mental health services in the least 
417.25  restrictive setting that is appropriate to the needs and current 
417.26  condition of the individual child.  For a child to receive 
417.27  mental health services in a residential treatment or acute care 
417.28  hospital inpatient setting, the family may not be required to 
417.29  demonstrate that services were first provided in a less 
417.30  restrictive setting and that the child failed to make progress 
417.31  toward or meet treatment goals in the less restrictive setting. 
417.32     Sec. 16.  Minnesota Statutes 2000, section 245.488, is 
417.33  amended by adding a subdivision to read: 
417.34     Subd. 3.  [MENTAL HEALTH CRISIS SERVICES.] County boards 
417.35  must provide or contract for mental health crisis services 
417.36  within the county to meet the needs of children with emotional 
418.1   disturbance residing in the county who are determined, through 
418.2   an assessment by a mental health professional, to be 
418.3   experiencing a mental health crisis or mental health emergency. 
418.4   The mental health crisis services provided must be medically 
418.5   necessary, as defined in section 62Q.53, subdivision 2, and 
418.6   necessary for the safety of the child or others regardless of 
418.7   the setting. 
418.8      Sec. 17.  Minnesota Statutes 2000, section 245.4885, 
418.9   subdivision 1, is amended to read: 
418.10     Subdivision 1.  [SCREENING REQUIRED.] The county board 
418.11  shall, prior to admission, except in the case of emergency 
418.12  admission, screen all children referred for treatment of severe 
418.13  emotional disturbance to a residential treatment facility or 
418.14  informally admitted to a regional treatment center if public 
418.15  funds are used to pay for the services.  The county board shall 
418.16  also screen all children admitted to an acute care hospital for 
418.17  treatment of severe emotional disturbance if public funds other 
418.18  than reimbursement under chapters 256B and 256D are used to pay 
418.19  for the services.  If a child is admitted to a residential 
418.20  treatment facility or acute care hospital for emergency 
418.21  treatment or held for emergency care by a regional treatment 
418.22  center under section 253B.05, subdivision 1, screening must 
418.23  occur within three working days of admission.  Screening shall 
418.24  determine whether the proposed treatment:  
418.25     (1) is necessary; 
418.26     (2) is appropriate to the child's individual treatment 
418.27  needs; 
418.28     (3) cannot be effectively provided in the child's home; and 
418.29     (4) provides a length of stay as short as possible 
418.30  consistent with the individual child's need. 
418.31     When a screening is conducted, the county board may not 
418.32  determine that referral or admission to a residential treatment 
418.33  facility or acute care hospital is not appropriate solely 
418.34  because services were not first provided to the child in a less 
418.35  restrictive setting and the child failed to make progress toward 
418.36  or meet treatment goals in the less restrictive setting.  
419.1   Screening shall include both a diagnostic assessment and a 
419.2   functional assessment which evaluates family, school, and 
419.3   community living situations.  If a diagnostic assessment or 
419.4   functional assessment has been completed by a mental health 
419.5   professional within 180 days, a new diagnostic or functional 
419.6   assessment need not be completed unless in the opinion of the 
419.7   current treating mental health professional the child's mental 
419.8   health status has changed markedly since the assessment was 
419.9   completed.  The child's parent shall be notified if an 
419.10  assessment will not be completed and of the reasons.  A copy of 
419.11  the notice shall be placed in the child's file.  Recommendations 
419.12  developed as part of the screening process shall include 
419.13  specific community services needed by the child and, if 
419.14  appropriate, the child's family, and shall indicate whether or 
419.15  not these services are available and accessible to the child and 
419.16  family.  
419.17     During the screening process, the child, child's family, or 
419.18  child's legal representative, as appropriate, must be informed 
419.19  of the child's eligibility for case management services and 
419.20  family community support services and that an individual family 
419.21  community support plan is being developed by the case manager, 
419.22  if assigned.  
419.23     Screening shall be in compliance with section 256F.07 or 
419.24  260C.212, whichever applies.  Wherever possible, the parent 
419.25  shall be consulted in the screening process, unless clinically 
419.26  inappropriate.  
419.27     The screening process, and placement decision, and 
419.28  recommendations for mental health services must be documented in 
419.29  the child's record.  
419.30     An alternate review process may be approved by the 
419.31  commissioner if the county board demonstrates that an alternate 
419.32  review process has been established by the county board and the 
419.33  times of review, persons responsible for the review, and review 
419.34  criteria are comparable to the standards in clauses (1) to (4). 
419.35     Sec. 18.  Minnesota Statutes 2000, section 245.4886, 
419.36  subdivision 1, is amended to read: 
420.1      Subdivision 1.  [STATEWIDE PROGRAM; ESTABLISHMENT.] The 
420.2   commissioner shall establish a statewide program to assist 
420.3   counties in providing services to children with severe emotional 
420.4   disturbance as defined in section 245.4871, subdivision 15, and 
420.5   their families; and to young adults meeting the criteria for 
420.6   transition services in section 245.4875, subdivision 8, and 
420.7   their families.  Services must be designed to help each child to 
420.8   function and remain with the child's family in the community.  
420.9   Transition services to eligible young adults must be designed to 
420.10  foster independent living in the community.  The commissioner 
420.11  shall make grants to counties to establish, operate, or contract 
420.12  with private providers to provide the following services in the 
420.13  following order of priority when these cannot be reimbursed 
420.14  under section 256B.0625: 
420.15     (1) family community support services including crisis 
420.16  placement and crisis respite care as specified in section 
420.17  245.4871, subdivision 17; 
420.18     (2) case management services as specified in section 
420.19  245.4871, subdivision 3; 
420.20     (3) day treatment services as specified in section 
420.21  245.4871, subdivision 10; 
420.22     (4) professional home-based family treatment as specified 
420.23  in section 245.4871, subdivision 31; and 
420.24     (5) therapeutic support of foster care as specified in 
420.25  section 245.4871, subdivision 34. 
420.26     Funding appropriated beginning July 1, 1991, must be used 
420.27  by county boards to provide family community support services 
420.28  and case management services.  Additional services shall be 
420.29  provided in the order of priority as identified in this 
420.30  subdivision. 
420.31     Sec. 19.  Minnesota Statutes 2000, section 245.99, 
420.32  subdivision 4, is amended to read: 
420.33     Subd. 4.  [ADMINISTRATION OF CRISIS HOUSING ASSISTANCE.] 
420.34  The commissioner may contract with organizations or government 
420.35  units experienced in housing assistance to operate the program 
420.36  under this section.  This program is not an entitlement.  The 
421.1   commissioner may take any of the following steps whenever the 
421.2   commissioner projects that funds will be inadequate to meet 
421.3   demand in a given fiscal year: 
421.4      (1) transfer funds from mental health grants in the same 
421.5   appropriation; and 
421.6      (2) impose statewide restrictions as to the type and amount 
421.7   of assistance available to each recipient under this program, 
421.8   including reducing the income eligibility level, limiting 
421.9   reimbursement to a percentage of each recipient's costs, 
421.10  limiting housing assistance to 60 days per recipient, or closing 
421.11  the program for the remainder of the fiscal year. 
421.12     Sec. 20.  Minnesota Statutes 2000, section 253B.02, 
421.13  subdivision 10, is amended to read: 
421.14     Subd. 10.  [INTERESTED PERSON.] "Interested person" means: 
421.15     (1)  an adult, including but not limited to, a public 
421.16  official, including a local welfare agency acting under section 
421.17  626.5561, and the legal guardian, spouse, parent, legal counsel, 
421.18  adult child, next of kin, or other person designated by a 
421.19  proposed patient; or 
421.20     (2) a health plan company that is providing coverage for a 
421.21  proposed patient. 
421.22     Sec. 21.  Minnesota Statutes 2000, section 253B.02, 
421.23  subdivision 13, is amended to read: 
421.24     Subd. 13.  [MENTALLY ILL PERSON.] (a) "Mentally ill person" 
421.25  means any person who has an organic disorder of the brain or a 
421.26  substantial psychiatric disorder of thought, mood, perception, 
421.27  orientation, or memory which grossly impairs judgment, behavior, 
421.28  capacity to recognize reality, or to reason or understand, which 
421.29  is manifested by instances of grossly disturbed behavior or 
421.30  faulty perceptions and poses a substantial likelihood of 
421.31  physical harm to self or others as demonstrated by: 
421.32     (1) a failure to obtain necessary food, clothing, shelter, 
421.33  or medical care as a result of the impairment; or 
421.34     (2) an inability for reasons other than indigence to obtain 
421.35  necessary food, clothing, shelter, or medical care as a result 
421.36  of the impairment and it is more probable than not that the 
422.1   person will suffer substantial harm, significant psychiatric 
422.2   deterioration or debilitation, or serious illness, unless 
422.3   appropriate treatment and services are provided; 
422.4      (2) (3) a recent attempt or threat to physically harm self 
422.5   or others; or 
422.6      (4) recent and volitional conduct involving significant 
422.7   damage to substantial property. 
422.8      (b) A person is not mentally ill under this section if the 
422.9   impairment is solely due to: 
422.10     (1) epilepsy; 
422.11     (2) mental retardation; 
422.12     (3) brief periods of intoxication caused by alcohol, drugs, 
422.13  or other mind-altering substances; or 
422.14     (4) dependence upon or addiction to any alcohol, drugs, or 
422.15  other mind-altering substances. 
422.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
422.17     Sec. 22.  Minnesota Statutes 2000, section 253B.03, 
422.18  subdivision 5, is amended to read: 
422.19     Subd. 5.  [PERIODIC ASSESSMENT.] A patient has the right to 
422.20  periodic medical assessment, including assessment of the medical 
422.21  necessity of continuing care and, if the treatment facility 
422.22  declines to provide continuing care, the right to receive 
422.23  specific written reasons why continuing care is declined at the 
422.24  time of the assessment.  The treatment facility shall assess the 
422.25  physical and mental condition of every patient as frequently as 
422.26  necessary, but not less often than annually.  If the patient 
422.27  refuses to be examined, the facility shall document in the 
422.28  patient's chart its attempts to examine the patient.  If a 
422.29  person is committed as mentally retarded for an indeterminate 
422.30  period of time, the three-year judicial review must include the 
422.31  annual reviews for each year as outlined in Minnesota Rules, 
422.32  part 9525.0075, subpart 6.  
422.33     Sec. 23.  Minnesota Statutes 2000, section 253B.03, 
422.34  subdivision 10, is amended to read: 
422.35     Subd. 10.  [NOTIFICATION.] All persons admitted or 
422.36  committed to a treatment facility shall be notified in writing 
423.1   of their rights under this chapter regarding hospitalization and 
423.2   other treatment at the time of admission.  This notification 
423.3   must include: 
423.4      (1) patient rights specified in this section and section 
423.5   144.651, including nursing home discharge rights; 
423.6      (2) the right to obtain treatment and services voluntarily 
423.7   under this chapter; 
423.8      (3) the right to voluntary admission and release under 
423.9   section 253B.04; 
423.10     (4) rights in case of an emergency admission under section 
423.11  253B.05, including the right to documentation in support of an 
423.12  emergency hold and the right to a summary hearing before a judge 
423.13  if the patient believes an emergency hold is improper; 
423.14     (5) the right to request expedited review under section 
423.15  62M.05 if additional days of inpatient stay are denied; 
423.16     (6) the right to continuing benefits pending appeal and to 
423.17  an expedited administrative hearing under section 256.045 if the 
423.18  patient is a recipient of medical assistance, general assistance 
423.19  medical care, or MinnesotaCare; and 
423.20     (7) the right to an external appeal process under section 
423.21  62Q.73, including the right to a second opinion.  
423.22     Sec. 24.  Minnesota Statutes 2000, section 253B.03, is 
423.23  amended by adding a subdivision to read: 
423.24     Subd. 11.  [PROXY.] A legally authorized health care proxy, 
423.25  agent, guardian, or conservator may exercise the patient's 
423.26  rights on the patient's behalf.  
423.27     Sec. 25.  Minnesota Statutes 2000, section 253B.04, 
423.28  subdivision 1, is amended to read: 
423.29     Subdivision 1.  [VOLUNTARY ADMISSION AND TREATMENT.] (a) 
423.30  Voluntary admission is preferred over involuntary commitment and 
423.31  treatment.  Any person 16 years of age or older may request to 
423.32  be admitted to a treatment facility as a voluntary patient for 
423.33  observation, evaluation, diagnosis, care and treatment without 
423.34  making formal written application.  Any person under the age of 
423.35  16 years may be admitted as a patient with the consent of a 
423.36  parent or legal guardian if it is determined by independent 
424.1   examination that there is reasonable evidence that (1) the 
424.2   proposed patient has a mental illness, or is mentally retarded 
424.3   or chemically dependent; and (2) the proposed patient is 
424.4   suitable for treatment.  The head of the treatment facility 
424.5   shall not arbitrarily refuse any person seeking admission as a 
424.6   voluntary patient.  In making decisions regarding admissions, 
424.7   the facility shall use clinical admission criteria consistent 
424.8   with the current applicable inpatient admission standards 
424.9   established by the American Psychiatric Association or the 
424.10  American Academy of Child and Adolescent Psychiatry.  These 
424.11  criteria must be no more restrictive than, and must be 
424.12  consistent with, the requirements of section 62Q.53.  The 
424.13  facility may not refuse to admit a person voluntarily solely 
424.14  because the person does not meet the criteria for involuntary 
424.15  holds under section 253B.05 or the definition of mental illness 
424.16  under section 253B.02, subdivision 13.  
424.17     (b) In addition to the consent provisions of paragraph (a), 
424.18  a person who is 16 or 17 years of age who refuses to consent 
424.19  personally to admission may be admitted as a patient for mental 
424.20  illness or chemical dependency treatment with the consent of a 
424.21  parent or legal guardian if it is determined by an independent 
424.22  examination that there is reasonable evidence that the proposed 
424.23  patient is chemically dependent or has a mental illness and is 
424.24  suitable for treatment.  The person conducting the examination 
424.25  shall notify the proposed patient and the parent or legal 
424.26  guardian of this determination. 
424.27     Sec. 26.  Minnesota Statutes 2000, section 253B.04, 
424.28  subdivision 1a, is amended to read: 
424.29     Subd. 1a.  [VOLUNTARY TREATMENT OR ADMISSION FOR PERSONS 
424.30  WITH MENTAL ILLNESS.] (a) A person with a mental illness may 
424.31  seek or voluntarily agree to accept treatment or admission to a 
424.32  facility.  If the mental health provider determines that the 
424.33  person lacks the capacity to give informed consent for the 
424.34  treatment or admission, and in the absence of a health care 
424.35  power of attorney that authorizes consent, the designated agency 
424.36  or its designee may give informed consent for mental health 
425.1   treatment or admission to a treatment facility on behalf of the 
425.2   person. 
425.3      (b) The designated agency shall apply the following 
425.4   criteria in determining the person's ability to give informed 
425.5   consent: 
425.6      (1) whether the person demonstrates an awareness of the 
425.7   person's illness, and the reasons for treatment, its risks, 
425.8   benefits and alternatives, and the possible consequences of 
425.9   refusing treatment; and 
425.10     (2) whether the person communicates verbally or nonverbally 
425.11  a clear choice concerning treatment that is a reasoned one, not 
425.12  based on delusion, even though it may not be in the person's 
425.13  best interests. 
425.14     (c) The basis for the designated agency's decision that the 
425.15  person lacks the capacity to give informed consent for treatment 
425.16  or admission, and that the patient has voluntarily accepted 
425.17  treatment or admission, must be documented in writing. 
425.18     (d) A mental health provider that provides treatment in 
425.19  reliance on the written consent given by the designated agency 
425.20  under this subdivision or by a substitute decision maker 
425.21  appointed by the court is not civilly or criminally liable for 
425.22  performing treatment without consent.  This paragraph does not 
425.23  affect any other liability that may result from the manner in 
425.24  which the treatment is performed. 
425.25     (e) A person who receives treatment or is admitted to a 
425.26  facility under this subdivision or subdivision 1b has the right 
425.27  to refuse treatment at any time or to be released from a 
425.28  facility as provided under subdivision 2.  The person or any 
425.29  interested person acting on the person's behalf may seek court 
425.30  review within five days for a determination of whether the 
425.31  person's agreement to accept treatment or admission is 
425.32  voluntary.  At the time a person agrees to treatment or 
425.33  admission to a facility under this subdivision, the designated 
425.34  agency or its designee shall inform the person in writing of the 
425.35  person's rights under this paragraph. 
425.36     (f) This subdivision does not authorize the administration 
426.1   of neuroleptic medications.  Neuroleptic medications may be 
426.2   administered only as provided in section 253B.092. 
426.3      Sec. 27.  Minnesota Statutes 2000, section 253B.04, is 
426.4   amended by adding a subdivision to read: 
426.5      Subd. 1b.  [COURT APPOINTMENT OF SUBSTITUTE DECISION 
426.6   MAKER.] If the designated agency or its designee declines or 
426.7   refuses to give informed consent under subdivision 1a, the 
426.8   person who is seeking treatment or admission, or an interested 
426.9   person acting on behalf of the person, may petition the court 
426.10  for appointment of a substitute decision maker who may give 
426.11  informed consent for voluntary treatment and services.  In 
426.12  making this determination, the court shall apply the criteria in 
426.13  subdivision 1a, paragraph (b). 
426.14     Sec. 28.  Minnesota Statutes 2000, section 253B.045, 
426.15  subdivision 6, is amended to read: 
426.16     Subd. 6.  [COVERAGE.] A health plan company must provide 
426.17  coverage, according to the terms of the policy, contract, or 
426.18  certificate of coverage, for all medically necessary covered 
426.19  services as determined by section 62Q.53 provided to an enrollee 
426.20  that are ordered by the court under this chapter.  (a) For 
426.21  purposes of this section, "mental health services" means all 
426.22  covered services that are intended to treat or ameliorate an 
426.23  emotional, behavioral, or psychiatric condition and that are 
426.24  covered by the policy, contract, or certificate of coverage of 
426.25  the enrollee's health plan company or by law. 
426.26     (b) All health plan companies that provide coverage for 
426.27  mental health services must cover or provide mental health 
426.28  services ordered by a court of competent jurisdiction under a 
426.29  court order that is issued on the basis of a behavioral care 
426.30  evaluation performed by a licensed psychiatrist or a doctoral 
426.31  level licensed psychologist, which includes a diagnosis and an 
426.32  individual treatment plan for care in the most appropriate, 
426.33  least restrictive environment.  The health plan company must be 
426.34  given a copy of the court order and the behavioral care 
426.35  evaluation.  The health plan company shall be financially liable 
426.36  for the evaluation if performed by a participating provider of 
427.1   the health plan company and shall be financially liable for the 
427.2   care included in the court-ordered individual treatment plan if 
427.3   the care is covered by the health plan company and ordered to be 
427.4   provided by a participating provider or another provider as 
427.5   required by rule or law.  This court-ordered coverage must not 
427.6   be subject to a separate medical necessity determination by a 
427.7   health plan company under its utilization procedures. 
427.8      Sec. 29.  Minnesota Statutes 2000, section 253B.05, 
427.9   subdivision 1, is amended to read: 
427.10     Subdivision 1.  [EMERGENCY HOLD.] (a) Any person may be 
427.11  admitted or held for emergency care and treatment in a treatment 
427.12  facility with the consent of the head of the treatment facility 
427.13  upon a written statement by an examiner that: 
427.14     (1) the examiner has examined the person not more than 15 
427.15  days prior to admission,; 
427.16     (2) the examiner is of the opinion, for stated reasons, 
427.17  that the person is mentally ill, mentally retarded or chemically 
427.18  dependent, and is in imminent danger of causing injury to self 
427.19  or others if not immediately restrained, detained; and 
427.20     (3) an order of the court cannot be obtained in time to 
427.21  prevent the anticipated injury.  
427.22     (b) If the proposed patient has been brought to the 
427.23  treatment facility by another person, the examiner shall make a 
427.24  good faith effort to obtain a statement of information that is 
427.25  available from that person, which must be taken into 
427.26  consideration in deciding whether to place the proposed patient 
427.27  on an emergency hold.  The statement of information must 
427.28  include, to the extent available, direct observations of the 
427.29  proposed patient's behaviors, reliable knowledge of recent and 
427.30  past behavior, and information regarding psychiatric history, 
427.31  past treatment, and current mental health providers.  The 
427.32  examiner shall also inquire into the existence of health care 
427.33  directives under chapter 145, and advance psychiatric directives 
427.34  under section 253B.03, subdivision 6d. 
427.35     (c) The examiner's statement shall be:  (1) sufficient 
427.36  authority for a peace or health officer to transport a patient 
428.1   to a treatment facility, (2) stated in behavioral terms and not 
428.2   in conclusory language, and (3) of sufficient specificity to 
428.3   provide an adequate record for review.  If imminent danger to 
428.4   specific individuals is a basis for the emergency hold, the 
428.5   statement must identify those individuals, to the extent 
428.6   practicable.  A copy of the examiner's statement shall be 
428.7   personally served on the person immediately upon admission and a 
428.8   copy shall be maintained by the treatment facility.  
428.9      Sec. 30.  Minnesota Statutes 2000, section 253B.065, 
428.10  subdivision 5, is amended to read: 
428.11     Subd. 5.  [EARLY INTERVENTION CRITERIA.] (a) A court shall 
428.12  order early intervention treatment of a proposed patient who 
428.13  meets the criteria under paragraph (b).  The early intervention 
428.14  treatment must be less intrusive than long-term inpatient 
428.15  commitment and must be the least restrictive treatment program 
428.16  available that can meet the patient's treatment needs. 
428.17     (b) The court shall order early intervention treatment if 
428.18  the court finds all of the elements of the following factors by 
428.19  clear and convincing evidence: 
428.20     (1) the proposed patient is mentally ill; 
428.21     (2) the proposed patient refuses to accept appropriate 
428.22  mental health treatment; and 
428.23     (3) the proposed patient's mental illness is manifested by 
428.24  instances of grossly disturbed behavior or faulty perceptions 
428.25  and either: 
428.26     (i) the grossly disturbed behavior or faulty perceptions 
428.27  significantly interfere with the proposed patient's ability to 
428.28  care for self and the proposed patient, when competent, would 
428.29  have chosen substantially similar treatment under the same 
428.30  circumstances; or 
428.31     (ii) due to the mental illness, the proposed patient 
428.32  received court-ordered inpatient treatment under section 253B.09 
428.33  at least two times in the previous three years; the patient is 
428.34  exhibiting symptoms or behavior substantially similar to those 
428.35  that precipitated one or more of the court-ordered treatments; 
428.36  and the patient is reasonably expected to physically or mentally 
429.1   deteriorate to the point of meeting the criteria for commitment 
429.2   under section 253B.09 unless treated. 
429.3      For purposes of this paragraph, a proposed patient who was 
429.4   released under section 253B.095 and whose release was not 
429.5   revoked is not considered to have received court-ordered 
429.6   inpatient treatment under section 253B.09.  
429.7      (c) For purposes of paragraph (b), none of the following 
429.8   constitute a refusal to accept appropriate mental health 
429.9   treatment: 
429.10     (1) a willingness to take medication but a reasonable 
429.11  disagreement about type or dosage; 
429.12     (2) a good-faith effort to follow a reasonable alternative 
429.13  treatment plan, including treatment as specified in a valid 
429.14  advance directive under chapter 145C or section 253B.03, 
429.15  subdivision 6d; 
429.16     (3) an inability to obtain access to appropriate treatment 
429.17  because of inadequate health care coverage or an insurer's 
429.18  refusal or delay in providing coverage for the treatment; or 
429.19     (4) an inability to obtain access to needed mental health 
429.20  services because the provider will only accept patients who are 
429.21  under a court order or because the provider gives persons under 
429.22  a court order a priority over voluntary patients in obtaining 
429.23  treatment and services. 
429.24     Sec. 31.  Minnesota Statutes 2000, section 253B.066, 
429.25  subdivision 1, is amended to read: 
429.26     Subdivision 1.  [TREATMENT ALTERNATIVES.] If the court 
429.27  orders early intervention under section 253B.065, subdivision 5, 
429.28  the court may include in its order a variety of treatment 
429.29  alternatives including, but not limited to, day treatment, 
429.30  medication compliance monitoring, and short-term hospitalization 
429.31  not to exceed ten 21 days. 
429.32     If the court orders short-term hospitalization and the 
429.33  proposed patient will not go voluntarily, the court may direct a 
429.34  health officer, peace officer, or other person to take the 
429.35  person into custody and transport the person to the hospital. 
429.36     Sec. 32.  Minnesota Statutes 2000, section 253B.07, 
430.1   subdivision 1, is amended to read: 
430.2      Subdivision 1.  [PREPETITION SCREENING.] (a) Prior to 
430.3   filing a petition for commitment of or early intervention for a 
430.4   proposed patient, an interested person shall apply to the 
430.5   designated agency in the county of the proposed patient's 
430.6   residence or presence for conduct of a preliminary 
430.7   investigation, except when the proposed patient has been 
430.8   acquitted of a crime under section 611.026 and the county 
430.9   attorney is required to file a petition for commitment.  The 
430.10  designated agency shall appoint a screening team to conduct an 
430.11  investigation which shall include.  The petitioner may not be a 
430.12  member of the screening team.  The investigation must include: 
430.13     (i) a personal interview with the proposed patient and 
430.14  other individuals who appear to have knowledge of the condition 
430.15  of the proposed patient.  If the proposed patient is not 
430.16  interviewed, specific reasons must be documented; 
430.17     (ii) identification and investigation of specific alleged 
430.18  conduct which is the basis for application; 
430.19     (iii) identification, exploration, and listing of 
430.20  the specific reasons for rejecting or recommending alternatives 
430.21  to involuntary placement; 
430.22     (iv) in the case of a commitment based on mental illness, 
430.23  the following information, if it is known or available:  
430.24  information, that may be relevant to the administration of 
430.25  neuroleptic medications, if necessary, including the existence 
430.26  of a declaration under section 253B.03, subdivision 6d, or a 
430.27  health care directive under chapter 145C or a guardian, 
430.28  conservator, proxy, or agent with authority to make health care 
430.29  decisions for the proposed patient; information regarding the 
430.30  capacity of the proposed patient to make decisions regarding 
430.31  administration of neuroleptic medication; and whether the 
430.32  proposed patient is likely to consent or refuse consent to 
430.33  administration of the medication; and 
430.34     (v) seeking input from the proposed patient's health plan 
430.35  company to provide the court with information about services the 
430.36  enrollee needs and the least restrictive alternatives.; and 
431.1      (vi) in the case of a commitment based on mental illness, 
431.2   information listed in clause (iv) for other purposes relevant to 
431.3   treatment. 
431.4      (b) In conducting the investigation required by this 
431.5   subdivision, the screening team shall have access to all 
431.6   relevant medical records of proposed patients currently in 
431.7   treatment facilities.  The interviewer shall inform the proposed 
431.8   patient that any information provided by the proposed patient 
431.9   may be included in the prepetition screening report and may be 
431.10  considered in the commitment proceedings.  Data collected 
431.11  pursuant to this clause shall be considered private data on 
431.12  individuals.  The prepetition screening report is not admissible 
431.13  as evidence except by agreement of counsel or as permitted by 
431.14  this chapter or the rules of court, and is not admissible in any 
431.15  court proceedings unrelated to the commitment proceedings. 
431.16     (c) The prepetition screening team shall provide a notice, 
431.17  written in easily understood language, to the proposed patient, 
431.18  the petitioner, persons named in a declaration under chapter 
431.19  145C or section 253B.03, subdivision 6d, and, with the proposed 
431.20  patient's consent, other interested parties.  The team shall ask 
431.21  the patient if the patient wants the notice read and shall read 
431.22  the notice to the patient upon request.  The notice must contain 
431.23  information regarding the process, purpose, and legal effects of 
431.24  civil commitment and early intervention.  The notice must inform 
431.25  the proposed patient that: 
431.26     (1) if a petition is filed, the patient has certain rights, 
431.27  including the right to a court-appointed attorney, the right to 
431.28  request a second examiner, the right to attend hearings, and the 
431.29  right to oppose the proceeding and to present and contest 
431.30  evidence; and 
431.31     (2) if the proposed patient is committed to a state 
431.32  regional treatment center or group home, the patient may be 
431.33  billed for the cost of care and the state has the right to make 
431.34  a claim against the patient's estate for this cost. 
431.35     The ombudsman for mental health and mental retardation 
431.36  shall develop a form for the notice, which includes the 
432.1   requirements of this paragraph.  
432.2      (d) When the prepetition screening team recommends 
432.3   commitment, a written report shall be sent to the county 
432.4   attorney for the county in which the petition is to be 
432.5   filed.  The statement of facts contained in the written report 
432.6   must meet the requirements of subdivision 2, paragraph (b). 
432.7      (d) (e) The prepetition screening team shall refuse to 
432.8   support a petition if the investigation does not disclose 
432.9   evidence sufficient to support commitment.  Notice of the 
432.10  prepetition screening team's decision shall be provided to the 
432.11  prospective petitioner and to the proposed patient.  
432.12     (e) (f) If the interested person wishes to proceed with a 
432.13  petition contrary to the recommendation of the prepetition 
432.14  screening team, application may be made directly to the county 
432.15  attorney, who may shall determine whether or not to proceed with 
432.16  the petition.  Notice of the county attorney's determination 
432.17  shall be provided to the interested party.  
432.18     (f) (g) If the proposed patient has been acquitted of a 
432.19  crime under section 611.026, the county attorney shall apply to 
432.20  the designated county agency in the county in which the 
432.21  acquittal took place for a preliminary investigation unless 
432.22  substantially the same information relevant to the proposed 
432.23  patient's current mental condition, as could be obtained by a 
432.24  preliminary investigation, is part of the court record in the 
432.25  criminal proceeding or is contained in the report of a mental 
432.26  examination conducted in connection with the criminal 
432.27  proceeding.  If a court petitions for commitment pursuant to the 
432.28  rules of criminal or juvenile procedure or a county attorney 
432.29  petitions pursuant to acquittal of a criminal charge under 
432.30  section 611.026, the prepetition investigation, if required by 
432.31  this section, shall be completed within seven days after the 
432.32  filing of the petition.  
432.33     Sec. 33.  Minnesota Statutes 2000, section 253B.07, 
432.34  subdivision 2, is amended to read: 
432.35     Subd. 2.  [THE PETITION.] (a) Any interested person, except 
432.36  a member of the prepetition screening team, may file a petition 
433.1   for commitment in the district court of the county of the 
433.2   proposed patient's residence or presence.  If the head of the 
433.3   treatment facility believes that commitment is required and no 
433.4   petition has been filed, the head of the treatment facility 
433.5   shall petition for the commitment of the person. 
433.6      (b) The petition shall set forth the name and address of 
433.7   the proposed patient, the name and address of the patient's 
433.8   nearest relatives, and the reasons for the petition.  The 
433.9   petition must contain factual descriptions of the proposed 
433.10  patient's recent behavior, including a description of the 
433.11  behavior, where it occurred, and the time period over which it 
433.12  occurred.  Each factual allegation must be supported by 
433.13  observations of witnesses named in the petition.  Petitions 
433.14  shall be stated in behavioral terms and shall not contain 
433.15  judgmental or conclusory statements.  
433.16     (c) The petition shall be accompanied by a written 
433.17  statement by an examiner stating that the examiner has examined 
433.18  the proposed patient within the 15 days preceding the filing of 
433.19  the petition and is of the opinion that the proposed patient is 
433.20  suffering a designated disability and should be committed to a 
433.21  treatment facility.  The statement shall include the reasons for 
433.22  the opinion.  In the case of a commitment based on mental 
433.23  illness, the petition and the examiner's statement may shall 
433.24  include, to the extent this information is available, a 
433.25  statement and opinion regarding the proposed patient's need for 
433.26  treatment with neuroleptic medication and the patient's capacity 
433.27  to make decisions regarding the administration of neuroleptic 
433.28  medications, and the reasons for the opinion.  If use of 
433.29  neuroleptic medications is recommended by the treating 
433.30  physician, the petition for commitment must, if applicable, 
433.31  include or be accompanied by a request for proceedings under 
433.32  section 253B.092.  Failure to include the required information 
433.33  regarding neuroleptic medications in the examiner's statement, 
433.34  or to include a request for an order regarding neuroleptic 
433.35  medications with the commitment petition, is not a basis for 
433.36  dismissing the commitment petition.  If a petitioner has been 
434.1   unable to secure a statement from an examiner, the petition 
434.2   shall include documentation that a reasonable effort has been 
434.3   made to secure the supporting statement.  
434.4      Sec. 34.  Minnesota Statutes 2000, section 253B.07, 
434.5   subdivision 7, is amended to read: 
434.6      Subd. 7.  [PRELIMINARY HEARING.] (a) No proposed patient 
434.7   may be held in a treatment facility under a judicial hold 
434.8   pursuant to subdivision 6 longer than 72 hours, exclusive of 
434.9   Saturdays, Sundays, and legal holidays, unless the court holds a 
434.10  preliminary hearing and determines that the standard is met to 
434.11  hold the person.  
434.12     (b) The proposed patient, patient's counsel, the 
434.13  petitioner, the county attorney, and any other persons as the 
434.14  court directs shall be given at least 24 hours written notice of 
434.15  the preliminary hearing.  The notice shall include the alleged 
434.16  grounds for confinement.  The proposed patient shall be 
434.17  represented at the preliminary hearing by counsel.  The court 
434.18  may admit reliable hearsay evidence, including written reports, 
434.19  for the purpose of the preliminary hearing.  
434.20     (c) The court, on its motion or on the motion of any party, 
434.21  may exclude or excuse a proposed patient who is seriously 
434.22  disruptive or who is incapable of comprehending and 
434.23  participating in the proceedings.  In such instances, the court 
434.24  shall, with specificity on the record, state the behavior of the 
434.25  proposed patient or other circumstances which justify proceeding 
434.26  in the absence of the proposed patient.  
434.27     (d) The court may continue the judicial hold of the 
434.28  proposed patient if it finds, by a preponderance of the 
434.29  evidence, that serious imminent physical harm to the proposed 
434.30  patient or others is likely if the proposed patient is not 
434.31  immediately confined.  If a proposed patient was acquitted of a 
434.32  crime against the person under section 611.026 immediately 
434.33  preceding the filing of the petition, the court may presume that 
434.34  serious imminent physical harm to the patient or others is 
434.35  likely if the proposed patient is not immediately confined.  
434.36     (e) Upon a showing that a person subject to a petition for 
435.1   commitment may need treatment with neuroleptic medications and 
435.2   that the person may lack capacity to make decisions regarding 
435.3   that treatment, the court may appoint a substitute 
435.4   decision-maker as provided in section 253B.092, subdivision 6.  
435.5   The substitute decision-maker shall meet with the proposed 
435.6   patient and provider and make a report to the court at the 
435.7   hearing under section 253B.08 regarding whether the 
435.8   administration of neuroleptic medications is appropriate under 
435.9   the criteria of section 253B.092, subdivision 7.  If the 
435.10  substitute decision-maker consents to treatment with neuroleptic 
435.11  medications and the proposed patient does not refuse the 
435.12  medication, neuroleptic medication may be administered to the 
435.13  patient.  If the substitute decision-maker does not consent or 
435.14  the patient refuses, neuroleptic medication may not be 
435.15  administered without a court order, or in an emergency as set 
435.16  forth in section 253B.092, subdivision 3. 
435.17     Sec. 35.  Minnesota Statutes 2000, section 253B.09, 
435.18  subdivision 1, is amended to read: 
435.19     Subdivision 1.  [STANDARD OF PROOF.] (a) If the court finds 
435.20  by clear and convincing evidence that the proposed patient is a 
435.21  mentally ill, mentally retarded, or chemically dependent person 
435.22  and after careful consideration of reasonable alternative 
435.23  dispositions, including but not limited to, dismissal of 
435.24  petition, voluntary outpatient care, voluntary admission to a 
435.25  treatment facility, appointment of a guardian or conservator, or 
435.26  release before commitment as provided for in subdivision 4, it 
435.27  finds that there is no suitable alternative to judicial 
435.28  commitment, the court shall commit the patient to the least 
435.29  restrictive treatment program or alternative programs which can 
435.30  meet the patient's treatment needs consistent with section 
435.31  253B.03, subdivision 7.  
435.32     (b) In deciding on the least restrictive program, the court 
435.33  shall consider a range of treatment alternatives including, but 
435.34  not limited to, community-based nonresidential treatment, 
435.35  community residential treatment, partial hospitalization, acute 
435.36  care hospital, and regional treatment center services.  The 
436.1   court shall also consider the proposed patient's treatment 
436.2   preferences and willingness to participate voluntarily in the 
436.3   treatment ordered.  The court may not commit a patient to a 
436.4   facility or program that is not capable of meeting the patient's 
436.5   needs.  
436.6      (c) If the court finds a proposed patient to be a mentally 
436.7   ill person under section 253B.02, subdivision 13, paragraph (a), 
436.8   clause (2) or (4), the court shall commit to a community-based 
436.9   program that meets the proposed patient's needs. 
436.10     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.  
436.11     Sec. 36.  Minnesota Statutes 2000, section 253B.10, 
436.12  subdivision 4, is amended to read: 
436.13     Subd. 4.  [PRIVATE TREATMENT.] Patients or other 
436.14  responsible persons are required to pay the necessary charges 
436.15  for patients committed or transferred to private treatment 
436.16  facilities.  Private treatment facilities may not refuse to 
436.17  accept a committed person solely based on the person's 
436.18  court-ordered status.  Insurers must provide treatment and 
436.19  services as ordered by the court under section 253B.045, 
436.20  subdivision 6, or as required under chapter 62M. 
436.21     Sec. 37.  Minnesota Statutes 2000, section 256.969, 
436.22  subdivision 3a, is amended to read: 
436.23     Subd. 3a.  [PAYMENTS.] Acute care hospital billings under 
436.24  the medical assistance program must not be submitted until the 
436.25  recipient is discharged.  However, the commissioner shall 
436.26  establish monthly interim payments for inpatient hospitals that 
436.27  have individual patient lengths of stay over 30 days regardless 
436.28  of diagnostic category.  Except as provided in section 256.9693, 
436.29  medical assistance reimbursement for treatment of mental illness 
436.30  shall be reimbursed based on diagnostic classifications.  The 
436.31  commissioner may selectively contract with hospitals for 
436.32  services within the diagnostic categories relating to mental 
436.33  illness and chemical dependency under competitive bidding when 
436.34  reasonable geographic access by recipients can be assured.  No 
436.35  physician shall be denied the privilege of treating a recipient 
436.36  required to use a hospital under contract with the commissioner, 
437.1   as long as the physician meets credentialing standards of the 
437.2   individual hospital.  Individual hospital payments established 
437.3   under this section and sections 256.9685, 256.9686, and 
437.4   256.9695, in addition to third party and recipient liability, 
437.5   for discharges occurring during the rate year shall not exceed, 
437.6   in aggregate, the charges for the medical assistance covered 
437.7   inpatient services paid for the same period of time to the 
437.8   hospital.  This payment limitation shall be calculated 
437.9   separately for medical assistance and general assistance medical 
437.10  care services.  The limitation on general assistance medical 
437.11  care shall be effective for admissions occurring on or after 
437.12  July 1, 1991.  Services that have rates established under 
437.13  subdivision 11 or 12, must be limited separately from other 
437.14  services.  After consulting with the affected hospitals, the 
437.15  commissioner may consider related hospitals one entity and may 
437.16  merge the payment rates while maintaining separate provider 
437.17  numbers.  The operating and property base rates per admission or 
437.18  per day shall be derived from the best Medicare and claims data 
437.19  available when rates are established.  The commissioner shall 
437.20  determine the best Medicare and claims data, taking into 
437.21  consideration variables of recency of the data, audit 
437.22  disposition, settlement status, and the ability to set rates in 
437.23  a timely manner.  The commissioner shall notify hospitals of 
437.24  payment rates by December 1 of the year preceding the rate 
437.25  year.  The rate setting data must reflect the admissions data 
437.26  used to establish relative values.  Base year changes from 1981 
437.27  to the base year established for the rate year beginning January 
437.28  1, 1991, and for subsequent rate years, shall not be limited to 
437.29  the limits ending June 30, 1987, on the maximum rate of increase 
437.30  under subdivision 1.  The commissioner may adjust base year 
437.31  cost, relative value, and case mix index data to exclude the 
437.32  costs of services that have been discontinued by the October 1 
437.33  of the year preceding the rate year or that are paid separately 
437.34  from inpatient services.  Inpatient stays that encompass 
437.35  portions of two or more rate years shall have payments 
437.36  established based on payment rates in effect at the time of 
438.1   admission unless the date of admission preceded the rate year in 
438.2   effect by six months or more.  In this case, operating payment 
438.3   rates for services rendered during the rate year in effect and 
438.4   established based on the date of admission shall be adjusted to 
438.5   the rate year in effect by the hospital cost index. 
438.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
438.7      Sec. 38.  [256.9693] [CONTINUING CARE PROGRAM FOR PERSONS 
438.8   WITH MENTAL ILLNESS.] 
438.9      The commissioner shall establish a continuing care benefit 
438.10  program for persons with mental illness, in which persons with 
438.11  mental illness may obtain acute care hospital inpatient 
438.12  treatment for mental illness for up to 45 days beyond that 
438.13  allowed by section 256.969.  Persons with mental illness who are 
438.14  eligible for medical assistance may obtain inpatient treatment 
438.15  under this program in hospital beds for which the commissioner 
438.16  contracts under this section.  The commissioner may selectively 
438.17  contract with hospitals to provide this benefit through 
438.18  competitive bidding when reasonable geographic access by 
438.19  recipients can be assured.  Payments under this section shall 
438.20  not affect payments under section 256.969.  The commissioner may 
438.21  contract externally with a utilization review organization to 
438.22  authorize persons with mental illness to access the continuing 
438.23  care benefit program.  The commissioner, as part of the 
438.24  contracts with hospitals, shall establish admission criteria to 
438.25  allow persons with mental illness to access the continuing care 
438.26  benefit program.  If a court orders acute care hospital 
438.27  inpatient treatment for mental illness for a person, the person 
438.28  may obtain the treatment under the continuing care benefit 
438.29  program.  The commissioner shall not require, as part of the 
438.30  admission criteria, any commitment or petition under chapter 
438.31  253B as a condition of accessing the program.  This benefit is 
438.32  not available for people who are also eligible for Medicare and 
438.33  who have not exhausted their annual or lifetime inpatient 
438.34  psychiatric benefit under Medicare.  If a recipient is enrolled 
438.35  in a prepaid plan, this program is included in the plan's 
438.36  coverage.  
439.1      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
439.2      Sec. 39.  [256B.0623] [ADULT REHABILITATIVE MENTAL HEALTH 
439.3   SERVICES.] 
439.4      Subdivision 1.  [SCOPE.] Medical assistance covers adult 
439.5   rehabilitative mental health services as defined in subdivision 
439.6   2, subject to federal approval, if provided to recipients as 
439.7   defined in subdivision 3 and provided by a qualified provider 
439.8   entity meeting the standards in this section and by a qualified 
439.9   individual provider working within the provider's scope of 
439.10  practice and identified in the recipient's individual treatment 
439.11  plan as defined in section 245.462, subdivision 14, and if 
439.12  determined to be medically necessary according to section 62Q.53.
439.13     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
439.14  following terms have the meanings given them. 
439.15     (a) "Adult rehabilitative mental health services" means 
439.16  mental health services which are rehabilitative and enable the 
439.17  recipient to develop and enhance psychiatric stability, social 
439.18  competencies, personal and emotional adjustment, and independent 
439.19  living and community skills, when these abilities are impaired 
439.20  by the symptoms of mental illness.  Adult rehabilitative mental 
439.21  health services are also appropriate when provided to enable a 
439.22  recipient to retain stability and functioning, if the recipient 
439.23  would be at risk of significant functional decompensation or 
439.24  more restrictive service settings without these services. 
439.25     (1) Adult rehabilitative mental health services instruct, 
439.26  assist, and support the recipient in areas such as:  
439.27  interpersonal communication skills, community resource 
439.28  utilization and integration skills, crisis assistance, relapse 
439.29  prevention skills, health care directives, budgeting and 
439.30  shopping skills, healthy lifestyle skills and practices, cooking 
439.31  and nutrition skills, transportation skills, medication 
439.32  education and monitoring, mental illness symptom management 
439.33  skills, household management skills, employment-related skills, 
439.34  and transition to community living services. 
439.35     (2) These services shall be provided to the recipient on a 
439.36  one-to-one basis in the recipient's home or another community 
440.1   setting or in groups. 
440.2      (b) "Medication education services" means services provided 
440.3   individually or in groups which focus on educating the recipient 
440.4   about mental illness and symptoms; the role and effects of 
440.5   medications in treating symptoms of mental illness; and the side 
440.6   effects of medications.  Medication education is coordinated 
440.7   with medication management services, and does not duplicate it.  
440.8   Medication education services are provided by physicians, 
440.9   pharmacists, or registered nurses. 
440.10     (c) "Transition to community living services" means 
440.11  services which maintain continuity of contact between the 
440.12  rehabilitation services provider and the recipient and which 
440.13  facilitate discharge from a hospital, residential treatment 
440.14  program under Minnesota Rules, chapter 9505, board and lodging 
440.15  facility, or nursing home. Transition to community living 
440.16  services are not intended to provide other areas of adult 
440.17  rehabilitative mental health services.  
440.18     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
440.19  individual who: 
440.20     (1) is age 18 or older; 
440.21     (2) is diagnosed with a medical condition, such as mental 
440.22  illness or traumatic brain injury, for which adult 
440.23  rehabilitative mental health services are needed; 
440.24     (3) has substantial disability and functional impairment in 
440.25  three or more of the areas listed in section 245.462, 
440.26  subdivision 11a, so that self-sufficiency is markedly reduced; 
440.27  and 
440.28     (4) has had a recent diagnostic assessment by a qualified 
440.29  professional that documents adult rehabilitative mental health 
440.30  services are medically necessary to address identified 
440.31  disability and functional impairments and individual recipient 
440.32  goals. 
440.33     Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) The provider 
440.34  entity must be: 
440.35     (1) a county operated entity certified by the state; or 
440.36     (2) a noncounty entity certified by the entity's host 
441.1   county. 
441.2      (b) The certification process is a determination as to 
441.3   whether the entity meets the standards in this subdivision.  The 
441.4   certification must specify which adult rehabilitative mental 
441.5   health services the entity is qualified to provide. 
441.6      (c) If an entity seeks to provide services outside its host 
441.7   county, it must obtain additional certification from each county 
441.8   in which it will provide services.  The additional certification 
441.9   must be based on the adequacy of the entity's knowledge of that 
441.10  county's local health and human service system, and the ability 
441.11  of the entity to coordinate its services with the other services 
441.12  available in that county. 
441.13     (d) Recertification must occur at least every two years. 
441.14     (e) The commissioner may intervene at any time and 
441.15  decertify providers with cause.  The decertification is subject 
441.16  to appeal to the state.  A county board may recommend that the 
441.17  state decertify a provider for cause. 
441.18     (f) The adult rehabilitative mental health services 
441.19  provider entity must meet the following standards: 
441.20     (1) have capacity to recruit, hire, manage, and train 
441.21  mental health professionals, mental health practitioners, and 
441.22  mental health rehabilitation workers; 
441.23     (2) have adequate administrative ability to ensure 
441.24  availability of services; 
441.25     (3) ensure adequate preservice and inservice training for 
441.26  staff; 
441.27     (4) ensure that mental health professionals, mental health 
441.28  practitioners, and mental health rehabilitation workers are 
441.29  skilled in the delivery of the specific adult rehabilitative 
441.30  mental health services provided to the individual eligible 
441.31  recipient; 
441.32     (5) ensure that staff is capable of implementing culturally 
441.33  specific services that are culturally competent and appropriate 
441.34  as determined by the recipient's culture, beliefs, values, and 
441.35  language as identified in the individual treatment plan; 
441.36     (6) ensure enough flexibility in service delivery to 
442.1   respond to the changing and intermittent care needs of a 
442.2   recipient as identified by the recipient and the individual 
442.3   treatment plan; 
442.4      (7) ensure that the mental health professional or mental 
442.5   health practitioner, who is under the clinical supervision of a 
442.6   mental health professional, involved in a recipient's services 
442.7   participates in the development of the individual treatment 
442.8   plan; 
442.9      (8) assist the recipient in arranging needed crisis 
442.10  assessment, intervention, and stabilization services; 
442.11     (9) ensure that services are coordinated with other 
442.12  recipient mental health services providers and the county mental 
442.13  health authority and the federally recognized American Indian 
442.14  authority and necessary others after obtaining the consent of 
442.15  the recipient.  Services must also be coordinated with the 
442.16  recipient's case manager or care coordinator, if the recipient 
442.17  is receiving case management or care coordination services; 
442.18     (10) develop and maintain recipient files, individual 
442.19  treatment plans, and contact charting; 
442.20     (11) develop and maintain staff training and personnel 
442.21  files; 
442.22     (12) submit information as required by the state; 
442.23     (13) establish and maintain a quality assurance plan to 
442.24  evaluate the outcome of services provided; 
442.25     (14) keep all necessary records required by law; 
442.26     (15) deliver services as required by section 245.461; 
442.27     (16) comply with all applicable laws; 
442.28     (17) be an enrolled Medicaid provider; 
442.29     (18) maintain a quality assurance plan to determine 
442.30  specific service outcomes and the recipient's satisfaction with 
442.31  services; and 
442.32     (19) develop and maintain written policies and procedures 
442.33  regarding service provision and administration of the provider 
442.34  entity. 
442.35     (g) The commissioner shall develop statewide procedures for 
442.36  provider certification, including timelines for counties to 
443.1   certify qualified providers. 
443.2      Subd. 5.  [QUALIFICATIONS OF PROVIDER STAFF.] Adult 
443.3   rehabilitative mental health services must be provided by 
443.4   qualified individual provider staff of a certified provider 
443.5   entity.  Individual provider staff must be qualified under one 
443.6   of the following criteria: 
443.7      (1) a mental health professional as defined in section 
443.8   245.462, subdivision 18, clauses (1) to (5); 
443.9      (2) a mental health practitioner as defined in section 
443.10  245.462, subdivision 17.  The mental health practitioner must 
443.11  work under the clinical supervision of a mental health 
443.12  professional; or 
443.13     (3) a mental health rehabilitation worker.  A mental health 
443.14  rehabilitation worker means a staff person working under the 
443.15  direction of a mental health practitioner or mental health 
443.16  professional, and under the clinical supervision of a mental 
443.17  health professional in the implementation of rehabilitative 
443.18  mental health services as identified in the recipient's 
443.19  individual treatment plan; and who: 
443.20     (i) is at least 21 years of age; 
443.21     (ii) has a high school diploma or equivalent; 
443.22     (iii) has successfully completed 30 hours of training 
443.23  during the past two years in all of the following areas:  
443.24  recipient rights, recipient-centered individual treatment 
443.25  planning, behavioral terminology, mental illness, co-occurring 
443.26  mental illness and substance abuse, psychotropic medications and 
443.27  side effects, functional assessment, local community resources, 
443.28  adult vulnerability, recipient confidentiality; and 
443.29     (iv) meets the qualifications in (A) or (B): 
443.30     (A) has an associate of arts degree in one of the 
443.31  behavioral sciences or human services, or is a registered nurse 
443.32  without a bachelor's degree, or who within the previous ten 
443.33  years has:  
443.34     (1) three years of personal life experience with serious 
443.35  and persistent mental illness; 
443.36     (2) three years of life experience as a primary caregiver 
444.1   to an adult with a serious mental illness or traumatic brain 
444.2   injury; or 
444.3      (3) 4,000 hours of supervised paid work experience in the 
444.4   delivery of mental health services to adults with a serious 
444.5   mental illness or traumatic brain injury; or 
444.6      (B)(1) be fluent in the non-English language or competent 
444.7   in the culture of the ethnic group to which at least 50 percent 
444.8   of the mental health rehabilitation worker's clients belong; 
444.9      (2) receives during the first 2,000 hours of work, monthly 
444.10  documented individual clinical supervision by a mental health 
444.11  professional; 
444.12     (3) has 18 hours of documented field supervision by a 
444.13  mental health professional or practitioner during the first 160 
444.14  hours of contact work with recipients, and at least six hours of 
444.15  field supervision quarterly during the following year; 
444.16     (4) has review and cosignature of charting of recipient 
444.17  contacts during field supervision by a mental health 
444.18  professional or practitioner; and 
444.19     (5) has 40 hours of additional continuing education on 
444.20  mental health topics during the first year of employment. 
444.21     Subd. 6.  [REQUIRED TRAINING AND SUPERVISION.] (a) Mental 
444.22  health rehabilitation workers must receive ongoing continuing 
444.23  education training of at least 30 hours every two years in areas 
444.24  of mental illness and mental health services and other areas 
444.25  specific to the population being served.  Mental health 
444.26  rehabilitation workers must also be subject to the ongoing 
444.27  direction and clinical supervision standards in paragraphs (c) 
444.28  and (d). 
444.29     (b) Mental health practitioners must receive ongoing 
444.30  continuing education training as required by their professional 
444.31  license; or if the practitioner is not licensed, the 
444.32  practitioner must receive ongoing continuing education training 
444.33  of at least 30 hours every two years in areas of mental illness 
444.34  and mental health services.  Mental health practitioners must 
444.35  meet the ongoing clinical supervision standards in paragraph (c).
444.36     (c) A mental health professional providing clinical 
445.1   supervision of staff delivering adult rehabilitative mental 
445.2   health services must provide the following guidance: 
445.3      (1) review the information in the recipient's file; 
445.4      (2) review and approve initial and updates of individual 
445.5   treatment plans; 
445.6      (3) meet with mental health rehabilitation workers and 
445.7   practitioners, individually or in small groups, at least monthly 
445.8   to discuss treatment topics of interest to the workers and 
445.9   practitioners; 
445.10     (4) meet with mental health rehabilitation workers and 
445.11  practitioners, individually or in small groups, at least monthly 
445.12  to discuss treatment plans of recipients, and approve by 
445.13  signature and document in the recipient's file any resulting 
445.14  plan updates; 
445.15     (5) meet at least twice a month with the directing mental 
445.16  health practitioner, if there is one, to review needs of the 
445.17  adult rehabilitative mental health services program, review 
445.18  staff on-site observations and evaluate mental health 
445.19  rehabilitation workers, plan staff training, review program 
445.20  evaluation and development, and consult with the directing 
445.21  practitioner; 
445.22     (6) be available for urgent consultation as the individual 
445.23  recipient needs or the situation necessitates; and 
445.24     (7) provide clinical supervision by full- or part-time 
445.25  mental health professionals employed by or under contract with 
445.26  the provider entity. 
445.27     (d) An adult rehabilitative mental health services provider 
445.28  entity must have a treatment director who is a mental health 
445.29  practitioner or mental health professional.  The treatment 
445.30  director must ensure the following: 
445.31     (1) while delivering direct services to recipients, a newly 
445.32  hired mental health rehabilitation worker must be directly 
445.33  observed delivering services to recipients by the mental health 
445.34  practitioner or mental health professional for at least six 
445.35  hours per 40 hours worked during the first 160 hours that the 
445.36  mental health rehabilitation worker works; 
446.1      (2) the mental health rehabilitation worker must receive 
446.2   ongoing on-site direct service observation by a mental health 
446.3   professional or mental health practitioner for at least six 
446.4   hours for every six months of employment; 
446.5      (3) progress notes are reviewed from on-site service 
446.6   observation prepared by the mental health rehabilitation worker 
446.7   and mental health practitioner for accuracy and consistency with 
446.8   actual recipient contact and the individual treatment plan and 
446.9   goals; 
446.10     (4) immediate availability by phone or in person for 
446.11  consultation by a mental health professional or a mental health 
446.12  practitioner to the mental health rehabilitation services worker 
446.13  during service provision; 
446.14     (5) oversee the identification of changes in individual 
446.15  recipient treatment strategies, revise the plan and communicate 
446.16  treatment instructions and methodologies as appropriate to 
446.17  ensure that treatment is implemented correctly; 
446.18     (6) model service practices which:  respect the recipient, 
446.19  include the recipient in planning and implementation of the 
446.20  individual treatment plan, recognize the recipient's strengths, 
446.21  collaborate and coordinate with other involved parties and 
446.22  providers; 
446.23     (7) ensure that mental health practitioners and mental 
446.24  health rehabilitation workers are able to effectively 
446.25  communicate with the recipients, significant others, and 
446.26  providers; and 
446.27     (8) oversee the record of the results of on-site 
446.28  observation and charting evaluation and corrective actions taken 
446.29  to modify the work of the mental health practitioners and mental 
446.30  health rehabilitation workers. 
446.31     (e) A mental health practitioner who is providing treatment 
446.32  direction for a provider entity must receive supervision at 
446.33  least monthly from a mental health professional to: 
446.34     (1) identify and plan for general needs of the recipient 
446.35  population served; 
446.36     (2) identify and plan to address provider entity program 
447.1   needs and effectiveness; 
447.2      (3) identify and plan provider entity staff training and 
447.3   personnel needs and issues; and 
447.4      (4) plan, implement, and evaluate provider entity quality 
447.5   improvement programs.  
447.6      Subd. 7.  [PERSONNEL FILE.] The adult rehabilitative mental 
447.7   health services provider entity must maintain a personnel file 
447.8   on each staff.  Each file must contain: 
447.9      (1) an annual performance review; 
447.10     (2) a summary of on-site service observations and charting 
447.11  review; 
447.12     (3) a criminal background check of all direct service 
447.13  staff; 
447.14     (4) evidence of academic degree and qualifications; 
447.15     (5) a copy of professional license; 
447.16     (6) any job performance recognition and disciplinary 
447.17  actions; 
447.18     (7) any individual staff written input into own personnel 
447.19  file; 
447.20     (8) all clinical supervision provided; and 
447.21     (9) documentation of compliance with continuing education 
447.22  requirements. 
447.23     Subd. 8.  [DIAGNOSTIC ASSESSMENT.] Providers of adult 
447.24  rehabilitative mental health services must complete a diagnostic 
447.25  assessment as defined in section 245.462, subdivision 9, within 
447.26  five days after the recipient's second visit or within 30 days 
447.27  after intake, whichever occurs first.  In cases where a 
447.28  diagnostic assessment is available that reflects the recipient's 
447.29  current status, and has been completed within 180 days preceding 
447.30  admission, an update must be completed.  An update shall include 
447.31  a written summary by a mental health professional of the 
447.32  recipient's current mental health status and service needs.  If 
447.33  the recipient's mental health status has changed significantly 
447.34  since the adult's most recent diagnostic assessment, a new 
447.35  diagnostic assessment is required. 
447.36     Subd. 9.  [FUNCTIONAL ASSESSMENT.] Providers of adult 
448.1   rehabilitative mental health services must complete a written 
448.2   functional assessment as defined in section 245.462, subdivision 
448.3   11a, for each recipient.  The functional assessment must be 
448.4   completed within 30 days of intake, and reviewed and updated at 
448.5   least every six months after it is developed, unless there is a 
448.6   significant change in the functioning of the recipient.  If 
448.7   there is a significant change in functioning, the assessment 
448.8   must be updated.  A single functional assessment can meet case 
448.9   management and adult rehabilitative mental health services 
448.10  requirements, if agreed to by the recipient.  Unless the 
448.11  recipient refuses, the recipient must have significant 
448.12  participation in the development of the functional assessment. 
448.13     Subd. 10.  [INDIVIDUAL TREATMENT PLAN.] All providers of 
448.14  adult rehabilitative mental health services must develop and 
448.15  implement an individual treatment plan for each recipient.  The 
448.16  provisions in clauses (1) and (2) apply: 
448.17     (1) Individual treatment plan means a plan of intervention, 
448.18  treatment, and services for an individual recipient written by a 
448.19  mental health professional or by a mental health practitioner 
448.20  under the clinical supervision of a mental health professional.  
448.21  The individual treatment plan must be based on diagnostic and 
448.22  functional assessments.  To the extent possible, the development 
448.23  and implementation of a treatment plan must be a collaborative 
448.24  process involving the recipient, and with the permission of the 
448.25  recipient, the recipient's family and others in the recipient's 
448.26  support system.  Providers of adult rehabilitative mental health 
448.27  services must develop the individual treatment plan within 30 
448.28  calendar days of intake.  The treatment plan must be updated at 
448.29  least every six months thereafter, or more often when there is 
448.30  significant change in the recipient's situation or functioning, 
448.31  or in services or service methods to be used, or at the request 
448.32  of the recipient or the recipient's legal guardian. 
448.33     (2) The individual treatment plan must include: 
448.34     (i) a list of problems identified in the assessment; 
448.35     (ii) the recipient's strengths and resources; 
448.36     (iii) concrete, measurable goals to be achieved, including 
449.1   time frames for achievement; 
449.2      (iv) specific objectives directed toward the achievement of 
449.3   each one of the goals; 
449.4      (v) documentation of participants in the treatment planning.
449.5   The recipient, if possible, must be a participant.  The 
449.6   recipient or the recipient's legal guardian must sign the 
449.7   treatment plan, or documentation must be provided why this was 
449.8   not possible.  A copy of the plan must be given to the recipient 
449.9   or legal guardian.  Referral to formal services must be 
449.10  arranged, including specific providers where applicable; 
449.11     (vi) cultural considerations, resources, and needs of the 
449.12  recipient must be included; 
449.13     (vii) planned frequency and type of services must be 
449.14  initiated; and 
449.15     (viii) clear progress notes on outcome of goals. 
449.16     (3) The individual community support plan defined in 
449.17  section 245.462, subdivision 12, may serve as the individual 
449.18  treatment plan if there is involvement of a mental health case 
449.19  manager, and with the approval of the recipient.  The individual 
449.20  community support plan must include the criteria in clause (2). 
449.21     Subd. 11.  [RECIPIENT FILE.] Providers of adult 
449.22  rehabilitative mental health services must maintain a file for 
449.23  each recipient that contains the following information: 
449.24     (1) diagnostic assessment or verification of its location, 
449.25  that is current and that was reviewed by a mental health 
449.26  professional who is employed by or under contract with the 
449.27  provider entity; 
449.28     (2) functional assessments; 
449.29     (3) individual treatment plans signed by the recipient and 
449.30  the mental health professional, or if the recipient refused to 
449.31  sign the plan, the date and reason stated by the recipient as to 
449.32  why the recipient would not sign the plan; 
449.33     (4) recipient history; 
449.34     (5) signed release forms; 
449.35     (6) recipient health information and current medications; 
449.36     (7) emergency contacts for the recipient; 
450.1      (8) case records which document the date of service, the 
450.2   place of service delivery, signature of the person providing the 
450.3   service, nature, extent and units of service, and place of 
450.4   service delivery; 
450.5      (9) contacts, direct or by telephone, with recipient's 
450.6   family or others, other providers, or other resources for 
450.7   service coordination; 
450.8      (10) summary of recipient case reviews by staff; and 
450.9      (11) written information by the recipient that the 
450.10  recipient requests be included in the file. 
450.11     Subd. 12.  [ADDITIONAL REQUIREMENTS.] (a) Providers of 
450.12  adult rehabilitative mental health services must comply with the 
450.13  requirements relating to referrals for case management in 
450.14  section 245.467, subdivision 4. 
450.15     (b) Adult rehabilitative mental health services are 
450.16  provided for most recipients in the recipient's home and 
450.17  community.  Services may also be provided at the home of a 
450.18  relative or significant other, job site, psychosocial clubhouse, 
450.19  drop-in center, social setting, classroom, or other places in 
450.20  the community.  Except for "transition to community services," 
450.21  the place of service does not include a regional treatment 
450.22  center, nursing home, residential treatment facility licensed 
450.23  under Minnesota Rules, parts 9520.0500 to 9520.0670 (Rule 36), 
450.24  or an acute care hospital. 
450.25     (c) Adult rehabilitative mental health services may be 
450.26  provided in group settings if appropriate to each participating 
450.27  recipient's needs and treatment plan.  A group is defined as two 
450.28  to ten clients, at least one of whom is a recipient, who is 
450.29  concurrently receiving a service which is identified in this 
450.30  section.  The service and group must be specified in the 
450.31  recipient's treatment plan.  No more than two qualified staff 
450.32  may bill Medicaid for services provided to the same group of 
450.33  recipients.  If two adult rehabilitative mental health workers 
450.34  bill for recipients in the same group session, they must each 
450.35  bill for different recipients. 
450.36     Subd. 13.  [EXCLUDED SERVICES.] The following services are 
451.1   excluded from reimbursement as adult rehabilitative mental 
451.2   health services: 
451.3      (1) recipient transportation services; 
451.4      (2) a service provided and billed by a provider who is not 
451.5   enrolled to provide adult rehabilitative mental health service; 
451.6      (3) adult rehabilitative mental health services performed 
451.7   by volunteers; 
451.8      (4) provider performance of household tasks, chores, or 
451.9   related activities, such as laundering clothes, moving the 
451.10  recipient's household, housekeeping, and grocery shopping for 
451.11  the recipient; 
451.12     (5) direct billing of time spent "on call" when not 
451.13  delivering services to recipients; 
451.14     (6) activities which are primarily social or recreational 
451.15  in nature, rather than rehabilitative, for the individual 
451.16  recipient, as determined by the individual's needs and treatment 
451.17  plan; 
451.18     (7) job-specific skills services, such as on-the-job 
451.19  training; 
451.20     (8) provider service time included in case management 
451.21  reimbursement; 
451.22     (9) outreach services to potential recipients; 
451.23     (10) a mental health service that is not medically 
451.24  necessary; and 
451.25     (11) any services provided by a hospital, board and 
451.26  lodging, or residential facility to an individual who is a 
451.27  patient in or resident of that facility. 
451.28     Subd. 14.  [BILLING WHEN SERVICES ARE PROVIDED BY QUALIFIED 
451.29  STATE STAFF.] When rehabilitative services are provided by 
451.30  qualified state staff who are assigned to pilot projects under 
451.31  section 245.4661, the county or other local entity to which the 
451.32  qualified state staff are assigned may consider these staff part 
451.33  of the local provider entity for which certification is sought 
451.34  under this section, and may bill the medical assistance program 
451.35  for qualifying services provided by the qualified state staff.  
451.36  Notwithstanding section 256.025, subdivision 2, payments for 
452.1   services provided by state staff who are assigned to adult 
452.2   mental health initiatives shall only be made from federal funds. 
452.3      Sec. 40.  [256B.0624] [ADULT MENTAL HEALTH CRISIS RESPONSE 
452.4   SERVICES.] 
452.5      Subdivision 1.  [SCOPE.] Medical assistance covers adult 
452.6   mental health crisis response services as defined in subdivision 
452.7   2, paragraphs (c) to (e), subject to federal approval, if 
452.8   provided to a recipient as defined in subdivision 3 and provided 
452.9   by a qualified provider entity as defined in this section and by 
452.10  a qualified individual provider working within the provider's 
452.11  scope of practice and as defined in this subdivision and 
452.12  identified in the recipient's individual crisis treatment plan 
452.13  as defined in subdivision 11 and if determined to be medically 
452.14  necessary.  
452.15     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
452.16  following terms have the meanings given them. 
452.17     (a) "Mental health crisis" is an adult behavioral, 
452.18  emotional, or psychiatric situation which, but for the provision 
452.19  of crisis response services, would likely result in 
452.20  significantly reduced levels of functioning in primary 
452.21  activities of daily living, or in an emergency situation, or in 
452.22  the placement of the recipient in a more restrictive setting, 
452.23  including, but not limited to, inpatient hospitalization.  
452.24     (b) "Mental health emergency" is an adult behavioral, 
452.25  emotional, or psychiatric situation which causes an immediate 
452.26  need for mental health services and is consistent with section 
452.27  62Q.55. 
452.28     A mental health crisis or emergency is determined for 
452.29  medical assistance service reimbursement by a physician, a 
452.30  mental health professional, or crisis mental health practitioner 
452.31  with input from the recipient whenever possible. 
452.32     (c) "Mental health crisis assessment" means an immediate 
452.33  face-to-face assessment by a physician, a mental health 
452.34  professional, or mental health practitioner under the clinical 
452.35  supervision of a mental health professional, following a 
452.36  screening that suggests that the adult may be experiencing a 
453.1   mental health crisis or mental health emergency situation. 
453.2      (d) "Mental health mobile crisis intervention services" 
453.3   means face-to-face, short-term intensive mental health services 
453.4   initiated during a mental health crisis or mental health 
453.5   emergency to help the recipient cope with immediate stressors, 
453.6   identify and utilize available resources and strengths, and 
453.7   begin to return to the recipient's baseline level of functioning.
453.8      (1) This service is provided on-site by a mobile crisis 
453.9   intervention team outside of an inpatient hospital setting.  
453.10  Mental health mobile crisis intervention services must be 
453.11  available 24 hours a day, seven days a week.  
453.12     (2) The initial screening must consider other available 
453.13  services to determine which service intervention would best 
453.14  address the recipient's needs and circumstances.  
453.15     (3) The mobile crisis intervention team must be available 
453.16  to meet promptly face-to-face with a person in mental health 
453.17  crisis or emergency in a community setting.  
453.18     (4) The intervention must consist of a mental health crisis 
453.19  assessment and a crisis treatment plan.  
453.20     (5) The treatment plan must include recommendations for any 
453.21  needed crisis stabilization services for the recipient. 
453.22     (e) "Mental health crisis stabilization services" means 
453.23  individualized mental health services provided to a recipient 
453.24  following crisis intervention services which are designed to 
453.25  restore the recipient to the recipient's prior functional 
453.26  level.  Mental health crisis stabilization services may be 
453.27  provided in the recipient's home, the home of a family member or 
453.28  friend of the recipient, another community setting, or a 
453.29  short-term supervised, licensed residential program.  Mental 
453.30  health crisis stabilization does not include partial 
453.31  hospitalization or day treatment. 
453.32     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
453.33  individual who: 
453.34     (1) is age 18 or older; 
453.35     (2) is screened as possibly experiencing a mental health 
453.36  crisis or emergency where a mental health crisis assessment is 
454.1   needed; and 
454.2      (3) is assessed as experiencing a mental health crisis or 
454.3   emergency, and mental health crisis intervention or crisis 
454.4   intervention and stabilization services are determined to be 
454.5   medically necessary.  
454.6      Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) A provider 
454.7   entity is an entity that meets the standards listed in paragraph 
454.8   (b) and: 
454.9      (1) is a county board operated entity; or 
454.10     (2) is a provider entity that is under contract with the 
454.11  county board in the county where the potential crisis or 
454.12  emergency is occurring.  To provide services under this section, 
454.13  the provider entity must directly provide the services; or if 
454.14  services are subcontracted, the provider entity must maintain 
454.15  responsibility for services and billing. 
454.16     (b) The adult mental health crisis response services 
454.17  provider entity must meet the following standards: 
454.18     (1) has the capacity to recruit, hire, and manage and train 
454.19  mental health professionals, practitioners, and rehabilitation 
454.20  workers; 
454.21     (2) has adequate administrative ability to ensure 
454.22  availability of services; 
454.23     (3) is able to ensure adequate preservice and in-service 
454.24  training; 
454.25     (4) is able to ensure that staff providing these services 
454.26  are skilled in the delivery of mental health crisis response 
454.27  services to recipients; 
454.28     (5) is able to ensure that staff are capable of 
454.29  implementing culturally specific treatment identified in the 
454.30  individual treatment plan that is meaningful and appropriate as 
454.31  determined by the recipient's culture, beliefs, values, and 
454.32  language; 
454.33     (6) is able to ensure enough flexibility to respond to the 
454.34  changing intervention and care needs of a recipient as 
454.35  identified by the recipient during the service partnership 
454.36  between the recipient and providers; 
455.1      (7) is able to ensure that mental health professionals and 
455.2   mental health practitioners have the communication tools and 
455.3   procedures to communicate and consult promptly about crisis 
455.4   assessment and interventions as services occur; 
455.5      (8) is able to coordinate these services with county 
455.6   emergency services and mental health crisis services; 
455.7      (9) is able to ensure that mental health crisis assessment 
455.8   and mobile crisis intervention services are available 24 hours a 
455.9   day, seven days a week; 
455.10     (10) is able to ensure that services are coordinated with 
455.11  other mental health service providers, county mental health 
455.12  authorities, or federally recognized American Indian authorities 
455.13  and others as necessary, with the consent of the adult.  
455.14  Services must also be coordinated with the recipient's case 
455.15  manager if the adult is receiving case management services; 
455.16     (11) is able to ensure that crisis intervention services 
455.17  are provided in a manner consistent with sections 245.461 to 
455.18  245.486; 
455.19     (12) is able to submit information as required by the 
455.20  state; 
455.21     (13) maintains staff training and personnel files; 
455.22     (14) is able to establish and maintain a quality assurance 
455.23  and evaluation plan to evaluate the outcomes of services and 
455.24  recipient satisfaction; 
455.25     (15) is able to keep records as required by applicable 
455.26  laws; 
455.27     (16) is able to comply with all applicable laws and 
455.28  statutes; 
455.29     (17) is an enrolled medical assistance provider; and 
455.30     (18) develops and maintains written policies and procedures 
455.31  regarding service provision and administration of the provider 
455.32  entity, including safety of staff and recipients in high-risk 
455.33  situations.  
455.34     Subd. 5.  [MOBILE CRISIS INTERVENTION STAFF 
455.35  QUALIFICATIONS.] For provision of adult mental health mobile 
455.36  crisis intervention services, a mobile crisis intervention team 
456.1   is comprised of at least two mental health professionals as 
456.2   defined in section 245.462, subdivision 18, clauses (1) to (5), 
456.3   or a combination of at least one mental health professional and 
456.4   one mental health practitioner as defined in section 245.462, 
456.5   subdivision 17, with the required mental health crisis training 
456.6   and under the clinical supervision of a mental health 
456.7   professional on the team.  The team must have at least two 
456.8   people with at least one member providing on-site crisis 
456.9   intervention services when needed.  Team members must be 
456.10  experienced in mental health assessment, crisis intervention 
456.11  techniques, and clinical decision-making under emergency 
456.12  conditions and have knowledge of local services and resources.  
456.13  The team must recommend and coordinate the team's services with 
456.14  appropriate local resources such as the county social services 
456.15  agency, mental health services, and local law enforcement when 
456.16  necessary. 
456.17     Subd. 6.  [INITIAL SCREENING, CRISIS ASSESSMENT, AND MOBILE 
456.18  INTERVENTION TREATMENT PLANNING.] (a) Prior to initiating mobile 
456.19  crisis intervention services, a screening of the potential 
456.20  crisis situation must be conducted.  The screening may use the 
456.21  resources of crisis assistance and emergency services as defined 
456.22  in sections 245.462, subdivision 6, and 245.469, subdivisions 1 
456.23  and 2.  The screening must gather information, determine whether 
456.24  a crisis situation exists, identify parties involved, and 
456.25  determine an appropriate response. 
456.26     (b) If a crisis exists, a crisis assessment must be 
456.27  completed.  A crisis assessment evaluates any immediate needs 
456.28  for which emergency services are needed and, as time permits, 
456.29  the recipient's current life situation, sources of stress, 
456.30  mental health problems and symptoms, strengths, cultural 
456.31  considerations, support network, vulnerabilities, and current 
456.32  functioning. 
456.33     (c) If the crisis assessment determines mobile crisis 
456.34  intervention services are needed, the intervention services must 
456.35  be provided promptly.  As opportunity presents during the 
456.36  intervention, at least two members of the mobile crisis 
457.1   intervention team must confer directly or by telephone about the 
457.2   assessment, treatment plan, and actions taken and needed.  At 
457.3   least one of the team members must be on site providing crisis 
457.4   intervention services.  If providing on-site crisis intervention 
457.5   services, a mental health practitioner must seek clinical 
457.6   supervision as required in subdivision 9. 
457.7      (d) The mobile crisis intervention team must develop an 
457.8   initial, brief crisis treatment plan as soon as appropriate but 
457.9   no later than 24 hours after the initial face-to-face 
457.10  intervention.  The plan must address the needs and problems 
457.11  noted in the crisis assessment and include measurable short-term 
457.12  goals, cultural considerations, and frequency and type of 
457.13  services to be provided to achieve the goals and reduce or 
457.14  eliminate the crisis.  The treatment plan must be updated as 
457.15  needed to reflect current goals and services. 
457.16     (e) The team must document which short-term goals have been 
457.17  met, and when no further crisis intervention services are 
457.18  required. 
457.19     (f) If the recipient's crisis is stabilized, but the 
457.20  recipient needs a referral to other services, the team must 
457.21  provide referrals to these services.  If the recipient has a 
457.22  case manager, planning for other services must be coordinated 
457.23  with the case manager. 
457.24     Subd. 7.  [CRISIS STABILIZATION SERVICES.] (a) Crisis 
457.25  stabilization services must be provided by qualified staff of a 
457.26  crisis stabilization services provider entity and must meet the 
457.27  following standards: 
457.28     (1) a crisis stabilization treatment plan must be developed 
457.29  which meets the criteria in subdivision 11; 
457.30     (2) staff must be qualified as defined in subdivision 8; 
457.31  and 
457.32     (3) services must be delivered according to the treatment 
457.33  plan and include face-to-face contact with the recipient by 
457.34  qualified staff for further assessment, help with referrals, 
457.35  updating of the crisis stabilization treatment plan, supportive 
457.36  counseling, skills training, and collaboration with other 
458.1   service providers in the community. 
458.2      (b) If crisis stabilization services are provided in a 
458.3   supervised, licensed residential setting, the recipient must be 
458.4   contacted face-to-face daily by a qualified mental health 
458.5   practitioner or mental health professional.  The program must 
458.6   have 24-hour-a-day residential staffing which may include staff 
458.7   who do not meet the qualifications in subdivision 8.  The 
458.8   residential staff must have 24-hour-a-day immediate direct or 
458.9   telephone access to a qualified mental health professional or 
458.10  practitioner. 
458.11     (c) If crisis stabilization services are provided in a 
458.12  supervised, licensed residential setting that serves no more 
458.13  than four adult residents, and no more than two are recipients 
458.14  of crisis stabilization services, the residential staff must 
458.15  include, for at least eight hours per day, at least one 
458.16  individual who meets the qualifications in subdivision 8. 
458.17     (d) If crisis stabilization services are provided in a 
458.18  supervised, licensed residential setting that serves more than 
458.19  four adult residents, and one or more are recipients of crisis 
458.20  stabilization services, the residential staff must include, for 
458.21  24 hours a day, at least one individual who meets the 
458.22  qualifications in subdivision 8.  During the first 48 hours that 
458.23  a recipient is in the residential program, the residential 
458.24  program must have at least two staff working 24 hours a day.  
458.25  Staffing levels may be adjusted thereafter according to the 
458.26  needs of the recipient as specified in the crisis stabilization 
458.27  treatment plan. 
458.28     Subd. 8.  [ADULT CRISIS STABILIZATION STAFF 
458.29  QUALIFICATIONS.] (a) Adult mental health crisis stabilization 
458.30  services must be provided by qualified individual staff of a 
458.31  qualified provider entity.  Individual provider staff must have 
458.32  the following qualifications: 
458.33     (1) be a mental health professional as defined in section 
458.34  245.462, subdivision 18, clauses (1) to (5); 
458.35     (2) be a mental health practitioner as defined in section 
458.36  245.462, subdivision 17.  The mental health practitioner must 
459.1   work under the clinical supervision of a mental health 
459.2   professional; or 
459.3      (3) be a mental health rehabilitation worker who meets the 
459.4   criteria in section 256B.0623, subdivision 5, clause (3); works 
459.5   under the direction of a mental health practitioner as defined 
459.6   in section 245.462, subdivision 17, or under direction of a 
459.7   mental health professional; and works under the clinical 
459.8   supervision of a mental health professional. 
459.9      (b) Mental health practitioners and mental health 
459.10  rehabilitation workers must have completed at least 30 hours of 
459.11  training in crisis intervention and stabilization during the 
459.12  past two years. 
459.13     Subd. 9.  [SUPERVISION.] Mental health practitioners may 
459.14  provide crisis assessment and mobile crisis intervention 
459.15  services if the following clinical supervision requirements are 
459.16  met: 
459.17     (1) the mental health provider entity must accept full 
459.18  responsibility for the services provided; 
459.19     (2) the mental health professional of the provider entity, 
459.20  who is an employee or under contract with the provider entity, 
459.21  must be immediately available by phone or in person for clinical 
459.22  supervision; 
459.23     (3) the mental health professional is consulted, in person 
459.24  or by phone, during the first three hours when a mental health 
459.25  practitioner provides on-site service; 
459.26     (4) the mental health professional must: 
459.27     (i) review and approve of the tentative crisis assessment 
459.28  and crisis treatment plan; 
459.29     (ii) document the consultation; and 
459.30     (iii) sign the crisis assessment and treatment plan within 
459.31  the next business day; 
459.32     (5) if the mobile crisis intervention services continue 
459.33  into a second calendar day, a mental health professional must 
459.34  contact the recipient face-to-face on the second day to provide 
459.35  services and update the crisis treatment plan; and 
459.36     (6) the on-site observation must be documented in the 
460.1   recipient's record and signed by the mental health professional. 
460.2      Subd. 10.  [RECIPIENT FILE.] Providers of mobile crisis 
460.3   intervention or crisis stabilization services must maintain a 
460.4   file for each recipient containing the following information: 
460.5      (1) individual crisis treatment plans signed by the 
460.6   recipient, mental health professional, and mental health 
460.7   practitioner who developed the crisis treatment plan, or if the 
460.8   recipient refused to sign the plan, the date and reason stated 
460.9   by the recipient as to why the recipient would not sign the 
460.10  plan; 
460.11     (2) signed release forms; 
460.12     (3) recipient health information and current medications; 
460.13     (4) emergency contacts for the recipient; 
460.14     (5) case records which document the date of service, place 
460.15  of service delivery, signature of the person providing the 
460.16  service, and the nature, extent, and units of service.  Direct 
460.17  or telephone contact with the recipient's family or others 
460.18  should be documented; 
460.19     (6) required clinical supervision by mental health 
460.20  professionals; 
460.21     (7) summary of the recipient's case reviews by staff; and 
460.22     (8) any written information by the recipient that the 
460.23  recipient wants in the file. 
460.24  Documentation in the file must comply with all requirements of 
460.25  the commissioner. 
460.26     Subd. 11.  [TREATMENT PLAN.] The individual crisis 
460.27  stabilization treatment plan must include, at a minimum: 
460.28     (1) a list of problems identified in the assessment; 
460.29     (2) a list of the recipient's strengths and resources; 
460.30     (3) concrete, measurable short-term goals and tasks to be 
460.31  achieved, including time frames for achievement; 
460.32     (4) specific objectives directed toward the achievement of 
460.33  each one of the goals; 
460.34     (5) documentation of the participants involved in the 
460.35  service planning.  The recipient, if possible, must be a 
460.36  participant.  The recipient or the recipient's legal guardian 
461.1   must sign the service plan or documentation must be provided why 
461.2   this was not possible.  A copy of the plan must be given to the 
461.3   recipient and the recipient's legal guardian.  The plan should 
461.4   include services arranged, including specific providers where 
461.5   applicable; 
461.6      (6) planned frequency and type of services initiated; 
461.7      (7) a crisis response action plan if a crisis should occur; 
461.8      (8) clear progress notes on outcome of goals; 
461.9      (9) a written plan must be completed within 24 hours of 
461.10  beginning services with the recipient; and 
461.11     (10) a treatment plan must be developed by a mental health 
461.12  professional or mental health practitioner under the clinical 
461.13  supervision of a mental health professional.  The mental health 
461.14  professional must approve and sign all treatment plans. 
461.15     Subd. 12.  [EXCLUDED SERVICES.] The following services are 
461.16  excluded from reimbursement under this section: 
461.17     (1) room and board services; 
461.18     (2) services delivered to a recipient while admitted to an 
461.19  inpatient hospital; 
461.20     (3) recipient transportation costs may be covered under 
461.21  other medical assistance provisions, but transportation services 
461.22  are not an adult mental health crisis response service; 
461.23     (4) services provided and billed by a provider who is not 
461.24  enrolled under medical assistance to provide adult mental health 
461.25  crisis response services; 
461.26     (5) services performed by volunteers; 
461.27     (6) direct billing of time spent "on call" when not 
461.28  delivering services to a recipient; 
461.29     (7) provider service time included in case management 
461.30  reimbursement.  When a provider is eligible to provide more than 
461.31  one type of medical assistance service, the recipient must have 
461.32  a choice of provider for each service, unless otherwise provided 
461.33  for by law; 
461.34     (8) outreach services to potential recipients; and 
461.35     (9) a mental health service that is not medically necessary.
461.36     Sec. 41.  Minnesota Statutes 2000, section 256B.0625, 
462.1   subdivision 20, is amended to read: 
462.2      Subd. 20.  [MENTAL HEALTH CASE MANAGEMENT.] (a) To the 
462.3   extent authorized by rule of the state agency, medical 
462.4   assistance covers case management services to persons with 
462.5   serious and persistent mental illness and children with severe 
462.6   emotional disturbance.  Services provided under this section 
462.7   must meet the relevant standards in sections 245.461 to 
462.8   245.4888, the Comprehensive Adult and Children's Mental Health 
462.9   Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
462.10  9505.0322, excluding subpart 10. 
462.11     (b) Entities meeting program standards set out in rules 
462.12  governing family community support services as defined in 
462.13  section 245.4871, subdivision 17, are eligible for medical 
462.14  assistance reimbursement for case management services for 
462.15  children with severe emotional disturbance when these services 
462.16  meet the program standards in Minnesota Rules, parts 9520.0900 
462.17  to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
462.18     (c) Medical assistance and MinnesotaCare payment for mental 
462.19  health case management shall be made on a monthly basis.  In 
462.20  order to receive payment for an eligible child, the provider 
462.21  must document at least a face-to-face contact with the child, 
462.22  the child's parents, or the child's legal representative.  To 
462.23  receive payment for an eligible adult, the provider must 
462.24  document: 
462.25     (1) at least a face-to-face contact with the adult or the 
462.26  adult's legal representative; or 
462.27     (2) at least a telephone contact with the adult or the 
462.28  adult's legal representative and document a face-to-face contact 
462.29  with the adult or the adult's legal representative within the 
462.30  preceding two months. 
462.31     (d) Payment for mental health case management provided by 
462.32  county or state staff shall be based on the monthly rate 
462.33  methodology under section 256B.094, subdivision 6, paragraph 
462.34  (b), with separate rates calculated for child welfare and mental 
462.35  health, and within mental health, separate rates for children 
462.36  and adults. 
463.1      (e) Payment for mental health case management provided by 
463.2   Indian health services or by agencies operated by Indian tribes 
463.3   may be made according to this section or other relevant 
463.4   federally approved rate setting methodology. 
463.5      (f) Payment for mental health case management provided by 
463.6   county-contracted vendors who contract with a county or Indian 
463.7   tribe shall be based on a monthly rate negotiated by the host 
463.8   county or tribe.  The negotiated rate must not exceed the rate 
463.9   charged by the vendor for the same service to other payers.  If 
463.10  the service is provided by a team of contracted vendors, the 
463.11  county or tribe may negotiate a team rate with a vendor who is a 
463.12  member of the team.  The team shall determine how to distribute 
463.13  the rate among its members.  No reimbursement received by 
463.14  contracted vendors shall be returned to the county or tribe, 
463.15  except to reimburse the county or tribe for advance funding 
463.16  provided by the county or tribe to the vendor. 
463.17     (f) (g) If the service is provided by a team which includes 
463.18  contracted vendors, tribal staff, and county or state staff, the 
463.19  costs for county or state staff participation in the team shall 
463.20  be included in the rate for county-provided services.  In this 
463.21  case, the contracted vendor, the tribal agency, and the county 
463.22  may each receive separate payment for services provided by each 
463.23  entity in the same month.  In order to prevent duplication of 
463.24  services, the county each entity must document, in the 
463.25  recipient's file, the need for team case management and a 
463.26  description of the roles of the team members. 
463.27     (g) (h) The commissioner shall calculate the nonfederal 
463.28  share of actual medical assistance and general assistance 
463.29  medical care payments for each county, based on the higher of 
463.30  calendar year 1995 or 1996, by service date, project that amount 
463.31  forward to 1999, and transfer one-half of the result from 
463.32  medical assistance and general assistance medical care to each 
463.33  county's mental health grants under sections 245.4886 and 
463.34  256E.12 for calendar year 1999.  The annualized minimum amount 
463.35  added to each county's mental health grant shall be $3,000 per 
463.36  year for children and $5,000 per year for adults.  The 
464.1   commissioner may reduce the statewide growth factor in order to 
464.2   fund these minimums.  The annualized total amount transferred 
464.3   shall become part of the base for future mental health grants 
464.4   for each county. 
464.5      (h) (i) Any net increase in revenue to the county or tribe 
464.6   as a result of the change in this section must be used to 
464.7   provide expanded mental health services as defined in sections 
464.8   245.461 to 245.4888, the Comprehensive Adult and Children's 
464.9   Mental Health Acts, excluding inpatient and residential 
464.10  treatment.  For adults, increased revenue may also be used for 
464.11  services and consumer supports which are part of adult mental 
464.12  health projects approved under Laws 1997, chapter 203, article 
464.13  7, section 25.  For children, increased revenue may also be used 
464.14  for respite care and nonresidential individualized 
464.15  rehabilitation services as defined in section 245.492, 
464.16  subdivisions 17 and 23.  "Increased revenue" has the meaning 
464.17  given in Minnesota Rules, part 9520.0903, subpart 3.  
464.18     (i) (j) Notwithstanding section 256B.19, subdivision 1, the 
464.19  nonfederal share of costs for mental health case management 
464.20  shall be provided by the recipient's county of responsibility, 
464.21  as defined in sections 256G.01 to 256G.12, from sources other 
464.22  than federal funds or funds used to match other federal 
464.23  funds.  If the service is provided by a tribal agency, the 
464.24  nonfederal share, if any, shall be provided by the recipient's 
464.25  tribe.  
464.26     (j) (k) The commissioner may suspend, reduce, or terminate 
464.27  the reimbursement to a provider that does not meet the reporting 
464.28  or other requirements of this section.  The county of 
464.29  responsibility, as defined in sections 256G.01 to 256G.12, or, 
464.30  if applicable, the tribal agency, is responsible for any federal 
464.31  disallowances.  The county or tribe may share this 
464.32  responsibility with its contracted vendors.  
464.33     (k) (l) The commissioner shall set aside a portion of the 
464.34  federal funds earned under this section to repay the special 
464.35  revenue maximization account under section 256.01, subdivision 
464.36  2, clause (15).  The repayment is limited to: 
465.1      (1) the costs of developing and implementing this section; 
465.2   and 
465.3      (2) programming the information systems. 
465.4      (l) (m) Notwithstanding section 256.025, subdivision 2, 
465.5   payments to counties and tribal agencies for case management 
465.6   expenditures under this section shall only be made from federal 
465.7   earnings from services provided under this section.  Payments to 
465.8   contracted county-contracted vendors shall include both the 
465.9   federal earnings and the county share. 
465.10     (m) (n) Notwithstanding section 256B.041, county payments 
465.11  for the cost of mental health case management services provided 
465.12  by county or state staff shall not be made to the state 
465.13  treasurer.  For the purposes of mental health case management 
465.14  services provided by county or state staff under this section, 
465.15  the centralized disbursement of payments to counties under 
465.16  section 256B.041 consists only of federal earnings from services 
465.17  provided under this section. 
465.18     (n) (o) Case management services under this subdivision do 
465.19  not include therapy, treatment, legal, or outreach services. 
465.20     (o) (p) If the recipient is a resident of a nursing 
465.21  facility, intermediate care facility, or hospital, and the 
465.22  recipient's institutional care is paid by medical assistance, 
465.23  payment for case management services under this subdivision is 
465.24  limited to the last 30 days of the recipient's residency in that 
465.25  facility and may not exceed more than two months in a calendar 
465.26  year. 
465.27     (p) (q) Payment for case management services under this 
465.28  subdivision shall not duplicate payments made under other 
465.29  program authorities for the same purpose. 
465.30     (q) (r) By July 1, 2000, the commissioner shall evaluate 
465.31  the effectiveness of the changes required by this section, 
465.32  including changes in number of persons receiving mental health 
465.33  case management, changes in hours of service per person, and 
465.34  changes in caseload size. 
465.35     (r) (s) For each calendar year beginning with the calendar 
465.36  year 2001, the annualized amount of state funds for each county 
466.1   determined under paragraph (g) (h) shall be adjusted by the 
466.2   county's percentage change in the average number of clients per 
466.3   month who received case management under this section during the 
466.4   fiscal year that ended six months prior to the calendar year in 
466.5   question, in comparison to the prior fiscal year. 
466.6      (s) (t) For counties receiving the minimum allocation of 
466.7   $3,000 or $5,000 described in paragraph (g) (h), the adjustment 
466.8   in paragraph (r) (s) shall be determined so that the county 
466.9   receives the higher of the following amounts: 
466.10     (1) a continuation of the minimum allocation in paragraph 
466.11  (g) (h); or 
466.12     (2) an amount based on that county's average number of 
466.13  clients per month who received case management under this 
466.14  section during the fiscal year that ended six months prior to 
466.15  the calendar year in question, in comparison to the prior fiscal 
466.16  year, times the average statewide grant per person per month for 
466.17  counties not receiving the minimum allocation. 
466.18     (t) (u) The adjustments in paragraphs (r) and (s) and (t) 
466.19  shall be calculated separately for children and adults. 
466.20     Sec. 42.  Minnesota Statutes 2000, section 256B.0625, is 
466.21  amended by adding a subdivision to read: 
466.22     Subd. 46.  [MENTAL HEALTH PROVIDER TRAVEL TIME.] Medical 
466.23  assistance covers provider travel time if a recipient's 
466.24  individual treatment plan requires the provision of mental 
466.25  health services outside of the provider's normal place of 
466.26  business.  This does not include any travel time which is 
466.27  included in other billable services, and is only covered when 
466.28  the mental health service being provided to a recipient is 
466.29  covered under medical assistance. 
466.30     Sec. 43.  [256B.761] [REIMBURSEMENT FOR MENTAL HEALTH 
466.31  SERVICES.] 
466.32     Effective for services rendered on or after July 1, 2001, 
466.33  payment for medication management provided to psychiatric 
466.34  patients, outpatient mental health services, day treatment 
466.35  services, home-based mental health services, and family 
466.36  community support services shall be paid at the lower of (1) 
467.1   submitted charges, or (2) 75.6 percent of the 50th percentile of 
467.2   1999 charges. 
467.3      Sec. 44.  [256B.81] [MENTAL HEALTH PROVIDER APPEAL 
467.4   PROCESS.] 
467.5      If a county contract or certification is required to enroll 
467.6   as an authorized provider of mental health services under 
467.7   medical assistance, and if a county refuses to grant the 
467.8   necessary contract or certification, the provider may appeal the 
467.9   county decision to the commissioner.  A recipient may initiate 
467.10  an appeal on behalf of a provider who has been denied 
467.11  certification. The commissioner shall determine whether the 
467.12  provider meets applicable standards under state laws and rules 
467.13  based on an independent review of the facts, including comments 
467.14  from the county review.  If the commissioner finds that the 
467.15  provider meets the applicable standards, the commissioner shall 
467.16  enroll the provider as an authorized provider.  The commissioner 
467.17  shall develop procedures for providers and recipients to appeal 
467.18  a county decision to refuse to enroll a provider.  After the 
467.19  commissioner makes a decision regarding an appeal, the county, 
467.20  provider, or recipient may request that the commissioner 
467.21  reconsider the commissioner's initial decision.  The 
467.22  commissioner's reconsideration decision is final and not subject 
467.23  to further appeal. 
467.24     Sec. 45.  [256B.82] [PREPAID PLANS AND MENTAL HEALTH 
467.25  REHABILITATIVE SERVICES.] 
467.26     Medical assistance and MinnesotaCare prepaid health plans 
467.27  may include coverage for adult mental health rehabilitative 
467.28  services under section 256B.0623 and adult mental health crisis 
467.29  response services under section 256B.0624, beginning January 1, 
467.30  2004. 
467.31     By January 15, 2003, the commissioner shall report to the 
467.32  legislature how these services should be included in prepaid 
467.33  plans.  The commissioner shall consult with mental health 
467.34  advocates, health plans, and counties in developing this 
467.35  report.  The report recommendations must include a plan to 
467.36  ensure coordination of these services between health plans and 
468.1   counties, assure recipient access to essential community 
468.2   providers, and monitor the health plans' delivery of services 
468.3   through utilization review and quality standards. 
468.4      Sec. 46.  [256B.83] [MAINTENANCE OF EFFORT FOR CERTAIN 
468.5   MENTAL HEALTH SERVICES.] 
468.6      Any net increase in revenue to the county as a result of 
468.7   the change in section 256B.0623 or 256B.0624 must be used to 
468.8   provide expanded mental health services as defined in sections 
468.9   245.461 to 245.486, the Comprehensive Adult Mental Health Act, 
468.10  excluding inpatient and residential treatment.  Increased 
468.11  revenue may also be used for services and consumer supports, 
468.12  which are part of adult mental health projects approved under 
468.13  section 245.4661.  "Increased revenue" has the meaning given in 
468.14  Minnesota Rules, part 9520.0903, subpart 3. 
468.15     Sec. 47.  Minnesota Statutes 2000, section 260C.201, 
468.16  subdivision 1, as amended by Laws 2001, chapter 178, article 1, 
468.17  section 16, is amended to read: 
468.18     Subdivision 1.  [DISPOSITIONS.] (a) If the court finds that 
468.19  the child is in need of protection or services or neglected and 
468.20  in foster care, it shall enter an order making any of the 
468.21  following dispositions of the case: 
468.22     (1) place the child under the protective supervision of the 
468.23  responsible social services agency or child-placing agency in 
468.24  the home of a parent of the child under conditions prescribed by 
468.25  the court directed to the correction of the child's need for 
468.26  protection or services: 
468.27     (i) the court may order the child into the home of a parent 
468.28  who does not otherwise have legal custody of the child, however, 
468.29  an order under this section does not confer legal custody on 
468.30  that parent; 
468.31     (ii) if the court orders the child into the home of a 
468.32  father who is not adjudicated, he must cooperate with paternity 
468.33  establishment proceedings regarding the child in the appropriate 
468.34  jurisdiction as one of the conditions prescribed by the court 
468.35  for the child to continue in his home; 
468.36     (iii) the court may order the child into the home of a 
469.1   noncustodial parent with conditions and may also order both the 
469.2   noncustodial and the custodial parent to comply with the 
469.3   requirements of a case plan under subdivision 2; or 
469.4      (2) transfer legal custody to one of the following: 
469.5      (i) a child-placing agency; or 
469.6      (ii) the responsible social services agency.  In placing a 
469.7   child whose custody has been transferred under this paragraph, 
469.8   the agencies shall make an individualized determination of how 
469.9   the placement is in the child's best interests using the 
469.10  consideration for relatives and the best interest factors in 
469.11  section 260C.212, subdivision 2, paragraph (b); or 
469.12     (3) if the child has been adjudicated as a child in need of 
469.13  protection or services because the child is in need of special 
469.14  treatment and services or care for reasons of physical or mental 
469.15  health to treat or ameliorate a physical or mental disability, 
469.16  the court may order the child's parent, guardian, or custodian 
469.17  to provide it.  The court may order the child's health plan 
469.18  company to provide mental health services to the child.  Section 
469.19  62Q.535 applies to an order for mental health services directed 
469.20  to the child's health plan company.  If the health plan, parent, 
469.21  guardian, or custodian fails or is unable to provide this 
469.22  treatment or care, the court may order it provided.  Absent 
469.23  specific written findings by the court that the child's 
469.24  disability is the result of abuse or neglect by the child's 
469.25  parent or guardian, the court shall not transfer legal custody 
469.26  of the child for the purpose of obtaining special treatment or 
469.27  care solely because the parent is unable to provide the 
469.28  treatment or care.  If the court's order for mental health 
469.29  treatment is based on a diagnosis made by a treatment 
469.30  professional, the court may order that the diagnosing 
469.31  professional not provide the treatment to the child if it finds 
469.32  that such an order is in the child's best interests; or 
469.33     (4) if the court believes that the child has sufficient 
469.34  maturity and judgment and that it is in the best interests of 
469.35  the child, the court may order a child 16 years old or older to 
469.36  be allowed to live independently, either alone or with others as 
470.1   approved by the court under supervision the court considers 
470.2   appropriate, if the county board, after consultation with the 
470.3   court, has specifically authorized this dispositional 
470.4   alternative for a child. 
470.5      (b) If the child was adjudicated in need of protection or 
470.6   services because the child is a runaway or habitual truant, the 
470.7   court may order any of the following dispositions in addition to 
470.8   or as alternatives to the dispositions authorized under 
470.9   paragraph (a): 
470.10     (1) counsel the child or the child's parents, guardian, or 
470.11  custodian; 
470.12     (2) place the child under the supervision of a probation 
470.13  officer or other suitable person in the child's own home under 
470.14  conditions prescribed by the court, including reasonable rules 
470.15  for the child's conduct and the conduct of the parents, 
470.16  guardian, or custodian, designed for the physical, mental, and 
470.17  moral well-being and behavior of the child; or with the consent 
470.18  of the commissioner of corrections, place the child in a group 
470.19  foster care facility which is under the commissioner's 
470.20  management and supervision; 
470.21     (3) subject to the court's supervision, transfer legal 
470.22  custody of the child to one of the following: 
470.23     (i) a reputable person of good moral character.  No person 
470.24  may receive custody of two or more unrelated children unless 
470.25  licensed to operate a residential program under sections 245A.01 
470.26  to 245A.16; or 
470.27     (ii) a county probation officer for placement in a group 
470.28  foster home established under the direction of the juvenile 
470.29  court and licensed pursuant to section 241.021; 
470.30     (4) require the child to pay a fine of up to $100.  The 
470.31  court shall order payment of the fine in a manner that will not 
470.32  impose undue financial hardship upon the child; 
470.33     (5) require the child to participate in a community service 
470.34  project; 
470.35     (6) order the child to undergo a chemical dependency 
470.36  evaluation and, if warranted by the evaluation, order 
471.1   participation by the child in a drug awareness program or an 
471.2   inpatient or outpatient chemical dependency treatment program; 
471.3      (7) if the court believes that it is in the best interests 
471.4   of the child and of public safety that the child's driver's 
471.5   license or instruction permit be canceled, the court may order 
471.6   the commissioner of public safety to cancel the child's license 
471.7   or permit for any period up to the child's 18th birthday.  If 
471.8   the child does not have a driver's license or permit, the court 
471.9   may order a denial of driving privileges for any period up to 
471.10  the child's 18th birthday.  The court shall forward an order 
471.11  issued under this clause to the commissioner, who shall cancel 
471.12  the license or permit or deny driving privileges without a 
471.13  hearing for the period specified by the court.  At any time 
471.14  before the expiration of the period of cancellation or denial, 
471.15  the court may, for good cause, order the commissioner of public 
471.16  safety to allow the child to apply for a license or permit, and 
471.17  the commissioner shall so authorize; 
471.18     (8) order that the child's parent or legal guardian deliver 
471.19  the child to school at the beginning of each school day for a 
471.20  period of time specified by the court; or 
471.21     (9) require the child to perform any other activities or 
471.22  participate in any other treatment programs deemed appropriate 
471.23  by the court.  
471.24     To the extent practicable, the court shall enter a 
471.25  disposition order the same day it makes a finding that a child 
471.26  is in need of protection or services or neglected and in foster 
471.27  care, but in no event more than 15 days after the finding unless 
471.28  the court finds that the best interests of the child will be 
471.29  served by granting a delay.  If the child was under eight years 
471.30  of age at the time the petition was filed, the disposition order 
471.31  must be entered within ten days of the finding and the court may 
471.32  not grant a delay unless good cause is shown and the court finds 
471.33  the best interests of the child will be served by the delay. 
471.34     (c) If a child who is 14 years of age or older is 
471.35  adjudicated in need of protection or services because the child 
471.36  is a habitual truant and truancy procedures involving the child 
472.1   were previously dealt with by a school attendance review board 
472.2   or county attorney mediation program under section 260A.06 or 
472.3   260A.07, the court shall order a cancellation or denial of 
472.4   driving privileges under paragraph (b), clause (7), for any 
472.5   period up to the child's 18th birthday. 
472.6      (d) In the case of a child adjudicated in need of 
472.7   protection or services because the child has committed domestic 
472.8   abuse and been ordered excluded from the child's parent's home, 
472.9   the court shall dismiss jurisdiction if the court, at any time, 
472.10  finds the parent is able or willing to provide an alternative 
472.11  safe living arrangement for the child, as defined in Laws 1997, 
472.12  chapter 239, article 10, section 2.  
472.13     (e) When a parent has complied with a case plan ordered 
472.14  under subdivision 6 and the child is in the care of the parent, 
472.15  the court may order the responsible social services agency to 
472.16  monitor the parent's continued ability to maintain the child 
472.17  safely in the home under such terms and conditions as the court 
472.18  determines appropriate under the circumstances. 
472.19     Sec. 48.  [DEVELOPMENT OF PAYMENT SYSTEM FOR ADULT 
472.20  RESIDENTIAL SERVICES GRANTS.] 
472.21     The commissioner of human services shall review funding 
472.22  methods for adult residential services grants under Minnesota 
472.23  Rules, parts 9535.2000 to 9535.3000, and shall develop a payment 
472.24  system that takes into account client difficulty of care as 
472.25  manifested by client physical, mental, or behavioral 
472.26  conditions.  The payment system must provide reimbursement for 
472.27  education, consultation, and support services provided to 
472.28  families and other individuals as an extension of the treatment 
472.29  process.  The commissioner shall present recommendations and 
472.30  draft legislation for an adult residential services payment 
472.31  system to the legislature by January 15, 2002.  The 
472.32  recommendations must address whether additional funding for 
472.33  adult residential services grants is necessary for the provision 
472.34  of high quality services under a payment reimbursement system. 
472.35     Sec. 49.  [NOTICE REGARDING ESTABLISHMENT OF CONTINUING 
472.36  CARE BENEFIT PROGRAM.] 
473.1      When the continuing care benefit program for persons with 
473.2   mental illness under Minnesota Statutes, section 256.9693 is 
473.3   established, the commissioner of human services shall notify 
473.4   counties, health plan companies with prepaid medical assistance 
473.5   contracts, health care providers, and enrollees of the benefit 
473.6   program through bulletins, workshops, and other meetings. 
473.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
473.8      Sec. 50.  [STUDY OF CHILDREN'S MENTAL HEALTH 
473.9   COLLABORATIVES.] 
473.10     The commissioner of human services shall conduct a study of 
473.11  the role of the children's mental health and family services 
473.12  collaboratives in the children's mental health system.  This 
473.13  study must be conducted in consultation with the commissioners 
473.14  of health, corrections, and children, families, and learning, 
473.15  providers of mental health services in schools, other providers 
473.16  of mental health services, parents of children receiving mental 
473.17  health services, local children's mental health collaboratives, 
473.18  counties, and other interested persons.  The study must include 
473.19  an assessment and evaluation of the collaboratives.  The 
473.20  commissioner shall report findings and recommendations to the 
473.21  legislature by January 15, 2003. 
473.22     Sec. 51.  [STUDY; LENGTH OF STAY FOR MEDICARE-ELIGIBLE 
473.23  PERSONS.] 
473.24     The commissioner of human services shall study and make 
473.25  recommendations on how Medicare-eligible persons with mental 
473.26  illness may obtain acute care hospital inpatient treatment for 
473.27  mental illness for a length of stay beyond that allowed by the 
473.28  diagnostic classifications for mental illness according to 
473.29  Minnesota Statutes, section 256.969, subdivision 3a.  The study 
473.30  and recommendations shall be reported to the legislature by 
473.31  January 15, 2002. 
473.32     Sec. 52.  [DATA REGARDING COUNTY COMMITMENT COSTS.] 
473.33     Each county shall report data regarding all county costs 
473.34  for civil commitments under Minnesota Statutes, section 253B.09, 
473.35  beginning July 1, 2002, to the commissioner of human services.  
473.36  This fiscal data must include but is not limited to court costs, 
474.1   hold order costs under Minnesota Statutes, section 253B.05, the 
474.2   county share of costs for placement in a regional treatment 
474.3   center, costs for prepetition screening under Minnesota 
474.4   Statutes, section 253B.07, case management costs, transportation 
474.5   costs, and contract bed costs.  The commissioner shall report 
474.6   this information, including any increases or decreases in county 
474.7   commitment costs that occur after the implementation of sections 
474.8   in this article relating to civil commitment, to the legislature 
474.9   by January 15, 2004. 
474.10                             ARTICLE 10 
474.11                        ASSISTANCE PROGRAMS 
474.12     Section 1.  Minnesota Statutes 2000, section 256.01, 
474.13  subdivision 18, is amended to read: 
474.14     Subd. 18.  [IMMIGRATION STATUS VERIFICATIONS.] (a) 
474.15  Notwithstanding any waiver of this requirement by the secretary 
474.16  of the United States Department of Health and Human Services, 
474.17  effective July 1, 2001, the commissioner shall utilize the 
474.18  Systematic Alien Verification for Entitlements (SAVE) program to 
474.19  conduct immigration status verifications: 
474.20     (1) as required under United States Code, title 8, section 
474.21  1642; 
474.22     (2) for all applicants for food assistance benefits, 
474.23  whether under the federal food stamp program, the MFIP or work 
474.24  first program, or the Minnesota food assistance program; 
474.25     (3) for all applicants for general assistance medical care, 
474.26  except assistance for an emergency medical condition, for 
474.27  immunization with respect to an immunizable disease, or for 
474.28  testing and treatment of symptoms of a communicable disease; and 
474.29     (4) for all applicants for general assistance, Minnesota 
474.30  supplemental aid, MinnesotaCare, or group residential housing, 
474.31  when the benefits provided by these programs would fall under 
474.32  the definition of "federal public benefit" under United States 
474.33  Code, title 8, section 1642, if federal funds were used to pay 
474.34  for all or part of the benefits.  
474.35     The commissioner shall report to the Immigration and 
474.36  Naturalization Service all undocumented persons who have been 
475.1   identified through application verification procedures or by the 
475.2   self-admission of an applicant for assistance.  Reports made 
475.3   under this subdivision must comply with the requirements of 
475.4   section 411A of the Social Security Act, as amended, and United 
475.5   States Code, title 8, section 1644. 
475.6      (b) The commissioner shall comply with the reporting 
475.7   requirements under United States Code, title 42, section 611a, 
475.8   and any federal regulation or guidance adopted under that law. 
475.9      Sec. 2.  Minnesota Statutes 2000, section 256.98, 
475.10  subdivision 8, is amended to read: 
475.11     Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] (a) Any person 
475.12  found to be guilty of wrongfully obtaining assistance by a 
475.13  federal or state court or by an administrative hearing 
475.14  determination, or waiver thereof, through a disqualification 
475.15  consent agreement, or as part of any approved diversion plan 
475.16  under section 401.065, or any court-ordered stay which carries 
475.17  with it any probationary or other conditions, in the Minnesota 
475.18  family assistance investment program, the food stamp program, 
475.19  the general assistance program, the group residential housing 
475.20  program, or the Minnesota supplemental aid program shall be 
475.21  disqualified from that program.  In addition, any person 
475.22  disqualified from the Minnesota family investment program shall 
475.23  also be disqualified from the food stamp program.  The needs of 
475.24  that individual shall not be taken into consideration in 
475.25  determining the grant level for that assistance unit:  
475.26     (1) for one year after the first offense; 
475.27     (2) for two years after the second offense; and 
475.28     (3) permanently after the third or subsequent offense.  
475.29     The period of program disqualification shall begin on the 
475.30  date stipulated on the advance notice of disqualification 
475.31  without possibility of postponement for administrative stay or 
475.32  administrative hearing and shall continue through completion 
475.33  unless and until the findings upon which the sanctions were 
475.34  imposed are reversed by a court of competent jurisdiction.  The 
475.35  period for which sanctions are imposed is not subject to 
475.36  review.  The sanctions provided under this subdivision are in 
476.1   addition to, and not in substitution for, any other sanctions 
476.2   that may be provided for by law for the offense involved.  A 
476.3   disqualification established through hearing or waiver shall 
476.4   result in the disqualification period beginning immediately 
476.5   unless the person has become otherwise ineligible for 
476.6   assistance.  If the person is ineligible for assistance, the 
476.7   disqualification period begins when the person again meets the 
476.8   eligibility criteria of the program from which they were 
476.9   disqualified and makes application for that program. 
476.10     (b) A family receiving assistance through child care 
476.11  assistance programs under chapter 119B with a family member who 
476.12  is found to be guilty of wrongfully obtaining child care 
476.13  assistance by a federal court, state court, or an administrative 
476.14  hearing determination or waiver, through a disqualification 
476.15  consent agreement, as part of an approved diversion plan under 
476.16  section 401.065, or a court-ordered stay with probationary or 
476.17  other conditions, is disqualified from child care assistance 
476.18  programs.  The disqualifications must be for periods of three 
476.19  months, six months, and two years for the first, second, and 
476.20  third offenses respectively.  Subsequent violations must result 
476.21  in permanent disqualification.  During the disqualification 
476.22  period, disqualification from any child care program must extend 
476.23  to all child care programs and must be immediately applied. 
476.24     Sec. 3.  Minnesota Statutes 2000, section 256D.053, 
476.25  subdivision 1, is amended to read: 
476.26     Subdivision 1.  [PROGRAM ESTABLISHED.] The Minnesota food 
476.27  assistance program is established to provide food assistance to 
476.28  legal noncitizens residing in this state who are ineligible to 
476.29  participate in the federal Food Stamp Program solely due to the 
476.30  provisions of section 402 or 403 of Public Law Number 104-193, 
476.31  as authorized by Title VII of the 1997 Emergency Supplemental 
476.32  Appropriations Act, Public Law Number 105-18, and as amended by 
476.33  Public Law Number 105-185. 
476.34     Beginning July 1, 2002 2003, the Minnesota food assistance 
476.35  program is limited to those noncitizens described in this 
476.36  subdivision who are 50 years of age or older. 
477.1      Sec. 4.  Minnesota Statutes 2000, section 256D.425, 
477.2   subdivision 1, is amended to read: 
477.3      Subdivision 1.  [PERSONS ENTITLED TO RECEIVE AID.] A person 
477.4   who is aged, blind, or 18 years of age or older and disabled and 
477.5   who is receiving supplemental security benefits under Title XVI 
477.6   on the basis of age, blindness, or disability (or would be 
477.7   eligible for such benefits except for excess income) is eligible 
477.8   for a payment under the Minnesota supplemental aid program, if 
477.9   the person's net income is less than the standards in section 
477.10  256D.44.  Persons who are not receiving supplemental security 
477.11  income benefits under Title XVI of the Social Security Act or 
477.12  disability insurance benefits under Title II of the Social 
477.13  Security Act due to exhausting time limited benefits are not 
477.14  eligible to receive benefits under the MSA program.  Persons who 
477.15  are not receiving social security or other maintenance benefits 
477.16  for failure to meet or comply with the social security or other 
477.17  maintenance program requirements are not eligible to receive 
477.18  benefits under the MSA program.  Persons who are found 
477.19  ineligible for supplemental security income because of excess 
477.20  income, but whose income is within the limits of the Minnesota 
477.21  supplemental aid program, must have blindness or disability 
477.22  determined by the state medical review team.  
477.23     Sec. 5.  [256J.021] [SEPARATE STATE PROGRAM FOR USE OF 
477.24  STATE MONEY.] 
477.25     Beginning October 1, 2001, and each year thereafter, the 
477.26  commissioner of human services must treat financial assistance 
477.27  expenditures made to or on behalf of any minor child under 
477.28  section 256J.02, subdivision 2, clause (1), who is a resident of 
477.29  this state under section 256J.12, and who is part of a 
477.30  two-parent eligible household as expenditures under a separately 
477.31  funded state program and report those expenditures to the 
477.32  federal Department of Health and Human Services as separate 
477.33  state program expenditures under Code of Federal Regulations, 
477.34  title 45, section 263.5. 
477.35     Sec. 6.  Minnesota Statutes 2000, section 256J.08, 
477.36  subdivision 55a, is amended to read: 
478.1      Subd. 55a.  [MFIP STANDARD OF NEED.] "MFIP standard of 
478.2   need" means the appropriate standard used to determine MFIP 
478.3   benefit payments for the MFIP unit and applies to: 
478.4      (1) the transitional standard, sections 256J.08, 
478.5   subdivision 85, and 256J.24, subdivision 5; and 
478.6      (2) the shared household standard, section 256J.24, 
478.7   subdivision 9; and 
478.8      (3) the interstate transition standard, section 256J.43. 
478.9      Sec. 7.  Minnesota Statutes 2000, section 256J.08, is 
478.10  amended by adding a subdivision to read: 
478.11     Subd. 67a.  [PERSON TRAINED IN DOMESTIC VIOLENCE.] "Person 
478.12  trained in domestic violence" means an individual who works for 
478.13  an organization that is designated by the Minnesota center for 
478.14  crime victims services as providing services to victims of 
478.15  domestic violence, or a county staff person who has received 
478.16  similar specialized training, and includes any other person or 
478.17  organization designated by a qualifying organization under this 
478.18  section.  
478.19     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
478.20     Sec. 8.  Minnesota Statutes 2000, section 256J.09, 
478.21  subdivision 1, is amended to read: 
478.22     Subdivision 1.  [WHERE TO APPLY.] To apply for assistance a 
478.23  person must apply for assistance at submit a signed application 
478.24  to the county agency in the county where that person lives. 
478.25     Sec. 9.  Minnesota Statutes 2000, section 256J.09, 
478.26  subdivision 2, is amended to read: 
478.27     Subd. 2.  [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 
478.28  INFORMATION.] When a person inquires about assistance, a county 
478.29  agency must inform a person who inquires about assistance about: 
478.30     (1) explain the eligibility requirements for assistance of, 
478.31  and how to apply for, diversionary assistance, including 
478.32  diversionary assistance and as provided in section 256J.47; 
478.33  emergency assistance. as provided in section 256J.48; MFIP as 
478.34  provided in section 256J.10; or any other assistance for which 
478.35  the person may be eligible; and 
478.36     A county agency must (2) offer the person brochures 
479.1   developed or approved by the commissioner that describe how to 
479.2   apply for assistance. 
479.3      Sec. 10.  Minnesota Statutes 2000, section 256J.09, 
479.4   subdivision 3, is amended to read: 
479.5      Subd. 3.  [SUBMITTING THE APPLICATION FORM.] (a) A county 
479.6   agency must offer, in person or by mail, the application forms 
479.7   prescribed by the commissioner as soon as a person makes a 
479.8   written or oral inquiry.  At that time, the county agency must: 
479.9      (1) inform the person that assistance begins with the date 
479.10  the signed application is received by the county agency or the 
479.11  date all eligibility criteria are met, whichever is later.  The 
479.12  county agency must; 
479.13     (2) inform the applicant person that any delay in 
479.14  submitting the application will reduce the amount of assistance 
479.15  paid for the month of application.  A county agency must; 
479.16     (3) inform a person that the person may submit the 
479.17  application before an interview appointment.  To apply for 
479.18  assistance, a person must submit a signed application to the 
479.19  county agency.; 
479.20     (4) explain the information that will be verified during 
479.21  the application process by the county agency as provided in 
479.22  section 256J.32; 
479.23     (5) inform a person about the county agency's average 
479.24  application processing time and explain how the application will 
479.25  be processed under subdivision 5; 
479.26     (6) explain how to contact the county agency if a person's 
479.27  application information changes and how to withdraw the 
479.28  application; 
479.29     (7) inform a person that the next step in the application 
479.30  process is an interview and what a person must do if the 
479.31  application is approved including, but not limited to, attending 
479.32  orientation under section 256J.45 and complying with employment 
479.33  and training services requirements in sections 256J.52 to 
479.34  256J.55; 
479.35     (8) explain the child care and transportation services that 
479.36  are available under paragraph (c) to enable caregivers to attend 
480.1   the interview, screening, and orientation; and 
480.2      (9) identify any language barriers and arrange for 
480.3   translation assistance during appointments, including, but not 
480.4   limited to, screening under subdivision 3a, orientation under 
480.5   section 256J.45, and the initial assessment under section 
480.6   256J.52.  
480.7      (b) Upon receipt of a signed application, the county agency 
480.8   must stamp the date of receipt on the face of the application.  
480.9   The county agency must process the application within the time 
480.10  period required under subdivision 5.  An applicant may withdraw 
480.11  the application at any time by giving written or oral notice to 
480.12  the county agency.  The county agency must issue a written 
480.13  notice confirming the withdrawal.  The notice must inform the 
480.14  applicant of the county agency's understanding that the 
480.15  applicant has withdrawn the application and no longer wants to 
480.16  pursue it.  When, within ten days of the date of the agency's 
480.17  notice, an applicant informs a county agency, in writing, that 
480.18  the applicant does not wish to withdraw the application, the 
480.19  county agency must reinstate the application and finish 
480.20  processing the application. 
480.21     (c) Upon a participant's request, the county agency must 
480.22  arrange for transportation and child care or reimburse the 
480.23  participant for transportation and child care expenses necessary 
480.24  to enable participants to attend the screening under subdivision 
480.25  3a and orientation under section 256J.45.  
480.26     Sec. 11.  Minnesota Statutes 2000, section 256J.09, is 
480.27  amended by adding a subdivision to read: 
480.28     Subd. 3a.  [SCREENING.] The county agency, or at county 
480.29  option, the county's employment and training service provider as 
480.30  defined in section 256J.49, must screen each applicant to 
480.31  determine immediate needs and to determine if the applicant may 
480.32  be eligible for: 
480.33     (1) another program that is not partially funded through 
480.34  the federal temporary assistance to needy families block grant 
480.35  under Title I of Public Law Number 104-193, including the 
480.36  expedited issuance of food stamps under section 256J.28, 
481.1   subdivision 1.  If the applicant may be eligible for another 
481.2   program, a county caseworker must provide the appropriate 
481.3   referral to the program; 
481.4      (2) the diversionary assistance program under section 
481.5   256J.47; or 
481.6      (3) the emergency assistance program under section 256J.48. 
481.7      Sec. 12.  Minnesota Statutes 2000, section 256J.09, is 
481.8   amended by adding a subdivision to read: 
481.9      Subd. 3b.  [INTERVIEW TO DETERMINE REFERRALS AND SERVICES.] 
481.10  If the applicant is not diverted from applying for MFIP, and if 
481.11  the applicant meets the MFIP eligibility requirements, then a 
481.12  county agency must: 
481.13     (1) identify an applicant who is under the age of 20 and 
481.14  explain to the applicant the assessment procedures and 
481.15  employment plan requirements for minor parents under section 
481.16  256J.54; 
481.17     (2) explain to the applicant the eligibility criteria for 
481.18  an exemption under the family violence provisions in section 
481.19  256J.52, subdivision 6, and explain what an applicant should do 
481.20  to develop an alternative employment plan; 
481.21     (3) determine if an applicant qualifies for an exemption 
481.22  under section 256J.56 from employment and training services 
481.23  requirements, explain how a person should report to the county 
481.24  agency any status changes, and explain that an applicant who is 
481.25  exempt may volunteer to participate in employment and training 
481.26  services; 
481.27     (4) for applicants who are not exempt from the requirement 
481.28  to attend orientation, arrange for an orientation under section 
481.29  256J.45 and an initial assessment under section 256J.52; 
481.30     (5) inform an applicant who is not exempt from the 
481.31  requirement to attend orientation that failure to attend the 
481.32  orientation is considered an occurrence of noncompliance with 
481.33  program requirements and will result in an imposition of a 
481.34  sanction under section 256J.46; and 
481.35     (6) explain how to contact the county agency if an 
481.36  applicant has questions about compliance with program 
482.1   requirements. 
482.2      Sec. 13.  Minnesota Statutes 2000, section 256J.21, 
482.3   subdivision 2, is amended to read: 
482.4      Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
482.5   excluded in determining a family's available income: 
482.6      (1) payments for basic care, difficulty of care, and 
482.7   clothing allowances received for providing family foster care to 
482.8   children or adults under Minnesota Rules, parts 9545.0010 to 
482.9   9545.0260 and 9555.5050 to 9555.6265, and payments received and 
482.10  used for care and maintenance of a third-party beneficiary who 
482.11  is not a household member; 
482.12     (2) reimbursements for employment training received through 
482.13  the Job Training Partnership Act, United States Code, title 29, 
482.14  chapter 19, sections 1501 to 1792b; 
482.15     (3) reimbursement for out-of-pocket expenses incurred while 
482.16  performing volunteer services, jury duty, employment, or 
482.17  informal carpooling arrangements directly related to employment; 
482.18     (4) all educational assistance, except the county agency 
482.19  must count graduate student teaching assistantships, 
482.20  fellowships, and other similar paid work as earned income and, 
482.21  after allowing deductions for any unmet and necessary 
482.22  educational expenses, shall count scholarships or grants awarded 
482.23  to graduate students that do not require teaching or research as 
482.24  unearned income; 
482.25     (5) loans, regardless of purpose, from public or private 
482.26  lending institutions, governmental lending institutions, or 
482.27  governmental agencies; 
482.28     (6) loans from private individuals, regardless of purpose, 
482.29  provided an applicant or participant documents that the lender 
482.30  expects repayment; 
482.31     (7)(i) state income tax refunds; and 
482.32     (ii) federal income tax refunds; 
482.33     (8)(i) federal earned income credits; 
482.34     (ii) Minnesota working family credits; 
482.35     (iii) state homeowners and renters credits under chapter 
482.36  290A; and 
483.1      (iv) federal or state tax rebates; 
483.2      (9) funds received for reimbursement, replacement, or 
483.3   rebate of personal or real property when these payments are made 
483.4   by public agencies, awarded by a court, solicited through public 
483.5   appeal, or made as a grant by a federal agency, state or local 
483.6   government, or disaster assistance organizations, subsequent to 
483.7   a presidential declaration of disaster; 
483.8      (10) the portion of an insurance settlement that is used to 
483.9   pay medical, funeral, and burial expenses, or to repair or 
483.10  replace insured property; 
483.11     (11) reimbursements for medical expenses that cannot be 
483.12  paid by medical assistance; 
483.13     (12) payments by a vocational rehabilitation program 
483.14  administered by the state under chapter 268A, except those 
483.15  payments that are for current living expenses; 
483.16     (13) in-kind income, including any payments directly made 
483.17  by a third party to a provider of goods and services; 
483.18     (14) assistance payments to correct underpayments, but only 
483.19  for the month in which the payment is received; 
483.20     (15) emergency assistance payments; 
483.21     (16) funeral and cemetery payments as provided by section 
483.22  256.935; 
483.23     (17) nonrecurring cash gifts of $30 or less, not exceeding 
483.24  $30 per participant in a calendar month; 
483.25     (18) any form of energy assistance payment made through 
483.26  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
483.27  of 1981, payments made directly to energy providers by other 
483.28  public and private agencies, and any form of credit or rebate 
483.29  payment issued by energy providers; 
483.30     (19) Supplemental Security Income (SSI), including 
483.31  retroactive SSI payments and other income of an SSI recipient; 
483.32     (20) Minnesota supplemental aid, including retroactive 
483.33  payments; 
483.34     (21) proceeds from the sale of real or personal property; 
483.35     (22) adoption assistance payments under section 259.67; 
483.36     (23) state-funded family subsidy program payments made 
484.1   under section 252.32 to help families care for children with 
484.2   mental retardation or related conditions, consumer support grant 
484.3   funds under section 256.476, and resources and services for a 
484.4   disabled household member under one of the home and 
484.5   community-based waiver services programs under chapter 256B; 
484.6      (24) interest payments and dividends from property that is 
484.7   not excluded from and that does not exceed the asset limit; 
484.8      (25) rent rebates; 
484.9      (26) income earned by a minor caregiver, minor child 
484.10  through age 6, or a minor child who is at least a half-time 
484.11  student in an approved elementary or secondary education 
484.12  program; 
484.13     (27) income earned by a caregiver under age 20 who is at 
484.14  least a half-time student in an approved elementary or secondary 
484.15  education program; 
484.16     (28) MFIP child care payments under section 119B.05; 
484.17     (29) all other payments made through MFIP to support a 
484.18  caregiver's pursuit of greater self-support; 
484.19     (30) income a participant receives related to shared living 
484.20  expenses; 
484.21     (31) reverse mortgages; 
484.22     (32) benefits provided by the Child Nutrition Act of 1966, 
484.23  United States Code, title 42, chapter 13A, sections 1771 to 
484.24  1790; 
484.25     (33) benefits provided by the women, infants, and children 
484.26  (WIC) nutrition program, United States Code, title 42, chapter 
484.27  13A, section 1786; 
484.28     (34) benefits from the National School Lunch Act, United 
484.29  States Code, title 42, chapter 13, sections 1751 to 1769e; 
484.30     (35) relocation assistance for displaced persons under the 
484.31  Uniform Relocation Assistance and Real Property Acquisition 
484.32  Policies Act of 1970, United States Code, title 42, chapter 61, 
484.33  subchapter II, section 4636, or the National Housing Act, United 
484.34  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
484.35     (36) benefits from the Trade Act of 1974, United States 
484.36  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
485.1      (37) war reparations payments to Japanese Americans and 
485.2   Aleuts under United States Code, title 50, sections 1989 to 
485.3   1989d; 
485.4      (38) payments to veterans or their dependents as a result 
485.5   of legal settlements regarding Agent Orange or other chemical 
485.6   exposure under Public Law Number 101-239, section 10405, 
485.7   paragraph (a)(2)(E); 
485.8      (39) income that is otherwise specifically excluded from 
485.9   MFIP consideration in federal law, state law, or federal 
485.10  regulation; 
485.11     (40) security and utility deposit refunds; 
485.12     (41) American Indian tribal land settlements excluded under 
485.13  Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
485.14  Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
485.15  reservations and payments to members of the White Earth Band, 
485.16  under United States Code, title 25, chapter 9, section 331, and 
485.17  chapter 16, section 1407; 
485.18     (42) all income of the minor parent's parents and 
485.19  stepparents when determining the grant for the minor parent in 
485.20  households that include a minor parent living with parents or 
485.21  stepparents on MFIP with other children; and 
485.22     (43) income of the minor parent's parents and stepparents 
485.23  equal to 200 percent of the federal poverty guideline for a 
485.24  family size not including the minor parent and the minor 
485.25  parent's child in households that include a minor parent living 
485.26  with parents or stepparents not on MFIP when determining the 
485.27  grant for the minor parent.  The remainder of income is deemed 
485.28  as specified in section 256J.37, subdivision 1b; 
485.29     (44) payments made to children eligible for relative 
485.30  custody assistance under section 257.85; 
485.31     (45) vendor payments for goods and services made on behalf 
485.32  of a client unless the client has the option of receiving the 
485.33  payment in cash; and 
485.34     (46) the principal portion of a contract for deed payment. 
485.35     Sec. 14.  Minnesota Statutes 2000, section 256J.24, 
485.36  subdivision 2, is amended to read: 
486.1      Subd. 2.  [MANDATORY ASSISTANCE UNIT COMPOSITION.] Except 
486.2   for minor caregivers and their children who must be in a 
486.3   separate assistance unit from the other persons in the 
486.4   household, when the following individuals live together, they 
486.5   must be included in the assistance unit: 
486.6      (1) a minor child, including a pregnant minor; 
486.7      (2) the minor child's minor siblings, minor half-siblings, 
486.8   and minor step-siblings; 
486.9      (3) the minor child's natural parents, adoptive parents, 
486.10  and stepparents; and 
486.11     (4) the spouse of a pregnant woman.  
486.12     A minor child must have a caregiver for the child to be 
486.13  included in the assistance unit. 
486.14     Sec. 15.  Minnesota Statutes 2000, section 256J.24, 
486.15  subdivision 9, is amended to read: 
486.16     Subd. 9.  [SHARED HOUSEHOLD STANDARD; MFIP.] (a) Except as 
486.17  prohibited in paragraph (b), the county agency must use the 
486.18  shared household standard when the household includes one or 
486.19  more unrelated members, as that term is defined in section 
486.20  256J.08, subdivision 86a.  The county agency must use the shared 
486.21  household standard, unless a member of the assistance unit is a 
486.22  victim of domestic family violence and has an approved safety 
486.23  alternative employment plan, regardless of the number of 
486.24  unrelated members in the household. 
486.25     (b) The county agency must not use the shared household 
486.26  standard when all unrelated members are one of the following: 
486.27     (1) a recipient of public assistance benefits, including 
486.28  food stamps, Supplemental Security Income, adoption assistance, 
486.29  relative custody assistance, or foster care payments; 
486.30     (2) a roomer or boarder, or a person to whom the assistance 
486.31  unit is paying room or board; 
486.32     (3) a minor child under the age of 18; 
486.33     (4) a minor caregiver living with the minor caregiver's 
486.34  parents or in an approved supervised living arrangement; 
486.35     (5) a caregiver who is not the parent of the minor child in 
486.36  the assistance unit; or 
487.1      (6) an individual who provides child care to a child in the 
487.2   MFIP assistance unit. 
487.3      (c) The shared household standard must be discontinued if 
487.4   it is not approved by the United States Department of 
487.5   Agriculture under the MFIP waiver. 
487.6      Sec. 16.  Minnesota Statutes 2000, section 256J.24, 
487.7   subdivision 10, is amended to read: 
487.8      Subd. 10.  [MFIP EXIT LEVEL.] (a) In state fiscal years 
487.9   2000 and 2001, The commissioner shall adjust the MFIP earned 
487.10  income disregard to ensure that most participants do not lose 
487.11  eligibility for MFIP until their income reaches at least 120 
487.12  percent of the federal poverty guidelines in effect in October 
487.13  of each fiscal year.  The adjustment to the disregard shall be 
487.14  based on a household size of three, and the resulting earned 
487.15  income disregard percentage must be applied to all household 
487.16  sizes.  The adjustment under this subdivision must be 
487.17  implemented at the same time as the October food stamp 
487.18  cost-of-living adjustment is reflected in the food portion of 
487.19  MFIP transitional standard as required under subdivision 5a. 
487.20     (b) In state fiscal year 2002 and thereafter, the earned 
487.21  income disregard percentage must be the same as the percentage 
487.22  implemented in October 2000. 
487.23     Sec. 17.  Minnesota Statutes 2000, section 256J.26, 
487.24  subdivision 1, is amended to read: 
487.25     Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) 
487.26  Applicants or participants who have been convicted of a drug 
487.27  offense committed after July 1, 1997, may, if otherwise 
487.28  eligible, receive MFIP benefits subject to the following 
487.29  conditions: 
487.30     (1) Benefits for the entire assistance unit must be paid in 
487.31  vendor form for shelter and utilities during any time the 
487.32  applicant is part of the assistance unit. 
487.33     (2) The convicted applicant or participant shall be subject 
487.34  to random drug testing as a condition of continued eligibility 
487.35  and following any positive test for an illegal controlled 
487.36  substance is subject to the following sanctions: 
488.1      (i) for failing a drug test the first time, the 
488.2   participant's grant shall be reduced by ten percent of the MFIP 
488.3   standard of need, prior to making vendor payments for shelter 
488.4   and utility costs; or 
488.5      (ii) for failing a drug test two or more times, the 
488.6   residual amount of the participant's grant after making vendor 
488.7   payments for shelter and utility costs, if any, must be reduced 
488.8   by an amount equal to 30 percent of the MFIP standard of 
488.9   need for an assistance unit of the same size.  When a sanction 
488.10  under this subdivision is in effect, the job counselor must 
488.11  attempt to meet with the person face-to-face.  During the 
488.12  face-to-face meeting, the job counselor must explain the 
488.13  consequences of a subsequent drug test failure and inform the 
488.14  participant of the right to appeal the sanction under section 
488.15  256J.40.  If a face-to-face meeting is not possible, the county 
488.16  agency must send the participant a notice of adverse action as 
488.17  provided in section 256J.31, subdivisions 4 and 5, and must 
488.18  include the information required in the face-to-face meeting; or 
488.19     (ii) for failing a drug test two times, the participant is 
488.20  permanently disqualified from receiving MFIP assistance, both 
488.21  the cash and food portions.  The assistance unit's MFIP grant 
488.22  must be reduced by the amount which would have otherwise been 
488.23  made available to the disqualified participant.  
488.24  Disqualification under this item does not make a participant 
488.25  ineligible for food stamps.  Before a disqualification under 
488.26  this provision is imposed, the job counselor must attempt to 
488.27  meet with the participant face-to-face.  During the face-to-face 
488.28  meeting, the job counselor must identify other resources that 
488.29  may be available to the participant to meet the needs of the 
488.30  family and inform the participant of the right to appeal the 
488.31  disqualification under section 256J.40.  If a face-to-face 
488.32  meeting is not possible, the county agency must send the 
488.33  participant a notice of adverse action as provided in section 
488.34  256J.31, subdivisions 4 and 5, and must include the information 
488.35  required in the face-to-face meeting. 
488.36     (3) A participant who fails an initial a drug test the 
489.1   first time and is under a sanction due to other MFIP program 
489.2   requirements is considered to have more than one occurrence of 
489.3   noncompliance and is subject to the applicable level of sanction 
489.4   in clause (2)(ii) as specified under section 256J.46, 
489.5   subdivision 1, paragraph (d). 
489.6      (b) Applicants requesting only food stamps or participants 
489.7   receiving only food stamps, who have been convicted of a drug 
489.8   offense that occurred after July 1, 1997, may, if otherwise 
489.9   eligible, receive food stamps if the convicted applicant or 
489.10  participant is subject to random drug testing as a condition of 
489.11  continued eligibility.  Following a positive test for an illegal 
489.12  controlled substance, the applicant is subject to the following 
489.13  sanctions: 
489.14     (1) for failing a drug test the first time, food stamps 
489.15  shall be reduced by ten percent of the applicable food stamp 
489.16  allotment; and 
489.17     (2) for failing a drug test two or more times, food stamps 
489.18  shall be reduced by an amount equal to 30 percent of the 
489.19  applicable food stamp allotment.  When a sanction under this 
489.20  clause is in effect, a job counselor must attempt to meet with 
489.21  the person face-to-face.  During the face-to-face meeting, a job 
489.22  counselor must explain the consequences of a subsequent drug 
489.23  test failure and inform the participant of the right to appeal 
489.24  the sanction under section 256J.40.  If a face-to-face meeting 
489.25  is not possible, a county agency must send the participant a 
489.26  notice of adverse action as provided in section 256J.31, 
489.27  subdivisions 4 and 5, and must include the information required 
489.28  in the face-to-face meeting; and 
489.29     (2) for failing a drug test two times, the participant is 
489.30  permanently disqualified from receiving food stamps.  Before a 
489.31  disqualification under this provision is imposed, a job 
489.32  counselor must attempt to meet with the participant 
489.33  face-to-face.  During the face-to-face meeting, the job 
489.34  counselor must identify other resources that may be available to 
489.35  the participant to meet the needs of the family and inform the 
489.36  participant of the right to appeal the disqualification under 
490.1   section 256J.40.  If a face-to-face meeting is not possible, a 
490.2   county agency must send the participant a notice of adverse 
490.3   action as provided in section 256J.31, subdivisions 4 and 5, and 
490.4   must include the information required in the face-to-face 
490.5   meeting. 
490.6      (c) For the purposes of this subdivision, "drug offense" 
490.7   means an offense that occurred after July 1, 1997, of sections 
490.8   152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
490.9   means a conviction in another jurisdiction of the possession, 
490.10  use, or distribution of a controlled substance, or conspiracy to 
490.11  commit any of these offenses, if the offense occurred after July 
490.12  1, 1997, and the conviction is a felony offense in that 
490.13  jurisdiction, or in the case of New Jersey, a high misdemeanor. 
490.14     Sec. 18.  Minnesota Statutes 2000, section 256J.31, 
490.15  subdivision 4, is amended to read: 
490.16     Subd. 4.  [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 
490.17  must give a participant written notice of all adverse actions 
490.18  affecting the participant including payment reductions, 
490.19  suspensions, terminations, and use of protective, vendor, or 
490.20  two-party payments.  The notice of adverse action must be on a 
490.21  form prescribed or approved by the commissioner, must be 
490.22  understandable at a seventh grade reading level, and must be 
490.23  mailed to the last known mailing address provided by the 
490.24  participant.  A notice written in English must include the 
490.25  department of human services language block and must be sent to 
490.26  every applicable participant.  The county agency must state on 
490.27  the notice of adverse action the action it intends to take, the 
490.28  reasons for the action, the participant's right to appeal the 
490.29  action, the conditions under which assistance can be continued 
490.30  pending an appeal decision, and the related consequences of the 
490.31  action. 
490.32     Sec. 19.  Minnesota Statutes 2000, section 256J.32, 
490.33  subdivision 4, is amended to read: 
490.34     Subd. 4.  [FACTORS TO BE VERIFIED.] The county agency shall 
490.35  verify the following at application: 
490.36     (1) identity of adults; 
491.1      (2) presence of the minor child in the home, if 
491.2   questionable; 
491.3      (3) relationship of a minor child to caregivers in the 
491.4   assistance unit; 
491.5      (4) age, if necessary to determine MFIP eligibility; 
491.6      (5) immigration status; 
491.7      (6) social security number according to the requirements of 
491.8   section 256J.30, subdivision 12; 
491.9      (7) income; 
491.10     (8) self-employment expenses used as a deduction; 
491.11     (9) source and purpose of deposits and withdrawals from 
491.12  business accounts; 
491.13     (10) spousal support and child support payments made to 
491.14  persons outside the household; 
491.15     (11) real property; 
491.16     (12) vehicles; 
491.17     (13) checking and savings accounts; 
491.18     (14) savings certificates, savings bonds, stocks, and 
491.19  individual retirement accounts; 
491.20     (15) pregnancy, if related to eligibility; 
491.21     (16) inconsistent information, if related to eligibility; 
491.22     (17) medical insurance; 
491.23     (18) burial accounts; 
491.24     (19) school attendance, if related to eligibility; 
491.25     (20) residence; 
491.26     (21) a claim of domestic family violence if used as a basis 
491.27  for a deferral or exemption waiver from the 60-month time limit 
491.28  in section 256J.42 or and regular employment and training 
491.29  services requirements in section 256J.56; 
491.30     (22) disability if used as an exemption from employment and 
491.31  training services requirements under section 256J.56; and 
491.32     (23) information needed to establish an exception under 
491.33  section 256J.24, subdivision 9. 
491.34     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
491.35     Sec. 20.  Minnesota Statutes 2000, section 256J.32, 
491.36  subdivision 7a, is amended to read: 
492.1      Subd. 7a.  [REQUIREMENT TO REPORT TO IMMIGRATION AND 
492.2   NATURALIZATION SERVICES.] Notwithstanding subdivision 7, 
492.3   effective July 1, 2001, the commissioner shall report to the 
492.4   Immigration and Naturalization Services all undocumented persons 
492.5   who have been identified through application verification 
492.6   procedures or by the self-admission of an applicant for 
492.7   assistance.  Reports made under this subdivision must comply 
492.8   with the requirements of section 411A of the Social Security 
492.9   Act, as amended, and United States Code, title 8, section 1644.  
492.10  The commissioner shall comply with the reporting requirements 
492.11  under United States Code, title 42, section 611a, and any 
492.12  federal regulation or guidance adopted under that law. 
492.13     Sec. 21.  Minnesota Statutes 2000, section 256J.37, 
492.14  subdivision 9, is amended to read: 
492.15     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
492.16  apply unearned income to the MFIP standard of need.  When 
492.17  determining the amount of unearned income, the county agency 
492.18  must deduct the costs necessary to secure payments of unearned 
492.19  income.  These costs include legal fees, medical fees, and 
492.20  mandatory deductions such as federal and state income taxes. 
492.21     (b) Effective July 1, 2001 2003, the county agency shall 
492.22  count $100 of the value of public and assisted rental subsidies 
492.23  provided through the Department of Housing and Urban Development 
492.24  (HUD) as unearned income.  The full amount of the subsidy must 
492.25  be counted as unearned income when the subsidy is less than $100.
492.26     (c) The provisions of paragraph (b) shall not apply to MFIP 
492.27  participants who are exempt from the employment and training 
492.28  services component because they are: 
492.29     (i) individuals who are age 60 or older; 
492.30     (ii) individuals who are suffering from a professionally 
492.31  certified permanent or temporary illness, injury, or incapacity 
492.32  which is expected to continue for more than 30 days and which 
492.33  prevents the person from obtaining or retaining employment; or 
492.34     (iii) caregivers whose presence in the home is required 
492.35  because of the professionally certified illness or incapacity of 
492.36  another member in the assistance unit, a relative in the 
493.1   household, or a foster child in the household. 
493.2      (d) The provisions of paragraph (b) shall not apply to an 
493.3   MFIP assistance unit where the parental caregiver receives 
493.4   supplemental security income. 
493.5      Sec. 22.  Minnesota Statutes 2000, section 256J.39, 
493.6   subdivision 2, is amended to read: 
493.7      Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
493.8   paying assistance directly to a participant may be used when: 
493.9      (1) a county agency determines that a vendor payment is the 
493.10  most effective way to resolve an emergency situation pertaining 
493.11  to basic needs; 
493.12     (2) a caregiver makes a written request to the county 
493.13  agency asking that part or all of the assistance payment be 
493.14  issued by protective or vendor payments for shelter and utility 
493.15  service only.  The caregiver may withdraw this request in 
493.16  writing at any time; 
493.17     (3) the vendor payment is part of a sanction under section 
493.18  256J.46; 
493.19     (4) the vendor payment is required under section 256J.24, 
493.20  subdivision 8, or 256J.26, or 256J.43; 
493.21     (5) protective payments are required for minor parents 
493.22  under section 256J.14; or 
493.23     (6) a caregiver has exhibited a continuing pattern of 
493.24  mismanaging funds as determined by the county agency. 
493.25     The director of a county agency, or the director's 
493.26  designee, must approve a proposal for protective or vendor 
493.27  payment for money mismanagement when there is a pattern of 
493.28  mismanagement under clause (6).  During the time a protective or 
493.29  vendor payment is being made, the county agency must provide 
493.30  services designed to alleviate the causes of the mismanagement. 
493.31     The continuing need for and method of payment must be 
493.32  documented and reviewed every 12 months.  The director of a 
493.33  county agency or the director's designee must approve the 
493.34  continuation of protective or vendor payments.  When it appears 
493.35  that the need for protective or vendor payments will continue or 
493.36  is likely to continue beyond two years because the county 
494.1   agency's efforts have not resulted in sufficiently improved use 
494.2   of assistance on behalf of the minor child, judicial appointment 
494.3   of a legal guardian or other legal representative must be sought 
494.4   by the county agency.  
494.5      Sec. 23.  [256J.415] [NOTICE OF TIME LIMIT 12 MONTHS PRIOR 
494.6   TO 60-MONTH TIME LIMIT EXPIRING.] 
494.7      The county agency shall mail a notice to each assistance 
494.8   unit when the assistance unit has 12 months of TANF assistance 
494.9   remaining and each month thereafter until the 60-month limit has 
494.10  expired.  The notice must be developed by the commissioner of 
494.11  human services and must contain information about the 60-month 
494.12  limit, the number of months the participant has remaining, the 
494.13  hardship extension policy, and any other information that the 
494.14  commissioner deems pertinent to an assistance unit nearing the 
494.15  60-month limit. 
494.16     Sec. 24.  Minnesota Statutes 2000, section 256J.42, 
494.17  subdivision 1, is amended to read: 
494.18     Subdivision 1.  [TIME LIMIT.] (a) Except for the exemptions 
494.19  as otherwise provided for in this section, an assistance unit in 
494.20  which any adult caregiver has received 60 months of cash 
494.21  assistance funded in whole or in part by the TANF block grant in 
494.22  this or any other state or United States territory, or from a 
494.23  tribal TANF program, MFIP, the AFDC program formerly codified in 
494.24  sections 256.72 to 256.87, or the family general assistance 
494.25  program formerly codified in sections 256D.01 to 256D.23, funded 
494.26  in whole or in part by state appropriations, is ineligible to 
494.27  receive MFIP.  Any cash assistance funded with TANF dollars in 
494.28  this or any other state or United States territory, or from a 
494.29  tribal TANF program, or MFIP assistance funded in whole or in 
494.30  part by state appropriations, that was received by the unit on 
494.31  or after the date TANF was implemented, including any assistance 
494.32  received in states or United States territories of prior 
494.33  residence, counts toward the 60-month limitation.  The 60-month 
494.34  limit applies to a minor who is the head of a household or who 
494.35  is married to the head of a household caregiver except under 
494.36  subdivision 5.  The 60-month time period does not need to be 
495.1   consecutive months for this provision to apply.  
495.2      (b) The months before July 1998 in which individuals 
495.3   received assistance as part of the field trials as an MFIP, 
495.4   MFIP-R, or MFIP or MFIP-R comparison group family are not 
495.5   included in the 60-month time limit. 
495.6      Sec. 25.  Minnesota Statutes 2000, section 256J.42, 
495.7   subdivision 3, is amended to read: 
495.8      Subd. 3.  [ADULTS LIVING ON AN IN INDIAN 
495.9   RESERVATION COUNTRY.] In determining the number of months for 
495.10  which an adult has received assistance under MFIP-S, the county 
495.11  agency must disregard any month during which the adult lived on 
495.12  an in Indian reservation country if during the month at least 50 
495.13  percent of the adults living on the reservation in Indian 
495.14  country were not employed. 
495.15     Sec. 26.  Minnesota Statutes 2000, section 256J.42, 
495.16  subdivision 4, is amended to read: 
495.17     Subd. 4.  [VICTIMS OF DOMESTIC FAMILY VIOLENCE.] Any cash 
495.18  assistance received by an assistance unit in a month when a 
495.19  caregiver is complying complied with a safety plan or after 
495.20  October 1, 2001, complied or is complying with an alternative 
495.21  employment plan under the MFIP-S employment and training 
495.22  component section 256J.49, subdivision 1a, does not count toward 
495.23  the 60-month limitation on assistance. 
495.24     Sec. 27.  Minnesota Statutes 2000, section 256J.42, is 
495.25  amended by adding a subdivision to read: 
495.26     Subd. 6.  [CASE REVIEW.] (a) Within 180 days, but not less 
495.27  than 60 days, before the end of the participant's 60th month on 
495.28  assistance, the county agency or job counselor must review the 
495.29  participant's case to determine if the employment plan is still 
495.30  appropriate or if the participant is exempt under section 
495.31  256J.56 from the employment and training services component, and 
495.32  attempt to meet with the participant face-to-face. 
495.33     (b) During the face-to-face meeting, a county agency or the 
495.34  job counselor must: 
495.35     (1) inform the participant how many months of counted 
495.36  assistance the participant has accrued and when the participant 
496.1   is expected to reach the 60th month; 
496.2      (2) explain the hardship extension criteria under section 
496.3   256J.425 and what the participant should do if the participant 
496.4   thinks a hardship extension applies; 
496.5      (3) identify other resources that may be available to the 
496.6   participant to meet the needs of the family; and 
496.7      (4) inform the participant of the right to appeal the case 
496.8   closure under section 256J.40. 
496.9      (c) If a face-to-face meeting is not possible, the county 
496.10  agency must send the participant a notice of adverse action as 
496.11  provided in section 256J.31, subdivisions 4 and 5. 
496.12     (d) Before a participant's case is closed under this 
496.13  section, the county must ensure that: 
496.14     (1) the case has been reviewed by the job counselor's 
496.15  supervisor or the review team designated in the county's 
496.16  approved local service unit plan to determine if the criteria 
496.17  for a hardship extension, if requested, were applied 
496.18  appropriately; and 
496.19     (2) the county agency or the job counselor attempted to 
496.20  meet with the participant face-to-face. 
496.21     Sec. 28.  [256J.425] [HARDSHIP EXTENSIONS.] 
496.22     Subdivision 1.  [ELIGIBILITY.] To be eligible for a 
496.23  hardship extension, a participant in an assistance unit subject 
496.24  to the time limit under section 256J.42, subdivision 1, in which 
496.25  any participant has received 60 counted months of assistance, 
496.26  must be in compliance in the month the participant is applying 
496.27  for the extension.  For purposes of determining eligibility for 
496.28  a hardship extension, a participant is in compliance in any 
496.29  month that the participant has not been sanctioned. 
496.30     Subd. 1a.  [REVIEW.] If a county grants a hardship 
496.31  extension under this section, a county agency shall review the 
496.32  case every six or 12 months, whichever is appropriate based on 
496.33  the participant's circumstances and the extension category. 
496.34     Subd. 2.  [ILL OR INCAPACITATED.] (a) An assistance unit 
496.35  subject to the time limit in section 256J.42, subdivision 1, in 
496.36  which any participant has received 60 counted months of 
497.1   assistance, is eligible to receive months of assistance under a 
497.2   hardship extension if the participant belongs to any of the 
497.3   following groups: 
497.4      (1) participants who are suffering from a professionally 
497.5   certified illness, injury, or incapacity which is expected to 
497.6   continue for more than 30 days and which prevents the person 
497.7   from obtaining or retaining employment and who are following the 
497.8   treatment recommendations of the health care provider certifying 
497.9   the illness, injury, or incapacity; 
497.10     (2) participants whose presence in the home is required as 
497.11  a caregiver because of a professionally certified illness or 
497.12  incapacity of another member in the assistance unit, a relative 
497.13  in the household, or a foster child in the household and the 
497.14  illness or incapacity is expected to continue for more than 30 
497.15  days; or 
497.16     (3) caregivers with a child or an adult in the household 
497.17  who meets the disability or medical criteria for home care 
497.18  services under section 256B.0627, subdivision 1, paragraph (c), 
497.19  or a home and community-based waiver services program under 
497.20  chapter 256B, or meets the criteria for severe emotional 
497.21  disturbance under section 245.4871, subdivision 6, or for 
497.22  serious and persistent mental illness under section 245.462, 
497.23  subdivision 20, paragraph (c).  Caregivers in this category are 
497.24  presumed to be prevented from obtaining or retaining employment. 
497.25     (b) An assistance unit receiving assistance under a 
497.26  hardship extension under this subdivision may continue to 
497.27  receive assistance as long as the participant meets the criteria 
497.28  in paragraph (a), clause (1), (2), or (3). 
497.29     Subd. 3.  [HARD-TO-EMPLOY PARTICIPANTS.] An assistance unit 
497.30  subject to the time limit in section 256J.42, subdivision 1, in 
497.31  which any participant has received 60 counted months of 
497.32  assistance, is eligible to receive months of assistance under a 
497.33  hardship extension if the participant belongs to any of the 
497.34  following groups: 
497.35     (1) a person who is diagnosed by a licensed physician, 
497.36  psychological practitioner, or other qualified professional, as 
498.1   mentally retarded or mentally ill, and that condition prevents 
498.2   the person from obtaining or retaining unsubsidized employment; 
498.3      (2) a person who: 
498.4      (i) has been assessed by a vocational specialist or the 
498.5   county agency to be unemployable for purposes of this 
498.6   subdivision; or 
498.7      (ii) has an IQ below 80 who has been assessed by a 
498.8   vocational specialist or a county agency to be employable, but 
498.9   not at a level that makes the participant eligible for an 
498.10  extension under subdivision 4 or, in the case of a 
498.11  non-English-speaking person for whom it is not possible to 
498.12  provide a determination due to language barriers or absence of 
498.13  culturally appropriate assessment tools, is determined by a 
498.14  qualified professional to have an IQ below 80.  A person is 
498.15  considered employable if positions of employment in the local 
498.16  labor market exist, regardless of the current availability of 
498.17  openings for those positions, that the person is capable of 
498.18  performing; or 
498.19     (3) a person who is determined by the county agency to be 
498.20  learning disabled or, in the case of a non-English-speaking 
498.21  person for whom it is not possible to provide a medical 
498.22  diagnosis due to language barriers or absence of culturally 
498.23  appropriate assessment tools, is determined by a qualified 
498.24  professional to have a learning disability.  If a rehabilitation 
498.25  plan for the person is developed or approved by the county 
498.26  agency, the plan must be incorporated into the employment plan.  
498.27  However, a rehabilitation plan does not replace the requirement 
498.28  to develop and comply with an employment plan under section 
498.29  256J.52.  For purposes of this section, "learning disabled" 
498.30  means the applicant or recipient has a disorder in one or more 
498.31  of the psychological processes involved in perceiving, 
498.32  understanding, or using concepts through verbal language or 
498.33  nonverbal means.  The disability must severely limit the 
498.34  applicant or recipient in obtaining, performing, or maintaining 
498.35  suitable employment.  Learning disabled does not include 
498.36  learning problems that are primarily the result of visual, 
499.1   hearing, or motor handicaps; mental retardation; emotional 
499.2   disturbance; or due to environmental, cultural, or economic 
499.3   disadvantage.  
499.4      Subd. 4.  [EMPLOYED PARTICIPANTS.] (a) An assistance unit 
499.5   subject to the time limit under section 256J.42, subdivision 1, 
499.6   in which any participant has received 60 months of assistance, 
499.7   is eligible to receive assistance under a hardship extension if 
499.8   the participant belongs to: 
499.9      (1) a one-parent assistance unit in which the participant 
499.10  is participating in work activities for at least 30 hours per 
499.11  week, of which an average of at least 25 hours per week every 
499.12  month are spent participating in employment; or 
499.13     (2) a two-parent assistance unit in which the participants 
499.14  are participating in work activities for at least 55 hours per 
499.15  week, of which an average of at least 45 hours per week every 
499.16  month are spent participating in employment. 
499.17     For purposes of this section, employment means: 
499.18     (1) unsubsidized employment under section 256J.49, 
499.19  subdivision 13, clause (1); 
499.20     (2) subsidized employment under section 256J.49, 
499.21  subdivision 13, clause (2); 
499.22     (3) on-the-job training under section 256J.49, subdivision 
499.23  13, clause (4); 
499.24     (4) an apprenticeship under section 256J.49, subdivision 
499.25  13, clause (19); 
499.26     (5) supported work.  For purposes of this section, 
499.27  "supported work" means services supporting a participant on the 
499.28  job which include, but are not limited to, supervision, job 
499.29  coaching, and subsidized wages; 
499.30     (6) a combination of (1) to (5); or 
499.31     (7) child care under section 256J.49, subdivision 13, 
499.32  clause (25), if it is in combination with paid employment. 
499.33     (b) If a participant is complying with a child protection 
499.34  plan under chapter 260C, the number of hours required under the 
499.35  child protection plan count toward the number of hours required 
499.36  under this subdivision.  
500.1      (c) The county shall provide the opportunity for subsidized 
500.2   employment to participants needing that type of employment 
500.3   within available appropriations. 
500.4      (d) To be eligible for a hardship extension for employed 
500.5   participants under this subdivision, a participant in a 
500.6   one-parent assistance unit or both parents in a two-parent 
500.7   assistance unit must be in compliance for at least ten out of 
500.8   the 12 months immediately preceding the participant's 61st month 
500.9   on assistance.  If only one parent in a two-parent assistance 
500.10  unit fails to be in compliance ten out of the 12 months 
500.11  immediately preceding the participant's 61st month, the county 
500.12  shall give the assistance unit the option of disqualifying the 
500.13  noncompliant parent.  If the noncompliant participant is 
500.14  disqualified, the assistance unit must be treated as a 
500.15  one-parent assistance unit for the purposes of meeting the work 
500.16  requirements under this subdivision and the assistance unit's 
500.17  MFIP grant shall be calculated using the shared household 
500.18  standard under section 256J.08, subdivision 82a. 
500.19     (e) The employment plan developed under section 256J.52, 
500.20  subdivision 5, for participants under this subdivision must 
500.21  contain the number of hours specified in paragraph (a) related 
500.22  to employment and work activities.  The job counselor and the 
500.23  participant must sign the employment plan to indicate agreement 
500.24  between the job counselor and the participant on the contents of 
500.25  the plan. 
500.26     (f) Participants who fail to meet the requirements in 
500.27  paragraph (a), without good cause under section 256J.57, shall 
500.28  be sanctioned or permanently disqualified under subdivision 6.  
500.29  Good cause may only be granted for that portion of the month for 
500.30  which the good cause reason applies.  Participants must meet all 
500.31  remaining requirements in the approved employment plan or be 
500.32  subject to sanction or permanent disqualification.  
500.33     (g) If the noncompliance with an employment plan is due to 
500.34  the involuntary loss of employment, the participant is exempt 
500.35  from the hourly employment requirement under this subdivision 
500.36  for one month.  Participants must meet all remaining 
501.1   requirements in the approved employment plan or be subject to 
501.2   sanction or permanent disqualification.  This exemption is 
501.3   available to one-parent assistance units two times in a 12-month 
501.4   period, and two-parent assistance units, two times per parent in 
501.5   a 12-month period. 
501.6      (h) This subdivision expires on June 30, 2004. 
501.7      Subd. 5.  [ACCRUAL OF CERTAIN EXEMPT MONTHS.] (a) A 
501.8   participant who received TANF assistance that counted towards 
501.9   the federal 60-month time limit while the participant was exempt 
501.10  under section 256J.56, paragraph (a), clause (7), from 
501.11  employment and training services requirements and who is no 
501.12  longer eligible for assistance under a hardship extension under 
501.13  subdivision 2, paragraph (a), clause (3), is eligible for 
501.14  assistance under a hardship extension for a period of time equal 
501.15  to the number of months that were counted toward the federal 
501.16  60-month time limit while the participant was exempt under 
501.17  section 256J.56, paragraph (a), clause (7), from the employment 
501.18  and training services requirements. 
501.19     (b) A participant who received TANF assistance that counted 
501.20  towards the federal 60-month time limit while the participant 
501.21  met the state time limit exemption criteria under section 
501.22  256J.42, subdivision 4 or 5, is eligible for assistance under a 
501.23  hardship extension for a period of time equal to the number of 
501.24  months that were counted toward the federal 60-month time limit 
501.25  while the participant met the state time limit exemption 
501.26  criteria under section 256J.42, subdivision 5. 
501.27     Subd. 6.  [SANCTIONS FOR EXTENDED CASES.] (a) If one or 
501.28  both participants in an assistance unit receiving assistance 
501.29  under subdivision 3 or 4 are not in compliance with the 
501.30  employment and training service requirements in sections 256J.52 
501.31  to 256J.55, the sanctions under this subdivision apply.  For a 
501.32  first occurrence of noncompliance, an assistance unit must be 
501.33  sanctioned under section 256J.46, subdivision 1, paragraph (d), 
501.34  clause (1).  For a second or third occurrence of noncompliance, 
501.35  the assistance unit must be sanctioned under section 256J.46, 
501.36  subdivision 1, paragraph (d), clause (2).  For a fourth 
502.1   occurrence of noncompliance, the assistance unit is disqualified 
502.2   from MFIP.  If a participant is determined to be out of 
502.3   compliance, the participant may claim a good cause exception 
502.4   under section 256J.57, however, the participant may not claim an 
502.5   exemption under section 256J.56.  
502.6      (b) If both participants in a two-parent assistance unit 
502.7   are out of compliance at the same time, it is considered one 
502.8   occurrence of noncompliance.  
502.9      Subd. 7.  [STATUS OF DISQUALIFIED PARTICIPANTS.] (a) An 
502.10  assistance unit that is disqualified under subdivision 6, 
502.11  paragraph (a), may be approved for MFIP if the participant 
502.12  complies with MFIP program requirements and demonstrates 
502.13  compliance for up to one month.  No assistance shall be paid 
502.14  during this period. 
502.15     (b) An assistance unit that is disqualified under 
502.16  subdivision 6, paragraph (a), and that reapplies under paragraph 
502.17  (a) is subject to sanction under section 256J.46, subdivision 1, 
502.18  paragraph (d), clause (1), for a first occurrence of 
502.19  noncompliance.  A subsequent occurrence of noncompliance results 
502.20  in a permanent disqualification. 
502.21     (c) If one participant in a two-parent assistance unit 
502.22  receiving assistance under a hardship extension under 
502.23  subdivision 3 or 4 is determined to be out of compliance with 
502.24  the employment and training services requirements under sections 
502.25  256J.52 to 256J.55, the county shall give the assistance unit 
502.26  the option of disqualifying the noncompliant participant from 
502.27  MFIP.  In that case, the assistance unit shall be treated as a 
502.28  one-parent assistance unit for the purposes of meeting the work 
502.29  requirements under subdivision 4 and the assistance unit's MFIP 
502.30  grant shall be calculated using the shared household standard 
502.31  under section 256J.08, subdivision 82a.  An applicant who is 
502.32  disqualified from receiving assistance under this paragraph may 
502.33  reapply under paragraph (a).  If a participant is disqualified 
502.34  from MFIP under this subdivision a second time, the participant 
502.35  is permanently disqualified from MFIP. 
502.36     (d) Prior to a disqualification under this subdivision, a 
503.1   county agency must review the participant's case to determine if 
503.2   the employment plan is still appropriate and attempt to meet 
503.3   with the participant face-to-face.  If a face-to-face meeting is 
503.4   not conducted, the county agency must send the participant a 
503.5   notice of adverse action as provided in section 256J.31.  During 
503.6   the face-to-face meeting, the county agency must: 
503.7      (1) determine whether the continued noncompliance can be 
503.8   explained and mitigated by providing a needed preemployment 
503.9   activity, as defined in section 256J.49, subdivision 13, clause 
503.10  (16), or services under a local intervention grant for 
503.11  self-sufficiency under section 256J.625; 
503.12     (2) determine whether the participant qualifies for a good 
503.13  cause exception under section 256J.57; 
503.14     (3) inform the participant of the participant's sanction 
503.15  status and explain the consequences of continuing noncompliance; 
503.16     (4) identify other resources that may be available to the 
503.17  participant to meet the needs of the family; and 
503.18     (5) inform the participant of the right to appeal under 
503.19  section 256J.40. 
503.20     Subd. 8.  [COUNTY EXTENSION REQUEST.] A county may make a 
503.21  request to the commissioner of human services, and the 
503.22  commissioner may grant, an extension for a category of 
503.23  participants that are not extended under section 256J.425, 
503.24  provided the new category of participants is consistent with the 
503.25  existing extension policy in which an extension is provided to 
503.26  participants whose MFIP requirements conflict with other 
503.27  statutory requirements or obligations.  By January 15 of each 
503.28  year, the commissioner must report to the chairs and ranking 
503.29  minority members of the senate and house committees having 
503.30  jurisdiction over health and human services the extensions that 
503.31  were granted under this section during the previous calendar 
503.32  year.  The legislature must act in order for the extensions to 
503.33  continue.  If the legislature fails to act by the end of the 
503.34  legislative session in which the extensions were reported, the 
503.35  extensions granted under this section during the previous 
503.36  calendar year expire on June 30 of that year. 
504.1      Sec. 29.  Minnesota Statutes 2000, section 256J.45, 
504.2   subdivision 1, is amended to read: 
504.3      Subdivision 1.  [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 
504.4   county agency must provide a face-to-face orientation to each 
504.5   MFIP caregiver who is not exempt under section 256J.56, 
504.6   paragraph (a), clause (6) or (8), with a face-to-face 
504.7   orientation unless the caregiver is: 
504.8      (1) a single parent, or one parent in a two-parent family, 
504.9   employed at least 35 hours per week; or 
504.10     (2) a second parent in a two-parent family who is employed 
504.11  for 20 or more hours per week provided the first parent is 
504.12  employed at least 35 hours per week. 
504.13  The county agency must inform caregivers who are not exempt 
504.14  under section 256J.56, paragraph (a), clause (6) or (8), clause 
504.15  (1) or (2) that failure to attend the orientation is considered 
504.16  an occurrence of noncompliance with program requirements, and 
504.17  will result in the imposition of a sanction under section 
504.18  256J.46.  If the client complies with the orientation 
504.19  requirement prior to the first day of the month in which the 
504.20  grant reduction is proposed to occur, the orientation sanction 
504.21  shall be lifted. 
504.22     Sec. 30.  Minnesota Statutes 2000, section 256J.45, 
504.23  subdivision 2, is amended to read: 
504.24     Subd. 2.  [GENERAL INFORMATION.] The MFIP-S MFIP 
504.25  orientation must consist of a presentation that informs 
504.26  caregivers of: 
504.27     (1) the necessity to obtain immediate employment; 
504.28     (2) the work incentives under MFIP-S MFIP, including the 
504.29  availability of the federal earned income tax credit and the 
504.30  Minnesota working family tax credit; 
504.31     (3) the requirement to comply with the employment plan and 
504.32  other requirements of the employment and training services 
504.33  component of MFIP-S MFIP, including a description of the range 
504.34  of work and training activities that are allowable under MFIP-S 
504.35  MFIP to meet the individual needs of participants; 
504.36     (4) the consequences for failing to comply with the 
505.1   employment plan and other program requirements, and that the 
505.2   county agency may not impose a sanction when failure to comply 
505.3   is due to the unavailability of child care or other 
505.4   circumstances where the participant has good cause under 
505.5   subdivision 3; 
505.6      (5) the rights, responsibilities, and obligations of 
505.7   participants; 
505.8      (6) the types and locations of child care services 
505.9   available through the county agency; 
505.10     (7) the availability and the benefits of the early 
505.11  childhood health and developmental screening under sections 
505.12  121A.16 to 121A.19; 123B.02, subdivision 16; and 123B.10; 
505.13     (8) the caregiver's eligibility for transition year child 
505.14  care assistance under section 119B.05; 
505.15     (9) the caregiver's eligibility for extended medical 
505.16  assistance when the caregiver loses eligibility for MFIP-S MFIP 
505.17  due to increased earnings or increased child or spousal support; 
505.18     (10) the caregiver's option to choose an employment and 
505.19  training provider and information about each provider, including 
505.20  but not limited to, services offered, program components, job 
505.21  placement rates, job placement wages, and job retention rates; 
505.22     (11) the caregiver's option to request approval of an 
505.23  education and training plan according to section 256J.52; and 
505.24     (12) the work study programs available under the higher 
505.25  education system; and 
505.26     (13) effective October 1, 2001, information about the 
505.27  60-month time limit exemption and waivers of regular employment 
505.28  and training requirements for family violence victims and 
505.29  referral information about shelters and programs for victims of 
505.30  family violence. 
505.31     Sec. 31.  Minnesota Statutes 2000, section 256J.46, 
505.32  subdivision 1, is amended to read: 
505.33     Subdivision 1.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 
505.34  WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 
505.35  good cause to comply with the requirements of this chapter, and 
505.36  who is not subject to a sanction under subdivision 2, shall be 
506.1   subject to a sanction as provided in this subdivision.  Prior to 
506.2   the imposition of a sanction, a county agency shall provide a 
506.3   notice of intent to sanction under section 256J.57, subdivision 
506.4   2, and, when applicable, a notice of adverse action as provided 
506.5   in section 256J.31. 
506.6      (b) A participant who fails to comply with an alternative 
506.7   employment plan must have the plan reviewed by a person trained 
506.8   in domestic violence and a job counselor or the county agency to 
506.9   determine if components of the alternative employment plan are 
506.10  still appropriate.  If the activities are no longer appropriate, 
506.11  the plan must be revised with a person trained in domestic 
506.12  violence and approved by a job counselor or the county agency.  
506.13  A participant who fails to comply with a plan that is determined 
506.14  not to need revision will lose their exemption and be required 
506.15  to comply with regular employment services activities.  
506.16     (c) A sanction under this subdivision becomes effective the 
506.17  month following the month in which a required notice is given.  
506.18  A sanction must not be imposed when a participant comes into 
506.19  compliance with the requirements for orientation under section 
506.20  256J.45 or third-party liability for medical services under 
506.21  section 256J.30, subdivision 10, prior to the effective date of 
506.22  the sanction.  A sanction must not be imposed when a participant 
506.23  comes into compliance with the requirements for employment and 
506.24  training services under sections 256J.49 to 256J.72 256J.55 ten 
506.25  days prior to the effective date of the sanction.  For purposes 
506.26  of this subdivision, each month that a participant fails to 
506.27  comply with a requirement of this chapter shall be considered a 
506.28  separate occurrence of noncompliance.  A participant who has had 
506.29  one or more sanctions imposed must remain in compliance with the 
506.30  provisions of this chapter for six months in order for a 
506.31  subsequent occurrence of noncompliance to be considered a first 
506.32  occurrence.  
506.33     (b) (d) Sanctions for noncompliance shall be imposed as 
506.34  follows: 
506.35     (1) For the first occurrence of noncompliance by a 
506.36  participant in a single-parent household or by one participant 
507.1   in a two-parent household an assistance unit, the assistance 
507.2   unit's grant shall be reduced by ten percent of the MFIP 
507.3   standard of need for an assistance unit of the same size with 
507.4   the residual grant paid to the participant.  The reduction in 
507.5   the grant amount must be in effect for a minimum of one month 
507.6   and shall be removed in the month following the month that the 
507.7   participant returns to compliance.  
507.8      (2) For a second or subsequent occurrence of 
507.9   noncompliance by a participant in an assistance unit, or 
507.10  when both each of the participants in a two-parent household are 
507.11  out of compliance assistance unit have a first occurrence of 
507.12  noncompliance at the same time, the assistance unit's shelter 
507.13  costs shall be vendor paid up to the amount of the cash portion 
507.14  of the MFIP grant for which the participant's assistance unit is 
507.15  eligible.  At county option, the assistance unit's utilities may 
507.16  also be vendor paid up to the amount of the cash portion of the 
507.17  MFIP grant remaining after vendor payment of the assistance 
507.18  unit's shelter costs.  The residual amount of the grant after 
507.19  vendor payment, if any, must be reduced by an amount equal to 30 
507.20  percent of the MFIP standard of need for an assistance unit of 
507.21  the same size before the residual grant is paid to the 
507.22  assistance unit.  The reduction in the grant amount must be in 
507.23  effect for a minimum of one month and shall be removed in the 
507.24  month following the month that a the participant in a one-parent 
507.25  household assistance unit returns to compliance.  In a 
507.26  two-parent household assistance unit, the grant reduction must 
507.27  be in effect for a minimum of one month and shall be removed in 
507.28  the month following the month both participants return to 
507.29  compliance.  The vendor payment of shelter costs and, if 
507.30  applicable, utilities shall be removed six months after the 
507.31  month in which the participant or participants return to 
507.32  compliance.  If an assistance unit is sanctioned under this 
507.33  clause, the participant's case file must be reviewed as required 
507.34  under paragraph (e). 
507.35     (c) No later than during the second month that (e) When a 
507.36  sanction under paragraph (b) (d), clause (2), is in effect due 
508.1   to noncompliance with employment services, the participant's 
508.2   case file must be reviewed to determine if, the county agency 
508.3   must review the participant's case to determine if the 
508.4   employment plan is still appropriate and attempt to meet with 
508.5   the participant face-to-face.  The participant may bring an 
508.6   advocate to the face-to-face meeting.  If a face-to-face meeting 
508.7   is not conducted, the county agency must send the participant a 
508.8   written notice that includes the information required under 
508.9   clause (1). 
508.10     (1) During the face-to-face meeting, the county agency must:
508.11     (i) determine whether the continued noncompliance can be 
508.12  explained and mitigated by providing a needed preemployment 
508.13  activity, as defined in section 256J.49, subdivision 13, clause 
508.14  (16), or services under a local intervention grant for 
508.15  self-sufficiency under section 256J.625; 
508.16     (ii) determine whether the participant qualifies for a good 
508.17  cause exception under section 256J.57; or 
508.18     (iii) determine whether the participant qualifies for an 
508.19  exemption under section 256J.56; 
508.20     (iv) determine whether the participant qualifies for an 
508.21  exemption from regular employment services requirements for 
508.22  victims of family violence under section 256J.52, subdivision 6; 
508.23     (v) inform the participant of the participant's sanction 
508.24  status and explain the consequences of continuing noncompliance; 
508.25     (vi) identify other resources that may be available to the 
508.26  participant to meet the needs of the family; and 
508.27     (vii) inform the participant of the right to appeal under 
508.28  section 256J.40. 
508.29     (2) If the lack of an identified activity can explain the 
508.30  noncompliance, the county must work with the participant to 
508.31  provide the identified activity, and the county must restore the 
508.32  participant's grant amount to the full amount for which the 
508.33  assistance unit is eligible.  The grant must be restored 
508.34  retroactively to the first day of the month in which the 
508.35  participant was found to lack preemployment activities or to 
508.36  qualify for an exemption or under section 256J.56, a good cause 
509.1   exception under section 256J.57, or an exemption for victims of 
509.2   family violence under section 256J.52, subdivision 6. 
509.3      (3) If the participant is found to qualify for a good cause 
509.4   exception or an exemption, the county must restore the 
509.5   participant's grant to the full amount for which the assistance 
509.6   unit is eligible.  
509.7      <b>[EFFECTIVE DATE.]</b> The family violence provisions in this 
509.8   section are effective October 1, 2001. 
509.9      Sec. 32.  Minnesota Statutes 2000, section 256J.46, 
509.10  subdivision 2a, is amended to read: 
509.11     Subd. 2a.  [DUAL SANCTIONS.] (a) Notwithstanding the 
509.12  provisions of subdivisions 1 and 2, for a participant subject to 
509.13  a sanction for refusal to comply with child support requirements 
509.14  under subdivision 2 and subject to a concurrent sanction for 
509.15  refusal to cooperate with other program requirements under 
509.16  subdivision 1, sanctions shall be imposed in the manner 
509.17  prescribed in this subdivision. 
509.18     A participant who has had one or more sanctions imposed 
509.19  under this subdivision must remain in compliance with the 
509.20  provisions of this chapter for six months in order for a 
509.21  subsequent occurrence of noncompliance to be considered a first 
509.22  occurrence.  Any vendor payment of shelter costs or utilities 
509.23  under this subdivision must remain in effect for six months 
509.24  after the month in which the participant is no longer subject to 
509.25  sanction under subdivision 1. 
509.26     (b) If the participant was subject to sanction for: 
509.27     (i) noncompliance under subdivision 1 before being subject 
509.28  to sanction for noncooperation under subdivision 2; or 
509.29     (ii) noncooperation under subdivision 2 before being 
509.30  subject to sanction for noncompliance under subdivision 1;, the 
509.31  participant is considered to have a second occurrence of 
509.32  noncompliance and shall be sanctioned as provided in subdivision 
509.33  1, paragraph (b) (d), clause (2), and the.  Each subsequent 
509.34  occurrence of noncompliance shall be considered one additional 
509.35  occurrence and shall be subject to the applicable level of 
509.36  sanction under subdivision 1, paragraph (d), or section 
510.1   256J.462.  The requirement that the county conduct a review as 
510.2   specified in subdivision 1, paragraph (c) (e), remains in effect.
510.3      (c) A participant who first becomes subject to sanction 
510.4   under both subdivisions 1 and 2 in the same month is subject to 
510.5   sanction as follows: 
510.6      (i) in the first month of noncompliance and noncooperation, 
510.7   the participant's grant must be reduced by 25 percent of the 
510.8   applicable MFIP standard of need, with any residual amount paid 
510.9   to the participant; 
510.10     (ii) in the second and subsequent months of noncompliance 
510.11  and noncooperation, the participant shall be sanctioned as 
510.12  provided in subject to the applicable level of sanction under 
510.13  subdivision 1, paragraph (b) (d), clause (2) or section 
510.14  256J.462. 
510.15     The requirement that the county conduct a review as 
510.16  specified in subdivision 1, paragraph (c) (e), remains in effect.
510.17     (d) A participant remains subject to sanction under 
510.18  subdivision 2 if the participant: 
510.19     (i) returns to compliance and is no longer subject to 
510.20  sanction under subdivision 1 or section 256J.462; or 
510.21     (ii) has the sanction under subdivision 1, 
510.22  paragraph (b) (d), or section 256J.462 removed upon completion 
510.23  of the review under subdivision 1, paragraph (c) (e). 
510.24     A participant remains subject to the applicable level of 
510.25  sanction under subdivision 1, paragraph (b) (d), or section 
510.26  256J.462 if the participant cooperates and is no longer subject 
510.27  to sanction under subdivision 2. 
510.28     Sec. 33. [256J.462] [SANCTIONS; COUNTY OPTIONS] 
510.29     Subdivision 1.  [COUNTY SANCTION POLICY PLAN.] In addition 
510.30  to the sanctions under section 256J.46, a county agency may 
510.31  annually modify sanctions for noncompliant MFIP participants by 
510.32  implementing one of the sanction options under this section for 
510.33  a sixth or subsequent occurrence of noncompliance.  
510.34     Subd. 2.  [PROCEDURE.] (a) If a county modifies sanctions 
510.35  for noncompliant participants, a county agency must develop and 
510.36  submit to the commissioner, by April 15, a proposed sanction 
511.1   policy plan that describes the sanctions imposed for each 
511.2   occurrence of noncompliance.  A county agency must include the 
511.3   sanction policy plan as part of its local service unit plan 
511.4   under section 268.88. 
511.5      (b) A county agency must send a written notice to MFIP 
511.6   participants at least 60 days before a county implements a 
511.7   modification of its sanction policy under this section.  The 
511.8   county must also send a notice of adverse action prior to 
511.9   implementing a sanction under subdivision 3. 
511.10     (c) For the purpose of applying sanctions under this 
511.11  section, only occurrences of noncompliance that occur after the 
511.12  effective date of the sanctions implemented under this section 
511.13  shall be considered.  If the participant is in 30 percent 
511.14  sanction in the month the sanction takes effect, that month 
511.15  counts as the first occurrence for purposes of applying the 
511.16  sanctions under this section, but the sanction shall remain at 
511.17  30 percent for that month. 
511.18     (d) If an assistance unit that is in sanction status moves 
511.19  to a county that has adopted more severe sanctions than the 
511.20  assistance unit's previous county of residence, the participant 
511.21  shall be subject to the level of sanction that was imposed in 
511.22  the previous county of residence for the first six months of 
511.23  residence in the new county or until the participant comes into 
511.24  compliance, whichever occurs earlier. 
511.25     (e) If both participants in a two-parent assistance unit 
511.26  are out of compliance at the same time, it is considered one 
511.27  occurrence of noncompliance. 
511.28     Subd. 3.  [SANCTION OPTIONS.] A county agency may modify 
511.29  its sanction policy by implementing one of the following 
511.30  sanctions for a sixth or subsequent occurrence of noncompliance: 
511.31     (a) The county agency may vendor pay the assistance unit's 
511.32  shelter or utility costs, or both costs, up to the amount of the 
511.33  cash portion of the MFIP grant for which the assistance unit is 
511.34  eligible.  The residual amount of the grant after vendor 
511.35  payment, if any, shall be reduced to zero.  The sanction must be 
511.36  in effect for a minimum of one month and shall be removed the 
512.1   month following the month in which the participant returns to 
512.2   compliance.  In a two-parent assistance unit, the sanction must 
512.3   be in effect for a minimum of one month and shall be removed the 
512.4   month following the month in which both participants return to 
512.5   compliance.  The vendor payment of shelter or utility costs, or 
512.6   both, shall be removed six months after the month in which the 
512.7   participant returns to compliance. 
512.8      (b) The county agency may disqualify an assistance unit 
512.9   from receiving MFIP, both the cash and food portions.  This 
512.10  disqualification must be in effect for one full month. 
512.11  Disqualification under this paragraph does not make a 
512.12  participant automatically ineligible for food stamps.  The 
512.13  county shall determine eligibility for food stamps and assist 
512.14  the participant in applying for food stamps, if eligible. 
512.15     Subd. 4.  [CASE REVIEW.] Before a sanction under this 
512.16  section is imposed, a county agency shall conduct the case 
512.17  review required under section 256J.46, subdivision 1, paragraph 
512.18  (e). 
512.19     Subd. 5.  [ELIGIBILITY AFTER DISQUALIFICATION DUE TO 
512.20  NONCOMPLIANCE.] In the sanction policy plan under subdivision 2, 
512.21  a county may propose restrictions on assistance units that 
512.22  reapply for MFIP after disqualification for noncompliance under 
512.23  subdivision 3, paragraph (b).  Such restrictions may not include 
512.24  permanent disqualification for noncompliance.  Any restrictions 
512.25  must be limited to the first six months of MFIP eligibility 
512.26  following reapplication, provided that the participant complies 
512.27  with work requirements for the entire six months.  Such 
512.28  restrictions may include: 
512.29     (1) requiring participants to comply with work requirements 
512.30  for a period not to exceed one month before the assistance unit 
512.31  could regain MFIP eligibility; 
512.32     (2) requiring that reapplying assistance units remain in 
512.33  ten percent sanction for six months; and 
512.34     (3) changing the policy for subsequent sanctions for 
512.35  noncompliance to shorten the time frame before disqualification. 
512.36     Subd. 6.  [SANCTION POLICY REVIEW.] The commissioner may 
513.1   review a county's sanction policies and practices if the county 
513.2   has a high or low sanction rate as compared to other counties or 
513.3   a high sanction rate for certain hard-to-serve participants.  
513.4   The commissioner shall require a county agency to complete 
513.5   corrective actions to remedy identified agency errors or 
513.6   misapplications of policy and may suspend a county's authority 
513.7   to impose sanction options under this section until the 
513.8   corrective actions are taken. 
513.9      <b>[EFFECTIVE DATE.]</b> This section is effective March 1, 2002. 
513.10     Sec. 34.  Minnesota Statutes 2000, section 256J.48, is 
513.11  amended by adding a subdivision to read: 
513.12     Subd. 1a.  [PROCESSING EMERGENCY APPLICATIONS.] Within 
513.13  seven days of receiving the application, or sooner if the 
513.14  immediacy and severity of the situation warrants it, families 
513.15  must be notified in writing whether their application was 
513.16  approved, denied, or pended. 
513.17     Sec. 35.  Minnesota Statutes 2000, section 256J.49, is 
513.18  amended by adding a subdivision to read: 
513.19     Subd. 1a.  [ALTERNATIVE EMPLOYMENT PLAN.] "Alternative 
513.20  employment plan" means a plan that is based on an individualized 
513.21  assessment of need and is developed with a person trained in 
513.22  domestic violence and approved by the county or a job 
513.23  counselor.  The plan may address safety, legal or emotional 
513.24  issues, and other demands on the family as a result of the 
513.25  family violence.  The information in section 256J.515, clauses 
513.26  (1) to (8), must be included as part of the development of the 
513.27  alternative employment plan.  The primary goal of an alternative 
513.28  employment plan is to ensure the safety of the caregiver and 
513.29  children.  To the extent it is consistent with ensuring safety, 
513.30  an alternative employment plan shall also include activities 
513.31  that are designed to lead to self-sufficiency.  An activity is 
513.32  inconsistent with ensuring safety if, in the opinion of a person 
513.33  trained in domestic violence, the activity would endanger the 
513.34  safety of the participant or children.  An alternative 
513.35  employment plan may not automatically include a provision that 
513.36  requires a participant to obtain an order for protection or to 
514.1   attend counseling. 
514.2      <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
514.3      Sec. 36.  Minnesota Statutes 2000, section 256J.49, 
514.4   subdivision 2, is amended to read: 
514.5      Subd. 2.  [DOMESTIC FAMILY VIOLENCE.] "Domestic Family 
514.6   violence" means: 
514.7      (1) physical acts that result, or threaten to result in, 
514.8   physical injury to an individual; 
514.9      (2) sexual abuse; 
514.10     (3) sexual activity involving a minor child; 
514.11     (4) being forced as the caregiver of a minor child to 
514.12  engage in nonconsensual sexual acts or activities; 
514.13     (5) threats of, or attempts at, physical or sexual abuse; 
514.14     (6) mental abuse; or 
514.15     (7) neglect or deprivation of medical care. 
514.16  Claims of family violence must be documented by the applicant or 
514.17  participant providing a sworn statement, which is supported by 
514.18  collateral documentation.  Collateral documentation may consist 
514.19  of any one of the following: 
514.20     (1) police, government agency, or court records; 
514.21     (2) a statement from a battered woman's shelter staff with 
514.22  knowledge of circumstances or credible evidence that supports 
514.23  the sworn statement; 
514.24     (3) a statement from a sexual assault or domestic violence 
514.25  advocate with knowledge of the circumstances or credible 
514.26  evidence that supports a sworn statement; 
514.27     (4) a statement from professionals from whom the applicant 
514.28  or recipient has sought assistance for the abuse; or 
514.29     (5) a sworn statement from any other individual with 
514.30  knowledge of circumstances or credible evidence that supports 
514.31  the sworn statement. 
514.32     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
514.33     Sec. 37.  Minnesota Statutes 2000, section 256J.49, 
514.34  subdivision 13, is amended to read: 
514.35     Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
514.36  activity in a participant's approved employment plan that is 
515.1   tied to the participant's employment goal.  For purposes of the 
515.2   MFIP program, any activity that is included in a participant's 
515.3   approved employment plan meets the definition of work activity 
515.4   as counted under the federal participation standards.  Work 
515.5   activity includes, but is not limited to: 
515.6      (1) unsubsidized employment; 
515.7      (2) subsidized private sector or public sector employment, 
515.8   including grant diversion as specified in section 256J.69; 
515.9      (3) work experience, including CWEP as specified in section 
515.10  256J.67, and including work associated with the refurbishing of 
515.11  publicly assisted housing if sufficient private sector 
515.12  employment is not available; 
515.13     (4) on-the-job training as specified in section 256J.66; 
515.14     (5) job search, either supervised or unsupervised; 
515.15     (6) job readiness assistance; 
515.16     (7) job clubs, including job search workshops; 
515.17     (8) job placement; 
515.18     (9) job development; 
515.19     (10) job-related counseling; 
515.20     (11) job coaching; 
515.21     (12) job retention services; 
515.22     (13) job-specific training or education; 
515.23     (14) job skills training directly related to employment; 
515.24     (15) the self-employment investment demonstration (SEID), 
515.25  as specified in section 256J.65; 
515.26     (16) preemployment activities, based on availability and 
515.27  resources, such as volunteer work, literacy programs and related 
515.28  activities, citizenship classes, English as a second language 
515.29  (ESL) classes as limited by the provisions of section 256J.52, 
515.30  subdivisions 3, paragraph (d), and 5, paragraph (c), or 
515.31  participation in dislocated worker services, chemical dependency 
515.32  treatment, mental health services, peer group networks, 
515.33  displaced homemaker programs, strength-based resiliency 
515.34  training, parenting education, or other programs designed to 
515.35  help families reach their employment goals and enhance their 
515.36  ability to care for their children; 
516.1      (17) community service programs; 
516.2      (18) vocational educational training or educational 
516.3   programs that can reasonably be expected to lead to employment, 
516.4   as limited by the provisions of section 256J.53; 
516.5      (19) apprenticeships; 
516.6      (20) satisfactory attendance in general educational 
516.7   development diploma classes or an adult diploma program; 
516.8      (21) satisfactory attendance at secondary school, if the 
516.9   participant has not received a high school diploma; 
516.10     (22) adult basic education classes; 
516.11     (23) internships; 
516.12     (24) bilingual employment and training services; 
516.13     (25) providing child care services to a participant who is 
516.14  working in a community service program; and 
516.15     (26) activities included in a safety an alternative 
516.16  employment plan that is developed under section 256J.52, 
516.17  subdivision 6. 
516.18     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
516.19     Sec. 38.  Minnesota Statutes 2000, section 256J.50, 
516.20  subdivision 1, is amended to read: 
516.21     Subdivision 1.  [EMPLOYMENT AND TRAINING SERVICES COMPONENT 
516.22  OF MFIP.] (a) By January 1, 1998, each county must develop and 
516.23  implement an employment and training services component of MFIP 
516.24  which is designed to put participants on the most direct path to 
516.25  unsubsidized employment.  Participation in these services is 
516.26  mandatory for all MFIP caregivers, unless the caregiver is 
516.27  exempt under section 256J.56. 
516.28     (b) A county must provide employment and training services 
516.29  under sections 256J.515 to 256J.74 within 30 days after the 
516.30  caregiver's participation becomes mandatory under subdivision 
516.31  5 or within 30 days of receipt of a request for services from a 
516.32  caregiver who under section 256J.42 is no longer eligible to 
516.33  receive MFIP but whose income is below 120 percent of the 
516.34  federal poverty guidelines for a family of the same size.  The 
516.35  request must be made within 12 months of the date the 
516.36  caregivers' MFIP case was closed. 
517.1      Sec. 39.  Minnesota Statutes 2000, section 256J.50, 
517.2   subdivision 7, is amended to read: 
517.3      Subd. 7.  [LOCAL SERVICE UNIT PLAN.] (a) Each local or 
517.4   county service unit shall prepare and submit a plan as specified 
517.5   in section 268.88. 
517.6      (b) The plan must include a description of how projects 
517.7   funded under the local intervention grants for self-sufficiency 
517.8   in section 256J.625, subdivisions 2 and 3, operate in the local 
517.9   service unit, including: 
517.10     (1) the target populations of hard-to-employ participants 
517.11  and, working participants in need of job retention and wage 
517.12  advancement services, and caregivers who, within the last 12 
517.13  months, have been determined under section 256J.42 to no longer 
517.14  be eligible to receive MFIP and whose income is below 120 
517.15  percent of the federal poverty guidelines for a family of the 
517.16  same size, with a description of how individual participant 
517.17  needs will be met; 
517.18     (2) services that will be provided which may include paid 
517.19  work experience, enhanced mental health services, outreach to 
517.20  sanctioned families and to caregivers who, within the last 12 
517.21  months, have been determined under section 256J.42 to no longer 
517.22  be eligible to receive MFIP but whose income is below 120 
517.23  percent of the federal poverty guidelines for a family of the 
517.24  same size, child care for social services, child care transition 
517.25  year set-aside, homeless and housing advocacy, and 
517.26  transportation; 
517.27     (3) projected expenditures by activity; 
517.28     (4) anticipated program outcomes including the anticipated 
517.29  impact the intervention efforts will have on performance 
517.30  measures under section 256J.751 and on reducing the number of 
517.31  MFIP participants expected to reach their 60-month time limit; 
517.32  and 
517.33     (5) a description of services that are provided or will be 
517.34  provided to MFIP participants affected by chemical dependency, 
517.35  mental health issues, learning disabilities, or family violence. 
517.36     Each plan must demonstrate how the county or tribe is 
518.1   working within its organization and with other organizations in 
518.2   the community to serve hard-to-employ populations, including how 
518.3   organizations in the community were engaged in planning for use 
518.4   of these funds, services other entities will provide under the 
518.5   plan, and whether multicounty or regional strategies are being 
518.6   implemented as part of this plan. 
518.7      (c) Activities and expenditures in the plan must enhance or 
518.8   supplement MFIP activities without supplanting existing 
518.9   activities and expenditures.  However, this paragraph does not 
518.10  require a county to maintain either:  
518.11     (1) its current provision of child care assistance to MFIP 
518.12  families through the expenditure of county resources under 
518.13  chapter 256E for social services child care assistance if funds 
518.14  are appropriated by another law for an MFIP social services 
518.15  child care pool; 
518.16     (2) its current provision of transition-year child care 
518.17  assistance through the expenditure of county resources if funds 
518.18  are appropriated by another law for this purpose; or 
518.19     (3) its current provision of intensive ESL programs through 
518.20  the expenditure of county resources if funds are appropriated by 
518.21  another law for intensive ESL grants. 
518.22     (d) The plan required under this subdivision must be 
518.23  approved before the local or county service unit is eligible to 
518.24  receive funds under section 256J.625, subdivisions 2 and 3. 
518.25     Sec. 40.  Minnesota Statutes 2000, section 256J.50, 
518.26  subdivision 10, is amended to read: 
518.27     Subd. 10.  [REQUIRED NOTIFICATION TO VICTIMS OF DOMESTIC 
518.28  FAMILY VIOLENCE.] County agencies and their contractors must 
518.29  provide universal notification to all applicants and recipients 
518.30  of MFIP-S MFIP that: 
518.31     (1) referrals to counseling and supportive services are 
518.32  available for victims of domestic family violence; 
518.33     (2) nonpermanent resident battered individuals married to 
518.34  United States citizens or permanent residents may be eligible to 
518.35  petition for permanent residency under the federal Violence 
518.36  Against Women Act, and that referrals to appropriate legal 
519.1   services are available; 
519.2      (3) victims of domestic family violence are exempt from the 
519.3   60-month limit on assistance while the individual is complying 
519.4   with an approved safety plan, as defined in section 256J.49, 
519.5   subdivision 11 or, after October 1, 2001, an alternative 
519.6   employment plan, as defined in section 256J.49, subdivision 1a; 
519.7   and 
519.8      (4) victims of domestic family violence may choose to be 
519.9   exempt or deferred from have regular work requirements for up to 
519.10  12 months waived while the individual is complying with 
519.11  an approved safety alternative employment plan as defined in 
519.12  section 256J.49, subdivision 11 1a.  
519.13     If an alternative plan is denied, the county or a job 
519.14  counselor must provide reasons why the plan is not approved and 
519.15  document how the denial of the plan does not interfere with the 
519.16  safety of the participant or children. 
519.17     Notification must be in writing and orally at the time of 
519.18  application and recertification, when the individual is referred 
519.19  to the title IV-D child support agency, and at the beginning of 
519.20  any job training or work placement assistance program. 
519.21     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
519.22     Sec. 41.  Minnesota Statutes 2000, section 256J.50, is 
519.23  amended by adding a subdivision to read: 
519.24     Subd. 12.  [ACCESS TO PERSONS TRAINED IN DOMESTIC 
519.25  VIOLENCE.] In a county where there is no staff person who is 
519.26  trained in domestic violence, as that term is defined in section 
519.27  256J.08, subdivision 67a, the county must work with the nearest 
519.28  organization that is designated as providing services to victims 
519.29  of domestic violence to develop a process, which ensures that 
519.30  domestic violence victims have access to a person trained in 
519.31  domestic violence. 
519.32     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
519.33     Sec. 42.  Minnesota Statutes 2000, section 256J.515, is 
519.34  amended to read: 
519.35     256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 
519.36     During the first meeting with participants, job counselors 
520.1   must ensure that an overview of employment and training services 
520.2   is provided that: 
520.3      (1) stresses the necessity and opportunity of immediate 
520.4   employment; 
520.5      (2) outlines the job search resources offered; 
520.6      (3) outlines education or training opportunities available; 
520.7      (4) describes the range of work activities, including 
520.8   activities under section 256J.49, subdivision 13, clause (18), 
520.9   that are allowable under MFIP to meet the individual needs of 
520.10  participants; 
520.11     (5) explains the requirements to comply with an employment 
520.12  plan; 
520.13     (6) explains the consequences for failing to comply; and 
520.14     (7) explains the services that are available to support job 
520.15  search and work and education; and 
520.16     (8) provides referral information about shelters and 
520.17  programs for victims of family violence, the time limit 
520.18  exemption, and waivers of regular employment and training 
520.19  requirements for family violence victims. 
520.20     Failure to attend the overview of employment and training 
520.21  services without good cause results in the imposition of a 
520.22  sanction under section 256J.46. 
520.23     Effective October 1, 2001, a participant who has an 
520.24  alternative employment plan under section 256J.52, subdivision 
520.25  6, as defined in section 256J.49, subdivision 1a, or who is in 
520.26  the process of developing such a plan, is exempt from the 
520.27  requirement to attend the overview. 
520.28     Sec. 43.  Minnesota Statutes 2000, section 256J.52, 
520.29  subdivision 2, is amended to read: 
520.30     Subd. 2.  [INITIAL ASSESSMENT.] (a) The job counselor must, 
520.31  with the cooperation of the participant, assess the 
520.32  participant's ability to obtain and retain employment.  This 
520.33  initial assessment must include a review of the participant's 
520.34  education level, prior employment or work experience, 
520.35  transferable work skills, and existing job markets. 
520.36     (b) In assessing the participant, the job counselor must 
521.1   determine if the participant needs refresher courses for 
521.2   professional certification or licensure, in which case, the job 
521.3   search plan under subdivision 3 must include the courses 
521.4   necessary to obtain the certification or licensure, in addition 
521.5   to other work activities, provided the combination of the 
521.6   courses and other work activities are at least for 40 hours per 
521.7   week.  
521.8      (c) If a participant can demonstrate to the satisfaction of 
521.9   the county agency that lack of proficiency in English is a 
521.10  barrier to obtaining suitable employment, the job counselor must 
521.11  include participation in an intensive English as a second 
521.12  language program if available or otherwise a regular English as 
521.13  a second language program in the individual's employment plan 
521.14  under subdivision 5.  Lack of proficiency in English is not 
521.15  necessarily a barrier to employment.  
521.16     (d) The job counselor may approve an education or training 
521.17  plan, and postpone the job search requirement, if the 
521.18  participant has a proposal for an education program which: 
521.19     (1) can be completed within 12 24 months; and 
521.20     (2) meets the criteria of section 256J.53, subdivisions 1, 
521.21  2, 3, and 5; and 
521.22     (3) is likely, without additional training, to lead to 
521.23  monthly employment earnings which, after subtraction of the 
521.24  earnings disregard under section 256J.21, equal or exceed the 
521.25  family wage level for the participant's assistance unit. 
521.26     (e) A participant who, at the time of the initial 
521.27  assessment, presents a plan that includes farming as a 
521.28  self-employed work activity must have an employment plan 
521.29  developed under subdivision 5 that includes the farming as an 
521.30  approved work activity. 
521.31     Sec. 44.  Minnesota Statutes 2000, section 256J.52, 
521.32  subdivision 6, is amended to read: 
521.33     Subd. 6.  [SAFETY ALTERNATIVE EMPLOYMENT PLAN AND FAMILY 
521.34  VIOLENCE WAIVER PROVISIONS.] Notwithstanding subdivisions 1 to 
521.35  5, a participant who is a victim of domestic violence and who 
521.36  agrees to develop or has developed a safety plan meeting the 
522.1   definition under section 256J.49, subdivision 11, is deferred 
522.2   from the requirements of this section, sections 256J.54, and 
522.3   256J.55 for a period of three months from the date the safety 
522.4   plan is approved.  A participant deferred under this subdivision 
522.5   must submit a safety plan status report to the county agency on 
522.6   a quarterly basis.  Based on a review of the status report, the 
522.7   county agency may approve or renew the participant's deferral 
522.8   each quarter, provided the personal safety of the participant is 
522.9   still at risk and the participant is complying with the plan.  A 
522.10  participant who is deferred under this subdivision may be 
522.11  deferred for a total of 12 months under a safety plan, provided 
522.12  the individual is complying with the terms of the plan.  
522.13  Participants who have a safety plan under section 256J.49, 
522.14  subdivision 11, prior to October 1, 2001, will have that plan 
522.15  converted to an alternative employment plan upon their plan 
522.16  renewal date.  An alternative employment plan must be reviewed 
522.17  at the end of the first six months to determine if the 
522.18  activities contained in the alternative employment plan are 
522.19  still appropriate.  It is the responsibility of the county or a 
522.20  job counselor to contact the participant and notify the 
522.21  participant that the plan is up for review, and document whether 
522.22  the participant wishes to renew the plan.  If the participant 
522.23  does not wish to renew the plan, or if the participant fails to 
522.24  respond after reasonable efforts to contact the participant are 
522.25  made by the county or a job counselor, the participant must 
522.26  participate in regular employment services activities.  If the 
522.27  participant requests renewal of the plan or if there is a 
522.28  dispute over whether the plan is still appropriate, the 
522.29  participant must receive the assistance of a person trained in 
522.30  domestic violence.  If the person trained in domestic violence 
522.31  recommends that the activities are still appropriate, the county 
522.32  or a job counselor must renew the alternative employment plan or 
522.33  provide written reasons why the plan is not approved and 
522.34  document how denial of the plan renewal does not interfere with 
522.35  the safety of the participant or children.  If the person 
522.36  trained in domestic violence recommends that the activities are 
523.1   no longer appropriate, the plan must be revised with the 
523.2   assistance of a person trained in domestic violence.  The county 
523.3   or a job counselor must approve the revised plan or provide 
523.4   written reasons why the plan is not approved and document how 
523.5   denial of the plan renewal does not interfere with the safety of 
523.6   the participant or children.  After the first six months reviews 
523.7   may take place quarterly.  During the time a participant is 
523.8   cooperating with the development or revision of an alternative 
523.9   employment plan, the participant is not subject to a sanction 
523.10  for noncompliance with regular employment services activities.  
523.11     Sec. 45.  Minnesota Statutes 2000, section 256J.53, 
523.12  subdivision 1, is amended to read: 
523.13     Subdivision 1.  [LENGTH OF PROGRAM.] In order for a 
523.14  post-secondary education or training program to be approved work 
523.15  activity as defined in section 256J.49, subdivision 13, clause 
523.16  (18), it must be a program lasting 12 24 months or less, and the 
523.17  participant must meet the requirements of subdivisions 2 and 3.  
523.18  A program lasting up to 24 months may be approved on an 
523.19  exception basis if the conditions specified in subdivisions 2 to 
523.20  4 are met.  A participant may not be approved for more than a 
523.21  total of 24 months of post-secondary education or training. 
523.22     Sec. 46.  Minnesota Statutes 2000, section 256J.56, is 
523.23  amended to read: 
523.24     256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
523.25  EXEMPTIONS.] 
523.26     (a) An MFIP caregiver participant is exempt from the 
523.27  requirements of sections 256J.52 to 256J.55 if the caregiver 
523.28  participant belongs to any of the following groups: 
523.29     (1) individuals participants who are age 60 or older; 
523.30     (2) individuals participants who are suffering from a 
523.31  professionally certified permanent or temporary illness, injury, 
523.32  or incapacity which is expected to continue for more than 30 
523.33  days and which prevents the person from obtaining or retaining 
523.34  employment.  Persons in this category with a temporary illness, 
523.35  injury, or incapacity must be reevaluated at least quarterly; 
523.36     (3) caregivers participants whose presence in the home is 
524.1   required as a caregiver because of the a professionally 
524.2   certified illness or incapacity of another member in the 
524.3   assistance unit, a relative in the household, or a foster child 
524.4   in the household and the illness or incapacity is expected to 
524.5   continue for more than 30 days; 
524.6      (4) women who are pregnant, if the pregnancy has resulted 
524.7   in a professionally certified incapacity that prevents the woman 
524.8   from obtaining or retaining employment; 
524.9      (5) caregivers of a child under the age of one year who 
524.10  personally provide full-time care for the child.  This exemption 
524.11  may be used for only 12 months in a lifetime.  In two-parent 
524.12  households, only one parent or other relative may qualify for 
524.13  this exemption; 
524.14     (6) individuals who are single parents, or one parent in a 
524.15  two-parent family, employed at least 35 hours per week; 
524.16     (7) individuals participants experiencing a personal or 
524.17  family crisis that makes them incapable of participating in the 
524.18  program, as determined by the county agency.  If the participant 
524.19  does not agree with the county agency's determination, the 
524.20  participant may seek professional certification, as defined in 
524.21  section 256J.08, that the participant is incapable of 
524.22  participating in the program. 
524.23     Persons in this exemption category must be reevaluated 
524.24  every 60 days.  A personal or family crisis related to family 
524.25  violence, as determined by the county or a job counselor with 
524.26  the assistance of a person trained in domestic violence, should 
524.27  not result in an exemption, but should be addressed through the 
524.28  development or revision of an alternative employment plan under 
524.29  section 256J.52, subdivision 6; or 
524.30     (8) second parents in two-parent families employed for 20 
524.31  or more hours per week, provided the first parent is employed at 
524.32  least 35 hours per week; or 
524.33     (9) (7) caregivers with a child or an adult in the 
524.34  household who meets the disability or medical criteria for home 
524.35  care services under section 256B.0627, subdivision 1, paragraph 
524.36  (c), or a home and community-based waiver services program under 
525.1   chapter 256B, or meets the criteria for severe emotional 
525.2   disturbance under section 245.4871, subdivision 6, or for 
525.3   serious and persistent mental illness under section 245.462, 
525.4   subdivision 20, paragraph (c).  Caregivers in this exemption 
525.5   category are presumed to be prevented from obtaining or 
525.6   retaining employment. 
525.7      A caregiver who is exempt under clause (5) must enroll in 
525.8   and attend an early childhood and family education class, a 
525.9   parenting class, or some similar activity, if available, during 
525.10  the period of time the caregiver is exempt under this section.  
525.11  Notwithstanding section 256J.46, failure to attend the required 
525.12  activity shall not result in the imposition of a sanction. 
525.13     (b) The county agency must provide employment and training 
525.14  services to MFIP caregivers participants who are exempt under 
525.15  this section, but who volunteer to participate.  Exempt 
525.16  volunteers may request approval for any work activity under 
525.17  section 256J.49, subdivision 13.  The hourly participation 
525.18  requirements for nonexempt caregivers participants under section 
525.19  256J.50, subdivision 5, do not apply to exempt caregivers 
525.20  participants who volunteer to participate. 
525.21     Sec. 47.  Minnesota Statutes 2000, section 256J.57, 
525.22  subdivision 2, is amended to read: 
525.23     Subd. 2.  [NOTICE OF INTENT TO SANCTION.] (a) When a 
525.24  participant fails without good cause to comply with the 
525.25  requirements of sections 256J.52 to 256J.55, the job counselor 
525.26  or the county agency must provide a notice of intent to sanction 
525.27  to the participant specifying the program requirements that were 
525.28  not complied with, informing the participant that the county 
525.29  agency will impose the sanctions specified in section 256J.46, 
525.30  and informing the participant of the opportunity to request a 
525.31  conciliation conference as specified in paragraph (b).  The 
525.32  notice must also state that the participant's continuing 
525.33  noncompliance with the specified requirements will result in 
525.34  additional sanctions under section 256J.46, without the need for 
525.35  additional notices or conciliation conferences under this 
525.36  subdivision.  The notice, written in English, must include the 
526.1   department of human services language block, and must be sent to 
526.2   every applicable participant.  If the participant does not 
526.3   request a conciliation conference within ten calendar days of 
526.4   the mailing of the notice of intent to sanction, the job 
526.5   counselor must notify the county agency that the assistance 
526.6   payment should be reduced.  The county must then send a notice 
526.7   of adverse action to the participant informing the participant 
526.8   of the sanction that will be imposed, the reasons for the 
526.9   sanction, the effective date of the sanction, and the 
526.10  participant's right to have a fair hearing under section 256J.40.
526.11     (b) The participant may request a conciliation conference 
526.12  by sending a written request, by making a telephone request, or 
526.13  by making an in-person request.  The request must be received 
526.14  within ten calendar days of the date the county agency mailed 
526.15  the ten-day notice of intent to sanction.  If a timely request 
526.16  for a conciliation is received, the county agency's service 
526.17  provider must conduct the conference within five days of the 
526.18  request.  The job counselor's supervisor, or a designee of the 
526.19  supervisor, must review the outcome of the conciliation 
526.20  conference.  If the conciliation conference resolves the 
526.21  noncompliance, the job counselor must promptly inform the county 
526.22  agency and request withdrawal of the sanction notice. 
526.23     (c) Upon receiving a sanction notice, the participant may 
526.24  request a fair hearing under section 256J.40, without exercising 
526.25  the option of a conciliation conference.  In such cases, the 
526.26  county agency shall not require the participant to engage in a 
526.27  conciliation conference prior to the fair hearing. 
526.28     (d) If the participant requests a fair hearing or a 
526.29  conciliation conference, sanctions will not be imposed until 
526.30  there is a determination of noncompliance.  Sanctions must be 
526.31  imposed as provided in section 256J.46. 
526.32     Sec. 48.  Minnesota Statutes 2000, section 256J.62, 
526.33  subdivision 2a, is amended to read: 
526.34     Subd. 2a.  [CASELOAD-BASED FUNDS ALLOCATION.] Effective for 
526.35  state fiscal year 2000, and for all subsequent years, money 
526.36  shall be allocated to counties and eligible tribal providers 
527.1   based on their average number of MFIP cases as a proportion of 
527.2   the statewide total number of MFIP cases:  
527.3      (1) the average number of cases must be based upon counts 
527.4   of MFIP or tribal TANF cases as of March 31, June 30, September 
527.5   30, and December 31 of the previous calendar year, less the 
527.6   number of child only cases and cases where all the caregivers 
527.7   are age 60 or over.  Two-parent cases, with the exception of 
527.8   those with a caregiver age 60 or over, will be multiplied by a 
527.9   factor of two; 
527.10     (2) the MFIP or tribal TANF case count for each eligible 
527.11  tribal provider shall be based upon the number of MFIP or tribal 
527.12  TANF cases who are enrolled in, or are eligible for enrollment 
527.13  in the tribe; and the case must be an active MFIP case; and the 
527.14  case members must reside within the tribal program's service 
527.15  delivery area; and 
527.16     (3) MFIP or tribal TANF cases counted for determining 
527.17  allocations to tribal providers shall be removed from the case 
527.18  counts of the respective counties where they reside to prevent 
527.19  duplicate counts;. 
527.20     (4) prior to allocating funds to counties and tribal 
527.21  providers, $1,000,000 shall be set aside to allow the 
527.22  commissioner to use these set-aside funds to provide funding to 
527.23  county or tribal providers who experience an unforeseen influx 
527.24  of participants or other emergent situations beyond their 
527.25  control; and 
527.26     (5) the commissioner shall use a portion of the funds in 
527.27  clause (4) to offset a reduction in funds allocated to any 
527.28  county between state fiscal year 1999 and state fiscal year 2000 
527.29  that results from the adjustment in clause (3).  The funding 
527.30  provided under this clause must reduce by half the reduction for 
527.31  state fiscal year 2000 that any county would otherwise 
527.32  experience in the absence of this clause. 
527.33  Any funds specified in this clause that remain unspent by March 
527.34  31 of each year shall be reallocated out to county and tribal 
527.35  providers using the funding formula detailed in clauses (1) to 
527.36  (5). 
528.1      Sec. 49.  Minnesota Statutes 2000, section 256J.62, 
528.2   subdivision 9, is amended to read: 
528.3      Subd. 9.  [CONTINUATION OF CERTAIN SERVICES.] At the 
528.4   request of the caregiver participant, the county may continue to 
528.5   provide case management, counseling, or other support services 
528.6   to a participant following the participant's achievement of: 
528.7      (a) who has achieved the employment goal,; or 
528.8      (b) who under section 256J.42 is no longer eligible to 
528.9   receive MFIP. 
528.10     These services may be provided for up to 12 months 
528.11  following termination of the participant's eligibility for MFIP. 
528.12     A county may expend funds for a specific employment and 
528.13  training service for the duration of that service to a 
528.14  participant if the funds are obligated or expended prior to the 
528.15  participant losing MFIP eligibility. 
528.16     Sec. 50.  Minnesota Statutes 2000, section 256J.625, 
528.17  subdivision 1, is amended to read: 
528.18     Subdivision 1.  [ESTABLISHMENT; GUARANTEED MINIMUM 
528.19  ALLOCATION.] (a) The commissioner shall make grants under this 
528.20  subdivision to assist county and tribal TANF programs to more 
528.21  effectively serve hard-to-employ MFIP participants and 
528.22  participants who, within the last 12 months, have been 
528.23  determined under section 256J.42 to no longer be eligible to 
528.24  receive MFIP but whose income is below 120 percent of the 
528.25  federal poverty guidelines for a family of the same size.  Funds 
528.26  appropriated for local intervention grants for self-sufficiency 
528.27  must be allocated first in amounts equal to the guaranteed 
528.28  minimum in paragraph (b), and second according to the provisions 
528.29  of subdivision 2.  Any remaining funds must be allocated 
528.30  according to the formula in subdivision 3.  Counties or tribes 
528.31  must have an approved local service unit plan under section 
528.32  256J.50, subdivision 7, paragraph (b), in order to receive and 
528.33  expend funds under subdivisions 2 and 3.  
528.34     (b) Each county or tribal program shall receive a 
528.35  guaranteed minimum annual allocation of $25,000. 
528.36     Sec. 51.  Minnesota Statutes 2000, section 256J.625, 
529.1   subdivision 2, is amended to read: 
529.2      Subd. 2.  [SET-ASIDE FUNDS.] (a) Of the funds appropriated 
529.3   for grants under this section, after the allocation in 
529.4   subdivision 1, paragraph (b), is made, 20 percent of the 
529.5   remaining funds each year shall be retained by the commissioner 
529.6   and awarded to counties or tribes whose approved plans 
529.7   demonstrate additional need based on their identification of 
529.8   hard-to-employ families and, working participants in need of job 
529.9   retention and wage advancement services, and participants who 
529.10  within the last 12 months, have been determined under section 
529.11  256J.42 to no longer be eligible to receive MFIP but whose 
529.12  income is below 120 percent of the federal poverty guidelines 
529.13  for a family of same size, strong anticipated outcomes for 
529.14  families and an effective plan for monitoring performance, or, 
529.15  use of a multicounty, multi-entity or regional approach to serve 
529.16  hard-to-employ families and, working participants in need of job 
529.17  retention and wage advancement services, and participants who, 
529.18  within the last 12 months, have been determined under section 
529.19  256J.42 to no longer be eligible to receive MFIP but whose 
529.20  income is below 120 percent of the federal poverty guidelines 
529.21  for a family of the same size, who are identified as a target 
529.22  population to be served in the plan submitted under section 
529.23  256J.50, subdivision 7, paragraph (b).  In distributing funds 
529.24  under this paragraph, the commissioner must achieve a geographic 
529.25  balance.  The commissioner may award funds under this paragraph 
529.26  to other public, private, or nonprofit entities to deliver 
529.27  services in a county or region where the entity or entities 
529.28  submit a plan that demonstrates a strong capability to fulfill 
529.29  the terms of the plan and where the plan shows an innovative or 
529.30  multi-entity approach. 
529.31     (b) For fiscal year 2001 only, of the funds available under 
529.32  this subdivision the commissioner must allocate funding in the 
529.33  amounts specified in article 1, section 2, subdivision 7, for an 
529.34  intensive intervention transitional employment training project 
529.35  and for nontraditional career assistance and training programs.  
529.36  These allocations must occur before any set-aside funds are 
530.1   allocated under paragraph (a). 
530.2      Sec. 52.  Minnesota Statutes 2000, section 256J.625, 
530.3   subdivision 4, is amended to read: 
530.4      Subd. 4.  [USE OF FUNDS.] (a) A county or tribal program 
530.5   may use funds allocated under this subdivision to provide 
530.6   services to MFIP participants who are hard-to-employ and their 
530.7   families.  Services provided must be intended to reduce the 
530.8   number of MFIP participants who are expected to reach the 
530.9   60-month time limit under section 256J.42.  Counties, tribes, 
530.10  and other entities receiving funds under subdivision 2 or 3 must 
530.11  submit semiannual progress reports to the commissioner which 
530.12  detail program outcomes. 
530.13     (b) Funds allocated under this section may not be used to 
530.14  provide benefits that are defined as "assistance" in Code of 
530.15  Federal Regulations, title 45, section 260.31, to an assistance 
530.16  unit that is only receiving the food portion of MFIP benefits or 
530.17  under section 256J.42 is no longer eligible to receive MFIP. 
530.18     (c) A county may use funds allocated under this section for 
530.19  that part of the match for federal access to jobs transportation 
530.20  funds that is TANF-eligible.  A county may also use funds 
530.21  allocated under this section to enhance transportation choices 
530.22  for eligible recipients up to 150 percent of the federal poverty 
530.23  guidelines. 
530.24     Sec. 53.  Minnesota Statutes 2000, section 256J.645, is 
530.25  amended to read: 
530.26     256J.645 [INDIAN TRIBE MFIP-S MFIP EMPLOYMENT AND TRAINING 
530.27  SERVICES.] 
530.28     Subdivision 1.  [AUTHORIZATION TO ENTER INTO AGREEMENTS.] 
530.29  Effective July 1, 1997, the commissioner may enter into 
530.30  agreements with federally recognized Indian tribes with a 
530.31  reservation in the state to provide MFIP-S MFIP employment and 
530.32  training services to members of the Indian tribe and to other 
530.33  caregivers who are a part of the tribal member's MFIP-S MFIP 
530.34  assistance unit.  For purposes of this section, "Indian tribe" 
530.35  means a tribe, band, nation, or other federally recognized group 
530.36  or community of Indians.  The commissioner may also enter into 
531.1   an agreement with a consortium of Indian tribes providing the 
531.2   governing body of each Indian tribe in the consortium complies 
531.3   with the provisions of this section. 
531.4      Subd. 2.  [TRIBAL REQUIREMENTS.] The Indian tribe must: 
531.5      (1) agree to fulfill the responsibilities provided under 
531.6   the employment and training services component of MFIP-S MFIP 
531.7   regarding operation of MFIP-S MFIP employment and training 
531.8   services, as designated by the commissioner; 
531.9      (2) operate its employment and training services program 
531.10  within a geographic service area not to exceed the counties 
531.11  within which a border of the reservation falls; 
531.12     (3) operate its program in conformity with section 13.46 
531.13  and any applicable federal regulations in the use of data about 
531.14  MFIP-S MFIP recipients; 
531.15     (4) coordinate operation of its program with the county 
531.16  agency, Job Training Partnership Workforce Investment Act 
531.17  programs, and other support services or employment-related 
531.18  programs in the counties in which the tribal unit's program 
531.19  operates; 
531.20     (5) provide financial and program participant activity 
531.21  recordkeeping and reporting in the manner and using the forms 
531.22  and procedures specified by the commissioner and permit 
531.23  inspection of its program and records by representatives of the 
531.24  state; and 
531.25     (6) have the Indian tribe's employment and training service 
531.26  provider certified by the commissioner of economic security, or 
531.27  approved by the county. 
531.28     Subd. 3.  [FUNDING.] If the commissioner and an Indian 
531.29  tribe are parties to an agreement under this subdivision, the 
531.30  agreement may shall annually provide to the Indian tribe the 
531.31  funding amount in clause (1) or (2): allocated in section 
531.32  256J.62, subdivisions 1 and 2a. 
531.33     (1) if the Indian tribe operated a tribal STRIDE program 
531.34  during state fiscal year 1997, the amount to be provided is the 
531.35  amount the Indian tribe received from the state for operation of 
531.36  its tribal STRIDE program in state fiscal year 1997, except that 
532.1   the amount provided for a fiscal year may increase or decrease 
532.2   in the same proportion that the total amount of state and 
532.3   federal funds available for MFIP-S employment and training 
532.4   services increased or decreased that fiscal year; or 
532.5      (2) if the Indian tribe did not operate a tribal STRIDE 
532.6   program during state fiscal year 1997, the commissioner may 
532.7   provide to the Indian tribe for the first year of operations the 
532.8   amount determined by multiplying the state allocation for MFIP-S 
532.9   employment and training services to each county agency in the 
532.10  Indian tribe's service delivery area by the percentage of MFIP-S 
532.11  recipients in that county who were members of the Indian tribe 
532.12  during the previous state fiscal year.  The resulting amount 
532.13  shall also be the amount that the commissioner may provide to 
532.14  the Indian tribe annually thereafter through an agreement under 
532.15  this subdivision, except that the amount provided for a fiscal 
532.16  year may increase or decrease in the same proportion that the 
532.17  total amount of state and federal funds available for MFIP-S 
532.18  employment and training services increased or decreased that 
532.19  fiscal year. 
532.20     Subd. 4.  [COUNTY AGENCY REQUIREMENT.] Indian tribal 
532.21  members receiving MFIP-S MFIP benefits and residing in the 
532.22  service area of an Indian tribe operating employment and 
532.23  training services under an agreement with the commissioner must 
532.24  be referred by county agencies in the service area to the Indian 
532.25  tribe for employment and training services. 
532.26     Sec. 54.  Minnesota Statutes 2000, section 256J.751, is 
532.27  amended to read: 
532.28     256J.751 [COUNTY PERFORMANCE MANAGEMENT.] 
532.29     (a) Subdivision 1.  [QUARTERLY COUNTY CASELOAD REPORT.] The 
532.30  commissioner shall report quarterly to all counties each county 
532.31  on the county's performance on the following measures: 
532.32     (1) percent of MFIP caseload working in paid employment; 
532.33     (2) percent number of MFIP caseload cases receiving only 
532.34  the food portion of assistance; 
532.35     (2) number of child-only cases; 
532.36     (3) number of minor caregivers; 
533.1      (4) number of cases that are exempt from the 60-month time 
533.2   limit by the exemption category under section 256J.42; 
533.3      (5) number of participants who are exempt from employment 
533.4   and training services requirements by the exemption category 
533.5   under section 256J.56; 
533.6      (6) number of assistance units receiving assistance under a 
533.7   hardship extension under section 256J.425; 
533.8      (7) number of participants and number of months spent in 
533.9   each level of sanction under section 256J.46, subdivision 1; 
533.10     (3) (8) number of MFIP cases that have left assistance; 
533.11     (4) (9) federal participation requirements as specified in 
533.12  title 1 of Public Law Number 104-193; and 
533.13     (5) (10) median placement wage rate.; and 
533.14     (b) (11) of each county's total MFIP caseload less the 
533.15  number of cases in clauses (1) to (6): 
533.16     (i) number of one-parent cases; 
533.17     (ii) number of two-parent cases; 
533.18     (iii) percent of one-parent cases that are working more 
533.19  than 20 hours per week; 
533.20     (iv) percent of two-parent cases that are working more than 
533.21  20 hours per week; and 
533.22     (v) percent of cases that have received more than 36 months 
533.23  of assistance. 
533.24     Subd. 2.  [QUARTERLY COMPARISON REPORT.] The commissioner 
533.25  shall report quarterly to all counties on each county's 
533.26  performance on the following measures: 
533.27     (1) percent of MFIP caseload working in paid employment; 
533.28     (2) percent of MFIP caseload receiving only the food 
533.29  portion of assistance; 
533.30     (3) number of MFIP cases that have left assistance; 
533.31     (4) federal participation requirements as specified in 
533.32  Title 1 of Public Law Number 104-193; 
533.33     (5) median placement wage rate; and 
533.34     (6) caseload by months of TANF assistance. 
533.35     Subd. 3.  [ANNUAL REPORT.] The commissioner must report to 
533.36  all counties and to the legislature on each county's annual 
534.1   performance on the measures required under subdivision 1 by 
534.2   racial and ethnic group and, to the extent consistent with state 
534.3   and federal law, must include each county's performance on: 
534.4      (1) the number of out-of-wedlock births and births to teen 
534.5   mothers; and 
534.6      (2) number of cases by racial and ethnic group. 
534.7      The report must be completed by January 1, 2002, and 
534.8   January 1 of each year thereafter and must comply with sections 
534.9   3.195 and 3.197. 
534.10     Subd. 4.  [DEVELOPMENT OF PERFORMANCE MEASURES.] By January 
534.11  1, 2002, the commissioner shall, in consultation with counties, 
534.12  develop measures for county performance in addition to those in 
534.13  paragraph (a) subdivision 1 and 2.  In developing these 
534.14  measures, the commissioner must consider: 
534.15     (1) a measure for MFIP cases that leave assistance due to 
534.16  employment; 
534.17     (2) job retention after participants leave MFIP; and 
534.18     (3) participant's earnings at a follow-up point after the 
534.19  participant has left MFIP; and 
534.20     (4) the appropriateness of services provided to minority 
534.21  groups. 
534.22     (c) Subd. 5.  [FAILURE TO MEET FEDERAL PERFORMANCE 
534.23  STANDARDS.] (a) If sanctions occur for failure to meet the 
534.24  performance standards specified in title 1 of Public Law Number 
534.25  104-193 of the Personal Responsibility and Work Opportunity Act 
534.26  of 1996, the state shall pay 88 percent of the sanction.  The 
534.27  remaining 12 percent of the sanction will be paid by the 
534.28  counties.  The county portion of the sanction will be 
534.29  distributed across all counties in proportion to each county's 
534.30  percentage of the MFIP average monthly caseload during the 
534.31  period for which the sanction was applied. 
534.32     (d) (b) If a county fails to meet the performance standards 
534.33  specified in title 1 of Public Law Number 104-193 of the 
534.34  Personal Responsibility and Work Opportunity Act of 1996 for any 
534.35  year, the commissioner shall work with counties to organize a 
534.36  joint state-county technical assistance team to work with the 
535.1   county.  The commissioner shall coordinate any technical 
535.2   assistance with other departments and agencies including the 
535.3   departments of economic security and children, families, and 
535.4   learning as necessary to achieve the purpose of this paragraph. 
535.5      Sec. 55.  Minnesota Statutes 2000, section 256K.25, 
535.6   subdivision 1, is amended to read: 
535.7      Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] (a) The 
535.8   commissioner shall establish a supportive housing and managed 
535.9   care pilot project in two counties, one within the seven-county 
535.10  metropolitan area and one outside of that area, to determine 
535.11  whether the integrated delivery of employment services, 
535.12  supportive services, housing, and health care into a single, 
535.13  flexible program will: 
535.14     (1) reduce public expenditures on homeless families with 
535.15  minor children, homeless noncustodial parents, and other 
535.16  homeless individuals; 
535.17     (2) increase the employment rates of these persons; and 
535.18     (3) provide a new alternative to providing services to this 
535.19  hard-to-serve population. 
535.20     (b) The commissioner shall create a program for counties 
535.21  for the purpose of providing integrated intensive and 
535.22  individualized case management services, employment services, 
535.23  health care services, rent subsidies or other short- or 
535.24  medium-term housing assistance, and other supportive services to 
535.25  eligible families and individuals.  Minimum project and 
535.26  application requirements shall be developed by the commissioner 
535.27  in cooperation with counties and their nonprofit partners with 
535.28  the goal to provide the maximum flexibility in program design. 
535.29     (c) Services available under this project must be 
535.30  coordinated with available health care services for an eligible 
535.31  project participant. 
535.32     Sec. 56.  Minnesota Statutes 2000, section 256K.25, 
535.33  subdivision 3, is amended to read: 
535.34     Subd. 3.  [COUNTY ELIGIBILITY.] (a) A county may request 
535.35  funding under this pilot project if the county: 
535.36     (1) agrees to develop, in cooperation with nonprofit 
536.1   partners, a supportive housing and managed care pilot project 
536.2   that integrates the delivery of employment services, supportive 
536.3   services, housing and health care for eligible families and 
536.4   individuals, or agrees to contract with an existing integrated 
536.5   program; 
536.6      (2) for eligible participants who are also MFIP recipients, 
536.7   agrees to develop, in cooperation with nonprofit partners, 
536.8   procedures to ensure that the services provided under the pilot 
536.9   project are closely coordinated with the services provided under 
536.10  MFIP; and 
536.11     (3) develops a method for evaluating the quality of the 
536.12  integrated services provided and the amount of any resulting 
536.13  cost savings to the county and state.; and 
536.14     (4) addresses in the pilot design the prevalence in the 
536.15  homeless population served those individuals with mental 
536.16  illness, a history of substance abuse, or HIV. 
536.17     (b) Preference may be given to counties that cooperate with 
536.18  other counties participating in the pilot project for purposes 
536.19  of evaluation and counties that provide additional funding. 
536.20     Sec. 57.  Minnesota Statutes 2000, section 256K.25, 
536.21  subdivision 4, is amended to read: 
536.22     Subd. 4.  [PARTICIPANT ELIGIBILITY.] (a) In order to be 
536.23  eligible meet initial eligibility criteria for the pilot 
536.24  project, the county must determine that a participant is 
536.25  homeless or is at risk of homelessness; has a mental illness, a 
536.26  history of substance abuse, or HIV; and is a family that meets 
536.27  the criteria in paragraph (b) or is an individual who meets the 
536.28  criteria in paragraph (c). 
536.29     (b) An eligible family must include a minor child or a 
536.30  pregnant woman, and: 
536.31     (1) be receiving or be eligible for MFIP assistance under 
536.32  chapter 256J; or 
536.33     (2) include an adult caregiver who is employed or is 
536.34  receiving employment and training services, and have household 
536.35  income below the MFIP exit level in section 256J.24, subdivision 
536.36  10.  
537.1      (c) An eligible individual must: 
537.2      (1) meet the eligibility requirements of the group 
537.3   residential housing program under section 256I.04, subdivision 
537.4   1; or 
537.5      (2) be a noncustodial parent who is employed or is 
537.6   receiving employment and training services, and have household 
537.7   income below the MFIP exit level in section 256J.24, subdivision 
537.8   10.  
537.9      (d) Counties participating in the pilot project may develop 
537.10  and initiate disenrollment criteria, subject to approval by the 
537.11  commissioner of human services. 
537.12     Sec. 58.  Minnesota Statutes 2000, section 256K.25, 
537.13  subdivision 5, is amended to read: 
537.14     Subd. 5.  [FUNDING.] A county may request funding from the 
537.15  commissioner for a specified number of TANF-eligible project 
537.16  participants.  The commissioner shall review the request for 
537.17  compliance with subdivisions 1 to 4 and may approve or 
537.18  disapprove the request.  If other funds are available, the 
537.19  commissioner may allocate funding for project participants who 
537.20  meet the eligibility requirements of subdivision 4, paragraph 
537.21  (c).  The commissioner may also redirect funds to the pilot 
537.22  project. 
537.23     Sec. 59.  Minnesota Statutes 2000, section 256K.25, 
537.24  subdivision 6, is amended to read: 
537.25     Subd. 6.  [REPORT.] Participating counties and the 
537.26  commissioner shall collaborate to prepare and issue an annual 
537.27  report, beginning December 1, 2001, to the chairs of the 
537.28  appropriate legislative committees on the pilot project's use of 
537.29  public resources, including other funds leveraged for this 
537.30  initiative, and an assessment of the feasibility of financing 
537.31  the pilot through other health and human services programs, the 
537.32  employment and housing status of the families and individuals 
537.33  served in the project, and the cost-effectiveness of the 
537.34  project.  The annual report must also evaluate the pilot project 
537.35  with respect to the following project goals:  that participants 
537.36  will lead more productive, healthier, more stable and better 
538.1   quality lives; that the teams created under the project to 
538.2   deliver services for each project participant will be 
538.3   accountable for ensuring that services are more appropriate, 
538.4   cost-effective and well-coordinated; and that the system-wide 
538.5   costs of serving this population, and the inappropriate use of 
538.6   emergency, crisis-oriented or institutional services, will be 
538.7   materially reduced.  The commissioner shall provide data that 
538.8   may be needed to evaluate the project to participating counties 
538.9   that request the data. 
538.10     Sec. 60.  Minnesota Statutes 2000, section 261.062, is 
538.11  amended to read: 
538.12     261.062 [TAX FOR SUPPORT OF POOR.] 
538.13     The county board shall may levy a tax annually sufficient 
538.14  to defray the estimated expenses of supporting and relieving the 
538.15  poor therein during the succeeding year, and to make up any 
538.16  deficiency in the fund raised for that purpose during the 
538.17  preceding year. 
538.18     Sec. 61.  Minnesota Statutes 2000, section 268.0122, 
538.19  subdivision 2, is amended to read: 
538.20     Subd. 2.  [SPECIFIC POWERS.] The commissioner of economic 
538.21  security shall: 
538.22     (1) administer and supervise all forms of unemployment 
538.23  benefits provided for under federal and state laws that are 
538.24  vested in the commissioner, including make investigations and 
538.25  audits, secure and transmit information, and make available 
538.26  services and facilities as the commissioner considers necessary 
538.27  or appropriate to facilitate the administration of any other 
538.28  states, or the federal Economic Security Law, and accept and use 
538.29  information, services, and facilities made available by other 
538.30  states or the federal government; 
538.31     (2) administer and supervise all employment and training 
538.32  services assigned to the department under federal or state law; 
538.33     (3) review and comment on local service unit plans and 
538.34  community investment program plans and approve or disapprove the 
538.35  plans; 
538.36     (4) establish and maintain administrative units necessary 
539.1   to perform administrative functions common to all divisions of 
539.2   the department; 
539.3      (5) supervise the county boards of commissioners, local 
539.4   service units, and any other units of government designated in 
539.5   federal or state law as responsible for employment and training 
539.6   programs; 
539.7      (6) establish administrative standards and payment 
539.8   conditions for providers of employment and training services; 
539.9      (7) act as the agent of, and cooperate with, the federal 
539.10  government in matters of mutual concern, including the 
539.11  administration of any federal funds granted to the state to aid 
539.12  in the performance of functions of the commissioner; 
539.13     (8) obtain reports from local service units and service 
539.14  providers for the purpose of evaluating the performance of 
539.15  employment and training services; and 
539.16     (9) review and comment on plans for Indian tribe employment 
539.17  and training services and approve or disapprove the plans; and 
539.18     (10) require all general employment and training programs 
539.19  that receive state funds to make available information about 
539.20  opportunities for women in nontraditional careers in the trades 
539.21  and technical occupations. 
539.22     Sec. 62.  Laws 1997, chapter 203, article 9, section 21, as 
539.23  amended by Laws 1998, chapter 407, article 6, section 111, and 
539.24  Laws 2000, chapter 488, article 10, section 28, is amended to 
539.25  read: 
539.26     Sec. 21.  [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 
539.27     (a) Effective on the date specified, the following persons 
539.28  will be ineligible for general assistance and general assistance 
539.29  medical care under Minnesota Statutes, chapter 256D, group 
539.30  residential housing under Minnesota Statutes, chapter 256I, and 
539.31  MFIP assistance under Minnesota Statutes, chapter 256J, funded 
539.32  with state money: 
539.33     (1) Beginning July 1, 2002, persons who are terminated from 
539.34  or denied Supplemental Security Income due to the 1996 changes 
539.35  in the federal law making persons whose alcohol or drug 
539.36  addiction is a material factor contributing to the person's 
540.1   disability ineligible for Supplemental Security Income, and are 
540.2   eligible for general assistance under Minnesota Statutes, 
540.3   section 256D.05, subdivision 1, paragraph (a), clause (15), 
540.4   general assistance medical care under Minnesota Statutes, 
540.5   chapter 256D, or group residential housing under Minnesota 
540.6   Statutes, chapter 256I; 
540.7      (2) Beginning July 1, 2002, legal noncitizens who are 
540.8   ineligible for Supplemental Security Income due to the 1996 
540.9   changes in federal law making certain noncitizens ineligible for 
540.10  these programs due to their noncitizen status; and 
540.11     (3) Beginning July 1, 2001 2003, legal noncitizens who are 
540.12  eligible for MFIP assistance, either the cash assistance portion 
540.13  or the food assistance portion, funded entirely with state money.
540.14     (b) State money that remains unspent due to changes in 
540.15  federal law enacted after May 12, 1997, that reduce state 
540.16  spending for legal noncitizens or for persons whose alcohol or 
540.17  drug addiction is a material factor contributing to the person's 
540.18  disability, or enacted after February 1, 1998, that reduce state 
540.19  spending for food benefits for legal noncitizens shall not 
540.20  cancel and shall be deposited in the TANF reserve account. 
540.21     Sec. 63.  [DOMESTIC VIOLENCE TRAINING FOR COUNTY AGENCIES.] 
540.22     During fiscal year 2002, the commissioner of human services 
540.23  will provide training for county agency staff to receive 
540.24  specialized domestic violence training in order to carry out the 
540.25  responsibilities in Minnesota Statutes, sections 256J.46, 
540.26  subdivision 1a; 256J.49, subdivision 1a; 256J.52, subdivision 6; 
540.27  and 256J.56, subdivision 6.  This training must be similar to 
540.28  the training provided to individuals who work for an 
540.29  organization designated by the Minnesota center for crime 
540.30  victims services as providing services to victims of domestic 
540.31  violence. 
540.32     Sec. 64.  [REPORT ON ASSESSMENT OF COUNTY PERFORMANCE.] 
540.33     By January 15, 2003, the commissioner, in consultation with 
540.34  counties, must report to the chairs of the house and senate 
540.35  committees having jurisdiction over human services, on a 
540.36  proposal for assessing county performance using a methodology 
541.1   that controls for demographic, economic, and other variables 
541.2   that may impact county achievement of MFIP performance 
541.3   outcomes.  The proposal must recommend how state and federal 
541.4   funds may be allocated to counties to encourage and reward high 
541.5   performance. 
541.6      Sec. 65.  [EXTENSION RULEMAKING AUTHORITY.] 
541.7      If rulemaking is required to implement section 28, the 
541.8   commissioner of human services is authorized to adopt rules 
541.9   under Minnesota Statutes, section 14.386. 
541.10     Sec. 66.  [INSTRUCTION TO REVISOR.] 
541.11     In the next edition of Minnesota Statutes and Minnesota 
541.12  Rules, the revisor shall change all references to Minnesota 
541.13  Family Investment Program-Statewide (MFIP-S) to Minnesota Family 
541.14  Investment Program (MFIP). 
541.15     Sec. 67.  [REPEALER.] 
541.16     (a) Minnesota Statutes 2000, sections 256J.08, subdivision 
541.17  50a; 256J.12, subdivision 3; 256J.43; and 256J.53, subdivision 
541.18  4, are repealed. 
541.19     (b) Minnesota Statutes 2000, section 256J.49, subdivision 
541.20  11, is repealed October 1, 2001. 
541.21     (c) Minnesota Statutes 2000, section 256D.066, is repealed. 
541.22     (d) Minnesota Statutes 2000, section 256J.46, subdivision 
541.23  1a, is repealed. 
541.24     (e) Minnesota Statutes 2000, section 256J.44, is repealed. 
541.25                             ARTICLE 11 
541.26                   CHILD WELFARE AND FOSTER CARE 
541.27     Section 1.  Minnesota Statutes 2000, section 13.461, 
541.28  subdivision 17, is amended to read: 
541.29     Subd. 17.  [VULNERABLE ADULT MALTREATMENT REVIEW PANEL 
541.30  PANELS.] Data of the vulnerable adult maltreatment review 
541.31  panel or the child maltreatment review panel are classified 
541.32  under section 256.021 or section 256.022. 
541.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
541.34     Sec. 2.  Minnesota Statutes 2000, section 245.814, 
541.35  subdivision 1, is amended to read: 
541.36     Subdivision 1.  [INSURANCE FOR FOSTER HOME PROVIDERS.] The 
542.1   commissioner of human services shall within the appropriation 
542.2   provided purchase and provide insurance to individuals licensed 
542.3   as foster home providers to cover their liability for: 
542.4      (1) injuries or property damage caused or sustained by 
542.5   persons in foster care in their home; and 
542.6      (2) actions arising out of alienation of affections 
542.7   sustained by the birth parents of a foster child or birth 
542.8   parents or children of a foster adult.  
542.9      For purposes of this subdivision, insurance for homes 
542.10  licensed to provide adult foster care shall be limited to family 
542.11  adult foster care homes as defined in section 144D.01, 
542.12  subdivision 7. 
542.13     Sec. 3.  [256.022] [CHILD MALTREATMENT REVIEW PANEL.] 
542.14     Subdivision 1.  [CREATION.] The commissioner of human 
542.15  services shall establish a review panel for purposes of 
542.16  reviewing investigating agency determinations regarding 
542.17  maltreatment of a child in a facility in response to requests 
542.18  received under section 626.556, subdivision 10i, paragraph (b).  
542.19  The review panel consists of the commissioners of health; human 
542.20  services; children, families, and learning; and corrections; the 
542.21  ombudsman for crime victims; and the ombudsman for mental health 
542.22  and mental retardation; or their designees.  
542.23     Subd. 2.  [REVIEW PROCEDURE.] (a) The panel shall hold 
542.24  quarterly meetings for purposes of conducting reviews under this 
542.25  section.  If an interested person acting on behalf of a child 
542.26  requests a review under this section, the panel shall review the 
542.27  request at its next quarterly meeting.  If the next quarterly 
542.28  meeting is within ten days of the panel's receipt of the request 
542.29  for review, the review may be delayed until the next subsequent 
542.30  meeting.  The panel shall review the request and the final 
542.31  determination regarding maltreatment made by the investigating 
542.32  agency and may review any other data on the investigation 
542.33  maintained by the agency that are pertinent and necessary to its 
542.34  review of the determination.  If more than one person requests a 
542.35  review under this section with respect to the same 
542.36  determination, the review panel shall combine the requests into 
543.1   one review.  Upon receipt of a request for a review, the panel 
543.2   shall notify the alleged perpetrator of maltreatment that a 
543.3   review has been requested and provide an approximate timeline 
543.4   for conducting the review.  
543.5      (b) Within 30 days of the review under this section, the 
543.6   panel shall notify the investigating agency and the interested 
543.7   person who requested the review as to whether the panel agrees 
543.8   with the determination or whether the investigating agency must 
543.9   reconsider the determination.  If the panel determines that the 
543.10  agency must reconsider the determination, the panel must make 
543.11  specific investigative recommendations to the agency.  Within 30 
543.12  days the investigating agency shall conduct a review and report 
543.13  back to the panel with its reconsidered determination and the 
543.14  specific rationale for its determination. 
543.15     Subd. 3.  [REPORT.] By January 15 of each year, the panel 
543.16  shall submit a report to the committees of the legislature with 
543.17  jurisdiction over section 626.556 regarding the number of 
543.18  requests for review it receives under this section, the number 
543.19  of cases where the panel requires the investigating agency to 
543.20  reconsider its final determination, the number of cases where 
543.21  the final determination is changed, and any recommendations to 
543.22  improve the review or investigative process.  
543.23     Subd. 4.  [DATA.] Data of the review panel created as part 
543.24  of a review under this section are private data on individuals 
543.25  as defined in section 13.02. 
543.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
543.27     Sec. 4.  Minnesota Statutes 2000, section 257.0725, is 
543.28  amended to read: 
543.29     257.0725 [ANNUAL REPORT.] 
543.30     The commissioner of human services shall publish an annual 
543.31  report on child maltreatment and on children in out-of-home 
543.32  placement.  The commissioner shall confer with counties, child 
543.33  welfare organizations, child advocacy organizations, the courts, 
543.34  and other groups on how to improve the content and utility of 
543.35  the department's annual report.  In regard to child 
543.36  maltreatment, the report shall include the number and kinds of 
544.1   maltreatment reports received and any other data that the 
544.2   commissioner determines is appropriate to include in a report on 
544.3   child maltreatment.  In regard to children in out-of-home 
544.4   placement, the report shall include, by county and statewide, 
544.5   information on legal status, living arrangement, age, sex, race, 
544.6   accumulated length of time in placement, reason for most recent 
544.7   placement, race of family with whom placed, and other 
544.8   information deemed appropriate on all children in out-of-home 
544.9   placement.  Out-of-home placement includes placement in any 
544.10  facility by an authorized child-placing agency. 
544.11     Sec. 5.  Minnesota Statutes 2000, section 260C.301, 
544.12  subdivision 3, as amended by Laws 2001, chapter 178, article 1, 
544.13  section 34, is amended to read: 
544.14     Subd. 3.  [REQUIRED TERMINATION OF PARENTAL RIGHTS.] (a) 
544.15  The county attorney shall file a termination of parental rights 
544.16  petition within 30 days of the responsible social services 
544.17  agency determining that a child has been subjected to egregious 
544.18  harm as defined in section 260C.007, subdivision 26, is 
544.19  determined to be the sibling of another child of the parent who 
544.20  was subjected to egregious harm, or is an abandoned infant as 
544.21  defined in subdivision 2, paragraph (a), clause (2), or the 
544.22  parent has lost parental rights to another child through an 
544.23  order involuntarily terminating the parent's rights, or another 
544.24  child of the parent is the subject of an order involuntarily 
544.25  transferring permanent legal and physical custody of the child 
544.26  to a relative under section 260C.201, subdivision 11, paragraph 
544.27  (e), clause (1), or a similar law of another jurisdiction.  The 
544.28  local social services agency shall concurrently identify, 
544.29  recruit, process, and approve an adoptive family for the child.  
544.30  If a termination of parental rights petition has been filed by 
544.31  another party, the local social services agency shall be joined 
544.32  as a party to the petition.  If criminal charges have been filed 
544.33  against a parent arising out of the conduct alleged to 
544.34  constitute egregious harm, the county attorney shall determine 
544.35  which matter should proceed to trial first, consistent with the 
544.36  best interests of the child and subject to the defendant's right 
545.1   to a speedy trial. 
545.2      (b) This requirement does not apply if the county attorney 
545.3   determines and files with the court: 
545.4      (1) a petition for transfer of permanent legal and physical 
545.5   custody to a relative under section 260C.201, subdivision 11, 
545.6   including a determination that the transfer is in the best 
545.7   interests of the child; or 
545.8      (2) a petition alleging the child, and where appropriate, 
545.9   the child's siblings, to be in need of protection or services 
545.10  accompanied by a case plan prepared by the responsible social 
545.11  services agency documenting a compelling reason why filing a 
545.12  termination of parental rights petition would not be in the best 
545.13  interests of the child. 
545.14     Sec. 6.  Minnesota Statutes 2000, section 626.556, 
545.15  subdivision 10, as amended by Laws 2001, chapter 178, article 2, 
545.16  section 11, is amended to read: 
545.17     Subd. 10.  [DUTIES OF LOCAL WELFARE AGENCY AND LOCAL LAW 
545.18  ENFORCEMENT AGENCY UPON RECEIPT OF A REPORT.] (a) If the report 
545.19  alleges neglect, physical abuse, or sexual abuse by a parent, 
545.20  guardian, or individual functioning within the family unit as a 
545.21  person responsible for the child's care, the local welfare 
545.22  agency shall immediately conduct an assessment including 
545.23  gathering information on the existence of substance abuse and 
545.24  offer protective social services for purposes of preventing 
545.25  further abuses, safeguarding and enhancing the welfare of the 
545.26  abused or neglected minor, and preserving family life whenever 
545.27  possible.  If the report alleges a violation of a criminal 
545.28  statute involving sexual abuse, physical abuse, or neglect or 
545.29  endangerment, under section 609.378, the local law enforcement 
545.30  agency and local welfare agency shall coordinate the planning 
545.31  and execution of their respective investigation and assessment 
545.32  efforts to avoid a duplication of fact-finding efforts and 
545.33  multiple interviews.  Each agency shall prepare a separate 
545.34  report of the results of its investigation.  In cases of alleged 
545.35  child maltreatment resulting in death, the local agency may rely 
545.36  on the fact-finding efforts of a law enforcement investigation 
546.1   to make a determination of whether or not maltreatment 
546.2   occurred.  When necessary the local welfare agency shall seek 
546.3   authority to remove the child from the custody of a parent, 
546.4   guardian, or adult with whom the child is living.  In performing 
546.5   any of these duties, the local welfare agency shall maintain 
546.6   appropriate records.  
546.7      If the assessment indicates there is a potential for abuse 
546.8   of alcohol or other drugs by the parent, guardian, or person 
546.9   responsible for the child's care, the local welfare agency shall 
546.10  conduct a chemical use assessment pursuant to Minnesota Rules, 
546.11  part 9530.6615.  The local welfare agency shall report the 
546.12  determination of the chemical use assessment, and the 
546.13  recommendations and referrals for alcohol and other drug 
546.14  treatment services to the state authority on alcohol and drug 
546.15  abuse. 
546.16     (b) When a local agency receives a report or otherwise has 
546.17  information indicating that a child who is a client, as defined 
546.18  in section 245.91, has been the subject of physical abuse, 
546.19  sexual abuse, or neglect at an agency, facility, or program as 
546.20  defined in section 245.91, it shall, in addition to its other 
546.21  duties under this section, immediately inform the ombudsman 
546.22  established under sections 245.91 to 245.97.  The commissioner 
546.23  of children, families, and learning shall inform the ombudsman 
546.24  established under sections 245.91 to 245.97 of reports regarding 
546.25  a child defined as a client in section 245.91 that maltreatment 
546.26  occurred at a school as defined in sections 120A.05, 
546.27  subdivisions 9, 11, and 13, and 124D.10. 
546.28     (c) Authority of the local welfare agency responsible for 
546.29  assessing the child abuse or neglect report, the agency 
546.30  responsible for assessing or investigating the report, and of 
546.31  the local law enforcement agency for investigating the alleged 
546.32  abuse or neglect includes, but is not limited to, authority to 
546.33  interview, without parental consent, the alleged victim and any 
546.34  other minors who currently reside with or who have resided with 
546.35  the alleged offender.  The interview may take place at school or 
546.36  at any facility or other place where the alleged victim or other 
547.1   minors might be found or the child may be transported to, and 
547.2   the interview conducted at, a place appropriate for the 
547.3   interview of a child designated by the local welfare agency or 
547.4   law enforcement agency.  The interview may take place outside 
547.5   the presence of the alleged offender or parent, legal custodian, 
547.6   guardian, or school official.  Except as provided in this 
547.7   paragraph, the parent, legal custodian, or guardian shall be 
547.8   notified by the responsible local welfare or law enforcement 
547.9   agency no later than the conclusion of the investigation or 
547.10  assessment that this interview has occurred.  Notwithstanding 
547.11  rule 49.02 of the Minnesota rules of procedure for juvenile 
547.12  courts, the juvenile court may, after hearing on an ex parte 
547.13  motion by the local welfare agency, order that, where reasonable 
547.14  cause exists, the agency withhold notification of this interview 
547.15  from the parent, legal custodian, or guardian.  If the interview 
547.16  took place or is to take place on school property, the order 
547.17  shall specify that school officials may not disclose to the 
547.18  parent, legal custodian, or guardian the contents of the 
547.19  notification of intent to interview the child on school 
547.20  property, as provided under this paragraph, and any other 
547.21  related information regarding the interview that may be a part 
547.22  of the child's school record.  A copy of the order shall be sent 
547.23  by the local welfare or law enforcement agency to the 
547.24  appropriate school official. 
547.25     (d) When the local welfare, local law enforcement agency, 
547.26  or the agency responsible for assessing or investigating a 
547.27  report of maltreatment determines that an interview should take 
547.28  place on school property, written notification of intent to 
547.29  interview the child on school property must be received by 
547.30  school officials prior to the interview.  The notification shall 
547.31  include the name of the child to be interviewed, the purpose of 
547.32  the interview, and a reference to the statutory authority to 
547.33  conduct an interview on school property.  For interviews 
547.34  conducted by the local welfare agency, the notification shall be 
547.35  signed by the chair of the local social services agency or the 
547.36  chair's designee.  The notification shall be private data on 
548.1   individuals subject to the provisions of this paragraph.  School 
548.2   officials may not disclose to the parent, legal custodian, or 
548.3   guardian the contents of the notification or any other related 
548.4   information regarding the interview until notified in writing by 
548.5   the local welfare or law enforcement agency that the 
548.6   investigation or assessment has been concluded, unless a school 
548.7   employee or agent is alleged to have maltreated the child.  
548.8   Until that time, the local welfare or law enforcement agency or 
548.9   the agency responsible for assessing or investigating a report 
548.10  of maltreatment shall be solely responsible for any disclosures 
548.11  regarding the nature of the assessment or investigation.  
548.12     Except where the alleged offender is believed to be a 
548.13  school official or employee, the time and place, and manner of 
548.14  the interview on school premises shall be within the discretion 
548.15  of school officials, but the local welfare or law enforcement 
548.16  agency shall have the exclusive authority to determine who may 
548.17  attend the interview.  The conditions as to time, place, and 
548.18  manner of the interview set by the school officials shall be 
548.19  reasonable and the interview shall be conducted not more than 24 
548.20  hours after the receipt of the notification unless another time 
548.21  is considered necessary by agreement between the school 
548.22  officials and the local welfare or law enforcement agency.  
548.23  Where the school fails to comply with the provisions of this 
548.24  paragraph, the juvenile court may order the school to comply.  
548.25  Every effort must be made to reduce the disruption of the 
548.26  educational program of the child, other students, or school 
548.27  staff when an interview is conducted on school premises.  
548.28     (e) Where the alleged offender or a person responsible for 
548.29  the care of the alleged victim or other minor prevents access to 
548.30  the victim or other minor by the local welfare agency, the 
548.31  juvenile court may order the parents, legal custodian, or 
548.32  guardian to produce the alleged victim or other minor for 
548.33  questioning by the local welfare agency or the local law 
548.34  enforcement agency outside the presence of the alleged offender 
548.35  or any person responsible for the child's care at reasonable 
548.36  places and times as specified by court order.  
549.1      (f) Before making an order under paragraph (e), the court 
549.2   shall issue an order to show cause, either upon its own motion 
549.3   or upon a verified petition, specifying the basis for the 
549.4   requested interviews and fixing the time and place of the 
549.5   hearing.  The order to show cause shall be served personally and 
549.6   shall be heard in the same manner as provided in other cases in 
549.7   the juvenile court.  The court shall consider the need for 
549.8   appointment of a guardian ad litem to protect the best interests 
549.9   of the child.  If appointed, the guardian ad litem shall be 
549.10  present at the hearing on the order to show cause.  
549.11     (g) The commissioner of human services, the ombudsman for 
549.12  mental health and mental retardation, the local welfare agencies 
549.13  responsible for investigating reports, the commissioner of 
549.14  children, families, and learning, and the local law enforcement 
549.15  agencies have the right to enter facilities as defined in 
549.16  subdivision 2 and to inspect and copy the facility's records, 
549.17  including medical records, as part of the investigation.  
549.18  Notwithstanding the provisions of chapter 13, they also have the 
549.19  right to inform the facility under investigation that they are 
549.20  conducting an investigation, to disclose to the facility the 
549.21  names of the individuals under investigation for abusing or 
549.22  neglecting a child, and to provide the facility with a copy of 
549.23  the report and the investigative findings. 
549.24     (h) The local welfare agency or the agency responsible for 
549.25  assessing or investigating the report shall collect available 
549.26  and relevant information to ascertain whether maltreatment 
549.27  occurred and whether protective services are needed.  
549.28  Information collected includes, when relevant, information with 
549.29  regard to the person reporting the alleged maltreatment, 
549.30  including the nature of the reporter's relationship to the child 
549.31  and to the alleged offender, and the basis of the reporter's 
549.32  knowledge for the report; the child allegedly being maltreated; 
549.33  the alleged offender; the child's caretaker; and other 
549.34  collateral sources having relevant information related to the 
549.35  alleged maltreatment.  The local welfare agency or the agency 
549.36  responsible for assessing or investigating the report may make a 
550.1   determination of no maltreatment early in an assessment, and 
550.2   close the case and retain immunity, if the collected information 
550.3   shows no basis for a full assessment or investigation. 
550.4      Information relevant to the assessment or investigation 
550.5   must be asked for, and may include: 
550.6      (1) the child's sex and age, prior reports of maltreatment, 
550.7   information relating to developmental functioning, credibility 
550.8   of the child's statement, and whether the information provided 
550.9   under this clause is consistent with other information collected 
550.10  during the course of the assessment or investigation; 
550.11     (2) the alleged offender's age, a record check for prior 
550.12  reports of maltreatment, and criminal charges and convictions.  
550.13  The local welfare agency or the agency responsible for assessing 
550.14  or investigating the report must provide the alleged offender 
550.15  with an opportunity to make a statement.  The alleged offender 
550.16  may submit supporting documentation relevant to the assessment 
550.17  or investigation; 
550.18     (3) collateral source information regarding the alleged 
550.19  maltreatment and care of the child.  Collateral information 
550.20  includes, when relevant:  (i) a medical examination of the 
550.21  child; (ii) prior medical records relating to the alleged 
550.22  maltreatment or the care of the child maintained by any 
550.23  facility, clinic, or health care professional and an interview 
550.24  with the treating professionals; and (iii) interviews with the 
550.25  child's caretakers, including the child's parent, guardian, 
550.26  foster parent, child care provider, teachers, counselors, family 
550.27  members, relatives, and other persons who may have knowledge 
550.28  regarding the alleged maltreatment and the care of the child; 
550.29  and 
550.30     (4) information on the existence of domestic abuse and 
550.31  violence in the home of the child, and substance abuse. 
550.32     Nothing in this paragraph precludes the local welfare 
550.33  agency, the local law enforcement agency, or the agency 
550.34  responsible for assessing or investigating the report from 
550.35  collecting other relevant information necessary to conduct the 
550.36  assessment or investigation.  Notwithstanding section 13.384 or 
551.1   144.335, the local welfare agency has access to medical data and 
551.2   records for purposes of clause (3).  Notwithstanding the data's 
551.3   classification in the possession of any other agency, data 
551.4   acquired by the local welfare agency or the agency responsible 
551.5   for assessing or investigating the report during the course of 
551.6   the assessment or investigation are private data on individuals 
551.7   and must be maintained in accordance with subdivision 11.  Data 
551.8   of the commissioner of children, families, and learning 
551.9   collected or maintained during and for the purpose of an 
551.10  investigation of alleged maltreatment in a school are governed 
551.11  by this section, notwithstanding the data's classification as 
551.12  educational, licensing, or personnel data under chapter 13. 
551.13     In conducting an assessment or investigation involving a 
551.14  school facility as defined in subdivision 2, paragraph (f), the 
551.15  commissioner of children, families, and learning shall collect 
551.16  investigative reports and data that are relevant to a report of 
551.17  maltreatment and are from local law enforcement and the school 
551.18  facility.  
551.19     (i) In the initial stages of an assessment or 
551.20  investigation, the local welfare agency shall conduct a 
551.21  face-to-face observation of the child reported to be maltreated 
551.22  and a face-to-face interview of the alleged offender.  The 
551.23  interview with the alleged offender may be postponed if it would 
551.24  jeopardize an active law enforcement investigation. 
551.25     (j) The local welfare agency shall use a question and 
551.26  answer interviewing format with questioning as nondirective as 
551.27  possible to elicit spontaneous responses.  The following 
551.28  interviewing methods and procedures must be used whenever 
551.29  possible when collecting information: 
551.30     (1) audio recordings of all interviews with witnesses and 
551.31  collateral sources; and 
551.32     (2) in cases of alleged sexual abuse, audio-video 
551.33  recordings of each interview with the alleged victim and child 
551.34  witnesses.  
551.35     (k) In conducting an assessment or investigation involving 
551.36  a school facility as defined in subdivision 2, paragraph (f), 
552.1   the commissioner of children, families, and learning shall 
552.2   collect available and relevant information and use the 
552.3   procedures in paragraphs (h), (i), and (j), provided that the 
552.4   commissioner may also base the assessment or investigation on 
552.5   investigative reports and data received from the school facility 
552.6   and local law enforcement, to the extent those investigations 
552.7   satisfy the requirements of paragraphs (h), (i), and (j). 
552.8      Sec. 7.  Minnesota Statutes 2000, section 626.556, 
552.9   subdivision 10b, is amended to read: 
552.10     Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 
552.11  FACILITY.] (a) This section applies to the commissioners of 
552.12  human services, health, and children, families, and learning.  
552.13  The commissioner of the agency responsible for assessing or 
552.14  investigating the report shall immediately investigate if the 
552.15  report alleges that: 
552.16     (1) a child who is in the care of a facility as defined in 
552.17  subdivision 2 is neglected, physically abused, or sexually 
552.18  abused, or is the victim of maltreatment in a facility by an 
552.19  individual in that facility, or has been so neglected or abused, 
552.20  or been the victim of maltreatment in a facility by an 
552.21  individual in that facility within the three years preceding the 
552.22  report; or 
552.23     (2) a child was neglected, physically abused, or sexually 
552.24  abused, or is the victim of maltreatment in a facility by an 
552.25  individual in a facility defined in subdivision 2, while in the 
552.26  care of that facility within the three years preceding the 
552.27  report.  
552.28     The commissioner of the agency responsible for assessing or 
552.29  investigating the report shall arrange for the transmittal to 
552.30  the commissioner of reports received by local agencies and may 
552.31  delegate to a local welfare agency the duty to investigate 
552.32  reports.  In conducting an investigation under this section, the 
552.33  commissioner has the powers and duties specified for local 
552.34  welfare agencies under this section.  The commissioner of the 
552.35  agency responsible for assessing or investigating the report or 
552.36  local welfare agency may interview any children who are or have 
553.1   been in the care of a facility under investigation and their 
553.2   parents, guardians, or legal custodians. 
553.3      (b) Prior to any interview, the commissioner of the agency 
553.4   responsible for assessing or investigating the report or local 
553.5   welfare agency shall notify the parent, guardian, or legal 
553.6   custodian of a child who will be interviewed in the manner 
553.7   provided for in subdivision 10d, paragraph (a).  If reasonable 
553.8   efforts to reach the parent, guardian, or legal custodian of a 
553.9   child in an out-of-home placement have failed, the child may be 
553.10  interviewed if there is reason to believe the interview is 
553.11  necessary to protect the child or other children in the 
553.12  facility.  The commissioner of the agency responsible for 
553.13  assessing or investigating the report or local agency must 
553.14  provide the information required in this subdivision to the 
553.15  parent, guardian, or legal custodian of a child interviewed 
553.16  without parental notification as soon as possible after the 
553.17  interview.  When the investigation is completed, any parent, 
553.18  guardian, or legal custodian notified under this subdivision 
553.19  shall receive the written memorandum provided for in subdivision 
553.20  10d, paragraph (c). 
553.21     (c) In conducting investigations under this subdivision the 
553.22  commissioner or local welfare agency shall obtain access to 
553.23  information consistent with subdivision 10, paragraphs (h), (i), 
553.24  and (j). 
553.25     (d) Except for foster care and family child care, the 
553.26  commissioner has the primary responsibility for the 
553.27  investigations and notifications required under subdivisions 10d 
553.28  and 10f for reports that allege maltreatment related to the care 
553.29  provided by or in facilities licensed by the commissioner.  The 
553.30  commissioner may request assistance from the local social 
553.31  services agency. 
553.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
553.33     Sec. 8.  Minnesota Statutes 2000, section 626.556, 
553.34  subdivision 10d, as amended by Laws 2001, chapter 178, article 
553.35  2, section 13, is amended to read: 
553.36     Subd. 10d.  [NOTIFICATION OF NEGLECT OR ABUSE IN FACILITY.] 
554.1   (a) When a report is received that alleges neglect, physical 
554.2   abuse, or sexual abuse, or maltreatment of a child while in the 
554.3   care of a licensed or unlicensed day care facility, residential 
554.4   facility, agency, hospital, sanitarium, or other facility or 
554.5   institution required to be licensed according to sections 144.50 
554.6   to 144.58; 241.021; or 245A.01 to 245A.16; or chapter 245B, or a 
554.7   school as defined in sections 120A.05, subdivisions 9, 11, and 
554.8   13; and 124D.10; or a nonlicensed personal care provider 
554.9   organization as defined in section 256B.04, subdivision 16, and 
554.10  256B.0625, subdivision 19a, the commissioner of the agency 
554.11  responsible for assessing or investigating the report or local 
554.12  welfare agency investigating the report shall provide the 
554.13  following information to the parent, guardian, or legal 
554.14  custodian of a child alleged to have been neglected, physically 
554.15  abused, or sexually abused, or the victim of maltreatment of a 
554.16  child in the facility:  the name of the facility; the fact that 
554.17  a report alleging neglect, physical abuse, or sexual abuse, or 
554.18  maltreatment of a child in the facility has been received; the 
554.19  nature of the alleged neglect, physical abuse, or sexual abuse, 
554.20  or maltreatment of a child in the facility; that the agency is 
554.21  conducting an assessment or investigation; any protective or 
554.22  corrective measures being taken pending the outcome of the 
554.23  investigation; and that a written memorandum will be provided 
554.24  when the investigation is completed. 
554.25     (b) The commissioner of the agency responsible for 
554.26  assessing or investigating the report or local welfare agency 
554.27  may also provide the information in paragraph (a) to the parent, 
554.28  guardian, or legal custodian of any other child in the facility 
554.29  if the investigative agency knows or has reason to believe the 
554.30  alleged neglect, physical abuse, or sexual abuse, or 
554.31  maltreatment of a child in the facility has occurred. In 
554.32  determining whether to exercise this authority, the commissioner 
554.33  of the agency responsible for assessing or investigating the 
554.34  report or local welfare agency shall consider the seriousness of 
554.35  the alleged neglect, physical abuse, or sexual abuse, or 
554.36  maltreatment of a child in the facility; the number of children 
555.1   allegedly neglected, physically abused, or sexually abused, or 
555.2   victims of maltreatment of a child in the facility; the number 
555.3   of alleged perpetrators; and the length of the investigation.  
555.4   The facility shall be notified whenever this discretion is 
555.5   exercised. 
555.6      (c) When the commissioner of the agency responsible for 
555.7   assessing or investigating the report or local welfare agency 
555.8   has completed its investigation, every parent, guardian, or 
555.9   legal custodian previously notified of the investigation by the 
555.10  commissioner or local welfare agency shall be provided with the 
555.11  following information in a written memorandum:  the name of the 
555.12  facility investigated; the nature of the alleged neglect, 
555.13  physical abuse, or sexual abuse, or maltreatment of a child in 
555.14  the facility; the investigator's name; a summary of the 
555.15  investigation findings; a statement whether maltreatment was 
555.16  found; and the protective or corrective measures that are being 
555.17  or will be taken.  The memorandum shall be written in a manner 
555.18  that protects the identity of the reporter and the child and 
555.19  shall not contain the name, or to the extent possible, reveal 
555.20  the identity of the alleged perpetrator or of those interviewed 
555.21  during the investigation.  If maltreatment is determined to 
555.22  exist, the commissioner or local welfare agency shall also 
555.23  provide the written memorandum to the parent, guardian, or legal 
555.24  custodian of each child in the facility if maltreatment is 
555.25  determined to exist who had contact with the individual 
555.26  responsible for the maltreatment.  When the facility is the 
555.27  responsible party for maltreatment, the commissioner or local 
555.28  welfare agency shall also provide the written memorandum to the 
555.29  parent, guardian, or legal custodian of each child who received 
555.30  services in the population of the facility where the 
555.31  maltreatment occurred.  This notification must be provided to 
555.32  the parent, guardian, or legal custodian of each child receiving 
555.33  services from the time the maltreatment occurred until either 
555.34  the individual responsible for maltreatment is no longer in 
555.35  contact with a child or children in the facility or the 
555.36  conclusion of the investigation.  In the case of maltreatment 
556.1   within a school facility, as defined in sections 120A.05, 
556.2   subdivisions 9, 11, and 13, and 124D.10, the commissioner of 
556.3   children, families, and learning need not provide notification 
556.4   to parents, guardians, or legal custodians of each child in the 
556.5   facility, but may provide notification to the parent, guardian, 
556.6   or legal custodian of any student alleged to have been 
556.7   maltreated or involved as a witness to alleged maltreatment. 
556.8      Sec. 9.  Minnesota Statutes 2000, section 626.556, 
556.9   subdivision 10e, is amended to read: 
556.10     Subd. 10e.  [DETERMINATIONS.] Upon the conclusion of every 
556.11  assessment or investigation it conducts, the local welfare 
556.12  agency shall make two determinations:  first, whether 
556.13  maltreatment has occurred; and second, whether child protective 
556.14  services are needed.  When maltreatment is determined in an 
556.15  investigation involving a facility, the investigating agency 
556.16  shall also determine whether the facility or individual was 
556.17  responsible for the maltreatment using the mitigating factors in 
556.18  paragraph (d).  Determinations under this subdivision must be 
556.19  made based on a preponderance of the evidence. 
556.20     (a) For the purposes of this subdivision, "maltreatment" 
556.21  means any of the following acts or omissions committed by a 
556.22  person responsible for the child's care: 
556.23     (1) physical abuse as defined in subdivision 2, paragraph 
556.24  (d); 
556.25     (2) neglect as defined in subdivision 2, paragraph (c); 
556.26     (3) sexual abuse as defined in subdivision 2, paragraph 
556.27  (a); or 
556.28     (4) mental injury as defined in subdivision 2, paragraph 
556.29  (k); or 
556.30     (5) maltreatment of a child in a facility as defined in 
556.31  subdivision 2, paragraph (f). 
556.32     (b) For the purposes of this subdivision, a determination 
556.33  that child protective services are needed means that the local 
556.34  welfare agency has documented conditions during the assessment 
556.35  or investigation sufficient to cause a child protection worker, 
556.36  as defined in section 626.559, subdivision 1, to conclude that a 
557.1   child is at significant risk of maltreatment if protective 
557.2   intervention is not provided and that the individuals 
557.3   responsible for the child's care have not taken or are not 
557.4   likely to take actions to protect the child from maltreatment or 
557.5   risk of maltreatment. 
557.6      (c) This subdivision does not mean that maltreatment has 
557.7   occurred solely because the child's parent, guardian, or other 
557.8   person responsible for the child's care in good faith selects 
557.9   and depends upon spiritual means or prayer for treatment or care 
557.10  of disease or remedial care of the child, in lieu of medical 
557.11  care.  However, if lack of medical care may result in serious 
557.12  danger to the child's health, the local welfare agency may 
557.13  ensure that necessary medical services are provided to the child.
557.14     (d) When determining whether the facility or individual is 
557.15  the responsible party for determined maltreatment in a facility, 
557.16  the investigating agency shall consider at least the following 
557.17  mitigating factors: 
557.18     (1) whether the actions of the facility or the individual 
557.19  caregivers were according to, and followed the terms of, an 
557.20  erroneous physician order, prescription, individual care plan, 
557.21  or directive; however, this is not a mitigating factor when the 
557.22  facility or caregiver was responsible for the issuance of the 
557.23  erroneous order, prescription, individual care plan, or 
557.24  directive or knew or should have known of the errors and took no 
557.25  reasonable measures to correct the defect before administering 
557.26  care; 
557.27     (2) comparative responsibility between the facility, other 
557.28  caregivers, and requirements placed upon an employee, including 
557.29  the facility's compliance with related regulatory standards and 
557.30  the adequacy of facility policies and procedures, facility 
557.31  training, an individual's participation in the training, the 
557.32  caregiver's supervision, and facility staffing levels and the 
557.33  scope of the individual employee's authority and discretion; and 
557.34     (3) whether the facility or individual followed 
557.35  professional standards in exercising professional judgment. 
557.36     Individual counties may implement more detailed definitions 
558.1   or criteria that indicate which allegations to investigate, as 
558.2   long as a county's policies are consistent with the definitions 
558.3   in the statutes and rules and are approved by the county board.  
558.4   Each local welfare agency shall periodically inform mandated 
558.5   reporters under subdivision 3 who work in the county of the 
558.6   definitions of maltreatment in the statutes and rules and any 
558.7   additional definitions or criteria that have been approved by 
558.8   the county board. 
558.9      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
558.10     Sec. 10.  Minnesota Statutes 2000, section 626.556, 
558.11  subdivision 10f, is amended to read: 
558.12     Subd. 10f.  [NOTICE OF DETERMINATIONS.] Within ten working 
558.13  days of the conclusion of an assessment, the local welfare 
558.14  agency or agency responsible for assessing or investigating the 
558.15  report shall notify the parent or guardian of the child, the 
558.16  person determined to be maltreating the child, and if 
558.17  applicable, the director of the facility, of the determination 
558.18  and a summary of the specific reasons for the determination.  
558.19  The notice must also include a certification that the 
558.20  information collection procedures under subdivision 10, 
558.21  paragraphs (h), (i), and (j), were followed and a notice of the 
558.22  right of a data subject to obtain access to other private data 
558.23  on the subject collected, created, or maintained under this 
558.24  section.  In addition, the notice shall include the length of 
558.25  time that the records will be kept under subdivision 11c.  The 
558.26  investigating agency shall notify the parent or guardian of the 
558.27  child who is the subject of the report, and any person or 
558.28  facility determined to have maltreated a child, of their 
558.29  appeal or review rights under this section or section 256.022. 
558.30     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
558.31     Sec. 11.  Minnesota Statutes 2000, section 626.556, 
558.32  subdivision 11, is amended to read: 
558.33     Subd. 11.  [RECORDS.] (a) Except as provided in paragraph 
558.34  (b) or (c) and subdivisions 10b, 10d, 10g, and 11b, all records 
558.35  concerning individuals maintained by a local welfare agency or 
558.36  agency responsible for assessing or investigating the report 
559.1   under this section, including any written reports filed under 
559.2   subdivision 7, shall be private data on individuals, except 
559.3   insofar as copies of reports are required by subdivision 7 to be 
559.4   sent to the local police department or the county sheriff.  
559.5   Reports maintained by any police department or the county 
559.6   sheriff shall be private data on individuals except the reports 
559.7   shall be made available to the investigating, petitioning, or 
559.8   prosecuting authority, including county medical examiners or 
559.9   county coroners.  Section 13.82, subdivisions 7, 5a, and 5b, 
559.10  apply to law enforcement data other than the reports.  The local 
559.11  social services agency or agency responsible for assessing or 
559.12  investigating the report shall make available to the 
559.13  investigating, petitioning, or prosecuting authority, including 
559.14  county medical examiners or county coroners or their 
559.15  professional delegates, any records which contain information 
559.16  relating to a specific incident of neglect or abuse which is 
559.17  under investigation, petition, or prosecution and information 
559.18  relating to any prior incidents of neglect or abuse involving 
559.19  any of the same persons.  The records shall be collected and 
559.20  maintained in accordance with the provisions of chapter 13.  In 
559.21  conducting investigations and assessments pursuant to this 
559.22  section, the notice required by section 13.04, subdivision 2, 
559.23  need not be provided to a minor under the age of ten who is the 
559.24  alleged victim of abuse or neglect.  An individual subject of a 
559.25  record shall have access to the record in accordance with those 
559.26  sections, except that the name of the reporter shall be 
559.27  confidential while the report is under assessment or 
559.28  investigation except as otherwise permitted by this 
559.29  subdivision.  Any person conducting an investigation or 
559.30  assessment under this section who intentionally discloses the 
559.31  identity of a reporter prior to the completion of the 
559.32  investigation or assessment is guilty of a misdemeanor.  After 
559.33  the assessment or investigation is completed, the name of the 
559.34  reporter shall be confidential.  The subject of the report may 
559.35  compel disclosure of the name of the reporter only with the 
559.36  consent of the reporter or upon a written finding by the court 
560.1   that the report was false and that there is evidence that the 
560.2   report was made in bad faith.  This subdivision does not alter 
560.3   disclosure responsibilities or obligations under the rules of 
560.4   criminal procedure. 
560.5      (b) Upon request of the legislative auditor, data on 
560.6   individuals maintained under this section must be released to 
560.7   the legislative auditor in order for the auditor to fulfill the 
560.8   auditor's duties under section 3.971.  The auditor shall 
560.9   maintain the data in accordance with chapter 13. 
560.10     (c) The investigating agency shall exchange not public data 
560.11  with the child maltreatment review panel under section 256.022 
560.12  if the data are pertinent and necessary for a review requested 
560.13  under section 256.022.  Upon completion of the review, the not 
560.14  public data received by the review panel must be returned to the 
560.15  investigating agency.  
560.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
560.17     Sec. 12.  Minnesota Statutes 2000, section 626.556, 
560.18  subdivision 12, is amended to read: 
560.19     Subd. 12.  [DUTIES OF FACILITY OPERATORS.] Any operator, 
560.20  employee, or volunteer worker at any facility who intentionally 
560.21  neglects, physically abuses, or sexually abuses any child in the 
560.22  care of that facility may be charged with a violation of section 
560.23  609.255, 609.377, or 609.378.  Any operator of a facility who 
560.24  knowingly permits conditions to exist which result in neglect, 
560.25  physical abuse, or sexual abuse, or maltreatment of a child in a 
560.26  facility while in the care of that facility may be charged with 
560.27  a violation of section 609.378.  The facility operator shall 
560.28  inform all mandated reporters employed by or otherwise 
560.29  associated with the facility of the duties required of mandated 
560.30  reporters and shall inform all mandatory reporters of the 
560.31  prohibition against retaliation for reports made in good faith 
560.32  under this section. 
560.33     Sec. 13.  Minnesota Statutes 2000, section 626.559, 
560.34  subdivision 2, is amended to read: 
560.35     Subd. 2.  [JOINT TRAINING.] The commissioners of human 
560.36  services and public safety shall cooperate in the development of 
561.1   a joint program for training child abuse services professionals 
561.2   in the appropriate techniques for child abuse assessment and 
561.3   investigation.  The program shall include but need not be 
561.4   limited to the following areas: 
561.5      (1) the public policy goals of the state as set forth in 
561.6   section 260C.001 and the role of the assessment or investigation 
561.7   in meeting these goals; 
561.8      (2) the special duties of child protection workers and law 
561.9   enforcement officers under section 626.556; 
561.10     (3) the appropriate methods for directing and managing 
561.11  affiliated professionals who may be utilized in providing 
561.12  protective services and strengthening family ties; 
561.13     (4) the appropriate methods for interviewing alleged 
561.14  victims of child abuse and other minors in the course of 
561.15  performing an assessment or an investigation; 
561.16     (5) the dynamics of child abuse and neglect within family 
561.17  systems and the appropriate methods for interviewing parents in 
561.18  the course of the assessment or investigation, including 
561.19  training in recognizing cases in which one of the parents is a 
561.20  victim of domestic abuse and in need of special legal or medical 
561.21  services; 
561.22     (6) the legal, evidentiary considerations that may be 
561.23  relevant to the conduct of an assessment or an investigation; 
561.24     (7) the circumstances under which it is appropriate to 
561.25  remove the alleged abuser or the alleged victim from the home; 
561.26     (8) the protective social services that are available to 
561.27  protect alleged victims from further abuse, to prevent child 
561.28  abuse and domestic abuse, and to preserve the family unit, and 
561.29  training in the preparation of case plans to coordinate services 
561.30  for the alleged child abuse victim with services for any parents 
561.31  who are victims of domestic abuse; and 
561.32     (9) the methods by which child protection workers and law 
561.33  enforcement workers cooperate in conducting assessments and 
561.34  investigations in order to avoid duplication of efforts; and 
561.35     (10) appropriate methods for interviewing alleged victims 
561.36  of child abuse and conducting investigations in cases where the 
562.1   alleged victim is developmentally, physically, or mentally 
562.2   disabled. 
562.3      Sec. 14.  [CHILD WELFARE COST CONSOLIDATION REPORT.] 
562.4      By January 15, 2002, the commissioner of human services 
562.5   shall report to the chairs and ranking minority members of 
562.6   appropriate legislative committees the feasibility and cost of 
562.7   creating a single benefit package for all children removed from 
562.8   the care of a parent or guardian pursuant to a court order under 
562.9   Minnesota Statutes, chapter 260C, regardless of a particular 
562.10  child's legal status.  Legal status includes any placement away 
562.11  from the parent or guardian, including foster or other 
562.12  residential care, guardianship with the commissioner, adoption, 
562.13  or legal custody with a relative except a birth or adoptive 
562.14  parent.  The report shall be prepared after consultation with 
562.15  public and private child-placing agencies, foster and adoptive 
562.16  parents, relatives who are legal custodians, judges, county 
562.17  attorneys, attorneys for children and parents, guardians ad 
562.18  litem, representatives of the councils on Asian-Pacific, African 
562.19  American, American Indian, and Spanish-speaking Minnesotans, and 
562.20  other appropriate child protection system stakeholders.  The 
562.21  benefit package addressed in the report shall include the cost 
562.22  of room and board, additional monthly payments associated with 
562.23  special efforts a caretaker must make or special skills or 
562.24  training a caretaker must have in order to adequately address 
562.25  the daily needs of the child, the availability of respite care, 
562.26  and any other costs associated with safely maintaining a 
562.27  particular child in a legally secure home and adequately 
562.28  addressing any special needs the child may have. 
562.29     Sec. 15. [STUDY OF OUTCOMES FOR CHILDREN IN THE CHILD 
562.30  PROTECTION SYSTEM.] 
562.31     (a) The commissioner of human services, in consultation 
562.32  with local social services agencies, councils of color, 
562.33  representatives of communities of color, child advocates, 
562.34  representatives of courts, and other interested parties, shall 
562.35  study why African American children in Minnesota are 
562.36  disproportionately represented in child welfare out-of-home 
563.1   placements.  The commissioner also shall study each stage of the 
563.2   proceedings concerning children in need of protection or 
563.3   services, including the point at which children enter the child 
563.4   welfare system, each decision-making point in the child welfare 
563.5   system, and the outcomes for children in the child welfare 
563.6   system, to determine why outcomes for children differ by race.  
563.7   The commissioner shall use child welfare performance and outcome 
563.8   indicators and data and other available data as part of this 
563.9   study.  The commissioner also shall study and determine if there 
563.10  are decision-making points in the child protection system that 
563.11  lead to different outcomes for children and how those 
563.12  decision-making points affect outcomes for children.  The 
563.13  commissioner shall report and make legislative recommendations 
563.14  on the following: 
563.15     (1) amend the child protection statutes to reduce any 
563.16  identified disparities in the child protection system relating 
563.17  to outcomes for children of color, as compared to white 
563.18  children; 
563.19     (2) reduce any identified bias in the child protection 
563.20  system; 
563.21     (3) reduce the number and duration of out-of-home 
563.22  placements for African American children; and 
563.23     (4) improve the long-term outcomes for African American 
563.24  children in out-of-home placements. 
563.25     (b) The commissioner of human services shall submit the 
563.26  report and recommended legislation to the chairs and ranking 
563.27  minority members of the committees in the house of 
563.28  representatives and senate with jurisdiction over child 
563.29  protection and out-of-home placement issues by January 15, 2002. 
563.30                             ARTICLE 12
563.31                           CHILD SUPPORT
563.32     Section 1.  Minnesota Statutes 2000, section 13B.06, 
563.33  subdivision 7, is amended to read: 
563.34     Subd. 7.  [FEES.] A financial institution may charge and 
563.35  collect a fee from the public authority for providing account 
563.36  information to the public authority.  The commissioner may pay a 
564.1   financial institution up to $150 each quarter if the 
564.2   commissioner and the financial institution have entered into a 
564.3   signed agreement that complies with federal law.  The 
564.4   commissioner shall develop procedures for the financial 
564.5   institutions to charge and collect the fee.  Payment of the fee 
564.6   is limited by the amount of the appropriation for this purpose.  
564.7   If the appropriation is insufficient, or if fund availability in 
564.8   the fourth quarter would allow payments for actual costs in 
564.9   excess of $150, the commissioner shall prorate the available 
564.10  funds among the financial institutions that have submitted a 
564.11  claim for the fee.  No financial institution shall charge or 
564.12  collect a fee that exceeds its actual costs of complying with 
564.13  this section.  The commissioner, together with an advisory group 
564.14  consisting of representatives of the financial institutions in 
564.15  the state, shall determine a fee structure that minimizes the 
564.16  cost to the state and reasonably meets the needs of the 
564.17  financial institutions, and shall report to the chairs of the 
564.18  judiciary committees in the house of representatives and the 
564.19  senate by February 1, 1998, a recommended fee structure for 
564.20  inclusion in this section evaluate whether the fee paid to 
564.21  financial institutions compensates them for their actual costs, 
564.22  including start-up costs, of complying with this section and 
564.23  shall submit a report to the legislature by July 1, 2002, with a 
564.24  recommendation for retaining or modifying the fee. 
564.25     Sec. 2.  Minnesota Statutes 2000, section 256.741, 
564.26  subdivision 1, is amended to read: 
564.27     Subdivision 1.  [PUBLIC ASSISTANCE.] (a) The term "direct 
564.28  support" as used in this chapter and chapters 257, 518, and 518C 
564.29  refers to an assigned support payment from an obligor which is 
564.30  paid directly to a recipient of TANF or MFIP. 
564.31     (b) The term "public assistance" as used in this chapter 
564.32  and chapters 257, 518, and 518C, includes any form of assistance 
564.33  provided under the AFDC program formerly codified in sections 
564.34  256.72 to 256.87, MFIP and MFIP-R formerly codified under 
564.35  chapter 256, MFIP under chapter 256J, work first program under 
564.36  chapter 256K; child care assistance provided through the child 
565.1   care fund under chapter 119B; any form of medical assistance 
565.2   under chapter 256B; MinnesotaCare under chapter 256L; and foster 
565.3   care as provided under title IV-E of the Social Security Act. 
565.4      (b) (c) The term "child support agency" as used in this 
565.5   section refers to the public authority responsible for child 
565.6   support enforcement. 
565.7      (c) (d) The term "public assistance agency" as used in this 
565.8   section refers to a public authority providing public assistance 
565.9   to an individual. 
565.10     Sec. 3.  Minnesota Statutes 2000, section 256.741, 
565.11  subdivision 5, is amended to read: 
565.12     Subd. 5.  [COOPERATION WITH CHILD SUPPORT ENFORCEMENT.] 
565.13  After notification from a public assistance agency that an 
565.14  individual has applied for or is receiving any form of public 
565.15  assistance, the child support agency shall determine whether the 
565.16  party is cooperating with the agency in establishing paternity, 
565.17  child support, modification of an existing child support order, 
565.18  or enforcement of an existing child support order.  The public 
565.19  assistance agency shall notify each applicant or recipient in 
565.20  writing of the right to claim a good cause exemption from 
565.21  cooperating with the requirements in this section.  A copy of 
565.22  the notice must be furnished to the applicant or recipient, and 
565.23  the applicant or recipient and a representative from the public 
565.24  authority shall acknowledge receipt of the notice by signing and 
565.25  dating a copy of the notice.  The individual shall cooperate 
565.26  with the child support agency by: 
565.27     (1) providing all known information regarding the alleged 
565.28  father or obligor, including name, address, social security 
565.29  number, telephone number, place of employment or school, and the 
565.30  names and addresses of any relatives; 
565.31     (2) appearing at interviews, hearings and legal 
565.32  proceedings; 
565.33     (3) submitting to genetic tests including genetic testing 
565.34  of the child, under a judicial or administrative order; and 
565.35     (4) providing additional information known by the 
565.36  individual as necessary for cooperating in good faith with the 
566.1   child support agency. 
566.2      The caregiver of a minor child must cooperate with the 
566.3   efforts of the public authority to collect support according to 
566.4   this subdivision.  A caregiver must forward to notify the public 
566.5   authority of all support the caregiver receives during the 
566.6   period the assignment of support required under subdivision 2 is 
566.7   in effect.  Support received by a caregiver and not forwarded to 
566.8   the public authority must be repaid to the child support 
566.9   enforcement unit for any month following the date on which 
566.10  initial eligibility is determined Direct support retained by a 
566.11  caregiver must be counted as unearned income when determining 
566.12  the amount of the assistance payment, except as provided under 
566.13  subdivision 8, paragraph (b), clause (4) and repaid to the child 
566.14  support agency for any month when the direct support retained is 
566.15  greater than the court-ordered child support and the assistance 
566.16  payment and the obligor owes support arrears. 
566.17     Sec. 4.  Minnesota Statutes 2000, section 256.741, 
566.18  subdivision 8, is amended to read: 
566.19     Subd. 8.  [REFUSAL TO COOPERATE WITH SUPPORT REQUIREMENTS.] 
566.20  (a) Failure by a caregiver to satisfy any of the requirements of 
566.21  subdivision 5 constitutes refusal to cooperate, and the 
566.22  sanctions under paragraph (b) apply.  The IV-D agency must 
566.23  determine whether a caregiver has refused to cooperate according 
566.24  to subdivision 5. 
566.25     (b) Determination by the IV-D agency that a caregiver has 
566.26  refused to cooperate has the following effects: 
566.27     (1) a caregiver is subject to the applicable sanctions 
566.28  under section 256J.46; 
566.29     (2) a caregiver who is not a parent of a minor child in an 
566.30  assistance unit may choose to remove the child from the 
566.31  assistance unit unless the child is required to be in the 
566.32  assistance unit; and 
566.33     (3) a parental caregiver who refuses to cooperate is 
566.34  ineligible for medical assistance; and 
566.35     (4) direct support retained by a caregiver must be counted 
566.36  as unearned income when determining the amount of the assistance 
567.1   payment. 
567.2      Sec. 5.  Minnesota Statutes 2000, section 256.979, 
567.3   subdivision 5, is amended to read: 
567.4      Subd. 5.  [PATERNITY ESTABLISHMENT AND CHILD SUPPORT ORDER 
567.5   ESTABLISHMENT AND MODIFICATION BONUS INCENTIVES.] (a) A bonus 
567.6   incentive program is created to increase the number of paternity 
567.7   establishments and establishment and modifications of child 
567.8   support orders done by county child support enforcement agencies.
567.9      (b) A bonus must be awarded to a county child support 
567.10  agency for each case child for which the agency completes a 
567.11  paternity or child support order establishment or modification 
567.12  through judicial or administrative processes. 
567.13     (c) The rate of bonus incentive is $100 per child for each 
567.14  paternity or child support order establishment and modification 
567.15  set in a specific dollar amount. 
567.16     (d) No bonus shall be paid for a modification that is a 
567.17  result of a termination of child care costs according to section 
567.18  518.551, subdivision 5, paragraph (b), or due solely to a 
567.19  reduction of child care expenses. 
567.20     Sec. 6.  Minnesota Statutes 2000, section 256.979, 
567.21  subdivision 6, is amended to read: 
567.22     Subd. 6.  [CLAIMS FOR BONUS INCENTIVE.] (a) The 
567.23  commissioner of human services and the county agency shall 
567.24  develop procedures for the claims process and criteria using 
567.25  automated systems where possible. 
567.26     (b) Only one county agency may receive a bonus per 
567.27  paternity establishment or child support order establishment or 
567.28  modification for each case child.  The county agency completing 
567.29  the action or procedure needed to establish paternity or a child 
567.30  support order or modify an order is the county agency entitled 
567.31  to claim the bonus incentive. 
567.32     (c) Disputed claims must be submitted to the commissioner 
567.33  of human services and the commissioner's decision is final. 
567.34     (d) For purposes of this section, "case" means a family 
567.35  unit for whom the county agency is providing child support 
567.36  enforcement services.  
568.1      Sec. 7.  Minnesota Statutes 2000, section 393.07, is 
568.2   amended by adding a subdivision to read: 
568.3      Subd. 9a.  [ADMINISTRATIVE PENALTIES.] (a) The public 
568.4   authority, as defined in section 518.54, may sanction an 
568.5   employer or payor of funds $25 per day, up to $500 per incident, 
568.6   for failing to comply with section 518.5513, subdivision 5, 
568.7   paragraph (a), clauses (5) and (8), if: 
568.8      (1) the public authority mails the employer or payor of 
568.9   funds by certified mail a notice of an administrative sanction, 
568.10  at the employer's or payor's of funds last known address, which 
568.11  includes the date the sanction will take effect, the amount of 
568.12  the sanction, the reason for imposing the sanction, and the 
568.13  corrective action that must be taken to avoid the sanction; and 
568.14     (2) the employer or payor of funds fails to correct the 
568.15  violation before the effective date of the sanction. 
568.16     (b) The public authority shall include with the sanction 
568.17  notice an additional notice of the right to appeal the sanction 
568.18  and the process for making the appeal.  
568.19     (c) Unless an appeal is made, the administrative 
568.20  determination of the sanction is final and binding. 
568.21     Sec. 8.  Minnesota Statutes 2000, section 518.5513, 
568.22  subdivision 5, is amended to read: 
568.23     Subd. 5.  [ADMINISTRATIVE AUTHORITY.] (a) The public 
568.24  authority may take the following actions relating to 
568.25  establishment of paternity or to establishment, modification, or 
568.26  enforcement of support orders, without the necessity of 
568.27  obtaining an order from any judicial or administrative tribunal: 
568.28     (1) recognize and enforce orders of child support agencies 
568.29  of other states; 
568.30     (2) upon request for genetic testing by a child, parent, or 
568.31  any alleged parent, and using the procedure in paragraph (b), 
568.32  order the child, parent, or alleged parent to submit to blood or 
568.33  genetic testing for the purpose of establishing paternity; 
568.34     (3) subpoena financial or other information needed to 
568.35  establish, modify, or enforce a child support order and request 
568.36  sanctions sanction a party for failure to respond to a subpoena; 
569.1      (4) upon notice to the obligor, obligee, and the 
569.2   appropriate court, direct the obligor or other payor to change 
569.3   the payee to the central collections unit under sections 
569.4   518.5851 to 518.5853; 
569.5      (5) order income withholding of child support under section 
569.6   518.6111 and sanction an employer or payor of funds pursuant to 
569.7   section 393.07, subdivision 9a, for failing to comply with an 
569.8   income withholding notice; 
569.9      (6) secure assets to satisfy the debt or arrearage in cases 
569.10  in which there is a support debt or arrearage by: 
569.11     (i) intercepting or seizing periodic or lump sum payments 
569.12  from state or local agencies, including unemployment benefits, 
569.13  workers' compensation payments, judgments, settlements, 
569.14  lotteries, and other lump sum payments; 
569.15     (ii) attaching and seizing assets of the obligor held in 
569.16  financial institutions or public or private retirement funds; 
569.17  and 
569.18     (iii) imposing liens in accordance with section 548.091 
569.19  and, in appropriate cases, forcing the sale of property and the 
569.20  distribution of proceeds; 
569.21     (7) for the purpose of securing overdue support, increase 
569.22  the amount of the monthly support payments by an additional 
569.23  amount equal to 20 percent of the monthly support payment to 
569.24  include amounts for debts or arrearages; and 
569.25     (8) subpoena an employer or payor of funds to provide 
569.26  promptly information on the employment, compensation, and 
569.27  benefits of an individual employed by that employer as an 
569.28  employee or contractor, and to request sanctions sanction an 
569.29  employer or payor of funds pursuant to section 393.07, 
569.30  subdivision 9a, for failure to respond to the subpoena as 
569.31  provided by law. 
569.32     (b) A request for genetic testing by a child, parent, or 
569.33  alleged parent must be supported by a sworn statement by the 
569.34  person requesting genetic testing alleging paternity, which sets 
569.35  forth facts establishing a reasonable possibility of the 
569.36  requisite sexual contact between the parties, or denying 
570.1   paternity, and setting forth facts establishing a reasonable 
570.2   possibility of the nonexistence of sexual contact between the 
570.3   alleged parties.  The order for genetic tests may be served 
570.4   anywhere within the state and served outside the state in the 
570.5   same manner as prescribed by law for service of subpoenas issued 
570.6   by the district court of this state.  If the child, parent, or 
570.7   alleged parent fails to comply with the genetic testing order, 
570.8   the public authority may seek to enforce that order in district 
570.9   court through a motion to compel testing.  No results obtained 
570.10  through genetic testing done in response to an order issued 
570.11  under this section may be used in any criminal proceeding. 
570.12     (c) Subpoenas may be served anywhere within the state and 
570.13  served outside the state in the same manner as prescribed by law 
570.14  for service of process of subpoenas issued by the district court 
570.15  of this state.  When a subpoena under this subdivision is served 
570.16  on a third-party recordkeeper, written notice of the subpoena 
570.17  shall be mailed to the person who is the subject of the 
570.18  subpoenaed material at the person's last known address within 
570.19  three days of the day the subpoena is served.  This notice 
570.20  provision does not apply if there is reasonable cause to believe 
570.21  the giving of the notice may lead to interference with the 
570.22  production of the subpoenaed documents. 
570.23     (d) A person served with a subpoena may make a written 
570.24  objection to the public authority or court before the time 
570.25  specified in the subpoena for compliance.  The public authority 
570.26  or the court shall cancel or modify the subpoena, if 
570.27  appropriate.  The public authority shall pay the reasonable 
570.28  costs of producing the documents, if requested. 
570.29     (e) Subpoenas are enforceable in the same manner as 
570.30  subpoenas of the district court.  Upon motion of the county 
570.31  attorney, the court may issue an order directing the production 
570.32  of the records.  Failure to comply with the court order may 
570.33  subject the person who fails to comply to civil or criminal 
570.34  contempt of court. 
570.35     (f) The administrative actions under this subdivision are 
570.36  subject to due process safeguards, including requirements for 
571.1   notice, opportunity to contest the action, and opportunity to 
571.2   appeal the order to the judge, judicial officer, or child 
571.3   support magistrate. 
571.4      Sec. 9.  Minnesota Statutes 2000, section 518.575, 
571.5   subdivision 1, is amended to read: 
571.6      Subdivision 1.  [MAKING NAMES PUBLIC.] At least once each 
571.7   year, the commissioner of human services, in consultation with 
571.8   the attorney general, shall may publish a list of the names and 
571.9   other identifying information of no more than 25 persons who (1) 
571.10  are child support obligors, (2) are at least $10,000 in arrears, 
571.11  (3) are not in compliance with a written payment agreement 
571.12  regarding both current support and arrearages approved by the 
571.13  court, a child support magistrate, or the public authority, (4) 
571.14  cannot currently be located by the public authority for the 
571.15  purposes of enforcing a support order, and (5) have not made a 
571.16  support payment except tax intercept payments, in the preceding 
571.17  12 months. 
571.18     Identifying information may include the obligor's name, 
571.19  last known address, amount owed, date of birth, photograph, the 
571.20  number of children for whom support is owed, and any additional 
571.21  information about the obligor that would assist in identifying 
571.22  or locating the obligor.  The commissioner and attorney general 
571.23  may use posters, media presentations, electronic technology, and 
571.24  other means that the commissioner and attorney general determine 
571.25  are appropriate for dissemination of the information, including 
571.26  publication on the Internet.  The commissioner and attorney 
571.27  general may make any or all of the identifying information 
571.28  regarding these persons public.  Information regarding an 
571.29  obligor who meets the criteria in this subdivision will only be 
571.30  made public subsequent to that person's selection by the 
571.31  commissioner and attorney general. 
571.32     Before making public the name of the obligor, the 
571.33  department of human services shall send a notice to the 
571.34  obligor's last known address which states the department's 
571.35  intention to make public information on the obligor.  The notice 
571.36  must also provide an opportunity to have the obligor's name 
572.1   removed from the list by paying the arrearage or by entering 
572.2   into an agreement to pay the arrearage, or by providing 
572.3   information to the public authority that there is good cause not 
572.4   to make the information public.  The notice must include the 
572.5   final date when the payment or agreement can be accepted. 
572.6      The department of human services shall obtain the written 
572.7   consent of the obligee to make the name of the obligor public. 
572.8      Sec. 10.  Minnesota Statutes 2000, section 518.5851, is 
572.9   amended by adding a subdivision to read: 
572.10     Subd. 7.  [UNCLAIMED SUPPORT FUNDS.] "Unclaimed support 
572.11  funds" means any support payments collected by the public 
572.12  authority from the obligor, which have not been disbursed to the 
572.13  obligee or public authority. 
572.14     Sec. 11.  Minnesota Statutes 2000, section 518.5853, is 
572.15  amended by adding a subdivision to read: 
572.16     Subd. 12.  [UNCLAIMED SUPPORT FUNDS.] (a) If support 
572.17  payments have not been disbursed to an obligee because the 
572.18  obligee is not located, the public authority shall continue 
572.19  locate efforts for one year from the date the public authority 
572.20  determines that the obligee is not located. 
572.21     (b) If the public authority is unable to locate the obligee 
572.22  after one year, the public authority shall mail a written notice 
572.23  to the obligee at the obligee's last known address.  The notice 
572.24  shall give the obligee 60 days to contact the public authority.  
572.25  If the obligee does not contact the public authority within 60 
572.26  days from the date of notice, the public authority shall: 
572.27     (1) close the nonpublic assistance portion of the case; 
572.28     (2) disburse unclaimed support funds to pay public 
572.29  assistance arrears.  If public assistance arrears remain after 
572.30  disbursing the unclaimed support funds, the public authority may 
572.31  continue enforcement and collection of child support until all 
572.32  public assistance arrears have been paid.  If there are no 
572.33  public assistance arrears, or unclaimed support funds remain 
572.34  after paying public assistance arrears, remaining unclaimed 
572.35  support funds shall be returned to the obligor; and 
572.36     (3) mail, when all public assistance arrears have been paid 
573.1   the public authority, to the obligor at the obligor's last known 
573.2   address a written notice of termination of income withholding 
573.3   and case closure due to the public authority's inability to 
573.4   locate the obligee.  The notice must indicate that the obligor's 
573.5   support or maintenance obligation will remain in effect until 
573.6   further order of the court and must inform the obligor that the 
573.7   obligor can contact the public authority for assistance to 
573.8   modify the order.  A copy of the form prepared by the state 
573.9   court administrator's office under section 518.64, subdivision 
573.10  5, must be included with the notice.  
573.11     (c) If the obligor is not located when attempting to return 
573.12  unclaimed support funds, the public authority shall continue 
573.13  locate efforts for one year from the date the public authority 
573.14  determines that the obligor is not located.  If the public 
573.15  authority is unable to locate the obligor after one year, the 
573.16  funds shall be treated as unclaimed property according to 
573.17  federal law and chapter 345. 
573.18     Sec. 12.  Minnesota Statutes 2000, section 518.6111, 
573.19  subdivision 5, is amended to read: 
573.20     Subd. 5.  [PAYOR OF FUNDS RESPONSIBILITIES.] (a) An order 
573.21  for or notice of withholding is binding on a payor of funds upon 
573.22  receipt.  Withholding must begin no later than the first pay 
573.23  period that occurs after 14 days following the date of receipt 
573.24  of the order for or notice of withholding.  In the case of a 
573.25  financial institution, preauthorized transfers must occur in 
573.26  accordance with a court-ordered payment schedule. 
573.27     (b) A payor of funds shall withhold from the income payable 
573.28  to the obligor the amount specified in the order or notice of 
573.29  withholding and amounts specified under subdivisions 6 and 9 and 
573.30  shall remit the amounts withheld to the public authority within 
573.31  seven business days of the date the obligor is paid the 
573.32  remainder of the income.  The payor of funds shall include with 
573.33  the remittance the social security number of the obligor, the 
573.34  case type indicator as provided by the public authority and the 
573.35  date the obligor is paid the remainder of the income.  The 
573.36  obligor is considered to have paid the amount withheld as of the 
574.1   date the obligor received the remainder of the income.  A payor 
574.2   of funds may combine all amounts withheld from one pay period 
574.3   into one payment to each public authority, but shall separately 
574.4   identify each obligor making payment. 
574.5      (c) A payor of funds shall not discharge, or refuse to 
574.6   hire, or otherwise discipline an employee as a result of wage or 
574.7   salary withholding authorized by this section.  A payor of funds 
574.8   shall be liable to the obligee for any amounts required to be 
574.9   withheld.  A payor of funds that fails to withhold or transfer 
574.10  funds in accordance with this section is also liable to the 
574.11  obligee for interest on the funds at the rate applicable to 
574.12  judgments under section 549.09, computed from the date the funds 
574.13  were required to be withheld or transferred.  A payor of funds 
574.14  is liable for reasonable attorney fees of the obligee or public 
574.15  authority incurred in enforcing the liability under this 
574.16  paragraph.  A payor of funds that has failed to comply with the 
574.17  requirements of this section is subject to contempt sanctions 
574.18  under section 518.615.  If the payor of funds is an employer or 
574.19  independent contractor and violates this subdivision, a court 
574.20  may award the obligor twice the wages lost as a result of this 
574.21  violation.  If a court finds a payor of funds violated this 
574.22  subdivision, the court shall impose a civil fine of not less 
574.23  than $500.  The liabilities in this paragraph apply to 
574.24  intentional noncompliance with this section. 
574.25     (d) If a single employee is subject to multiple withholding 
574.26  orders or multiple notices of withholding for the support of 
574.27  more than one child, the payor of funds shall comply with all of 
574.28  the orders or notices to the extent that the total amount 
574.29  withheld from the obligor's income does not exceed the limits 
574.30  imposed under the Consumer Credit Protection Act, United States 
574.31  Code, title 15, section 1673(b), giving priority to amounts 
574.32  designated in each order or notice as current support as follows:
574.33     (1) if the total of the amounts designated in the orders 
574.34  for or notices of withholding as current support exceeds the 
574.35  amount available for income withholding, the payor of funds 
574.36  shall allocate to each order or notice an amount for current 
575.1   support equal to the amount designated in that order or notice 
575.2   as current support, divided by the total of the amounts 
575.3   designated in the orders or notices as current support, 
575.4   multiplied by the amount of the income available for income 
575.5   withholding; and 
575.6      (2) if the total of the amounts designated in the orders 
575.7   for or notices of withholding as current support does not exceed 
575.8   the amount available for income withholding, the payor of funds 
575.9   shall pay the amounts designated as current support, and shall 
575.10  allocate to each order or notice an amount for past due support, 
575.11  equal to the amount designated in that order or notice as past 
575.12  due support, divided by the total of the amounts designated in 
575.13  the orders or notices as past due support, multiplied by the 
575.14  amount of income remaining available for income withholding 
575.15  after the payment of current support. 
575.16     (e) When an order for or notice of withholding is in effect 
575.17  and the obligor's employment is terminated, the obligor and the 
575.18  payor of funds shall notify the public authority of the 
575.19  termination within ten days of the termination date.  The 
575.20  termination notice shall include the obligor's home address and 
575.21  the name and address of the obligor's new payor of funds, if 
575.22  known. 
575.23     (f) A payor of funds may deduct one dollar from the 
575.24  obligor's remaining salary for each payment made pursuant to an 
575.25  order for or notice of withholding under this section to cover 
575.26  the expenses of withholding. 
575.27     Sec. 13.  Minnesota Statutes 2000, section 518.6195, is 
575.28  amended to read: 
575.29     518.6195 [COLLECTION; ARREARS ONLY.] 
575.30     (a) Remedies available for the collection and enforcement 
575.31  of support in this chapter and chapters 256, 257, and 518C also 
575.32  apply to cases in which the child or children for whom support 
575.33  is owed are emancipated and the obligor owes past support or has 
575.34  an accumulated arrearage as of the date of the youngest child's 
575.35  emancipation.  Child support arrearages under this section 
575.36  include arrearages for child support, medical support, child 
576.1   care, pregnancy and birth expenses, and unreimbursed medical 
576.2   expenses as defined in section 518.171. 
576.3      (b) This section applies retroactively to any support 
576.4   arrearage that accrued on or before the date of enactment and to 
576.5   all arrearages accruing after the date of enactment. 
576.6      (c) Past support or pregnancy and confinement expenses 
576.7   ordered for which the obligor has specific court ordered terms 
576.8   for repayment may not be enforced using drivers' and 
576.9   occupational or professional license suspension, credit bureau 
576.10  reporting, and additional income withholding under section 
576.11  518.6111, subdivision 10, paragraph (a), unless the obligor 
576.12  fails to comply with the terms of the court order for repayment. 
576.13     (d) If an arrearage exists at the time a support order 
576.14  would otherwise terminate and section 518.6111, subdivision 10, 
576.15  paragraph (c), does not apply to this section, the arrearage 
576.16  shall be repaid in an amount equal to the current support order 
576.17  until all arrears have been paid in full, absent a court order 
576.18  to the contrary. 
576.19     (e) If an arrearage exists according to a support order 
576.20  which fails to establish a monthly support obligation in a 
576.21  specific dollar amount, the public authority, if it provides 
576.22  child support services, or the obligee, may establish a payment 
576.23  agreement which shall equal what the obligor would pay for 
576.24  current support after application of section 518.551, plus an 
576.25  additional 20 percent of the current support obligation, until 
576.26  all arrears have been paid in full.  If the obligor fails to 
576.27  enter into or comply with a payment agreement, the public 
576.28  authority, if it provides child support services, or the 
576.29  obligee, may move the district court or child support 
576.30  magistrate, if section 484.702 applies, for an order 
576.31  establishing repayment terms. 
576.32     Sec. 14.  Minnesota Statutes 2000, section 518.64, 
576.33  subdivision 2, as amended by Laws 2001, chapter 51, section 16, 
576.34  is amended to read: 
576.35     Subd. 2.  [MODIFICATION.] (a) The terms of an order 
576.36  respecting maintenance or support may be modified upon a showing 
577.1   of one or more of the following:  (1) substantially increased or 
577.2   decreased earnings of a party; (2) substantially increased or 
577.3   decreased need of a party or the child or children that are the 
577.4   subject of these proceedings; (3) receipt of assistance under 
577.5   the AFDC program formerly codified under sections 256.72 to 
577.6   256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a 
577.7   change in the cost of living for either party as measured by the 
577.8   federal bureau of statistics, any of which makes the terms 
577.9   unreasonable and unfair; (5) extraordinary medical expenses of 
577.10  the child not provided for under section 518.171; or (6) the 
577.11  addition of work-related or education-related child care 
577.12  expenses of the obligee or a substantial increase or decrease in 
577.13  existing work-related or education-related child care expenses.  
577.14     On a motion to modify support, the needs of any child the 
577.15  obligor has after the entry of the support order that is the 
577.16  subject of a modification motion shall be considered as provided 
577.17  by section 518.551, subdivision 5f. 
577.18     (b) It is presumed that there has been a substantial change 
577.19  in circumstances under paragraph (a) and the terms of a current 
577.20  support order shall be rebuttably presumed to be unreasonable 
577.21  and unfair if: 
577.22     (1) the application of the child support guidelines in 
577.23  section 518.551, subdivision 5, to the current circumstances of 
577.24  the parties results in a calculated court order that is at least 
577.25  20 percent and at least $50 per month higher or lower than the 
577.26  current support order; 
577.27     (2) the medical support provisions of the order established 
577.28  under section 518.171 are not enforceable by the public 
577.29  authority or the obligee; 
577.30     (3) health coverage ordered under section 518.171 is not 
577.31  available to the child for whom the order is established by the 
577.32  parent ordered to provide; or 
577.33     (4) the existing support obligation is in the form of a 
577.34  statement of percentage and not a specific dollar amount.  
577.35     (c) On a motion for modification of maintenance, including 
577.36  a motion for the extension of the duration of a maintenance 
578.1   award, the court shall apply, in addition to all other relevant 
578.2   factors, the factors for an award of maintenance under section 
578.3   518.552 that exist at the time of the motion.  On a motion for 
578.4   modification of support, the court:  
578.5      (1) shall apply section 518.551, subdivision 5, and shall 
578.6   not consider the financial circumstances of each party's spouse, 
578.7   if any; and 
578.8      (2) shall not consider compensation received by a party for 
578.9   employment in excess of a 40-hour work week, provided that the 
578.10  party demonstrates, and the court finds, that: 
578.11     (i) the excess employment began after entry of the existing 
578.12  support order; 
578.13     (ii) the excess employment is voluntary and not a condition 
578.14  of employment; 
578.15     (iii) the excess employment is in the nature of additional, 
578.16  part-time employment, or overtime employment compensable by the 
578.17  hour or fractions of an hour; 
578.18     (iv) the party's compensation structure has not been 
578.19  changed for the purpose of affecting a support or maintenance 
578.20  obligation; 
578.21     (v) in the case of an obligor, current child support 
578.22  payments are at least equal to the guidelines amount based on 
578.23  income not excluded under this clause; and 
578.24     (vi) in the case of an obligor who is in arrears in child 
578.25  support payments to the obligee, any net income from excess 
578.26  employment must be used to pay the arrearages until the 
578.27  arrearages are paid in full. 
578.28     (d) A modification of support or maintenance, including 
578.29  interest that accrued pursuant to section 548.091, may be made 
578.30  retroactive only with respect to any period during which the 
578.31  petitioning party has pending a motion for modification but only 
578.32  from the date of service of notice of the motion on the 
578.33  responding party and on the public authority if public 
578.34  assistance is being furnished or the county attorney is the 
578.35  attorney of record.  However, modification may be applied to an 
578.36  earlier period if the court makes express findings that:  
579.1      (1) the party seeking modification was precluded from 
579.2   serving a motion by reason of a significant physical or mental 
579.3   disability, a material misrepresentation of another party, or 
579.4   fraud upon the court and that the party seeking modification, 
579.5   when no longer precluded, promptly served a motion; 
579.6      (2) the party seeking modification was a recipient of 
579.7   federal Supplemental Security Income (SSI), Title II Older 
579.8   Americans, Survivor's Disability Insurance (OASDI), other 
579.9   disability benefits, or public assistance based upon need during 
579.10  the period for which retroactive modification is sought; or 
579.11     (3) the order for which the party seeks amendment was 
579.12  entered by default, the party shows good cause for not 
579.13  appearing, and the record contains no factual evidence, or 
579.14  clearly erroneous evidence regarding the individual obligor's 
579.15  ability to pay.; or 
579.16     (4) the party seeking modification was institutionalized or 
579.17  incarcerated for an offense other than nonsupport of a child 
579.18  during the period for which retroactive modification is sought 
579.19  and lacked the financial ability to pay the support ordered 
579.20  during that time period.  In determining whether to allow the 
579.21  retroactive modification, the court shall consider whether and 
579.22  when a request was made to the public authority for support 
579.23  modification.  
579.24  The court may provide that a reduction in the amount allocated 
579.25  for child care expenses based on a substantial decrease in the 
579.26  expenses is effective as of the date the expenses decreased. 
579.27     (e) Except for an award of the right of occupancy of the 
579.28  homestead, provided in section 518.63, all divisions of real and 
579.29  personal property provided by section 518.58 shall be final, and 
579.30  may be revoked or modified only where the court finds the 
579.31  existence of conditions that justify reopening a judgment under 
579.32  the laws of this state, including motions under section 518.145, 
579.33  subdivision 2.  The court may impose a lien or charge on the 
579.34  divided property at any time while the property, or subsequently 
579.35  acquired property, is owned by the parties or either of them, 
579.36  for the payment of maintenance or support money, or may 
580.1   sequester the property as is provided by section 518.24. 
580.2      (f) The court need not hold an evidentiary hearing on a 
580.3   motion for modification of maintenance or support. 
580.4      (g) Section 518.14 shall govern the award of attorney fees 
580.5   for motions brought under this subdivision. 
580.6      Sec. 15.  Minnesota Statutes 2000, section 518.641, 
580.7   subdivision 1, is amended to read: 
580.8      Subdivision 1.  [REQUIREMENT.] (a) An order for 
580.9   establishing, modifying, or enforcing maintenance or child 
580.10  support shall provide for a biennial adjustment in the amount to 
580.11  be paid based on a change in the cost of living.  An order that 
580.12  provides for a cost-of-living adjustment shall specify the 
580.13  cost-of-living index to be applied and the date on which the 
580.14  cost-of-living adjustment shall become effective.  The court may 
580.15  use the consumer price index for all urban consumers, 
580.16  Minneapolis-St. Paul (CPI-U), the consumer price index for wage 
580.17  earners and clerical, Minneapolis-St. Paul (CPI-W), or another 
580.18  cost-of-living index published by the department of labor which 
580.19  it specifically finds is more appropriate.  Cost-of-living 
580.20  increases under this section shall be compounded.  The court may 
580.21  also increase the amount by more than the cost-of-living 
580.22  adjustment by agreement of the parties or by making further 
580.23  findings.  
580.24     (b) The adjustment becomes effective on the first of May of 
580.25  the year in which it is made, for cases in which payment is made 
580.26  to the public authority.  For cases in which payment is not made 
580.27  to the public authority, application for an adjustment may be 
580.28  made in any month but no application for an adjustment may be 
580.29  made sooner than two years after the date of the dissolution 
580.30  decree.  A court may waive the requirement of the cost-of-living 
580.31  clause if it expressly finds that the obligor's occupation or 
580.32  income, or both, does not provide for cost-of-living adjustment 
580.33  or that the order for maintenance or child support has a 
580.34  provision such as a step increase that has the effect of a 
580.35  cost-of-living clause.  The court may waive a cost-of-living 
580.36  adjustment in a maintenance order if the parties so agree in 
581.1   writing.  The commissioner of human services may promulgate 
581.2   rules for child support adjustments under this section in 
581.3   accordance with the rulemaking provisions of chapter 14.  Notice 
581.4   of this statute must comply with section 518.68, subdivision 2. 
581.5      Sec. 16.  Minnesota Statutes 2000, section 518.641, 
581.6   subdivision 2, is amended to read: 
581.7      Subd. 2.  [CONDITIONS NOTICE.] No adjustment under this 
581.8   section may be made unless the order provides for it and until 
581.9   the following conditions are met:  
581.10     (a) the obligee serves notice of the application for 
581.11  adjustment by mail on the obligor at the obligor's last known 
581.12  address at least 20 days before the effective date of the 
581.13  adjustment; 
581.14     (b) the notice to the obligor informs the obligor of the 
581.15  date on which the adjustment in payments will become effective; 
581.16     (c) after receipt of notice and before the effective day of 
581.17  the adjustment, the obligor fails to request a hearing on the 
581.18  issue of whether the adjustment should take effect, and ex 
581.19  parte, to stay imposition of the adjustment pending outcome of 
581.20  the hearing; or 
581.21     (d) the public authority the public authority or the 
581.22  obligee, if the obligee is requesting the cost-of-living 
581.23  adjustment, sends notice of its application for the intended 
581.24  adjustment to the obligor at the obligor's last known address at 
581.25  least 20 days before the effective date of the adjustment, and. 
581.26  The notice informs shall inform the obligor of the date on which 
581.27  the adjustment will become effective and the procedures for 
581.28  contesting the adjustment according to section 484.702. 
581.29     Sec. 17.  Minnesota Statutes 2000, section 518.641, is 
581.30  amended by adding a subdivision to read: 
581.31     Subd. 2a.  [PROCEDURES FOR CONTESTING ADJUSTMENT.] (a) To 
581.32  contest cost-of-living adjustments initiated by the public 
581.33  authority or an obligee who has applied for or is receiving 
581.34  child support and maintenance collection services from the 
581.35  public authority, other than income withholding only services, 
581.36  the obligor, before the effective date of the adjustment, must: 
582.1      (1) file a motion contesting the cost-of-living adjustment 
582.2   with the court administrator; and 
582.3      (2) serve the motion by first-class mail on the public 
582.4   authority and the obligee. 
582.5   The hearing shall take place in the expedited child support 
582.6   process as governed by section 484.702. 
582.7      (b) To contest cost-of-living adjustments initiated by an 
582.8   obligee who is not receiving child support and maintenance 
582.9   collection services from the public authority, or for an obligee 
582.10  who receives income withholding only services from the public 
582.11  authority, the obligor must, before the effective date of the 
582.12  adjustment: 
582.13     (1) file a motion contesting the cost-of-living adjustment 
582.14  with the court administrator; and 
582.15     (2) serve the motion by first-class mail on the obligee. 
582.16  The hearing shall take place in district court. 
582.17     (c) Upon receipt of a motion contesting the cost-of-living 
582.18  adjustment, the cost-of-living adjustment shall be stayed 
582.19  pending further order of the court. 
582.20     (d) The court administrator shall make available pro se 
582.21  motion forms for contesting a cost-of-living adjustment under 
582.22  this subdivision. 
582.23     Sec. 18.  Minnesota Statutes 2000, section 518.641, 
582.24  subdivision 3, is amended to read: 
582.25     Subd. 3.  [RESULT OF HEARING.] If, at a hearing pursuant to 
582.26  this section, the obligor establishes an insufficient cost of 
582.27  living or other increase in income that prevents fulfillment of 
582.28  the adjusted maintenance or child support obligation, the 
582.29  court or child support magistrate may direct that all or part of 
582.30  the adjustment not take effect.  If, at the hearing, the obligor 
582.31  does not establish this insufficient increase in income, the 
582.32  adjustment shall take effect as of the date it would have become 
582.33  effective had no hearing been requested. 
582.34     Sec. 19.  Minnesota Statutes 2000, section 548.091, 
582.35  subdivision 1a, is amended to read: 
582.36     Subd. 1a.  [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 
583.1   (a) Any payment or installment of support required by a judgment 
583.2   or decree of dissolution or legal separation, determination of 
583.3   parentage, an order under chapter 518C, an order under section 
583.4   256.87, or an order under section 260B.331 or 260C.331, that is 
583.5   not paid or withheld from the obligor's income as required under 
583.6   section 518.6111, or which is ordered as child support by 
583.7   judgment, decree, or order by a court in any other state, is a 
583.8   judgment by operation of law on and after the date it is due, is 
583.9   entitled to full faith and credit in this state and any other 
583.10  state, and shall be entered and docketed by the court 
583.11  administrator on the filing of affidavits as provided in 
583.12  subdivision 2a.  Except as otherwise provided by paragraph (b), 
583.13  interest accrues from the date the unpaid amount due is greater 
583.14  than the current support due at the annual rate provided in 
583.15  section 549.09, subdivision 1, plus two percent, not to exceed 
583.16  an annual rate of 18 percent.  A payment or installment of 
583.17  support that becomes a judgment by operation of law between the 
583.18  date on which a party served notice of a motion for modification 
583.19  under section 518.64, subdivision 2, and the date of the court's 
583.20  order on modification may be modified under that subdivision. 
583.21     (b) Notwithstanding the provisions of section 549.09, upon 
583.22  motion to the court and upon proof by the obligor of 36 
583.23  consecutive months of complete and timely payments of both 
583.24  current support and court-ordered paybacks of a child support 
583.25  debt or arrearage, the court may order interest on the remaining 
583.26  debt or arrearage to stop accruing.  Timely payments are those 
583.27  made in the month in which they are due.  If, after that time, 
583.28  the obligor fails to make complete and timely payments of both 
583.29  current support and court-ordered paybacks of child support debt 
583.30  or arrearage, the public authority or the obligee may move the 
583.31  court for the reinstatement of interest as of the month in which 
583.32  the obligor ceased making complete and timely payments. 
583.33     The court shall provide copies of all orders issued under 
583.34  this section to the public authority.  The commissioner of human 
583.35  services shall prepare and make available to the court and the 
583.36  parties forms to be submitted by the parties in support of a 
584.1   motion under this paragraph. 
584.2      (c) Notwithstanding the provisions of section 549.09, upon 
584.3   motion to the court, the court may order interest on a child 
584.4   support debt to stop accruing where the court finds that the 
584.5   obligor is: 
584.6      (1) unable to pay support because of a significant physical 
584.7   or mental disability; or 
584.8      (2) a recipient of Supplemental Security Income (SSI), 
584.9   Title II Older Americans Survivor's Disability Insurance 
584.10  (OASDI), other disability benefits, or public assistance based 
584.11  upon need; or 
584.12     (3) institutionalized or incarcerated for at least 30 days 
584.13  for an offense other than nonsupport of the child or children 
584.14  involved, and is otherwise financially unable to pay support. 
584.15     Sec. 20.  [REPEALER.] 
584.16     Minnesota Statutes 2000, section 518.641, subdivisions 4 
584.17  and 5, are repealed. 
584.18                             ARTICLE 13 
584.19                           MISCELLANEOUS 
584.20     Section 1.  Minnesota Statutes 2000, section 144.1491, 
584.21  subdivision 1, is amended to read: 
584.22     Subdivision 1.  [PENALTIES FOR BREACH OF CONTRACT.] A 
584.23  program participant who fails to complete two years of obligated 
584.24  service shall repay the amount paid, as well as a financial 
584.25  penalty based upon the length of the service obligation not 
584.26  fulfilled.  If the participant has served at least one year, the 
584.27  financial penalty is the number of unserved months multiplied by 
584.28  $1,000.  If the participant has served less than one year, the 
584.29  financial penalty is the total number of obligated months 
584.30  multiplied by $1,000.  The commissioner shall report to the 
584.31  appropriate health-related licensing board a participant who 
584.32  fails to complete the service obligation and fails to repay the 
584.33  amount paid or fails to pay any financial penalty owed under 
584.34  this subdivision. 
584.35     Sec. 2.  Minnesota Statutes 2000, section 148.212, is 
584.36  amended to read: 
585.1      148.212 [TEMPORARY PERMIT.] 
585.2      Upon receipt of the applicable licensure or reregistration 
585.3   fee and permit fee, and in accordance with rules of the board, 
585.4   the board may issue a nonrenewable temporary permit to practice 
585.5   professional or practical nursing to an applicant for licensure 
585.6   or reregistration who is not the subject of a pending 
585.7   investigation or disciplinary action, nor disqualified for any 
585.8   other reason, under the following circumstances: 
585.9      (a) The applicant for licensure by examination under 
585.10  section 148.211, subdivision 1, has graduated from an approved 
585.11  nursing program within the 60 days preceding board receipt of an 
585.12  affidavit of graduation or transcript and has been authorized by 
585.13  the board to write the licensure examination for the first time 
585.14  in the United States.  The permit holder must practice 
585.15  professional or practical nursing under the direct supervision 
585.16  of a registered nurse.  The permit is valid from the date of 
585.17  issue until the date the board takes action on the application 
585.18  or for 60 days whichever occurs first. 
585.19     (b) The applicant for licensure by endorsement under 
585.20  section 148.211, subdivision 2, is currently licensed to 
585.21  practice professional or practical nursing in another state, 
585.22  territory, or Canadian province.  The permit is valid from 
585.23  submission of a proper request until the date of board action on 
585.24  the application. 
585.25     (c) The applicant for licensure by endorsement under 
585.26  section 148.211, subdivision 2, or for reregistration under 
585.27  section 148.231, subdivision 5, is currently registered in a 
585.28  formal, structured refresher course or its equivalent for nurses 
585.29  that includes clinical practice. 
585.30     (d) The applicant for licensure by examination under 
585.31  section 148.211, subdivision 1, has been issued a Commission on 
585.32  Graduates of Foreign Nursing Schools certificate, has completed 
585.33  all requirements for licensure except the examination, and has 
585.34  been authorized by the board to write the licensure examination 
585.35  for the first time in the United States.  The permit holder must 
585.36  practice professional nursing under the direct supervision of a 
586.1   registered nurse.  The permit is valid from the date of issue 
586.2   until the date the board takes action on the application or for 
586.3   60 days, whichever occurs first. 
586.4      Sec. 3.  Minnesota Statutes 2000, section 148.284, is 
586.5   amended to read: 
586.6      148.284 [CERTIFICATION OF ADVANCED PRACTICE REGISTERED 
586.7   NURSES.] 
586.8      (a) No person shall practice advanced practice registered 
586.9   nursing or use any title, abbreviation, or other designation 
586.10  tending to imply that the person is an advanced practice 
586.11  registered nurse, clinical nurse specialist, nurse anesthetist, 
586.12  nurse-midwife, or nurse practitioner unless the person is 
586.13  certified for such advanced practice registered nursing by a 
586.14  national nurse certification organization. 
586.15     (b) Paragraph (a) does not apply to an advanced practice 
586.16  registered nurse who is within six months after completion of an 
586.17  advanced practice registered nurse course of study and is 
586.18  awaiting certification, provided that the person has not 
586.19  previously failed the certification examination.  
586.20     (c) An advanced practice registered nurse who has completed 
586.21  a formal course of study as an advanced practice registered 
586.22  nurse and has been certified by a national nurse certification 
586.23  organization prior to January 1, 1999, may continue to practice 
586.24  in the field of nursing in which the advanced practice 
586.25  registered nurse is practicing as of July 1, 1999, regardless of 
586.26  the type of certification held if the advanced practice 
586.27  registered nurse is not eligible for the proper certification. 
586.28     Sec. 4.  Minnesota Statutes 2000, section 148B.21, 
586.29  subdivision 6a, is amended to read: 
586.30     Subd. 6a.  [BACKGROUND CHECKS.] The board shall request a 
586.31  criminal history background check from the superintendent of the 
586.32  bureau of criminal apprehension on all applicants for initial 
586.33  licensure.  An application for a license under this section must 
586.34  be accompanied by an executed criminal history consent form and 
586.35  the fee for conducting the criminal history background 
586.36  check.  The board shall deposit all fees paid by applicants for 
587.1   criminal history background checks under this subdivision into 
587.2   the miscellaneous special revenue fund.  The fees collected 
587.3   under this subdivision are appropriated to the board for the 
587.4   purpose of reimbursing the bureau of criminal apprehension for 
587.5   the cost of the background checks upon their completion. 
587.6      Sec. 5.  Minnesota Statutes 2000, section 148B.22, 
587.7   subdivision 3, is amended to read: 
587.8      Subd. 3.  [BACKGROUND CHECKS.] The board shall request a 
587.9   criminal history background check from the superintendent of the 
587.10  bureau of criminal apprehension on all licensees under its 
587.11  jurisdiction who did not complete a criminal history background 
587.12  check as part of an application for initial licensure.  This 
587.13  background check is a one-time requirement.  An application for 
587.14  a license under this section must be accompanied by an executed 
587.15  criminal history consent form and the fee for conducting the 
587.16  criminal history background check.  The board shall deposit all 
587.17  fees paid by licensees for criminal history background checks 
587.18  under this subdivision into the miscellaneous special revenue 
587.19  fund.  The fees collected under this subdivision are 
587.20  appropriated to the board for the purpose of reimbursing the 
587.21  bureau of criminal apprehension for the cost of the background 
587.22  checks upon their completion. 
587.23     Sec. 6.  [214.105] [HEALTH-RELATED LICENSING BOARDS; 
587.24  DEFAULT ON FEDERAL LOANS OR SERVICE OBLIGATIONS.] 
587.25     A health-related licensing board may refuse to grant a 
587.26  license or may impose disciplinary action against a person 
587.27  regulated by the board if the person is intentionally in 
587.28  nonpayment, default, or breach of a repayment or service 
587.29  obligation under any federal educational loan, loan repayment, 
587.30  or service conditional scholarship program.  The board shall 
587.31  consider the reasons for nonpayment, default, or breach of a 
587.32  repayment or service obligation and may not impose disciplinary 
587.33  action against a person in cases of total and permanent 
587.34  disability or long-term temporary disability lasting more than a 
587.35  year. 
587.36     Sec. 7.  Minnesota Statutes 2000, section 252A.02, is 
588.1   amended by adding a subdivision to read: 
588.2      Subd. 3a.  [GUARDIANSHIP SERVICE PROVIDERS.] "Guardianship 
588.3   service providers" are individuals or agencies that meet the 
588.4   ethical conduct and best practice standards of the National 
588.5   Guardianship Association, meet the criminal background check 
588.6   requirements of section 245A.04, and do not provide any other 
588.7   services to the individuals for whom guardianship services are 
588.8   provided. 
588.9      Sec. 8.  Minnesota Statutes 2000, section 252A.02, 
588.10  subdivision 12, is amended to read: 
588.11     Subd. 12.  [COMPREHENSIVE EVALUATION.] "Comprehensive 
588.12  evaluation" shall consist of: 
588.13     (1) a medical report on the health status and physical 
588.14  condition of the proposed ward, prepared under the direction of 
588.15  a licensed physician; 
588.16     (2) a report on the proposed ward's intellectual capacity 
588.17  and functional abilities, specifying the tests and other data 
588.18  used in reaching its conclusions, prepared by a psychologist who 
588.19  is qualified in the diagnosis of mental retardation; and 
588.20     (3) a report from the case manager that includes: 
588.21     (i) the most current assessment of individual service needs 
588.22  as described in rules of the commissioner; 
588.23     (ii) the most current individual service plan as described 
588.24  in rules of the commissioner under section 256B.092, subdivision 
588.25  1b; and 
588.26     (iii) a description of contacts with and responses of near 
588.27  relatives of the proposed ward notifying them that a nomination 
588.28  for public guardianship has been made and advising them that 
588.29  they may seek private guardianship.  
588.30     Each report shall contain recommendations as to the amount 
588.31  of assistance and supervision required by the proposed ward to 
588.32  function as independently as possible in society.  To be 
588.33  considered part of the comprehensive evaluation, reports must be 
588.34  completed no more than one year before filing the petition under 
588.35  section 252A.05.  
588.36     Sec. 9.  Minnesota Statutes 2000, section 252A.02, 
589.1   subdivision 13, is amended to read: 
589.2      Subd. 13.  [CASE MANAGER.] "Case manager" means the person 
589.3   designated by the county board under rules of the commissioner 
589.4   to provide case management services under section 256B.092. 
589.5      Sec. 10.  Minnesota Statutes 2000, section 252A.111, 
589.6   subdivision 6, is amended to read: 
589.7      Subd. 6.  [SPECIAL DUTIES.] In exercising powers and duties 
589.8   under this chapter, the commissioner shall: 
589.9      (1) maintain close contact with the ward, visiting at least 
589.10  twice a year; 
589.11     (2) prohibit filming a ward in any way that would reveal 
589.12  the identity of the ward unless the commissioner determines the 
589.13  filming to be in the best interests of the ward.  The 
589.14  commissioner may give written consent for filming of the ward 
589.15  after permitting and encouraging input by the nearest relative 
589.16  protect and exercise the legal rights of the ward; 
589.17     (3) take actions and make decisions on behalf of the ward 
589.18  that encourage and allow the maximum level of independent 
589.19  functioning in a manner least restrictive of the ward's personal 
589.20  freedom consistent with the need for supervision and protection; 
589.21  and 
589.22     (4) permit and encourage maximum self-reliance on the part 
589.23  of the ward and permit and encourage input by the nearest 
589.24  relative of the ward in planning and decision making on behalf 
589.25  of the ward. 
589.26     Sec. 11.  Minnesota Statutes 2000, section 252A.16, 
589.27  subdivision 1, is amended to read: 
589.28     Subdivision 1.  [REVIEW REQUIRED.] The commissioner 
589.29  shall provide require an annual review of the physical, mental, 
589.30  and social adjustment and progress of every ward and 
589.31  conservatee.  A copy of this review shall be kept on file at the 
589.32  department of human services and may be inspected by the ward or 
589.33  conservatee, the ward's or conservatee's parents, spouse, or 
589.34  relatives and other persons who receive the permission of the 
589.35  commissioner.  The review shall contain information required 
589.36  under rules of the commissioner Minnesota Rules, part 9525.3065, 
590.1   subpart 1.  
590.2      Sec. 12.  Minnesota Statutes 2000, section 252A.19, 
590.3   subdivision 2, is amended to read: 
590.4      Subd. 2.  [PETITION.] The commissioner, ward, or any 
590.5   interested person may petition the appointing court or the court 
590.6   to which venue has been transferred for an order to remove the 
590.7   guardianship or to limit or expand the powers of the 
590.8   conservatorship or to appoint a guardian or conservator under 
590.9   sections 525.539 to 525.705 or to restore the ward or 
590.10  conservatee to full legal capacity or to review de novo any 
590.11  decision made by the public guardian or public conservator for 
590.12  or on behalf of a ward or conservatee or for any other order as 
590.13  the court may deem just and equitable.  Section 525.61, 
590.14  subdivision 3, does not apply to a petition to remove a public 
590.15  guardian. 
590.16     Sec. 13.  Minnesota Statutes 2000, section 252A.20, 
590.17  subdivision 1, is amended to read: 
590.18     Subdivision 1.  [WITNESS AND ATTORNEY FEES.] In each 
590.19  proceeding under sections 252A.01 to 252A.21, the court shall 
590.20  allow and order paid to each witness subpoenaed the fees and 
590.21  mileage prescribed by law; to each physician, psychologist, or 
590.22  social worker who assists in the preparation of the 
590.23  comprehensive evaluation and who is not in the employ of the 
590.24  local agency, or the state department of human services, or area 
590.25  mental health-mental retardation board, a reasonable sum for 
590.26  services and for travel; and to the ward's counsel, when 
590.27  appointed by the court, a reasonable sum for travel and for each 
590.28  day or portion of a day actually employed in court or actually 
590.29  consumed in preparing for the hearing.  Upon order the county 
590.30  auditor shall issue a warrant on the county treasurer for 
590.31  payment of the amount allowed. 
590.32     Sec. 14.  Minnesota Statutes 2000, section 256I.05, 
590.33  subdivision 1d, is amended to read: 
590.34     Subd. 1d.  [SUPPLEMENTARY SERVICE RATES FOR CERTAIN 
590.35  FACILITIES SERVING PERSONS WITH MENTAL ILLNESS OR CHEMICAL 
590.36  DEPENDENCY.] Notwithstanding the provisions of subdivisions 1a 
591.1   and 1c for the fiscal year ending June 30, 1998, a county agency 
591.2   may negotiate a supplementary service rate in addition to the 
591.3   board and lodging rate for facilities licensed and registered by 
591.4   the Minnesota department of health under section 157.17 prior to 
591.5   December 31, 1996, if the facility meets the following criteria: 
591.6      (1) at least 75 percent of the residents have a primary 
591.7   diagnosis of mental illness, chemical dependency, or both, and 
591.8   have related special needs; 
591.9      (2) the facility provides 24-hour, on-site, year-round 
591.10  supportive services by qualified staff capable of intervention 
591.11  in a crisis of persons with late-state inebriety or mental 
591.12  illness who are vulnerable to abuse or neglect; 
591.13     (3) the services at the facility include, but are not 
591.14  limited to: 
591.15     (i) secure central storage of medication; 
591.16     (ii) reminders and monitoring of medication for 
591.17  self-administration; 
591.18     (iii) support for developing an individual medical and 
591.19  social service plan, updating the plan, and monitoring 
591.20  compliance with the plan; and 
591.21     (iv) assistance with setting up meetings, appointments, and 
591.22  transportation to access medical, chemical health, and mental 
591.23  health service providers; 
591.24     (4) each resident has a documented need for at least one of 
591.25  the services provided; 
591.26     (5) each resident has been offered an opportunity to apply 
591.27  for admission to a licensed residential treatment program for 
591.28  mental illness, chemical dependency, or both, have refused that 
591.29  offer, and the offer and their refusal has been documented to 
591.30  writing; and 
591.31     (6) the residents are not eligible for home and 
591.32  community-based services waivers because of their unique need 
591.33  for community support. 
591.34     The total supplementary service rate must not exceed $575. 
591.35     Until June 30, 2002, the supplementary service rate of 
591.36  qualifying facilities under this subdivision may be increased by 
592.1   up to 15 percent of the supplementary service rate in effect on 
592.2   January 1, 2001, for the facility.  Qualifying facilities with 
592.3   no supplementary service rate may negotiate a supplementary 
592.4   service rate not to exceed $300 per month. 
592.5      Sec. 15.  Minnesota Statutes 2000, section 256I.05, 
592.6   subdivision 1e, is amended to read: 
592.7      Subd. 1e.  [SUPPLEMENTARY RATE FOR CERTAIN FACILITIES.] 
592.8   Notwithstanding the provisions of subdivisions 1a and 1c, 
592.9   beginning July 1, 1999 2001, a county agency shall negotiate a 
592.10  supplementary rate in addition to the rate specified in 
592.11  subdivision 1, equal to 25 46 percent of the amount specified in 
592.12  subdivision 1a, including any legislatively authorized 
592.13  inflationary adjustments, for a group residential housing 
592.14  provider that: 
592.15     (1) is located in Hennepin county and has had a group 
592.16  residential housing contract with the county since June 1996; 
592.17     (2) operates in three separate locations a 56-bed 71-bed 
592.18  facility, a and two 40-bed facility, and a 30-bed facility 
592.19  facilities; and 
592.20     (3) serves a chemically dependent clientele, providing 24 
592.21  hours per day supervision and limiting a resident's maximum 
592.22  length of stay to 13 months out of a consecutive 24-month period.
592.23     Sec. 16.  Minnesota Statutes 2000, section 256I.05, is 
592.24  amended by adding a subdivision to read: 
592.25     Subd. 1f.  [SUPPLEMENTARY SERVICE RATE INCREASES ON OR 
592.26  AFTER JULY 1, 2001.] Until June 30, 2002, the supplementary 
592.27  service rate for recipients of assistance under section 256I.04 
592.28  who reside in a residence that is licensed by the commissioner 
592.29  of health as a boarding care home but is not certified for 
592.30  purposes of the medical assistance program may be increased by 
592.31  up to 32 percent of the supplementary service rate in effect for 
592.32  that facility on January 1, 2001.  The new rate shall not exceed 
592.33  the nonfederal share of the statewide weighted average monthly 
592.34  medical assistance nursing facility payment rate for case mix A 
592.35  in effect on January 1, 2001. 
592.36     Sec. 17.  [299A.76] [SUICIDE STATISTICS.] 
593.1      (a) The commissioner of public safety shall not: 
593.2      (1) include any statistics on committing suicide or 
593.3   attempting suicide in any compilation of crime statistics 
593.4   published by the commissioner; or 
593.5      (2) label as a crime statistic, any data on committing 
593.6   suicide or attempting suicide. 
593.7      (b) This section does not apply to the crimes of aiding 
593.8   suicide under section 609.215, subdivision 1, or aiding 
593.9   attempted suicide under section 609.215, subdivision 2, or to 
593.10  statistics on a suicide directly related to the commission of a 
593.11  crime. 
593.12     Sec. 18.  Laws 1999, chapter 152, section 4, is amended to 
593.13  read: 
593.14     Sec. 4.  [REPORT.] 
593.15     The task force shall present a report recommending a new 
593.16  payment rate structure to the legislature by January 15, 2000, 
593.17  and shall make recommendations to the commissioner of human 
593.18  services regarding the implementation of the pilot project for 
593.19  the individualized payment rate structure, so the pilot project 
593.20  can be implemented as required in section 25.  The task force 
593.21  expires on March 15, 2000 December 30, 2003. 
593.22     Sec. 19.  Laws 1999, chapter 245, article 10, section 10, 
593.23  as amended by Laws 2000, chapter 488, article 9, section 30, is 
593.24  amended to read: 
593.25     Sec. 10.  [REPEALER.] 
593.26     (a) Minnesota Statutes 1998, section 256.973, is repealed 
593.27  effective June 30, 2002. 
593.28     (b) Laws 1997, chapter 225, article 6, section 8, is 
593.29  repealed. 
593.30     Sec. 20.  Laws 2001, chapter 154, section 1, subdivision 1, 
593.31  is amended to read: 
593.32     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
593.33  section, the following terms have the meanings given them in 
593.34  this subdivision. 
593.35     (a) "Genetic test" means a test of a person's genes, gene 
593.36  products, or chromosomes for abnormalities or deficiencies, 
594.1   including carrier status, that are linked to physical or mental 
594.2   disorders or impairments, or that indicate a susceptibility to 
594.3   disease, impairment, or other disorders, whether physical or 
594.4   mental, or that demonstrate genetic or chromosomal damage due to 
594.5   environmental factors. the analysis of human DNA, RNA, 
594.6   chromosomes, proteins, or certain metabolites in order to detect 
594.7   disease-related genotypes or mutations.  Tests for metabolites 
594.8   fall within the definition of genetic test when an excess or 
594.9   deficiency of the metabolites indicates the presence of a 
594.10  mutation or mutations.  Administration of metabolic tests by an 
594.11  employer or employment agency that are not intended to reveal 
594.12  the presence of a mutation does not violate this section, 
594.13  regardless of the results of the tests.  Test results revealing 
594.14  a mutation are, however, subject to this section. 
594.15     (b) "Employer" means any person having one or more 
594.16  employees in Minnesota, and includes the state and any political 
594.17  subdivisions of the state. 
594.18     (c) "Employee" means a person who performs services for 
594.19  hire in Minnesota for an employer, but does not include 
594.20  independent contractors. 
594.21     (d) "Protected genetic information" means: 
594.22     (1) information about a person's genetic test; or 
594.23     (2) information about a genetic test of a blood relative of 
594.24  a person. 
594.25     Sec. 21.  Laws 2001, chapter 161, section 45, is amended to 
594.26  read: 
594.27     Sec. 45.  Minnesota Statutes 2000, section 256.482, 
594.28  subdivision 8, is amended to read: 
594.29     Subd. 8.  [SUNSET.] Notwithstanding section 15.059, 
594.30  subdivision 5, the council on disability shall not sunset until 
594.31  June 30, 2003. 
594.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
594.33     Sec. 22.  [FUNDING FOR DAY SERVICES PROGRAMS.] 
594.34     Subdivision 1.  [FEDERAL WAIVER REQUESTS.] The commissioner 
594.35  of human services shall submit to the federal Health Care 
594.36  Financing Administration by September 1, 2001, a request for a 
595.1   home and community-based services waiver for day services, 
595.2   including:  community inclusion, supported employment, and day 
595.3   training and habilitation services defined in Minnesota 
595.4   Statutes, section 252.41, subdivision 3, clause (1), for persons 
595.5   eligible for the waiver under Minnesota Statutes, section 
595.6   256B.092. 
595.7      Subd. 2.  [COUNTY FUNDING OF NONFEDERAL SHARE.] On the 
595.8   later of July 1, 2003, or July 1 of the second calendar year 
595.9   after the date when the federal Health Care Financing 
595.10  Administration grants the waiver request under subdivision 1, 
595.11  the county must pay the nonfederal share of medical assistance 
595.12  costs for day training for persons receiving services under the 
595.13  day services waiver under subdivision 1. 
595.14     Sec. 23.  [DEAF/BLIND SERVICES STUDY.] 
595.15     The department of human services shall convene and lead an 
595.16  interagency workgroup for the purpose of studying and developing 
595.17  recommendations regarding: 
595.18     (1) how the state can most effectively and efficiently use 
595.19  state appropriations and other resources to provide needed 
595.20  services to deaf/blind children, adults, and their families; 
595.21     (2) how state agencies can work together to enhance and 
595.22  ensure that a seamless service delivery system exists across 
595.23  agency lines for persons who are deaf/blind; and 
595.24     (3) how other existing barriers to the effective and 
595.25  efficient delivery of service for deaf/blind Minnesotans can be 
595.26  removed. 
595.27     The workgroup shall include representatives from the 
595.28  departments of human services, economic security, children, 
595.29  families, and learning; the state academy for the deaf; the 
595.30  state academy for the blind; the Minnesota commission serving 
595.31  deaf and hard-of-hearing; a consumer who is deaf/blind; a parent 
595.32  of a deaf/blind child from the metro area and a parent of a 
595.33  deaf/blind child from greater Minnesota; and anyone else that 
595.34  the workgroup finds necessary to complete its work. 
595.35     The departments of human services, economic security, and 
595.36  children, families, and learning shall share equally in the 
596.1   costs of the workgroup. 
596.2      The workgroup shall report its findings and recommendations 
596.3   to the legislature by February 1, 2002. 
596.4      Sec. 24.  [PUBLIC GUARDIANSHIP ALTERNATIVES.] 
596.5      The commissioner of human services shall provide county 
596.6   agencies with funds up to the amount appropriated for public 
596.7   guardianship alternatives based on proposals by the counties to 
596.8   establish private alternatives.  
596.9      Sec. 25.  [DAY TRAINING AND HABILITATION PAYMENT STRUCTURE 
596.10  PILOT PROJECT.] 
596.11     Subdivision 1.  [INDIVIDUALIZED PAYMENT RATE 
596.12  STRUCTURE.] Notwithstanding Minnesota Statutes, sections 
596.13  252.451, subdivision 5; and 252.46; and Minnesota Rules, part 
596.14  9525.1290, subpart 1, items A and B, the commissioner of human 
596.15  services shall initiate a pilot project and phase-in for the 
596.16  individualized payment rate structure described in this section 
596.17  and section 26.  The pilot project shall include actual 
596.18  transfers of funds, not simulated transfers.  The pilot project 
596.19  may include all or some of the vendors in up to eight counties, 
596.20  with no more than two counties from the seven-county 
596.21  Minneapolis-St. Paul metropolitan area.  Following initiation of 
596.22  the pilot project, the commissioner shall phase in 
596.23  implementation of the individualized payment rate structure to 
596.24  the remaining counties and vendors according to the 
596.25  implementation plan developed by the task force.  The pilot and 
596.26  phase-in shall not extend over more than 18 months. 
596.27     Subd. 2.  [SUNSET.] The pilot project shall sunset upon 
596.28  implementation of a new statewide rate structure according to 
596.29  the implementation plan developed by the task force described in 
596.30  subdivision 3, in its report to the legislature.  The rates of 
596.31  vendors participating in the pilot project must be modified to 
596.32  be consistent with the new statewide rate structure, as 
596.33  implemented. 
596.34     Subd. 3.  [TASK FORCE RESPONSIBILITIES.] The day training 
596.35  and habilitation task force established under Laws 1999, chapter 
596.36  152, section 4, shall evaluate the pilot project authorized 
597.1   under subdivision 1, and shall report to the legislature with an 
597.2   implementation plan, which shall address how and when the pilot 
597.3   project individualized payment rate structure will be 
597.4   implemented statewide, shall ensure that vendors that wish to 
597.5   maintain their current per diem rate may do so within the new 
597.6   payment system, and shall identify criteria that would halt 
597.7   statewide implementation if vendors or clients were adversely 
597.8   affected by the new payment rate structure, and with 
597.9   recommendations for any amendments that should be made before 
597.10  statewide implementation.  These recommendations shall be made 
597.11  in a report to the chairs of the house health and human services 
597.12  policy and finance committees and the senate health and family 
597.13  security committee and finance division. 
597.14     Subd. 4.  [RATE SETTING.] (a) The rate structure under this 
597.15  section is intended to allow a county to authorize an individual 
597.16  rate for each client in the vendor's program based on the needs 
597.17  and expected outcomes of the individual client.  Rates shall be 
597.18  based on an authorized package of services for each individual 
597.19  over a typical time frame.  Rates may be established across 
597.20  multiple sites run by a single vendor. 
597.21     (b) With county concurrence, a vendor shall establish up to 
597.22  four levels of service, A through D, based on the intensity of 
597.23  services provided to an individual client of day training and 
597.24  habilitation services.  Service level A shall be the highest 
597.25  intensity of services, marked primarily, but not exclusively, by 
597.26  a one-to-one client-to-staff ratio.  Service level D shall be 
597.27  the lowest intensity of services.  The county shall document the 
597.28  vendor's description of the type and amount of services 
597.29  associated with each service level. 
597.30     (c) For each vendor, a county board shall establish a 
597.31  dollar value for one hour of service at each of the service 
597.32  levels defined in paragraph (b).  In establishing these values 
597.33  for existing vendors transitioning from the payment rate 
597.34  structure under Minnesota Statutes, section 252.46, subdivision 
597.35  1, the county board shall follow the formula and guidelines 
597.36  developed by the day training and habilitation task force under 
598.1   paragraph (e). 
598.2      (d) A vendor may elect to maintain a single transportation 
598.3   rate or may elect to establish up to five types of 
598.4   transportation services:  public transportation, public special 
598.5   transportation, nonambulatory transportation, out-of-service 
598.6   area transportation, and ambulatory transportation.  For vendors 
598.7   that elect to establish multiple transportation services, the 
598.8   county board shall establish a dollar value for a round trip on 
598.9   each type of transportation service offered through the vendor.  
598.10  With vendor concurrence, the county may also establish a uniform 
598.11  one-way trip value for some or all of the transportation service 
598.12  types. 
598.13     (e) The county board shall ensure that the vendor 
598.14  translates the vendor's existing program and transportation 
598.15  rates to the rates and values in the pilot project by using the 
598.16  conversion calculations for services and transportation approved 
598.17  by the day training and habilitation task force established 
598.18  under Laws 1999, chapter 152, and included in the task force's 
598.19  recommendations to the legislature.  The conversion calculation 
598.20  may be amended by the task force with the approval of the 
598.21  commissioner and any amendments shall become effective upon 
598.22  notification to the pilot project counties from the 
598.23  commissioner.  The calculation shall take the total 
598.24  reimbursement dollars available to the vendor and divide by the 
598.25  units of service expected at each service level and of each 
598.26  transportation type.  In determining the total reimbursement 
598.27  dollars available to a vendor, the vendor shall multiply the 
598.28  vendor's current per diem rate for both services and 
598.29  transportation, including any new rate increases, by the 
598.30  vendor's actual utilization for the year prior to implementation 
598.31  of the pilot project.  Vendors shall be allowed to allocate 
598.32  available reimbursement dollars between service and 
598.33  transportation before the vendor's service level and 
598.34  transportation values are calculated.  After translating its 
598.35  existing service and transportation rates to the service level 
598.36  and transportation values under the pilot, the vendor shall 
599.1   project its expected reimbursement income using the expected 
599.2   service and transportation packages for its existing clients, 
599.3   based on current service authorizations.  If the projected 
599.4   reimbursement income is less than the vendor would have received 
599.5   under the payment structure of Minnesota Statutes, section 
599.6   252.46, the vendor and the county, with the approval of the 
599.7   commissioner, shall adjust the vendor's service level and 
599.8   transportation values to eliminate the shortfall.  The 
599.9   commissioner shall report all adjustments to the day training 
599.10  and habilitation task force for consideration of possible 
599.11  modifications to the pilot project individualized payment rate 
599.12  structure.  
599.13     Subd. 5.  [INDIVIDUAL RATE AUTHORIZATION.] (a) As part of 
599.14  its annual authorization of services for each client under 
599.15  Minnesota Statutes, section 252.44, paragraph (a), clause (1), 
599.16  and Minnesota Rules, part 9525.0016, subpart 12, the county 
599.17  shall authorize and document a service package and a 
599.18  transportation package as follows: 
599.19     (1) the service package shall include the amount and type 
599.20  of services at each applicable service level to be provided to 
599.21  the client over a package period.  An individual client may 
599.22  receive services at multiple service levels over the course of 
599.23  the package period.  The service package rate shall be the sum 
599.24  of the amount of services at each level over the package period, 
599.25  multiplied by the dollar value for each service level; 
599.26     (2) the transportation package shall include the amount and 
599.27  type of transportation services to be provided to the client 
599.28  over the package period.  The transportation package rate shall 
599.29  be the sum of the amount of transportation services, multiplied 
599.30  by the dollar value associated with the type of transportation 
599.31  service authorized for the client; 
599.32     (3) the package period shall be established by the county, 
599.33  and may be one week, two weeks, or one month; and 
599.34     (4) the individual rate authorization may be reviewed and 
599.35  modified by the county at any time and must be reviewed and 
599.36  reauthorized by the county at least annually. 
600.1      (b) For vendors with rates established under this section, 
600.2   a service day under Minnesota Statutes, sections 245B.06 and 
600.3   252.44, includes any day in which a client receives any 
600.4   reimbursable service from a vendor or attends employment 
600.5   arranged by the vendor. 
600.6      Subd. 6.  [BILLING FOR SERVICES.] The vendor shall bill 
600.7   for, and shall be reimbursed for, the service package rate and 
600.8   transportation package rate for the package period as authorized 
600.9   by the county for each client in the vendor's program.  The 
600.10  length of the package period shall not affect the timing or 
600.11  frequency of vendors' submissions of claims for payment under 
600.12  the Medicaid Management Information System II (MMIS) or its 
600.13  successors. 
600.14     Subd. 7.  [NOTIFICATION OF CHANGE IN CLIENT NEEDS.] The 
600.15  vendor shall notify an individual client's case manager if the 
600.16  vendor has knowledge of a material change in the client's needs 
600.17  that may indicate a need for a change in service authorization.  
600.18  Factors that would require such notice include, but are not 
600.19  limited to, significant changes in medical status, residential 
600.20  placement, attendance patterns, behavioral needs, or skill 
600.21  functioning.  The vendor shall notify the case manager as soon 
600.22  as possible but no later than 30 calendar days after becoming 
600.23  aware of the change in needs.  The service authorization for the 
600.24  client shall not change until the county authorizes a new 
600.25  service and transportation package for the client in accordance 
600.26  with the provisions in Minnesota Statutes, section 256B.092. 
600.27     Sec. 26.  [COUNTY BOARD RESPONSIBILITIES.] 
600.28     For each vendor with rates established under section 25, 
600.29  the county board shall document the vendor's description of the 
600.30  type and amount of services associated with each service level, 
600.31  the vendor's service level values, the vendor's transportation 
600.32  values, and the package period that will be used to determine 
600.33  the rate for each individual client.  The county shall establish 
600.34  a package period of one week, two weeks, or one month. 
600.35     Sec. 27.  [STUDY OF DAY TRAINING AND HABILITATION VENDOR 
600.36  RATES.] 
601.1      The commissioner shall identify the vendors with the lowest 
601.2   rates or underfunded programs in the state and make 
601.3   recommendations to reconcile the discrepancies prior to the 
601.4   implementation of the individualized payment rate structure 
601.5   described in sections 25 and 26. 
601.6      Sec. 28.  [FEDERAL APPROVAL.] 
601.7      The commissioner shall seek any amendments to the state 
601.8   Medicaid plan and any waivers necessary to permit implementation 
601.9   of section 25 within the timelines specified. 
601.10     Sec. 29.  [REPEALER.] 
601.11     Minnesota Statutes 2000, section 252A.111, subdivision 3, 
601.12  is repealed. 
601.13                             ARTICLE 14
601.14                         DHS LICENSING AND 
601.15                    LICENSING BACKGROUND STUDIES 
601.16     Section 1.  Minnesota Statutes 2000, section 13.46, 
601.17  subdivision 4, is amended to read: 
601.18     Subd. 4.  [LICENSING DATA.] (a) As used in this subdivision:
601.19     (1) "licensing data" means all data collected, maintained, 
601.20  used, or disseminated by the welfare system pertaining to 
601.21  persons licensed or registered or who apply for licensure or 
601.22  registration or who formerly were licensed or registered under 
601.23  the authority of the commissioner of human services; 
601.24     (2) "client" means a person who is receiving services from 
601.25  a licensee or from an applicant for licensure; and 
601.26     (3) "personal and personal financial data" means social 
601.27  security numbers, identity of and letters of reference, 
601.28  insurance information, reports from the bureau of criminal 
601.29  apprehension, health examination reports, and social/home 
601.30  studies. 
601.31     (b)(1) Except as provided in paragraph (c), the following 
601.32  data on current and former licensees are public:  name, address, 
601.33  telephone number of licensees, date of receipt of a completed 
601.34  application, dates of licensure, licensed capacity, type of 
601.35  client preferred, variances granted, type of dwelling, name and 
601.36  relationship of other family members, previous license history, 
602.1   class of license, and the existence and status of complaints.  
602.2   When disciplinary action has been taken against a licensee a 
602.3   correction order or fine has been issued, a license is 
602.4   suspended, immediately suspended, revoked, denied, or made 
602.5   conditional, or the a complaint is resolved, the following data 
602.6   on current and former licensees are public:  the substance and 
602.7   investigative findings of the complaint, the findings of the 
602.8   investigation of the complaint, licensing violation, or 
602.9   substantiated maltreatment; the record of informal resolution of 
602.10  a licensing violation,; orders of hearing,; findings of 
602.11  fact,; conclusions of law, and; specifications of the final 
602.12  disciplinary action correction order, fine, suspension, 
602.13  immediate suspension, revocation, denial, or conditional license 
602.14  contained in the record of disciplinary licensing action; and 
602.15  the status of any appeal of these actions.  When an individual 
602.16  licensee is a substantiated perpetrator of maltreatment, and the 
602.17  substantiated maltreatment is a reason for the licensing action, 
602.18  the identity of the licensee as a perpetrator is public data.  
602.19  For purposes of this clause, a person is a substantiated 
602.20  perpetrator if the maltreatment determination has been upheld 
602.21  under section 626.556, subdivision 10i, 626.557, subdivision 9d, 
602.22  or 256.045, or an individual or facility has not timely 
602.23  exercised appeal rights under these sections. 
602.24     (2) For applicants who withdraw their application prior to 
602.25  licensure or denial of a license, the following data are 
602.26  public:  the name of the applicant, the city and county in which 
602.27  the applicant was seeking licensure, the dates of the 
602.28  commissioner's receipt of the initial application and completed 
602.29  application, the type of license sought, and the date of 
602.30  withdrawal of the application. 
602.31     (3) For applicants who are denied a license, the following 
602.32  data are public:  the name of the applicant, the city and county 
602.33  in which the applicant was seeking licensure, the dates of the 
602.34  commissioner's receipt of the initial application and completed 
602.35  application, the type of license sought, the date of denial of 
602.36  the application, the nature of the basis for the denial, and the 
603.1   status of any appeal of the denial. 
603.2      (4) The following data on persons subject to 
603.3   disqualification under section 245A.04 in connection with a 
603.4   license to provide family day care for children, child care 
603.5   center services, foster care for children in the provider's 
603.6   home, or foster care or day care services for adults in the 
603.7   provider's home, are public:  the nature of any disqualification 
603.8   set aside under section 245A.04, subdivision 3b, and the reasons 
603.9   for setting aside the disqualification; and the reasons for 
603.10  granting any variance under section 245A.04, subdivision 9. 
603.11     (5) When maltreatment is substantiated under section 
603.12  626.556 or 626.557 and the victim and the substantiated 
603.13  perpetrator are affiliated with a program licensed under chapter 
603.14  245A, the commissioner of human services, local social services 
603.15  agency, or county welfare agency may inform the license holder 
603.16  where the maltreatment occurred of the identity of the 
603.17  substantiated perpetrator and the victim. 
603.18     (c) The following are private data on individuals under 
603.19  section 13.02, subdivision 12, or nonpublic data under section 
603.20  13.02, subdivision 9:  personal and personal financial data on 
603.21  family day care program and family foster care program 
603.22  applicants and licensees and their family members who provide 
603.23  services under the license. 
603.24     (d) The following are private data on individuals:  the 
603.25  identity of persons who have made reports concerning licensees 
603.26  or applicants that appear in inactive investigative data, and 
603.27  the records of clients or employees of the licensee or applicant 
603.28  for licensure whose records are received by the licensing agency 
603.29  for purposes of review or in anticipation of a contested 
603.30  matter.  The names of reporters under sections 626.556 and 
603.31  626.557 may be disclosed only as provided in section 626.556, 
603.32  subdivision 11, or 626.557, subdivision 12b. 
603.33     (e) Data classified as private, confidential, nonpublic, or 
603.34  protected nonpublic under this subdivision become public data if 
603.35  submitted to a court or administrative law judge as part of a 
603.36  disciplinary proceeding in which there is a public hearing 
604.1   concerning the disciplinary action a license which has been 
604.2   suspended, immediately suspended, revoked, or denied. 
604.3      (f) Data generated in the course of licensing 
604.4   investigations that relate to an alleged violation of law are 
604.5   investigative data under subdivision 3. 
604.6      (g) Data that are not public data collected, maintained, 
604.7   used, or disseminated under this subdivision that relate to or 
604.8   are derived from a report as defined in section 626.556, 
604.9   subdivision 2, or 626.5572, subdivision 18, are subject to the 
604.10  destruction provisions of section sections 626.556, subdivision 
604.11  11 11c, and 626.557, subdivision 12b.  
604.12     (h) Upon request, not public data collected, maintained, 
604.13  used, or disseminated under this subdivision that relate to or 
604.14  are derived from a report of substantiated maltreatment as 
604.15  defined in section 626.556 or 626.557 may be exchanged with the 
604.16  department of health for purposes of completing background 
604.17  studies pursuant to section 144.057. 
604.18     (i) Data on individuals collected according to licensing 
604.19  activities under chapter 245A, and data on individuals collected 
604.20  by the commissioner of human services according to maltreatment 
604.21  investigations under sections 626.556 and 626.557, may be shared 
604.22  with the department of human rights, the department of health, 
604.23  the department of corrections, the ombudsman for mental health 
604.24  and retardation, and the individual's professional regulatory 
604.25  board when there is reason to believe that laws or standards 
604.26  under the jurisdiction of those agencies may have been violated. 
604.27     (j) In addition to the notice of determinations required 
604.28  under section 626.556, subdivision 10f, if the commissioner or 
604.29  the local social services agency has determined that an 
604.30  individual is a substantiated perpetrator of maltreatment of a 
604.31  child based on sexual abuse, as defined in section 626.556, 
604.32  subdivision 2, and the commissioner or local social services 
604.33  agency knows that the individual is a person responsible for a 
604.34  child's care in another facility, the commissioner or local 
604.35  social services agency shall notify the head of that facility of 
604.36  this determination.  The notification must include an 
605.1   explanation of the individual's available appeal rights and the 
605.2   status of any appeal.  If a notice is given under this 
605.3   paragraph, the government entity making the notification shall 
605.4   provide a copy of the notice to the individual who is the 
605.5   subject of the notice. 
605.6      Sec. 2.  Minnesota Statutes 2000, section 144.057, is 
605.7   amended to read: 
605.8      144.057 [BACKGROUND STUDIES ON LICENSEES AND SUPPLEMENTAL 
605.9   NURSING SERVICES AGENCY PERSONNEL.] 
605.10     Subdivision 1.  [BACKGROUND STUDIES REQUIRED.] The 
605.11  commissioner of health shall contract with the commissioner of 
605.12  human services to conduct background studies of: 
605.13     (1) individuals providing services which have direct 
605.14  contact, as defined under section 245A.04, subdivision 3, with 
605.15  patients and residents in hospitals, boarding care homes, 
605.16  outpatient surgical centers licensed under sections 144.50 to 
605.17  144.58; nursing homes and home care agencies licensed under 
605.18  chapter 144A; residential care homes licensed under chapter 
605.19  144B, and board and lodging establishments that are registered 
605.20  to provide supportive or health supervision services under 
605.21  section 157.17; and 
605.22     (2) individuals specified in section 245A.04, subdivision 
605.23  3, paragraph (c), who perform direct contact services in a 
605.24  nursing home or a home care agency licensed under chapter 144A 
605.25  or a boarding care home licensed under sections 144.50 to 
605.26  144.58, and if the individual under study resides outside 
605.27  Minnesota, the study must be at least as comprehensive as that 
605.28  of a Minnesota resident and include a search of information from 
605.29  the criminal justice data communications network in the state 
605.30  where the subject of the study resides; 
605.31     (3) beginning July 1, 1999, all other employees in nursing 
605.32  homes licensed under chapter 144A, and boarding care homes 
605.33  licensed under sections 144.50 to 144.58.  A disqualification of 
605.34  an individual in this section shall disqualify the individual 
605.35  from positions allowing direct contact or access to patients or 
605.36  residents receiving services.  "Access" means physical access to 
606.1   a client or the client's personal property without continuous, 
606.2   direct supervision as defined in section 245A.04, subdivision 3, 
606.3   paragraph (b), clause (2), when the employee's employment 
606.4   responsibilities do not include providing direct contact 
606.5   services; 
606.6      (4) individuals employed by a supplemental nursing services 
606.7   agency, as defined under section 144A.70, who are providing 
606.8   services in health care facilities; and 
606.9      (5) controlling persons of a supplemental nursing services 
606.10  agency, as defined under section 144A.70. 
606.11     If a facility or program is licensed by the department of 
606.12  human services and subject to the background study provisions of 
606.13  chapter 245A and is also licensed by the department of health, 
606.14  the department of human services is solely responsible for the 
606.15  background studies of individuals in the jointly licensed 
606.16  programs. 
606.17     Subd. 2.  [RESPONSIBILITIES OF DEPARTMENT OF HUMAN 
606.18  SERVICES.] The department of human services shall conduct the 
606.19  background studies required by subdivision 1 in compliance with 
606.20  the provisions of chapter 245A and Minnesota Rules, parts 
606.21  9543.3000 to 9543.3090.  For the purpose of this section, the 
606.22  term "residential program" shall include all facilities 
606.23  described in subdivision 1.  The department of human services 
606.24  shall provide necessary forms and instructions, shall conduct 
606.25  the necessary background studies of individuals, and shall 
606.26  provide notification of the results of the studies to the 
606.27  facilities, supplemental nursing services agencies, individuals, 
606.28  and the commissioner of health.  Individuals shall be 
606.29  disqualified under the provisions of chapter 245A and Minnesota 
606.30  Rules, parts 9543.3000 to 9543.3090.  If an individual is 
606.31  disqualified, the department of human services shall notify the 
606.32  facility, the supplemental nursing services agency, and the 
606.33  individual and shall inform the individual of the right to 
606.34  request a reconsideration of the disqualification by submitting 
606.35  the request to the department of health. 
606.36     Subd. 3.  [RECONSIDERATIONS.] The commissioner of health 
607.1   shall review and decide reconsideration requests, including the 
607.2   granting of variances, in accordance with the procedures and 
607.3   criteria contained in chapter 245A and Minnesota Rules, parts 
607.4   9543.3000 to 9543.3090.  The commissioner's decision shall be 
607.5   provided to the individual and to the department of human 
607.6   services.  The commissioner's decision to grant or deny a 
607.7   reconsideration of disqualification is the final administrative 
607.8   agency action, except for the provisions under section 245A.04, 
607.9   subdivisions 3b, paragraphs (e) and (f); and 3c, paragraph (a). 
607.10     <b>[EFFECTIVE DATE.]</b> This subdivision is effective January 1, 
607.11  2002. 
607.12     Subd. 4.  [RESPONSIBILITIES OF FACILITIES AND AGENCIES.] 
607.13  Facilities and agencies described in subdivision 1 shall be 
607.14  responsible for cooperating with the departments in implementing 
607.15  the provisions of this section.  The responsibilities imposed on 
607.16  applicants and licensees under chapter 245A and Minnesota Rules, 
607.17  parts 9543.3000 to 9543.3090, shall apply to these facilities 
607.18  and supplemental nursing services agencies.  The provision of 
607.19  section 245A.04, subdivision 3, paragraph (e), shall apply to 
607.20  applicants, licensees, registrants, or an individual's refusal 
607.21  to cooperate with the completion of the background 
607.22  studies.  Supplemental nursing services agencies subject to the 
607.23  registration requirements in section 144A.71 must maintain 
607.24  records verifying compliance with the background study 
607.25  requirements under this section. 
607.26     Sec. 3.  Minnesota Statutes 2000, section 214.104, is 
607.27  amended to read: 
607.28     214.104 [HEALTH-RELATED LICENSING BOARDS; DETERMINATIONS 
607.29  REGARDING DISQUALIFICATIONS FOR MALTREATMENT.] 
607.30     (a) A health-related licensing board shall make 
607.31  determinations as to whether licensees regulated persons who are 
607.32  under the board's jurisdiction should be disqualified under 
607.33  section 245A.04, subdivision 3d, from positions allowing direct 
607.34  contact with persons receiving services the subject of 
607.35  disciplinary or corrective action because of substantiated 
607.36  maltreatment under section 626.556 or 626.557.  A determination 
608.1   under this section may be done as part of an investigation under 
608.2   section 214.103.  The board shall make a determination within 90 
608.3   days of upon receipt, and after the review, of an investigation 
608.4   memorandum or other notice of substantiated maltreatment under 
608.5   section 626.556 or 626.557, or of a notice from the commissioner 
608.6   of human services that a background study of a licensee 
608.7   regulated person shows substantiated maltreatment.  The board 
608.8   shall also make a determination under this section upon 
608.9   consideration of the licensure of an individual who was subject 
608.10  to disqualification before licensure because of substantiated 
608.11  maltreatment. 
608.12     (b) In making a determination under this section, the board 
608.13  shall consider the nature and extent of any injury or harm 
608.14  resulting from the conduct that would constitute grounds for 
608.15  disqualification, the seriousness of the misconduct, the extent 
608.16  that disqualification is necessary to protect persons receiving 
608.17  services or the public, and other factors specified in section 
608.18  245A.04, subdivision 3b, paragraph (b). 
608.19     (c) The board shall determine the duration and extent of 
608.20  the disqualification or may establish conditions under which the 
608.21  licensee may hold a position allowing direct contact with 
608.22  persons receiving services or in a licensed facility.  
608.23     (b) Upon completion of its review of a report of 
608.24  substantiated maltreatment, the board shall notify the 
608.25  commissioner of human services and the lead agency that 
608.26  conducted an investigation under section 626.556 or 626.557, as 
608.27  applicable, of its determination.  The board shall notify the 
608.28  commissioner of human services if, following a review of the 
608.29  report of substantiated maltreatment, the board determines that 
608.30  it does not have jurisdiction in the matter and the commissioner 
608.31  shall make the appropriate disqualification decision regarding 
608.32  the regulated person as otherwise provided in chapter 245A.  The 
608.33  board shall also notify the commissioner of health or the 
608.34  commissioner of human services immediately upon receipt of 
608.35  knowledge of a facility or program allowing a regulated person 
608.36  to provide direct contact services at the facility or program 
609.1   while not complying with requirements placed on the regulated 
609.2   person. 
609.3      (c) In addition to any other remedy provided by law, the 
609.4   board may, through its designated board member, temporarily 
609.5   suspend the license of a licensee; deny a credential to an 
609.6   applicant; or require the regulated person to be continuously 
609.7   supervised, if the board finds there is probable cause to 
609.8   believe the regulated person referred to the board according to 
609.9   paragraph (a) poses an immediate risk of harm to vulnerable 
609.10  persons.  The board shall consider all relevant information 
609.11  available, which may include but is not limited to: 
609.12     (1) the extent the action is needed to protect persons 
609.13  receiving services or the public; 
609.14     (2) the recency of the maltreatment; 
609.15     (3) the number of incidents of maltreatment; 
609.16     (4) the intrusiveness or violence of the maltreatment; and 
609.17     (5) the vulnerability of the victim of maltreatment.  
609.18  The action shall take effect upon written notice to the 
609.19  regulated person, served by certified mail, specifying the 
609.20  statute violated.  The board shall notify the commissioner of 
609.21  health or the commissioner of human services of the suspension 
609.22  or denial of a credential.  The action shall remain in effect 
609.23  until the board issues a temporary stay or a final order in the 
609.24  matter after a hearing or upon agreement between the board and 
609.25  the regulated person.  At the time the board issues the notice, 
609.26  the regulated person shall inform the board of all settings in 
609.27  which the regulated person is employed or practices.  The board 
609.28  shall inform all known employment and practice settings of the 
609.29  board action and schedule a disciplinary hearing to be held 
609.30  under chapter 14.  The board shall provide the regulated person 
609.31  with at least 30 days' notice of the hearing, unless the parties 
609.32  agree to a hearing date that provides less than 30 days' notice, 
609.33  and shall schedule the hearing to begin no later than 90 days 
609.34  after issuance of the notice of hearing. 
609.35     Sec. 4.  Minnesota Statutes 2000, section 245A.02, 
609.36  subdivision 1, is amended to read: 
610.1      Subdivision 1.  [SCOPE.] The terms used in this chapter and 
610.2   chapter 245B have the meanings given them in this section. 
610.3      Sec. 5.  Minnesota Statutes 2000, section 245A.02, is 
610.4   amended by adding a subdivision to read: 
610.5      Subd. 3a.  [CERTIFICATION.] "Certification" means the 
610.6   commissioner's written authorization for a license holder 
610.7   licensed by the commissioner of human services or the 
610.8   commissioner of corrections to serve children in a residential 
610.9   program and provide specialized services based on certification 
610.10  standards in Minnesota Rules.  The term "certification" and its 
610.11  derivatives have the same meaning and may be substituted for the 
610.12  term "licensure" and its derivatives in this chapter. 
610.13     Sec. 6.  Minnesota Statutes 2000, section 245A.02, 
610.14  subdivision 9, is amended to read: 
610.15     Subd. 9.  [LICENSE HOLDER.] "License holder" means an 
610.16  individual, corporation, partnership, voluntary association, or 
610.17  other organization that is legally responsible for the operation 
610.18  of the program, has been granted a license by the commissioner 
610.19  under this chapter or chapter 245B and the rules of the 
610.20  commissioner, and is a controlling individual. 
610.21     Sec. 7.  Minnesota Statutes 2000, section 245A.03, 
610.22  subdivision 2, is amended to read: 
610.23     Subd. 2.  [EXCLUSION FROM LICENSURE.] This chapter does not 
610.24  apply to: 
610.25     (1) residential or nonresidential programs that are 
610.26  provided to a person by an individual who is related unless the 
610.27  residential program is a child foster care placement made by a 
610.28  local social services agency or a licensed child-placing agency, 
610.29  except as provided in subdivision 2a; 
610.30     (2) nonresidential programs that are provided by an 
610.31  unrelated individual to persons from a single related family; 
610.32     (3) residential or nonresidential programs that are 
610.33  provided to adults who do not abuse chemicals or who do not have 
610.34  a chemical dependency, a mental illness, mental retardation or a 
610.35  related condition, a functional impairment, or a physical 
610.36  handicap; 
611.1      (4) sheltered workshops or work activity programs that are 
611.2   certified by the commissioner of economic security; 
611.3      (5) programs for children enrolled in kindergarten to the 
611.4   12th grade and prekindergarten special education in a school as 
611.5   defined in section 120A.22, subdivision 4, and programs serving 
611.6   children in combined special education and regular 
611.7   prekindergarten programs that are operated or assisted by the 
611.8   commissioner of children, families, and learning; 
611.9      (6) nonresidential programs primarily for children that 
611.10  provide care or supervision, without charge for ten or fewer 
611.11  days a year, and for periods of less than three hours a day 
611.12  while the child's parent or legal guardian is in the same 
611.13  building as the nonresidential program or present within another 
611.14  building that is directly contiguous to the building in which 
611.15  the nonresidential program is located; 
611.16     (7) nursing homes or hospitals licensed by the commissioner 
611.17  of health except as specified under section 245A.02; 
611.18     (8) board and lodge facilities licensed by the commissioner 
611.19  of health that provide services for five or more persons whose 
611.20  primary diagnosis is mental illness who have refused an 
611.21  appropriate residential program offered by a county agency.  
611.22  This exclusion expires on July 1, 1990; 
611.23     (9) homes providing programs for persons placed there by a 
611.24  licensed agency for legal adoption, unless the adoption is not 
611.25  completed within two years; 
611.26     (10) programs licensed by the commissioner of corrections; 
611.27     (11) recreation programs for children or adults that 
611.28  operate for fewer than 40 calendar days in a calendar year or 
611.29  programs operated by a park and recreation board of a city of 
611.30  the first class whose primary purpose is to provide social and 
611.31  recreational activities to school age children, provided the 
611.32  program is approved by the park and recreation board; 
611.33     (12) programs operated by a school as defined in section 
611.34  120A.22, subdivision 4, whose primary purpose is to provide 
611.35  child care to school-age children, provided the program is 
611.36  approved by the district's school board; 
612.1      (13) Head Start nonresidential programs which operate for 
612.2   less than 31 days in each calendar year; 
612.3      (14) noncertified boarding care homes unless they provide 
612.4   services for five or more persons whose primary diagnosis is 
612.5   mental illness or mental retardation; 
612.6      (15) nonresidential programs for nonhandicapped children 
612.7   provided for a cumulative total of less than 30 days in any 
612.8   12-month period; 
612.9      (16) residential programs for persons with mental illness, 
612.10  that are located in hospitals, until the commissioner adopts 
612.11  appropriate rules; 
612.12     (17) the religious instruction of school-age children; 
612.13  Sabbath or Sunday schools; or the congregate care of children by 
612.14  a church, congregation, or religious society during the period 
612.15  used by the church, congregation, or religious society for its 
612.16  regular worship; 
612.17     (18) camps licensed by the commissioner of health under 
612.18  Minnesota Rules, chapter 4630; 
612.19     (19) mental health outpatient services for adults with 
612.20  mental illness or children with emotional disturbance; 
612.21     (20) residential programs serving school-age children whose 
612.22  sole purpose is cultural or educational exchange, until the 
612.23  commissioner adopts appropriate rules; 
612.24     (21) unrelated individuals who provide out-of-home respite 
612.25  care services to persons with mental retardation or related 
612.26  conditions from a single related family for no more than 90 days 
612.27  in a 12-month period and the respite care services are for the 
612.28  temporary relief of the person's family or legal representative; 
612.29     (22) respite care services provided as a home and 
612.30  community-based service to a person with mental retardation or a 
612.31  related condition, in the person's primary residence; 
612.32     (23) community support services programs as defined in 
612.33  section 245.462, subdivision 6, and family community support 
612.34  services as defined in section 245.4871, subdivision 17; 
612.35     (24) the placement of a child by a birth parent or legal 
612.36  guardian in a preadoptive home for purposes of adoption as 
613.1   authorized by section 259.47; or 
613.2      (25) settings registered under chapter 144D which provide 
613.3   home care services licensed by the commissioner of health to 
613.4   fewer than seven adults.; or 
613.5      (26) consumer-directed community support service funded 
613.6   under the Medicaid waiver for persons with mental retardation 
613.7   and related conditions when the individual who provided the 
613.8   service is:  
613.9      (i) the same individual who is the direct payee of these 
613.10  specific waiver funds or paid by a fiscal agent, fiscal 
613.11  intermediary, or employer of record; and 
613.12     (ii) not otherwise under the control of a residential or 
613.13  nonresidential program that is required to be licensed under 
613.14  this chapter when providing the service. 
613.15     For purposes of clause (6), a building is directly 
613.16  contiguous to a building in which a nonresidential program is 
613.17  located if it shares a common wall with the building in which 
613.18  the nonresidential program is located or is attached to that 
613.19  building by skyway, tunnel, atrium, or common roof. 
613.20     Sec. 8.  Minnesota Statutes 2000, section 245A.03, 
613.21  subdivision 2b, is amended to read: 
613.22     Subd. 2b.  [EXCEPTION.] The provision in subdivision 2, 
613.23  clause (2), does not apply to: 
613.24     (1) a child care provider who as an applicant for licensure 
613.25  or as a license holder has received a license denial under 
613.26  section 245A.05, a fine conditional license under section 
613.27  245A.06, or a sanction under section 245A.07 from the 
613.28  commissioner that has not been reversed on appeal; or 
613.29     (2) a child care provider, or a child care provider who has 
613.30  a household member who, as a result of a licensing process, has 
613.31  a disqualification under this chapter that has not been set 
613.32  aside by the commissioner. 
613.33     Sec. 9.  Minnesota Statutes 2000, section 245A.03, is 
613.34  amended by adding a subdivision to read: 
613.35     Subd. 6.  [RIGHT TO SEEK CERTIFICATION.] Nothing in this 
613.36  section shall prohibit a residential program licensed by the 
614.1   commissioner of corrections to serve children, that is excluded 
614.2   from licensure under subdivision 2, clause (10), from seeking 
614.3   certification from the commissioner of human services under this 
614.4   chapter for program services for which certification standards 
614.5   have been adopted. 
614.6      Sec. 10.  Minnesota Statutes 2000, section 245A.035, 
614.7   subdivision 1, is amended to read: 
614.8      Subdivision 1.  [GRANT OF EMERGENCY LICENSE.] 
614.9   Notwithstanding section 245A.03, subdivision 2a, a county agency 
614.10  may place a child for foster care with a relative who is not 
614.11  licensed to provide foster care, provided the requirements of 
614.12  subdivision 2 are met.  As used in this section, the term 
614.13  "relative" has the meaning given it under section 260.181, 
614.14  subdivision 3 260C.007, subdivision 14. 
614.15     Sec. 11.  Minnesota Statutes 2000, section 245A.04, 
614.16  subdivision 3, is amended to read: 
614.17     Subd. 3.  [BACKGROUND STUDY OF THE APPLICANT; DEFINITIONS.] 
614.18  (a) Before the commissioner issues a license, the commissioner 
614.19  shall conduct a study of the individuals specified in paragraph 
614.20  (c), clauses (1) to (5), according to rules of the commissioner. 
614.21     Beginning January 1, 1997, the commissioner shall also 
614.22  conduct a study of employees providing direct contact services 
614.23  for nonlicensed personal care provider organizations Individuals 
614.24  and organizations that are required in statute to initiate 
614.25  background studies under this section shall comply with the 
614.26  following requirements: 
614.27     (1) Applicants for licensure, license holders, and other 
614.28  entities as provided in this section must submit completed 
614.29  background study forms to the commissioner before individuals 
614.30  specified in paragraph (c), clauses (1) to (4), (6), and (7), 
614.31  begin positions allowing direct contact in any licensed program. 
614.32     (2) Applicants and license holders under the jurisdiction 
614.33  of other state agencies who are required in other statutory 
614.34  sections to initiate background studies under this section must 
614.35  submit completed background study forms to the commissioner 
614.36  prior to the background study subject beginning in a position 
615.1   allowing direct contact in the licensed program, or where 
615.2   applicable, prior to being employed. 
615.3      (3) Organizations required to initiate background studies 
615.4   under section 256B.0627 for individuals described in paragraph 
615.5   (c), clause (5), must submit a completed background study form 
615.6   to the commissioner before those individuals begin a position 
615.7   allowing direct contact with persons served by the organization. 
615.8   The commissioner shall recover the cost of these background 
615.9   studies through a fee of no more than $12 per study charged to 
615.10  the personal care provider organization responsible for 
615.11  submitting the background study form.  The fees collected under 
615.12  this paragraph are appropriated to the commissioner for the 
615.13  purpose of conducting background studies.  
615.14     Beginning August 1, 1997, Upon receipt of the background 
615.15  study forms from the entities in clauses (1) to (3), the 
615.16  commissioner shall conduct all background studies required under 
615.17  this chapter for adult foster care providers who are licensed by 
615.18  the commissioner of human services and registered under chapter 
615.19  144D.  The commissioner shall conduct these background studies 
615.20  in accordance with this chapter.  The commissioner shall 
615.21  initiate a pilot project to conduct up to 5,000 background 
615.22  studies under this chapter complete the background study as 
615.23  specified under this section and provide notices required in 
615.24  subdivision 3a.  Unless otherwise specified, the subject of a 
615.25  background study may have direct contact with persons served by 
615.26  a program after the background study form is mailed or submitted 
615.27  to the commissioner pending notification of the study results 
615.28  under subdivision 3a.  A county agency may accept a background 
615.29  study completed by the commissioner under this section in place 
615.30  of the background study required under section 245A.16, 
615.31  subdivision 3, in programs with joint licensure as home and 
615.32  community-based services and adult foster care for people with 
615.33  developmental disabilities when the license holder does not 
615.34  reside in the foster care residence and the subject of the study 
615.35  has been continuously affiliated with the license holder since 
615.36  the date of the commissioner's study. 
616.1      (b) Beginning July 1, 1998, the commissioner shall conduct 
616.2   a background study on individuals specified in paragraph (c), 
616.3   clauses (1) to (5), who perform direct contact services in a 
616.4   nursing home or a home care agency licensed under chapter 144A 
616.5   or a boarding care home licensed under sections 144.50 to 
616.6   144.58, when the subject of the study resides outside Minnesota; 
616.7   the study must be at least as comprehensive as that of a 
616.8   Minnesota resident and include a search of information from the 
616.9   criminal justice data communications network in the state where 
616.10  the subject of the study resides The definitions in this 
616.11  paragraph apply only to subdivisions 3 to 3e. 
616.12     (1) "Background study" means the review of records 
616.13  conducted by the commissioner to determine whether a subject is 
616.14  disqualified from direct contact with persons served by a 
616.15  program, and where specifically provided in statutes, whether a 
616.16  subject is disqualified from having access to persons served by 
616.17  a program. 
616.18     (2) "Continuous, direct supervision" means an individual is 
616.19  within sight or hearing of the supervising person to the extent 
616.20  that supervising person is capable at all times of intervening 
616.21  to protect the health and safety of the persons served by the 
616.22  program. 
616.23     (3) "Contractor" means any person, regardless of employer, 
616.24  who is providing program services for hire under the control of 
616.25  the provider. 
616.26     (4) "Direct contact" means providing face-to-face care, 
616.27  training, supervision, counseling, consultation, or medication 
616.28  assistance to persons served by the program. 
616.29     (5) "Reasonable cause" means information or circumstances 
616.30  exist which provide the commissioner with articulable suspicion 
616.31  that further pertinent information may exist concerning a 
616.32  subject.  The commissioner has reasonable cause when, but not 
616.33  limited to, the commissioner has received a report from the 
616.34  subject, the license holder, or a third party indicating that 
616.35  the subject has a history that would disqualify the person or 
616.36  that may pose a risk to the health or safety of persons 
617.1   receiving services. 
617.2      (6) "Subject of a background study" means an individual on 
617.3   whom a background study is required or completed. 
617.4      (c) The applicant, license holder, the registrant under 
617.5   section 144A.71, subdivision 1, bureau of criminal apprehension, 
617.6   the commissioner of health, and county agencies, after written 
617.7   notice to the individual who is the subject of the study, shall 
617.8   help with the study by giving the commissioner criminal 
617.9   conviction data and reports about the maltreatment of adults 
617.10  substantiated under section 626.557 and the maltreatment of 
617.11  minors in licensed programs substantiated under section 
617.12  626.556.  The individuals to be studied shall include: 
617.13     (1) the applicant; 
617.14     (2) persons over the age of 13 and over living in the 
617.15  household where the licensed program will be provided; 
617.16     (3) current employees or contractors of the applicant who 
617.17  will have direct contact with persons served by the facility, 
617.18  agency, or program; 
617.19     (4) volunteers or student volunteers who have direct 
617.20  contact with persons served by the program to provide program 
617.21  services, if the contact is not directly supervised by the 
617.22  individuals listed in clause (1) or (3); and 
617.23     (5) any person who, as an individual or as a member of an 
617.24  organization, exclusively offers, provides, or arranges for 
617.25  personal care assistant services under the medical assistance 
617.26  program as authorized under sections 256B.04, subdivision 16, 
617.27  and 256B.0625, subdivision 19a. required under section 256B.0627 
617.28  to have a background study completed under this section; 
617.29     (6) persons age 10 to 12 living in the household where the 
617.30  licensed services will be provided when the commissioner has 
617.31  reasonable cause; and 
617.32     (7) persons who, without providing direct contact services 
617.33  at a licensed program, may have unsupervised access to children 
617.34  or vulnerable adults receiving services from the program 
617.35  licensed to provide family child care for children, foster care 
617.36  for children in the provider's own home, or foster care or day 
618.1   care services for adults in the provider's own home when the 
618.2   commissioner has reasonable cause. 
618.3      (d) According to paragraph (c), clauses (2) and (6), the 
618.4   commissioner shall review records from the juvenile courts.  For 
618.5   persons under paragraph (c), clauses (1), (3), (4), (5), and 
618.6   (7), who are ages 13 to 17, the commissioner shall review 
618.7   records from the juvenile courts when the commissioner has 
618.8   reasonable cause.  The juvenile courts shall also help with the 
618.9   study by giving the commissioner existing juvenile court records 
618.10  on individuals described in clause paragraph (c), clauses (2), 
618.11  (6), and (7), relating to delinquency proceedings held within 
618.12  either the five years immediately preceding the application 
618.13  background study or the five years immediately preceding the 
618.14  individual's 18th birthday, whichever time period is longer.  
618.15  The commissioner shall destroy juvenile records obtained 
618.16  pursuant to this subdivision when the subject of the records 
618.17  reaches age 23. 
618.18     (e) Beginning August 1, 2001, the commissioner shall 
618.19  conduct all background studies required under this chapter and 
618.20  initiated by supplemental nursing services agencies registered 
618.21  under section 144A.71, subdivision 1.  Studies for the agencies 
618.22  must be initiated annually by each agency.  The commissioner 
618.23  shall conduct the background studies according to this chapter.  
618.24  The commissioner shall recover the cost of the background 
618.25  studies through a fee of no more than $8 per study, charged to 
618.26  the supplemental nursing services agency.  The fees collected 
618.27  under this paragraph are appropriated to the commissioner for 
618.28  the purpose of conducting background studies. 
618.29     (f) For purposes of this section and Minnesota Rules, part 
618.30  9543.3070, a finding that a delinquency petition is proven in 
618.31  juvenile court shall be considered a conviction in state 
618.32  district court. 
618.33     For purposes of this subdivision, "direct contact" means 
618.34  providing face-to-face care, training, supervision, counseling, 
618.35  consultation, or medication assistance to persons served by a 
618.36  program.  For purposes of this subdivision, "directly supervised"
619.1   means an individual listed in clause (1), (3), or (5) is within 
619.2   sight or hearing of a volunteer to the extent that the 
619.3   individual listed in clause (1), (3), or (5) is capable at all 
619.4   times of intervening to protect the health and safety of the 
619.5   persons served by the program who have direct contact with the 
619.6   volunteer. 
619.7      (g) A study of an individual in paragraph (c), clauses (1) 
619.8   to (5) (7), shall be conducted at least upon application for 
619.9   initial license for all license types or registration under 
619.10  section 144A.71, subdivision 1, and at reapplication for a 
619.11  license or registration for family child care, child foster 
619.12  care, and adult foster care.  The commissioner is not required 
619.13  to conduct a study of an individual at the time of reapplication 
619.14  for a license or if the individual has been continuously 
619.15  affiliated with a foster care provider licensed by the 
619.16  commissioner of human services and registered under chapter 
619.17  144D, other than a family day care or foster care license, if:  
619.18  (i) a study of the individual was conducted either at the time 
619.19  of initial licensure or when the individual became affiliated 
619.20  with the license holder; (ii) the individual has been 
619.21  continuously affiliated with the license holder since the last 
619.22  study was conducted; and (iii) the procedure described in 
619.23  paragraph (d) (j) has been implemented and was in effect 
619.24  continuously since the last study was conducted.  For the 
619.25  purposes of this section, a physician licensed under chapter 147 
619.26  is considered to be continuously affiliated upon the license 
619.27  holder's receipt from the commissioner of health or human 
619.28  services of the physician's background study results.  For 
619.29  individuals who are required to have background studies 
619.30  under clauses (1) to (5) paragraph (c) and who have been 
619.31  continuously affiliated with a foster care provider that is 
619.32  licensed in more than one county, criminal conviction data may 
619.33  be shared among those counties in which the foster care programs 
619.34  are licensed.  A county agency's receipt of criminal conviction 
619.35  data from another county agency shall meet the criminal data 
619.36  background study requirements of this section. 
620.1      (h) The commissioner may also conduct studies on 
620.2   individuals specified in paragraph (c), clauses (3) and (4), 
620.3   when the studies are initiated by: 
620.4      (i) personnel pool agencies; 
620.5      (ii) temporary personnel agencies; 
620.6      (iii) educational programs that train persons by providing 
620.7   direct contact services in licensed programs; and 
620.8      (iv) professional services agencies that are not licensed 
620.9   and which contract with licensed programs to provide direct 
620.10  contact services or individuals who provide direct contact 
620.11  services. 
620.12     (i) Studies on individuals in paragraph (h), items (i) to 
620.13  (iv), must be initiated annually by these agencies, programs, 
620.14  and individuals.  Except for personal care provider 
620.15  organizations as provided in paragraph (a), clause (3), no 
620.16  applicant, license holder, or individual who is the subject of 
620.17  the study shall pay any fees required to conduct the study. 
620.18     (1) At the option of the licensed facility, rather than 
620.19  initiating another background study on an individual required to 
620.20  be studied who has indicated to the licensed facility that a 
620.21  background study by the commissioner was previously completed, 
620.22  the facility may make a request to the commissioner for 
620.23  documentation of the individual's background study status, 
620.24  provided that: 
620.25     (i) the facility makes this request using a form provided 
620.26  by the commissioner; 
620.27     (ii) in making the request the facility informs the 
620.28  commissioner that either: 
620.29     (A) the individual has been continuously affiliated with a 
620.30  licensed facility since the individual's previous background 
620.31  study was completed, or since October 1, 1995, whichever is 
620.32  shorter; or 
620.33     (B) the individual is affiliated only with a personnel pool 
620.34  agency, a temporary personnel agency, an educational program 
620.35  that trains persons by providing direct contact services in 
620.36  licensed programs, or a professional services agency that is not 
621.1   licensed and which contracts with licensed programs to provide 
621.2   direct contact services or individuals who provide direct 
621.3   contact services; and 
621.4      (iii) the facility provides notices to the individual as 
621.5   required in paragraphs (a) to (d) (j), and that the facility is 
621.6   requesting written notification of the individual's background 
621.7   study status from the commissioner.  
621.8      (2) The commissioner shall respond to each request under 
621.9   paragraph (1) with a written or electronic notice to the 
621.10  facility and the study subject.  If the commissioner determines 
621.11  that a background study is necessary, the study shall be 
621.12  completed without further request from a licensed agency or 
621.13  notifications to the study subject.  
621.14     (3) When a background study is being initiated by a 
621.15  licensed facility or a foster care provider that is also 
621.16  registered under chapter 144D, a study subject affiliated with 
621.17  multiple licensed facilities may attach to the background study 
621.18  form a cover letter indicating the additional facilities' names, 
621.19  addresses, and background study identification numbers.  When 
621.20  the commissioner receives such notices, each facility identified 
621.21  by the background study subject shall be notified of the study 
621.22  results.  The background study notice sent to the subsequent 
621.23  agencies shall satisfy those facilities' responsibilities for 
621.24  initiating a background study on that individual. 
621.25     (d) (j) If an individual who is affiliated with a program 
621.26  or facility regulated by the department of human services or 
621.27  department of health or who is affiliated with a nonlicensed 
621.28  personal care provider organization any type of home care agency 
621.29  or provider of personal care assistance services, is convicted 
621.30  of a crime constituting a disqualification under subdivision 3d, 
621.31  the probation officer or corrections agent shall notify the 
621.32  commissioner of the conviction.  For the purpose of this 
621.33  paragraph, "conviction" has the meaning given it in section 
621.34  609.02, subdivision 5.  The commissioner, in consultation with 
621.35  the commissioner of corrections, shall develop forms and 
621.36  information necessary to implement this paragraph and shall 
622.1   provide the forms and information to the commissioner of 
622.2   corrections for distribution to local probation officers and 
622.3   corrections agents.  The commissioner shall inform individuals 
622.4   subject to a background study that criminal convictions for 
622.5   disqualifying crimes will be reported to the commissioner by the 
622.6   corrections system.  A probation officer, corrections agent, or 
622.7   corrections agency is not civilly or criminally liable for 
622.8   disclosing or failing to disclose the information required by 
622.9   this paragraph.  Upon receipt of disqualifying information, the 
622.10  commissioner shall provide the notifications required in 
622.11  subdivision 3a, as appropriate to agencies on record as having 
622.12  initiated a background study or making a request for 
622.13  documentation of the background study status of the individual.  
622.14  This paragraph does not apply to family day care and child 
622.15  foster care programs. 
622.16     (e) (k) The individual who is the subject of the study must 
622.17  provide the applicant or license holder with sufficient 
622.18  information to ensure an accurate study including the 
622.19  individual's first, middle, and last name and all other names by 
622.20  which the individual has been known; home address, city, county, 
622.21  and state of residence for the past five years; zip code; sex; 
622.22  date of birth; and driver's license number or state 
622.23  identification number.  The applicant or license holder shall 
622.24  provide this information about an individual in paragraph (c), 
622.25  clauses (1) to (5) (7), on forms prescribed by the commissioner. 
622.26  By January 1, 2000, for background studies conducted by the 
622.27  department of human services, the commissioner shall implement a 
622.28  system for the electronic transmission of:  (1) background study 
622.29  information to the commissioner; and (2) background study 
622.30  results to the license holder.  The commissioner may request 
622.31  additional information of the individual, which shall be 
622.32  optional for the individual to provide, such as the individual's 
622.33  social security number or race. 
622.34     (f) Except for child foster care, adult foster care, and 
622.35  family day care homes (l) For programs directly licensed by the 
622.36  commissioner, a study must include information related to names 
623.1   of substantiated perpetrators of maltreatment of vulnerable 
623.2   adults that has been received by the commissioner as required 
623.3   under section 626.557, subdivision 9c, paragraph (i), and the 
623.4   commissioner's records relating to the maltreatment of minors in 
623.5   licensed programs, information from juvenile courts as required 
623.6   in paragraph (c) for persons listed in paragraph (c), 
623.7   clause clauses (2), (6), and (7), and information from the 
623.8   bureau of criminal apprehension.  For child foster care, adult 
623.9   foster care, and family day care homes, the study must include 
623.10  information from the county agency's record of substantiated 
623.11  maltreatment of adults, and the maltreatment of minors, 
623.12  information from juvenile courts as required in paragraph (c) 
623.13  for persons listed in paragraph (c), clause clauses (2), (6), 
623.14  and (7), and information from the bureau of criminal 
623.15  apprehension.  The commissioner may also review arrest and 
623.16  investigative information from the bureau of criminal 
623.17  apprehension, the commissioner of health, a county attorney, 
623.18  county sheriff, county agency, local chief of police, other 
623.19  states, the courts, or the Federal Bureau of Investigation if 
623.20  the commissioner has reasonable cause to believe the information 
623.21  is pertinent to the disqualification of an individual listed in 
623.22  paragraph (c), clauses (1) to (5) (7).  The commissioner is not 
623.23  required to conduct more than one review of a subject's records 
623.24  from the Federal Bureau of Investigation if a review of the 
623.25  subject's criminal history with the Federal Bureau of 
623.26  Investigation has already been completed by the commissioner and 
623.27  there has been no break in the subject's affiliation with the 
623.28  license holder who initiated the background studies study. 
623.29     (m) When the commissioner has reasonable cause to believe 
623.30  that further pertinent information may exist on the subject, the 
623.31  subject shall provide a set of classifiable fingerprints 
623.32  obtained from an authorized law enforcement agency.  For 
623.33  purposes of requiring fingerprints, the commissioner shall be 
623.34  considered to have reasonable cause under, but not limited to, 
623.35  the following circumstances: 
623.36     (1) information from the bureau of criminal apprehension 
624.1   indicates that the subject is a multistate offender; 
624.2      (2) information from the bureau of criminal apprehension 
624.3   indicates that multistate offender status is undetermined; or 
624.4      (3) the commissioner has received a report from the subject 
624.5   or a third party indicating that the subject has a criminal 
624.6   history in a jurisdiction other than Minnesota. 
624.7      (g) (n) The failure or refusal of an applicant's or license 
624.8   holder's failure or refusal applicant, license holder, or 
624.9   registrant under section 144A.71, subdivision 1, to cooperate 
624.10  with the commissioner is reasonable cause to disqualify a 
624.11  subject, deny a license application or immediately suspend, 
624.12  suspend, or revoke a license or registration.  Failure or 
624.13  refusal of an individual to cooperate with the study is just 
624.14  cause for denying or terminating employment of the individual if 
624.15  the individual's failure or refusal to cooperate could cause the 
624.16  applicant's application to be denied or the license holder's 
624.17  license to be immediately suspended, suspended, or revoked. 
624.18     (h) (o) The commissioner shall not consider an application 
624.19  to be complete until all of the information required to be 
624.20  provided under this subdivision has been received.  
624.21     (i) (p) No person in paragraph (c), clause clauses (1), 
624.22  (2), (3), (4), or (5) to (7), who is disqualified as a result of 
624.23  this section may be retained by the agency in a position 
624.24  involving direct contact with persons served by the program. or 
624.25  in a position allowing access to persons served by the program 
624.26  as provided for in statutes, unless the commissioner has 
624.27  provided written notice to the agency stating that: 
624.28     (1) the individual may remain in direct contact during the 
624.29  period in which the individual may request reconsideration as 
624.30  provided in subdivision 3a, paragraph (b), clause (2) or (3); 
624.31     (2) the individual's disqualification has been set aside 
624.32  for that agency as provided in subdivision 3b, paragraph (b); or 
624.33     (3) the license holder has been granted a variance for the 
624.34  disqualified individual under subdivision 3e. 
624.35     (j) (q) Termination of persons in paragraph (c), clause 
624.36  clauses (1), (2), (3), (4), or (5) to (7), made in good faith 
625.1   reliance on a notice of disqualification provided by the 
625.2   commissioner shall not subject the applicant or license holder 
625.3   to civil liability. 
625.4      (k) (r) The commissioner may establish records to fulfill 
625.5   the requirements of this section. 
625.6      (l) (s) The commissioner may not disqualify an individual 
625.7   subject to a study under this section because that person has, 
625.8   or has had, a mental illness as defined in section 245.462, 
625.9   subdivision 20. 
625.10     (m) (t) An individual subject to disqualification under 
625.11  this subdivision has the applicable rights in subdivision 3a, 
625.12  3b, or 3c. 
625.13     (n) (u) For the purposes of background studies completed by 
625.14  tribal organizations performing licensing activities otherwise 
625.15  required of the commissioner under this chapter, after obtaining 
625.16  consent from the background study subject, tribal licensing 
625.17  agencies shall have access to criminal history data in the same 
625.18  manner as county licensing agencies and private licensing 
625.19  agencies under this chapter. 
625.20     Sec. 12.  Minnesota Statutes 2000, section 245A.04, 
625.21  subdivision 3a, is amended to read: 
625.22     Subd. 3a.  [NOTIFICATION TO SUBJECT AND LICENSE HOLDER OF 
625.23  STUDY RESULTS; DETERMINATION OF RISK OF HARM.] (a) Within 15 
625.24  working days, the commissioner shall notify the applicant or, 
625.25  license holder, or registrant under section 144A.71, subdivision 
625.26  1, and the individual who is the subject of the study, in 
625.27  writing or by electronic transmission, of the results of the 
625.28  study or that more time is needed to complete the study.  When 
625.29  the study is completed, a notice that the study was undertaken 
625.30  and completed shall be maintained in the personnel files of the 
625.31  program.  For studies on individuals pertaining to a license to 
625.32  provide family day care or group family day care, foster care 
625.33  for children in the provider's own home, or foster care or day 
625.34  care services for adults in the provider's own home, the 
625.35  commissioner is not required to provide a separate notice of the 
625.36  background study results to the individual who is the subject of 
626.1   the study unless the study results in a disqualification of the 
626.2   individual. 
626.3      The commissioner shall notify the individual studied if the 
626.4   information in the study indicates the individual is 
626.5   disqualified from direct contact with persons served by the 
626.6   program.  The commissioner shall disclose the information 
626.7   causing disqualification and instructions on how to request a 
626.8   reconsideration of the disqualification to the individual 
626.9   studied.  An applicant or license holder who is not the subject 
626.10  of the study shall be informed that the commissioner has found 
626.11  information that disqualifies the subject from direct contact 
626.12  with persons served by the program.  However, only the 
626.13  individual studied must be informed of the information contained 
626.14  in the subject's background study unless the only basis for the 
626.15  disqualification is failure to cooperate, substantiated 
626.16  maltreatment under section 626.556 or 626.557, the Data 
626.17  Practices Act provides for release of the information, or the 
626.18  individual studied authorizes the release of the 
626.19  information.  When a disqualification is based on the subject's 
626.20  failure to cooperate with the background study or substantiated 
626.21  maltreatment under section 626.556 or 626.557, the agency that 
626.22  initiated the study shall be informed by the commissioner of the 
626.23  reason for the disqualification. 
626.24     (b) Except as provided in subdivision 3d, paragraph (b), if 
626.25  the commissioner determines that the individual studied has a 
626.26  disqualifying characteristic, the commissioner shall review the 
626.27  information immediately available and make a determination as to 
626.28  the subject's immediate risk of harm to persons served by the 
626.29  program where the individual studied will have direct contact.  
626.30  The commissioner shall consider all relevant information 
626.31  available, including the following factors in determining the 
626.32  immediate risk of harm:  the recency of the disqualifying 
626.33  characteristic; the recency of discharge from probation for the 
626.34  crimes; the number of disqualifying characteristics; the 
626.35  intrusiveness or violence of the disqualifying characteristic; 
626.36  the vulnerability of the victim involved in the disqualifying 
627.1   characteristic; and the similarity of the victim to the persons 
627.2   served by the program where the individual studied will have 
627.3   direct contact.  The commissioner may determine that the 
627.4   evaluation of the information immediately available gives the 
627.5   commissioner reason to believe one of the following: 
627.6      (1) The individual poses an imminent risk of harm to 
627.7   persons served by the program where the individual studied will 
627.8   have direct contact.  If the commissioner determines that an 
627.9   individual studied poses an imminent risk of harm to persons 
627.10  served by the program where the individual studied will have 
627.11  direct contact, the individual and the license holder must be 
627.12  sent a notice of disqualification.  The commissioner shall order 
627.13  the license holder to immediately remove the individual studied 
627.14  from direct contact.  The notice to the individual studied must 
627.15  include an explanation of the basis of this determination. 
627.16     (2) The individual poses a risk of harm requiring 
627.17  continuous, direct supervision while providing direct contact 
627.18  services during the period in which the subject may request a 
627.19  reconsideration.  If the commissioner determines that an 
627.20  individual studied poses a risk of harm that requires 
627.21  continuous, direct supervision, the individual and the license 
627.22  holder must be sent a notice of disqualification.  The 
627.23  commissioner shall order the license holder to immediately 
627.24  remove the individual studied from direct contact services or 
627.25  assure that the individual studied is within sight or hearing of 
627.26  another staff person when providing direct contact services 
627.27  during the period in which the individual may request a 
627.28  reconsideration of the disqualification.  If the individual 
627.29  studied does not submit a timely request for reconsideration, or 
627.30  the individual submits a timely request for reconsideration, but 
627.31  the disqualification is not set aside for that license holder, 
627.32  the license holder will be notified of the disqualification and 
627.33  ordered to immediately remove the individual from any position 
627.34  allowing direct contact with persons receiving services from the 
627.35  license holder. 
627.36     (3) The individual does not pose an imminent risk of harm 
628.1   or a risk of harm requiring continuous, direct supervision while 
628.2   providing direct contact services during the period in which the 
628.3   subject may request a reconsideration.  If the commissioner 
628.4   determines that an individual studied does not pose a risk of 
628.5   harm that requires continuous, direct supervision, only the 
628.6   individual must be sent a notice of disqualification.  The 
628.7   license holder must be sent a notice that more time is needed to 
628.8   complete the individual's background study.  If the individual 
628.9   studied submits a timely request for reconsideration, and if the 
628.10  disqualification is set aside for that license holder, the 
628.11  license holder will receive the same notification received by 
628.12  license holders in cases where the individual studied has no 
628.13  disqualifying characteristic.  If the individual studied does 
628.14  not submit a timely request for reconsideration, or the 
628.15  individual submits a timely request for reconsideration, but the 
628.16  disqualification is not set aside for that license holder, the 
628.17  license holder will be notified of the disqualification and 
628.18  ordered to immediately remove the individual from any position 
628.19  allowing direct contact with persons receiving services from the 
628.20  license holder.  
628.21     (c) County licensing agencies performing duties under this 
628.22  subdivision may develop an alternative system for determining 
628.23  the subject's immediate risk of harm to persons served by the 
628.24  program, providing the notices under paragraph (b), and 
628.25  documenting the action taken by the county licensing agency.  
628.26  Each county licensing agency's implementation of the alternative 
628.27  system is subject to approval by the commissioner.  
628.28  Notwithstanding this alternative system, county licensing 
628.29  agencies shall complete the requirements of paragraph (a). 
628.30     Sec. 13.  Minnesota Statutes 2000, section 245A.04, 
628.31  subdivision 3b, is amended to read: 
628.32     Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) The 
628.33  individual who is the subject of the disqualification may 
628.34  request a reconsideration of the disqualification.  
628.35     The individual must submit the request for reconsideration 
628.36  to the commissioner in writing.  A request for reconsideration 
629.1   for an individual who has been sent a notice of disqualification 
629.2   under subdivision 3a, paragraph (b), clause (1) or (2), must be 
629.3   submitted within 30 calendar days of the disqualified 
629.4   individual's receipt of the notice of disqualification.  Upon 
629.5   showing that the information in clause (1) or (2) cannot be 
629.6   obtained within 30 days, the disqualified individual may request 
629.7   additional time, not to exceed 30 days, to obtain that 
629.8   information.  A request for reconsideration for an individual 
629.9   who has been sent a notice of disqualification under subdivision 
629.10  3a, paragraph (b), clause (3), must be submitted within 15 
629.11  calendar days of the disqualified individual's receipt of the 
629.12  notice of disqualification.  An individual who was determined to 
629.13  have maltreated a child under section 626.556 or a vulnerable 
629.14  adult under section 626.557, and who was disqualified under this 
629.15  section on the basis of serious or recurring maltreatment, may 
629.16  request reconsideration of both the maltreatment and the 
629.17  disqualification determinations.  The request for 
629.18  reconsideration of the maltreatment determination and the 
629.19  disqualification must be submitted within 30 calendar days of 
629.20  the individual's receipt of the notice of disqualification.  
629.21  Removal of a disqualified individual from direct contact shall 
629.22  be ordered if the individual does not request reconsideration 
629.23  within the prescribed time, and for an individual who submits a 
629.24  timely request for reconsideration, if the disqualification is 
629.25  not set aside.  The individual must present information showing 
629.26  that: 
629.27     (1) the information the commissioner relied upon is 
629.28  incorrect or inaccurate.  If the basis of a reconsideration 
629.29  request is that a maltreatment determination or disposition 
629.30  under section 626.556 or 626.557 is incorrect, and the 
629.31  commissioner has issued a final order in an appeal of that 
629.32  determination or disposition under section 256.045 or 245A.08, 
629.33  subdivision 5, the commissioner's order is conclusive on the 
629.34  issue of maltreatment.  If the individual did not request 
629.35  reconsideration of the maltreatment determination, the 
629.36  maltreatment determination is deemed conclusive; or 
630.1      (2) the subject of the study does not pose a risk of harm 
630.2   to any person served by the applicant or, license holder, or 
630.3   registrant under section 144A.71, subdivision 1. 
630.4      (b) The commissioner shall rescind the disqualification if 
630.5   the commissioner finds that the information relied on to 
630.6   disqualify the subject is incorrect.  The commissioner may set 
630.7   aside the disqualification under this section if the 
630.8   commissioner finds that the information the commissioner relied 
630.9   upon is incorrect or the individual does not pose a risk of harm 
630.10  to any person served by the applicant or, license holder, or 
630.11  registrant under section 144A.71, subdivision 1.  In determining 
630.12  that an individual does not pose a risk of harm, the 
630.13  commissioner shall consider the nature, severity, and 
630.14  consequences of the event or events that lead to 
630.15  disqualification, whether there is more than one disqualifying 
630.16  event, the age and vulnerability of the victim at the time of 
630.17  the event, the harm suffered by the victim, the similarity 
630.18  between the victim and persons served by the program, the time 
630.19  elapsed without a repeat of the same or similar event, 
630.20  documentation of successful completion by the individual studied 
630.21  of training or rehabilitation pertinent to the event, and any 
630.22  other information relevant to reconsideration.  In reviewing a 
630.23  disqualification under this section, the commissioner shall give 
630.24  preeminent weight to the safety of each person to be served by 
630.25  the license holder or, applicant, or registrant under section 
630.26  144A.71, subdivision 1, over the interests of the license holder 
630.27  or, applicant, or registrant under section 144A.71, subdivision 
630.28  1. 
630.29     (c) Unless the information the commissioner relied on in 
630.30  disqualifying an individual is incorrect, the commissioner may 
630.31  not set aside the disqualification of an individual in 
630.32  connection with a license to provide family day care for 
630.33  children, foster care for children in the provider's own home, 
630.34  or foster care or day care services for adults in the provider's 
630.35  own home if: 
630.36     (1) less than ten years have passed since the discharge of 
631.1   the sentence imposed for the offense; and the individual has 
631.2   been convicted of a violation of any offense listed in sections 
631.3   609.20 (manslaughter in the first degree), 609.205 (manslaughter 
631.4   in the second degree), criminal vehicular homicide under 609.21 
631.5   (criminal vehicular homicide and injury), 609.215 (aiding 
631.6   suicide or aiding attempted suicide), felony violations under 
631.7   609.221 to 609.2231 (assault in the first, second, third, or 
631.8   fourth degree), 609.713 (terroristic threats), 609.235 (use of 
631.9   drugs to injure or to facilitate crime), 609.24 (simple 
631.10  robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 
631.11  609.255 (false imprisonment), 609.561 or 609.562 (arson in the 
631.12  first or second degree), 609.71 (riot), burglary in the first or 
631.13  second degree under 609.582 (burglary), 609.66 (dangerous 
631.14  weapon), 609.665 (spring guns), 609.67 (machine guns and 
631.15  short-barreled shotguns), 609.749 (harassment; stalking), 
631.16  152.021 or 152.022 (controlled substance crime in the first or 
631.17  second degree), 152.023, subdivision 1, clause (3) or (4), or 
631.18  subdivision 2, clause (4) (controlled substance crime in the 
631.19  third degree), 152.024, subdivision 1, clause (2), (3), or (4) 
631.20  (controlled substance crime in the fourth degree), 609.224, 
631.21  subdivision 2, paragraph (c) (fifth-degree assault by a 
631.22  caregiver against a vulnerable adult), 609.228 (great bodily 
631.23  harm caused by distribution of drugs), 609.23 (mistreatment of 
631.24  persons confined), 609.231 (mistreatment of residents or 
631.25  patients), 609.2325 (criminal abuse of a vulnerable adult), 
631.26  609.233 (criminal neglect of a vulnerable adult), 609.2335 
631.27  (financial exploitation of a vulnerable adult), 609.234 (failure 
631.28  to report), 609.265 (abduction), 609.2664 to 609.2665 
631.29  (manslaughter of an unborn child in the first or second degree), 
631.30  609.267 to 609.2672 (assault of an unborn child in the first, 
631.31  second, or third degree), 609.268 (injury or death of an unborn 
631.32  child in the commission of a crime), 617.293 (disseminating or 
631.33  displaying harmful material to minors), a felony level 
631.34  conviction involving alcohol or drug use, a gross misdemeanor 
631.35  offense under 609.324, subdivision 1 (other prohibited acts), a 
631.36  gross misdemeanor offense under 609.378 (neglect or endangerment 
632.1   of a child), a gross misdemeanor offense under 609.377 
632.2   (malicious punishment of a child), 609.72, subdivision 3 
632.3   (disorderly conduct against a vulnerable adult); or an attempt 
632.4   or conspiracy to commit any of these offenses, as each of these 
632.5   offenses is defined in Minnesota Statutes; or an offense in any 
632.6   other state, the elements of which are substantially similar to 
632.7   the elements of any of the foregoing offenses; 
632.8      (2) regardless of how much time has passed since the 
632.9   involuntary termination of parental rights under section 
632.10  260C.301 or the discharge of the sentence imposed for the 
632.11  offense, the individual was convicted of a violation of any 
632.12  offense listed in sections 609.185 to 609.195 (murder in the 
632.13  first, second, or third degree), 609.2661 to 609.2663 (murder of 
632.14  an unborn child in the first, second, or third degree), a felony 
632.15  offense under 609.377 (malicious punishment of a child), a 
632.16  felony offense under 609.324, subdivision 1 (other prohibited 
632.17  acts), a felony offense under 609.378 (neglect or endangerment 
632.18  of a child), 609.322 (solicitation, inducement, and promotion of 
632.19  prostitution), 609.342 to 609.345 (criminal sexual conduct in 
632.20  the first, second, third, or fourth degree), 609.352 
632.21  (solicitation of children to engage in sexual conduct), 617.246 
632.22  (use of minors in a sexual performance), 617.247 (possession of 
632.23  pictorial representations of a minor), 609.365 (incest), a 
632.24  felony offense under sections 609.2242 and 609.2243 (domestic 
632.25  assault), a felony offense of spousal abuse, a felony offense of 
632.26  child abuse or neglect, a felony offense of a crime against 
632.27  children, or an attempt or conspiracy to commit any of these 
632.28  offenses as defined in Minnesota Statutes, or an offense in any 
632.29  other state, the elements of which are substantially similar to 
632.30  any of the foregoing offenses; 
632.31     (3) within the seven years preceding the study, the 
632.32  individual committed an act that constitutes maltreatment of a 
632.33  child under section 626.556, subdivision 10e, and that resulted 
632.34  in substantial bodily harm as defined in section 609.02, 
632.35  subdivision 7a, or substantial mental or emotional harm as 
632.36  supported by competent psychological or psychiatric evidence; or 
633.1      (4) within the seven years preceding the study, the 
633.2   individual was determined under section 626.557 to be the 
633.3   perpetrator of a substantiated incident of maltreatment of a 
633.4   vulnerable adult that resulted in substantial bodily harm as 
633.5   defined in section 609.02, subdivision 7a, or substantial mental 
633.6   or emotional harm as supported by competent psychological or 
633.7   psychiatric evidence. 
633.8      In the case of any ground for disqualification under 
633.9   clauses (1) to (4), if the act was committed by an individual 
633.10  other than the applicant or, license holder, or registrant under 
633.11  section 144A.71, subdivision 1, residing in the applicant's or 
633.12  license holder's home, or the home of a registrant under section 
633.13  144A.71, subdivision 1, the applicant or, license holder, or 
633.14  registrant under section 144A.71, subdivision 1, may seek 
633.15  reconsideration when the individual who committed the act no 
633.16  longer resides in the home.  
633.17     The disqualification periods provided under clauses (1), 
633.18  (3), and (4) are the minimum applicable disqualification 
633.19  periods.  The commissioner may determine that an individual 
633.20  should continue to be disqualified from licensure or 
633.21  registration under section 144A.71, subdivision 1, because the 
633.22  license holder or, applicant, or registrant under section 
633.23  144A.71, subdivision 1, poses a risk of harm to a person served 
633.24  by that individual after the minimum disqualification period has 
633.25  passed. 
633.26     (d) The commissioner shall respond in writing or by 
633.27  electronic transmission to all reconsideration requests for 
633.28  which the basis for the request is that the information relied 
633.29  upon by the commissioner to disqualify is incorrect or 
633.30  inaccurate within 30 working days of receipt of a request and 
633.31  all relevant information.  If the basis for the request is that 
633.32  the individual does not pose a risk of harm, the commissioner 
633.33  shall respond to the request within 15 working days after 
633.34  receiving the request for reconsideration and all relevant 
633.35  information.  If the request is based on both the correctness or 
633.36  accuracy of the information relied on to disqualify the 
634.1   individual and the risk of harm, the commissioner shall respond 
634.2   to the request within 45 working days after receiving the 
634.3   request for reconsideration and all relevant information.  If 
634.4   the disqualification is set aside, the commissioner shall notify 
634.5   the applicant or license holder in writing or by electronic 
634.6   transmission of the decision. 
634.7      (e) Except as provided in subdivision 3c, the 
634.8   commissioner's decision to disqualify an individual, including 
634.9   the decision to grant or deny a rescission or set aside a 
634.10  disqualification under this section, is the final administrative 
634.11  agency action and shall not be subject to further review in a 
634.12  contested case under chapter 14 involving a negative licensing 
634.13  appeal taken in response to the disqualification or involving an 
634.14  accuracy and completeness appeal under section 13.04. if a 
634.15  disqualification is not set aside or is not rescinded, an 
634.16  individual who was disqualified on the basis of a preponderance 
634.17  of evidence that the individual committed an act or acts that 
634.18  meet the definition of any of the crimes lists in subdivision 
634.19  3d, paragraph (a), clauses (1) to (4); or for failure to make 
634.20  required reports under section 626.556, subdivision 3, or 
634.21  626.557, subdivision 3, pursuant to subdivision 3d, paragraph 
634.22  (a), clause (4), may request a fair hearing under section 
634.23  256.045.  Except as provided under subdivision 3c, the 
634.24  commissioner's final order for an individual under this 
634.25  paragraph is conclusive on the issue of maltreatment and 
634.26  disqualification, including for purposes of subsequent studies 
634.27  conducted under subdivision 3, and is the only administrative 
634.28  appeal of the final agency determination, specifically, 
634.29  including a challenge to the accuracy and completeness of data 
634.30  under section 13.04.  
634.31     (f) Except as provided under subdivision 3c, if an 
634.32  individual was disqualified on the basis of a determination of 
634.33  maltreatment under section 626.556 or 626.557, which was serious 
634.34  or recurring, and the individual has requested reconsideration 
634.35  of the maltreatment determination under section 626.556, 
634.36  subdivision 10i, or 626.557, subdivision 9d, and also requested 
635.1   reconsideration of the disqualification under this subdivision, 
635.2   reconsideration of the maltreatment determination and 
635.3   reconsideration of the disqualification shall be consolidated 
635.4   into a single reconsideration.  For maltreatment and 
635.5   disqualification determinations made by county agencies, the 
635.6   consolidated reconsideration shall be conducted by the county 
635.7   agency.  Except as provided under subdivision 3c, if an 
635.8   individual who was disqualified on the basis of serious or 
635.9   recurring maltreatment requests a fair hearing on the 
635.10  maltreatment determination under section 626.556, subdivision 
635.11  10i, or 626.557, subdivision 9d, the scope of the fair hearing 
635.12  under section 256.045 shall include the maltreatment 
635.13  determination and the disqualification.  Except as provided 
635.14  under subdivision 3c, the commissioner's final order for an 
635.15  individual under this paragraph is conclusive on the issue of 
635.16  maltreatment and disqualification, including for purposes of 
635.17  subsequent studies conducted under subdivision 3, and is the 
635.18  only administrative appeal of the final agency determination, 
635.19  specifically, including a challenge to the accuracy and 
635.20  completeness of data under section 13.04. 
635.21     Sec. 14.  Minnesota Statutes 2000, section 245A.04, 
635.22  subdivision 3c, is amended to read: 
635.23     Subd. 3c.  [CONTESTED CASE.] (a) Notwithstanding 
635.24  subdivision 3b, paragraphs (e) and (f), if a disqualification is 
635.25  not set aside, a person who is an employee of an employer, as 
635.26  defined in section 179A.03, subdivision 15, may request a 
635.27  contested case hearing under chapter 14.  If the 
635.28  disqualification which was not set aside or was not rescinded 
635.29  was based on a maltreatment determination, the scope of the 
635.30  contested case hearing shall include the maltreatment 
635.31  determination and the disqualification.  In such cases, a fair 
635.32  hearing shall not be conducted under section 256.045.  Rules 
635.33  adopted under this chapter may not preclude an employee in a 
635.34  contested case hearing for disqualification from submitting 
635.35  evidence concerning information gathered under subdivision 3, 
635.36  paragraph (e). 
636.1      (b) If a disqualification for which reconsideration was 
636.2   requested and which was not set aside or was not rescinded under 
636.3   subdivision 3b is the basis for a denial of a license under 
636.4   section 245A.05 or a licensing sanction under section 245A.07, 
636.5   the license holder has the right to a contested case hearing 
636.6   under chapter 14 and Minnesota Rules, parts 1400.8510 to 
636.7   1400.8612 and successor rules.  The appeal must be submitted in 
636.8   accordance with section 245A.05 or 245A.07, subdivision 3.  As 
636.9   provided for under section 245A.08, subdivision 2a, the scope of 
636.10  the consolidated contested case hearing shall include the 
636.11  disqualification and the licensing sanction or denial of a 
636.12  license.  If the disqualification was based on a determination 
636.13  of substantiated serious or recurring maltreatment under section 
636.14  626.556 or 626.557, the appeal must be submitted in accordance 
636.15  with sections 245A.07, subdivision 3, and 626.556, subdivision 
636.16  10i, or 626.557, subdivision 9d.  As provided for under section 
636.17  245A.08, subdivision 2a, the scope of the contested case hearing 
636.18  shall include the maltreatment determination, the 
636.19  disqualification, and the licensing sanction or denial of a 
636.20  license.  In such cases, a fair hearing shall not be conducted 
636.21  under section 256.045. 
636.22     (c) If a maltreatment determination or disqualification, 
636.23  which was not set aside or was not rescinded under subdivision 
636.24  3b, is the basis for a denial of a license under section 245A.05 
636.25  or a licensing sanction under section 245A.07, and the 
636.26  disqualified subject is an individual other than the license 
636.27  holder and upon whom a background study must be conducted under 
636.28  subdivision 3, the hearing of all parties may be consolidated 
636.29  into a single contested case hearing upon consent of all parties 
636.30  and the administrative law judge.  
636.31     (d) The commissioner's final order under section 245A.08, 
636.32  subdivision 5, is conclusive on the issue of maltreatment and 
636.33  disqualification, including for purposes of subsequent 
636.34  background studies.  The contested case hearing under this 
636.35  subdivision is the only administrative appeal of the final 
636.36  agency determination, specifically, including a challenge to the 
637.1   accuracy and completeness of data under section 13.04. 
637.2      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
637.3      Sec. 15.  Minnesota Statutes 2000, section 245A.04, 
637.4   subdivision 3d, is amended to read: 
637.5      Subd. 3d.  [DISQUALIFICATION.] (a) Except as provided in 
637.6   paragraph (b), Upon receipt of information showing, or when a 
637.7   background study completed under subdivision 3 shows any of the 
637.8   following:  a conviction of one or more crimes listed in clauses 
637.9   (1) to (4); the individual has admitted to or a preponderance of 
637.10  the evidence indicates the individual has committed an act or 
637.11  acts that meet the definition of any of the crimes listed in 
637.12  clauses (1) to (4); or an investigation results in an 
637.13  administrative determination listed under clause (4), the 
637.14  individual shall be disqualified from any position allowing 
637.15  direct contact with persons receiving services from the license 
637.16  holder, entity identified in subdivision 3, paragraph (a), or 
637.17  registrant under section 144A.71, subdivision 1, and for 
637.18  individuals studied under section 245A.04, subdivision 3, 
637.19  paragraph (c), clauses (2), (6), and (7), the individual shall 
637.20  also be disqualified from access to a person receiving services 
637.21  from the license holder: 
637.22     (1) regardless of how much time has passed since the 
637.23  involuntary termination of parental rights under section 
637.24  260C.301 or the discharge of the sentence imposed for the 
637.25  offense, and unless otherwise specified, regardless of the level 
637.26  of the conviction, the individual was convicted of any of the 
637.27  following offenses:  sections 609.185 (murder in the first 
637.28  degree); 609.19 (murder in the second degree); 609.195 (murder 
637.29  in the third degree); 609.2661 (murder of an unborn child in the 
637.30  first degree); 609.2662 (murder of an unborn child in the second 
637.31  degree); 609.2663 (murder of an unborn child in the third 
637.32  degree); 609.322 (solicitation, inducement, and promotion of 
637.33  prostitution); 609.342 (criminal sexual conduct in the first 
637.34  degree); 609.343 (criminal sexual conduct in the second degree); 
637.35  609.344 (criminal sexual conduct in the third degree); 609.345 
637.36  (criminal sexual conduct in the fourth degree); 609.352 
638.1   (solicitation of children to engage in sexual conduct); 609.365 
638.2   (incest); felony offense under 609.377 (malicious punishment of 
638.3   a child); a felony offense under 609.378 (neglect or 
638.4   endangerment of a child); a felony offense under 609.324, 
638.5   subdivision 1 (other prohibited acts); 617.246 (use of minors in 
638.6   sexual performance prohibited); 617.247 (possession of pictorial 
638.7   representations of minors); a felony offense under sections 
638.8   609.2242 and 609.2243 (domestic assault), a felony offense of 
638.9   spousal abuse, a felony offense of child abuse or neglect, a 
638.10  felony offense of a crime against children; or attempt or 
638.11  conspiracy to commit any of these offenses as defined in 
638.12  Minnesota Statutes, or an offense in any other state or country, 
638.13  where the elements are substantially similar to any of the 
638.14  offenses listed in this clause; 
638.15     (2) if less than 15 years have passed since the discharge 
638.16  of the sentence imposed for the offense; and the individual has 
638.17  received a felony conviction for a violation of any of these 
638.18  offenses:  sections 609.20 (manslaughter in the first degree); 
638.19  609.205 (manslaughter in the second degree); 609.21 (criminal 
638.20  vehicular homicide and injury); 609.215 (suicide); 609.221 to 
638.21  609.2231 (assault in the first, second, third, or fourth 
638.22  degree); repeat offenses under 609.224 (assault in the fifth 
638.23  degree); repeat offenses under 609.3451 (criminal sexual conduct 
638.24  in the fifth degree); 609.713 (terroristic threats); 609.235 
638.25  (use of drugs to injure or facilitate crime); 609.24 (simple 
638.26  robbery); 609.245 (aggravated robbery); 609.25 (kidnapping); 
638.27  609.255 (false imprisonment); 609.561 (arson in the first 
638.28  degree); 609.562 (arson in the second degree); 609.563 (arson in 
638.29  the third degree); repeat offenses under 617.23 (indecent 
638.30  exposure; penalties); repeat offenses under 617.241 (obscene 
638.31  materials and performances; distribution and exhibition 
638.32  prohibited; penalty); 609.71 (riot); 609.66 (dangerous weapons); 
638.33  609.67 (machine guns and short-barreled shotguns); 609.749 
638.34  (harassment; stalking; penalties); 609.228 (great bodily harm 
638.35  caused by distribution of drugs); 609.2325 (criminal abuse of a 
638.36  vulnerable adult); 609.2664 (manslaughter of an unborn child in 
639.1   the first degree); 609.2665 (manslaughter of an unborn child in 
639.2   the second degree); 609.267 (assault of an unborn child in the 
639.3   first degree); 609.2671 (assault of an unborn child in the 
639.4   second degree); 609.268 (injury or death of an unborn child in 
639.5   the commission of a crime); 609.52 (theft); 609.2335 (financial 
639.6   exploitation of a vulnerable adult); 609.521 (possession of 
639.7   shoplifting gear); 609.582 (burglary); 609.625 (aggravated 
639.8   forgery); 609.63 (forgery); 609.631 (check forgery; offering a 
639.9   forged check); 609.635 (obtaining signature by false pretense); 
639.10  609.27 (coercion); 609.275 (attempt to coerce); 609.687 
639.11  (adulteration); 260C.301 (grounds for termination of parental 
639.12  rights); and chapter 152 (drugs; controlled substance); and a 
639.13  felony level conviction involving alcohol or drug use.  An 
639.14  attempt or conspiracy to commit any of these offenses, as each 
639.15  of these offenses is defined in Minnesota Statutes; or an 
639.16  offense in any other state or country, the elements of which are 
639.17  substantially similar to the elements of the offenses in this 
639.18  clause.  If the individual studied is convicted of one of the 
639.19  felonies listed in this clause, but the sentence is a gross 
639.20  misdemeanor or misdemeanor disposition, the lookback period for 
639.21  the conviction is the period applicable to the disposition, that 
639.22  is the period for gross misdemeanors or misdemeanors; 
639.23     (3) if less than ten years have passed since the discharge 
639.24  of the sentence imposed for the offense; and the individual has 
639.25  received a gross misdemeanor conviction for a violation of any 
639.26  of the following offenses:  sections 609.224 (assault in the 
639.27  fifth degree); 609.2242 and 609.2243 (domestic assault); 
639.28  violation of an order for protection under 518B.01, subdivision 
639.29  14; 609.3451 (criminal sexual conduct in the fifth degree); 
639.30  repeat offenses under 609.746 (interference with privacy); 
639.31  repeat offenses under 617.23 (indecent exposure); 617.241 
639.32  (obscene materials and performances); 617.243 (indecent 
639.33  literature, distribution); 617.293 (harmful materials; 
639.34  dissemination and display to minors prohibited); 609.71 (riot); 
639.35  609.66 (dangerous weapons); 609.749 (harassment; stalking; 
639.36  penalties); 609.224, subdivision 2, paragraph (c) (assault in 
640.1   the fifth degree by a caregiver against a vulnerable adult); 
640.2   609.23 (mistreatment of persons confined); 609.231 (mistreatment 
640.3   of residents or patients); 609.2325 (criminal abuse of a 
640.4   vulnerable adult); 609.233 (criminal neglect of a vulnerable 
640.5   adult); 609.2335 (financial exploitation of a vulnerable adult); 
640.6   609.234 (failure to report maltreatment of a vulnerable adult); 
640.7   609.72, subdivision 3 (disorderly conduct against a vulnerable 
640.8   adult); 609.265 (abduction); 609.378 (neglect or endangerment of 
640.9   a child); 609.377 (malicious punishment of a child); 609.324, 
640.10  subdivision 1a (other prohibited acts; minor engaged in 
640.11  prostitution); 609.33 (disorderly house); 609.52 (theft); 
640.12  609.582 (burglary); 609.631 (check forgery; offering a forged 
640.13  check); 609.275 (attempt to coerce); or an attempt or conspiracy 
640.14  to commit any of these offenses, as each of these offenses is 
640.15  defined in Minnesota Statutes; or an offense in any other state 
640.16  or country, the elements of which are substantially similar to 
640.17  the elements of any of the offenses listed in this clause.  If 
640.18  the defendant is convicted of one of the gross misdemeanors 
640.19  listed in this clause, but the sentence is a misdemeanor 
640.20  disposition, the lookback period for the conviction is the 
640.21  period applicable to misdemeanors; or 
640.22     (4) if less than seven years have passed since the 
640.23  discharge of the sentence imposed for the offense; and the 
640.24  individual has received a misdemeanor conviction for a violation 
640.25  of any of the following offenses:  sections 609.224 (assault in 
640.26  the fifth degree); 609.2242 (domestic assault); violation of an 
640.27  order for protection under 518B.01 (Domestic Abuse Act); 
640.28  violation of an order for protection under 609.3232 (protective 
640.29  order authorized; procedures; penalties); 609.746 (interference 
640.30  with privacy); 609.79 (obscene or harassing phone calls); 
640.31  609.795 (letter, telegram, or package; opening; harassment); 
640.32  617.23 (indecent exposure; penalties); 609.2672 (assault of an 
640.33  unborn child in the third degree); 617.293 (harmful materials; 
640.34  dissemination and display to minors prohibited); 609.66 
640.35  (dangerous weapons); 609.665 (spring guns); 609.2335 (financial 
640.36  exploitation of a vulnerable adult); 609.234 (failure to report 
641.1   maltreatment of a vulnerable adult); 609.52 (theft); 609.27 
641.2   (coercion); or an attempt or conspiracy to commit any of these 
641.3   offenses, as each of these offenses is defined in Minnesota 
641.4   Statutes; or an offense in any other state or country, the 
641.5   elements of which are substantially similar to the elements of 
641.6   any of the offenses listed in this clause; a determination or 
641.7   disposition of failure to make required reports under section 
641.8   626.556, subdivision 3, or 626.557, subdivision 3, for incidents 
641.9   in which:  (i) the final disposition under section 626.556 or 
641.10  626.557 was substantiated maltreatment, and (ii) the 
641.11  maltreatment was recurring or serious; or a determination or 
641.12  disposition of substantiated serious or recurring maltreatment 
641.13  of a minor under section 626.556 or of a vulnerable adult under 
641.14  section 626.557 for which there is a preponderance of evidence 
641.15  that the maltreatment occurred, and that the subject was 
641.16  responsible for the maltreatment. 
641.17     For the purposes of this section, "serious maltreatment" 
641.18  means sexual abuse; maltreatment resulting in death; or 
641.19  maltreatment resulting in serious injury which reasonably 
641.20  requires the care of a physician whether or not the care of a 
641.21  physician was sought; or abuse resulting in serious injury.  For 
641.22  purposes of this section, "abuse resulting in serious injury" 
641.23  means:  bruises, bites, skin laceration or tissue damage; 
641.24  fractures; dislocations; evidence of internal injuries; head 
641.25  injuries with loss of consciousness; extensive second-degree or 
641.26  third-degree burns and other burns for which complications are 
641.27  present; extensive second-degree or third-degree frostbite, and 
641.28  others for which complications are present; irreversible 
641.29  mobility or avulsion of teeth; injuries to the eyeball; 
641.30  ingestion of foreign substances and objects that are harmful; 
641.31  near drowning; and heat exhaustion or sunstroke.  For purposes 
641.32  of this section, "care of a physician" is treatment received or 
641.33  ordered by a physician, but does not include diagnostic testing, 
641.34  assessment, or observation.  For the purposes of this section, 
641.35  "recurring maltreatment" means more than one incident of 
641.36  maltreatment for which there is a preponderance of evidence that 
642.1   the maltreatment occurred, and that the subject was responsible 
642.2   for the maltreatment.  For purposes of this section, "access" 
642.3   means physical access to an individual receiving services or the 
642.4   individual's personal property without continuous, direct 
642.5   supervision as defined in section 245A.04, subdivision 3.  
642.6      (b) If Except for background studies related to child 
642.7   foster care, adult foster care, or family child care licensure, 
642.8   when the subject of a background study is licensed regulated by 
642.9   a health-related licensing board as defined in chapter 214, and 
642.10  the regulated person has been determined to have been 
642.11  responsible for substantiated maltreatment under section 626.556 
642.12  or 626.557, instead of the commissioner making a decision 
642.13  regarding disqualification, the board shall make the a 
642.14  determination regarding a disqualification under this 
642.15  subdivision based on a finding of substantiated maltreatment 
642.16  under section 626.556 or 626.557.  The commissioner shall notify 
642.17  the health-related licensing board if a background study shows 
642.18  that a licensee would be disqualified because of substantiated 
642.19  maltreatment and the board shall make a determination under 
642.20  section 214.104. whether to impose disciplinary or corrective 
642.21  action under chapter 214. 
642.22     (1) The commissioner shall notify the health-related 
642.23  licensing board: 
642.24     (i) upon completion of a background study that produces a 
642.25  record showing that the individual was determined to have been 
642.26  responsible for substantiated maltreatment; 
642.27     (ii) upon the commissioner's completion of an investigation 
642.28  that determined the individual was responsible for substantiated 
642.29  maltreatment; or 
642.30     (iii) upon receipt from another agency of a finding of 
642.31  substantiated maltreatment for which the individual was 
642.32  responsible. 
642.33     (2) The commissioner's notice shall indicate whether the 
642.34  individual would have been disqualified by the commissioner for 
642.35  the substantiated maltreatment if the individual were not 
642.36  regulated by the board.  The commissioner shall concurrently 
643.1   send this notice to the individual. 
643.2      (3) Notwithstanding the exclusion from this subdivision for 
643.3   individuals who provide child foster care, adult foster care, or 
643.4   family child care, when the commissioner or a local agency has 
643.5   reason to believe that the direct contact services provided by 
643.6   the individual may fall within the jurisdiction of a 
643.7   health-related licensing board, a referral shall be made to the 
643.8   board as provided in this section. 
643.9      (4) If, upon review of the information provided by the 
643.10  commissioner, a health-related licensing board informs the 
643.11  commissioner that the board does not have jurisdiction to take 
643.12  disciplinary or corrective action, the commissioner shall make 
643.13  the appropriate disqualification decision regarding the 
643.14  individual as otherwise provided in this chapter. 
643.15     (5) The commissioner has the authority to monitor the 
643.16  facility's compliance with any requirements that the 
643.17  health-related licensing board places on regulated persons 
643.18  practicing in a facility either during the period pending a 
643.19  final decision on a disciplinary or corrective action or as a 
643.20  result of a disciplinary or corrective action.  The commissioner 
643.21  has the authority to order the immediate removal of a regulated 
643.22  person from direct contact or access when a board issues an 
643.23  order of temporary suspension based on a determination that the 
643.24  regulated person poses an immediate risk of harm to persons 
643.25  receiving services in a licensed facility. 
643.26     (6) A facility that allows a regulated person to provide 
643.27  direct contact services while not complying with the 
643.28  requirements imposed by the health-related licensing board is 
643.29  subject to action by the commissioner as specified under 
643.30  sections 245A.06 and 245A.07. 
643.31     (7) The commissioner shall notify a health-related 
643.32  licensing board immediately upon receipt of knowledge of 
643.33  noncompliance with requirements placed on a facility or upon a 
643.34  person regulated by the board. 
643.35     Sec. 16.  Minnesota Statutes 2000, section 245A.04, is 
643.36  amended by adding a subdivision to read: 
644.1      Subd. 3e.  [VARIANCE FOR A DISQUALIFIED PERSON.] (a) When a 
644.2   background study subject's disqualification has not been set 
644.3   aside by the commissioner, and there are conditions under which 
644.4   the disqualified individual may provide direct contact services 
644.5   or have access to people receiving services that minimize the 
644.6   risk of harm to people receiving services, the commissioner may 
644.7   grant a time limited variance to a license holder that states 
644.8   the reason for the disqualification, the services that may be 
644.9   provided by the disqualified individual, and the conditions with 
644.10  which the license holder or applicant must comply for the 
644.11  variance to be effective. 
644.12     (b) Except for programs licensed to provide family day care 
644.13  for children, foster care for children in the provider's own 
644.14  home, or foster care or day care services for adults in the 
644.15  provider's own home, the commissioner may not grant a variance 
644.16  for a disqualified person unless the applicant or license holder 
644.17  has requested the variance and the disqualified individual has 
644.18  provided written consent for the commissioner to disclose to the 
644.19  applicant or license holder the reason for the disqualification. 
644.20     (c) When a license holder permits a disqualified individual 
644.21  to provide any services for which the subject is disqualified 
644.22  without complying with the conditions of the variance, 
644.23  termination of the variance is immediate and the license holder 
644.24  may be subject to fines or sanctions under sections 245A.06 and 
644.25  245A.07. 
644.26     (d) The commissioner may terminate a variance for a 
644.27  disqualified person at any time for cause. 
644.28     (e) The commissioner's decision to grant or deny a variance 
644.29  request is final and not subject to appeal under the provisions 
644.30  of chapter 14. 
644.31     Sec. 17.  Minnesota Statutes 2000, section 245A.04, 
644.32  subdivision 6, is amended to read: 
644.33     Subd. 6.  [COMMISSIONER'S EVALUATION.] Before granting 
644.34  issuing, denying, suspending, revoking, or making conditional a 
644.35  license, the commissioner shall evaluate information gathered 
644.36  under this section.  The commissioner's evaluation shall 
645.1   consider facts, conditions, or circumstances concerning the 
645.2   program's operation, the well-being of persons served by the 
645.3   program, available consumer evaluations of the program, and 
645.4   information about the qualifications of the personnel employed 
645.5   by the applicant or license holder. 
645.6      The commissioner shall evaluate the results of the study 
645.7   required in subdivision 3 and determine whether a risk of harm 
645.8   to the persons served by the program exists.  In conducting this 
645.9   evaluation, the commissioner shall apply the disqualification 
645.10  standards set forth in rules adopted under this chapter.  
645.11     Sec. 18.  Minnesota Statutes 2000, section 245A.04, 
645.12  subdivision 11, is amended to read: 
645.13     Subd. 11.  [EDUCATION PROGRAM; ADDITIONAL REQUIREMENT.] (a) 
645.14  The education program offered in a residential or nonresidential 
645.15  program, except for child care, foster care, or services for 
645.16  adults, must be approved by the commissioner of children, 
645.17  families, and learning before the commissioner of human services 
645.18  may grant a license to the program. 
645.19     (b) A residential program licensed under Minnesota Rules, 
645.20  parts 9545.0905 to 9545.1125 or 9545.1400 to 9545.1480, may 
645.21  serve persons through the age of 19 when: 
645.22     (1) the admission is necessary for a person to complete a 
645.23  secondary school program or its equivalent, or it is necessary 
645.24  to facilitate a transition period after completing the secondary 
645.25  school program or its equivalent for up to four months in order 
645.26  for the resident to obtain other living arrangements; 
645.27     (2) the facility develops policies, procedures, and plans 
645.28  required under section 245A.65; 
645.29     (3) the facility documents an assessment of the 18- or 
645.30  19-year-old person's risk of victimizing children residing in 
645.31  the facility, and develops necessary risk reduction measures, 
645.32  including sleeping arrangements, to minimize any risk of harm to 
645.33  children; and 
645.34     (4) notwithstanding the license holder's target population 
645.35  age range, whenever persons age 18 or 19 years old are receiving 
645.36  residential services, the age difference among residents may not 
646.1   exceed five years. 
646.2      (c) Nothing in this paragraph precludes the license holder 
646.3   from seeking other variances under section 245A.04, subdivision 
646.4   9. 
646.5      Sec. 19.  Minnesota Statutes 2000, section 245A.05, is 
646.6   amended to read: 
646.7      245A.05 [DENIAL OF APPLICATION.] 
646.8      The commissioner may deny a license if an applicant fails 
646.9   to comply with applicable laws or rules, or knowingly withholds 
646.10  relevant information from or gives false or misleading 
646.11  information to the commissioner in connection with an 
646.12  application for a license or during an investigation.  An 
646.13  applicant whose application has been denied by the commissioner 
646.14  must be given notice of the denial.  Notice must be given by 
646.15  certified mail.  The notice must state the reasons the 
646.16  application was denied and must inform the applicant of the 
646.17  right to a contested case hearing under chapter 14 and Minnesota 
646.18  Rules, parts 1400.8510 to 1400.8612 and successor rules.  The 
646.19  applicant may appeal the denial by notifying the commissioner in 
646.20  writing by certified mail within 20 calendar days after 
646.21  receiving notice that the application was denied.  Section 
646.22  245A.08 applies to hearings held to appeal the commissioner's 
646.23  denial of an application. 
646.24     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
646.25     Sec. 20.  Minnesota Statutes 2000, section 245A.06, is 
646.26  amended to read: 
646.27     245A.06 [CORRECTION ORDER AND FINES CONDITIONAL LICENSE.] 
646.28     Subdivision 1.  [CONTENTS OF CORRECTION ORDERS OR FINES AND 
646.29  CONDITIONAL LICENSES.] (a) If the commissioner finds that the 
646.30  applicant or license holder has failed to comply with an 
646.31  applicable law or rule and this failure does not imminently 
646.32  endanger the health, safety, or rights of the persons served by 
646.33  the program, the commissioner may issue a correction order and 
646.34  an order of conditional license to or impose a fine on the 
646.35  applicant or license holder.  When issuing a conditional 
646.36  license, the commissioner shall consider the nature, chronicity, 
647.1   or severity of the violation of law or rule and the effect of 
647.2   the violation on the health, safety, or rights of persons served 
647.3   by the program.  The correction order or fine conditional 
647.4   license must state: 
647.5      (1) the conditions that constitute a violation of the law 
647.6   or rule; 
647.7      (2) the specific law or rule violated; 
647.8      (3) the time allowed to correct each violation; and 
647.9      (4) if a fine is imposed, the amount of the fine license is 
647.10  made conditional, the length and terms of the conditional 
647.11  license. 
647.12     (b) Nothing in this section prohibits the commissioner from 
647.13  proposing a sanction as specified in section 245A.07, prior to 
647.14  issuing a correction order or fine conditional license. 
647.15     Subd. 2.  [RECONSIDERATION OF CORRECTION ORDERS.] If the 
647.16  applicant or license holder believes that the contents of the 
647.17  commissioner's correction order are in error, the applicant or 
647.18  license holder may ask the department of human services to 
647.19  reconsider the parts of the correction order that are alleged to 
647.20  be in error.  The request for reconsideration must be in writing 
647.21  and received by the commissioner within 20 calendar days after 
647.22  receipt of the correction order by the applicant or license 
647.23  holder, and: 
647.24     (1) specify the parts of the correction order that are 
647.25  alleged to be in error; 
647.26     (2) explain why they are in error; and 
647.27     (3) include documentation to support the allegation of 
647.28  error. 
647.29     A request for reconsideration does not stay any provisions 
647.30  or requirements of the correction order.  The commissioner's 
647.31  disposition of a request for reconsideration is final and not 
647.32  subject to appeal under chapter 14. 
647.33     Subd. 3.  [FAILURE TO COMPLY.] If the commissioner finds 
647.34  that the applicant or license holder has not corrected the 
647.35  violations specified in the correction order or conditional 
647.36  license, the commissioner may impose a fine and order other 
648.1   licensing sanctions pursuant to section 245A.07.  If a fine was 
648.2   imposed and the violation was not corrected, the commissioner 
648.3   may impose an additional fine.  This section does not prohibit 
648.4   the commissioner from seeking a court order, denying an 
648.5   application, or suspending, revoking, or making conditional the 
648.6   license in addition to imposing a fine. 
648.7      Subd. 4.  [NOTICE OF FINE CONDITIONAL LICENSE; 
648.8   RECONSIDERATION OF FINE CONDITIONAL LICENSE.] A license holder 
648.9   who is ordered to pay a fine If a license is made conditional, 
648.10  the license holder must be notified of the order by certified 
648.11  mail.  The notice must be mailed to the address shown on the 
648.12  application or the last known address of the license holder.  
648.13  The notice must state the reasons the fine conditional license 
648.14  was ordered and must inform the license holder of the 
648.15  responsibility for payment of fines in subdivision 7 and the 
648.16  right to request reconsideration of the fine conditional license 
648.17  by the commissioner.  The license holder may request 
648.18  reconsideration of the order to forfeit a fine of conditional 
648.19  license by notifying the commissioner by certified mail within 
648.20  20 calendar days after receiving the order.  The request must be 
648.21  in writing and must be received by the commissioner within ten 
648.22  calendar days after the license holder received the order.  The 
648.23  license holder may submit with the request for reconsideration 
648.24  written argument or evidence in support of the request for 
648.25  reconsideration.  A timely request for reconsideration shall 
648.26  stay forfeiture of the fine imposition of the terms of the 
648.27  conditional license until the commissioner issues a decision on 
648.28  the request for reconsideration.  The request for 
648.29  reconsideration must be in writing and: 
648.30     (1) specify the parts of the violation that are alleged to 
648.31  be in error; 
648.32     (2) explain why they are in error; 
648.33     (3) include documentation to support the allegation of 
648.34  error; and 
648.35     (4) any other information relevant to the fine or the 
648.36  amount of the fine. 
649.1      The commissioner's disposition of a request for 
649.2   reconsideration is final and not subject to appeal under chapter 
649.3   14. 
649.4      Subd. 5.  [FORFEITURE OF FINES.] The license holder shall 
649.5   pay the fines assessed on or before the payment date specified 
649.6   in the commissioner's order.  If the license holder fails to 
649.7   fully comply with the order, the commissioner shall issue a 
649.8   second fine or suspend the license until the license holder 
649.9   complies.  If the license holder receives state funds, the 
649.10  state, county, or municipal agencies or departments responsible 
649.11  for administering the funds shall withhold payments and recover 
649.12  any payments made while the license is suspended for failure to 
649.13  pay a fine.  
649.14     Subd. 5a.  [ACCRUAL OF FINES.] A license holder shall 
649.15  promptly notify the commissioner of human services, in writing, 
649.16  when a violation specified in an order to forfeit is corrected.  
649.17  If upon reinspection the commissioner determines that a 
649.18  violation has not been corrected as indicated by the order to 
649.19  forfeit, the commissioner may issue a second fine.  The 
649.20  commissioner shall notify the license holder by certified mail 
649.21  that a second fine has been assessed.  The license holder may 
649.22  request reconsideration of the second fine under the provisions 
649.23  of subdivision 4. 
649.24     Subd. 6.  [AMOUNT OF FINES.] Fines shall be assessed as 
649.25  follows: 
649.26     (1) the license holder shall forfeit $1,000 for each 
649.27  occurrence of violation of law or rule prohibiting the 
649.28  maltreatment of children or the maltreatment of vulnerable 
649.29  adults, including but not limited to corporal punishment, 
649.30  illegal or unauthorized use of physical, mechanical, or chemical 
649.31  restraints, and illegal or unauthorized use of aversive or 
649.32  deprivation procedures; 
649.33     (2) the license holder shall forfeit $200 for each 
649.34  occurrence of a violation of law or rule governing matters of 
649.35  health, safety, or supervision, including but not limited to the 
649.36  provision of adequate staff to child or adult ratios; and 
650.1      (3) the license holder shall forfeit $100 for each 
650.2   occurrence of a violation of law or rule other than those 
650.3   included in clauses (1) and (2). 
650.4      For the purposes of this section, "occurrence" means each 
650.5   violation identified in the commissioner's forfeiture order. 
650.6      Subd. 7.  [RESPONSIBILITY FOR PAYMENT OF FINES.] When a 
650.7   fine has been assessed, the license holder may not avoid payment 
650.8   by closing, selling, or otherwise transferring the licensed 
650.9   program to a third party.  In such an event, the license holder 
650.10  will be personally liable for payment.  In the case of a 
650.11  corporation, each controlling individual is personally and 
650.12  jointly liable for payment. 
650.13     Fines for child care centers must be assessed according to 
650.14  this section. 
650.15     Sec. 21.  Minnesota Statutes 2000, section 245A.07, is 
650.16  amended to read: 
650.17     245A.07 [SANCTIONS.] 
650.18     Subdivision 1.  [SANCTIONS AVAILABLE.] In addition to 
650.19  ordering forfeiture of fines making a license conditional under 
650.20  section 245A.06, the commissioner may propose to suspend, or 
650.21  revoke, or make conditional the license, impose a fine, or 
650.22  secure an injunction against the continuing operation of the 
650.23  program of a license holder who does not comply with applicable 
650.24  law or rule.  When applying sanctions authorized under this 
650.25  section, the commissioner shall consider the nature, chronicity, 
650.26  or severity of the violation of law or rule and the effect of 
650.27  the violation on the health, safety, or rights of persons served 
650.28  by the program. 
650.29     Subd. 2.  [IMMEDIATE SUSPENSION IN CASES OF IMMINENT DANGER 
650.30  TO HEALTH, SAFETY, OR RIGHTS TEMPORARY IMMEDIATE SUSPENSION.] If 
650.31  the license holder's actions or failure to comply with 
650.32  applicable law or rule has placed poses an imminent risk of harm 
650.33  to the health, safety, or rights of persons served by the 
650.34  program in imminent danger, the commissioner shall act 
650.35  immediately to temporarily suspend the license.  No state funds 
650.36  shall be made available or be expended by any agency or 
651.1   department of state, county, or municipal government for use by 
651.2   a license holder regulated under this chapter while a license is 
651.3   under immediate suspension.  A notice stating the reasons for 
651.4   the immediate suspension and informing the license holder of the 
651.5   right to a contested case an expedited hearing under chapter 
651.6   14 and Minnesota Rules, parts 1400.8510 to 1400.8612 and 
651.7   successor rules, must be delivered by personal service to the 
651.8   address shown on the application or the last known address of 
651.9   the license holder.  The license holder may appeal an order 
651.10  immediately suspending a license.  The appeal of an order 
651.11  immediately suspending a license must be made in writing by 
651.12  certified mail and must be received by the commissioner within 
651.13  five calendar days after the license holder receives notice that 
651.14  the license has been immediately suspended.  A license holder 
651.15  and any controlling individual shall discontinue operation of 
651.16  the program upon receipt of the commissioner's order to 
651.17  immediately suspend the license. 
651.18     Subd. 2a.  [IMMEDIATE SUSPENSION EXPEDITED HEARING.] (a) 
651.19  Within five working days of receipt of the license holder's 
651.20  timely appeal, the commissioner shall request assignment of an 
651.21  administrative law judge.  The request must include a proposed 
651.22  date, time, and place of a hearing.  A hearing must be conducted 
651.23  by an administrative law judge within 30 calendar days of the 
651.24  request for assignment, unless an extension is requested by 
651.25  either party and granted by the administrative law judge for 
651.26  good cause.  The commissioner shall issue a notice of hearing by 
651.27  certified mail at least ten working days before the hearing.  
651.28  The scope of the hearing shall be limited solely to the issue of 
651.29  whether the temporary immediate suspension should remain in 
651.30  effect pending the commissioner's final order under section 
651.31  245A.08, regarding a licensing sanction issued under subdivision 
651.32  3 following the immediate suspension.  The burden of proof in 
651.33  expedited hearings under this subdivision shall be limited to 
651.34  the commissioner's demonstration that reasonable cause exists to 
651.35  believe that the license holder's actions or failure to comply 
651.36  with applicable law or rule poses an imminent risk of harm to 
652.1   the health, safety, or rights of persons served by the program.  
652.2      (b) The administrative law judge shall issue findings of 
652.3   fact, conclusions, and a recommendation within ten working days 
652.4   from the date of hearing.  The commissioner's final order shall 
652.5   be issued within ten working days from receipt of the 
652.6   recommendation of the administrative law judge.  Within 90 
652.7   calendar days after a final order affirming an immediate 
652.8   suspension, the commissioner shall make a determination 
652.9   regarding whether a final licensing sanction shall be issued 
652.10  under subdivision 3.  The license holder shall continue to be 
652.11  prohibited from operation of the program during this 90-day 
652.12  period. 
652.13     Subd. 3.  [LICENSE SUSPENSION, REVOCATION, DENIAL OR 
652.14  CONDITIONAL LICENSE FINE.] The commissioner may suspend, or 
652.15  revoke, make conditional, or deny a license, or impose a fine if 
652.16  an applicant or a license holder fails to comply fully with 
652.17  applicable laws or rules, or knowingly withholds relevant 
652.18  information from or gives false or misleading information to the 
652.19  commissioner in connection with an application for a license or 
652.20  during an investigation.  A license holder who has had a license 
652.21  suspended, revoked, or made conditional has been ordered to pay 
652.22  a fine must be given notice of the action by certified mail.  
652.23  The notice must be mailed to the address shown on the 
652.24  application or the last known address of the license holder.  
652.25  The notice must state the reasons the license was suspended, 
652.26  revoked, or made conditional a fine was ordered. 
652.27     (a) If the license was suspended or revoked, the notice 
652.28  must inform the license holder of the right to a contested case 
652.29  hearing under chapter 14 and Minnesota Rules, parts 1400.8510 to 
652.30  1400.8612 and successor rules.  The license holder may appeal an 
652.31  order suspending or revoking a license.  The appeal of an order 
652.32  suspending or revoking a license must be made in writing by 
652.33  certified mail and must be received by the commissioner within 
652.34  ten calendar days after the license holder receives notice that 
652.35  the license has been suspended or revoked.  
652.36     (b) If the license was made conditional, the notice must 
653.1   inform the license holder of the right to request a 
653.2   reconsideration by the commissioner.  The request for 
653.3   reconsideration must be made in writing by certified mail and 
653.4   must be received by the commissioner within ten calendar days 
653.5   after the license holder receives notice that the license has 
653.6   been made conditional.  The license holder may submit with the 
653.7   request for reconsideration written argument or evidence in 
653.8   support of the request for reconsideration.  The commissioner's 
653.9   disposition of a request for reconsideration is final and is not 
653.10  subject to appeal under chapter 14. (1) If the license holder 
653.11  was ordered to pay a fine, the notice must inform the license 
653.12  holder of the responsibility for payment of fines and the right 
653.13  to a contested case hearing under chapter 14 and Minnesota 
653.14  Rules, parts 1400.8510 to 1400.8612 and successor rules.  The 
653.15  appeal of an order to pay a fine must be made in writing by 
653.16  certified mail and must be received by the commissioner within 
653.17  ten calendar days after the license holder receives notice that 
653.18  the fine has been ordered.  
653.19     (2) The license holder shall pay the fines assessed on or 
653.20  before the payment date specified.  If the license holder fails 
653.21  to fully comply with the order, the commissioner may issue a 
653.22  second fine or suspend the license until the license holder 
653.23  complies.  If the license holder receives state funds, the 
653.24  state, county, or municipal agencies or departments responsible 
653.25  for administering the funds shall withhold payments and recover 
653.26  any payments made while the license is suspended for failure to 
653.27  pay a fine.  A timely appeal shall stay payment of the fine 
653.28  until the commissioner issues a final order.  
653.29     (3) A license holder shall promptly notify the commissioner 
653.30  of human services, in writing, when a violation specified in the 
653.31  order to forfeit a fine is corrected.  If upon reinspection the 
653.32  commissioner determines that a violation has not been corrected 
653.33  as indicated by the order to forfeit a fine, the commissioner 
653.34  may issue a second fine.  The commissioner shall notify the 
653.35  license holder by certified mail that a second fine has been 
653.36  assessed.  The license holder may appeal the second fine as 
654.1   provided under this subdivision. 
654.2      (4) Fines shall be assessed as follows:  the license holder 
654.3   shall forfeit $1,000 for each determination of maltreatment of a 
654.4   child under section 626.556 or the maltreatment of a vulnerable 
654.5   adult under section 626.557; the license holder shall forfeit 
654.6   $200 for each occurrence of a violation of law or rule governing 
654.7   matters of health, safety, or supervision, including but not 
654.8   limited to the provision of adequate staff-to-child or adult 
654.9   ratios, and failure to submit a background study; and the 
654.10  license holder shall forfeit $100 for each occurrence of a 
654.11  violation of law or rule other than those subject to a $1,000 or 
654.12  $200 fine above.  For purposes of this section, "occurrence" 
654.13  means each violation identified in the commissioner's fine order.
654.14     (5) When a fine has been assessed, the license holder may 
654.15  not avoid payment by closing, selling, or otherwise transferring 
654.16  the licensed program to a third party.  In such an event, the 
654.17  license holder will be personally liable for payment.  In the 
654.18  case of a corporation, each controlling individual is personally 
654.19  and jointly liable for payment. 
654.20     Subd. 4.  [ADOPTION AGENCY VIOLATIONS.] If a license holder 
654.21  licensed to place children for adoption fails to provide 
654.22  services as described in the disclosure form required by section 
654.23  259.37, subdivision 2, the sanctions under this section may be 
654.24  imposed. 
654.25     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
654.26     Sec. 22.  Minnesota Statutes 2000, section 245A.08, is 
654.27  amended to read: 
654.28     245A.08 [HEARINGS.] 
654.29     Subdivision 1.  [RECEIPT OF APPEAL; CONDUCT OF HEARING.] 
654.30  Upon receiving a timely appeal or petition pursuant to 
654.31  section 245A.04, subdivision 3c, 245A.05, or 245A.07, 
654.32  subdivision 3, the commissioner shall issue a notice of and 
654.33  order for hearing to the appellant under chapter 14 and 
654.34  Minnesota Rules, parts 1400.8510 to 1400.8612 and successor 
654.35  rules. 
654.36     Subd. 2.  [CONDUCT OF HEARINGS.] At any hearing provided 
655.1   for by section 245A.04, subdivision 3c, 245A.05, or 245A.07, 
655.2   subdivision 3, the appellant may be represented by counsel and 
655.3   has the right to call, examine, and cross-examine witnesses.  
655.4   The administrative law judge may require the presence of 
655.5   witnesses and evidence by subpoena on behalf of any party.  
655.6      Subd. 2a.  [CONSOLIDATED CONTESTED CASE HEARINGS FOR 
655.7   SANCTIONS BASED ON MALTREATMENT DETERMINATIONS AND 
655.8   DISQUALIFICATIONS.] (a) When a denial of a license under section 
655.9   245A.05 or a licensing sanction under section 245A.07, 
655.10  subdivision 3, is based on a disqualification for which 
655.11  reconsideration was requested and which was not set aside or was 
655.12  not rescinded under section 245A.04, subdivision 3b, the scope 
655.13  of the contested case hearing shall include the disqualification 
655.14  and the licensing sanction or denial of a license.  When the 
655.15  licensing sanction or denial of a license is based on a 
655.16  determination of maltreatment under section 626.556 or 626.557, 
655.17  or a disqualification for serious or recurring maltreatment 
655.18  which was not set aside or was not rescinded, the scope of the 
655.19  contested case hearing shall include the maltreatment 
655.20  determination, disqualification, and the licensing sanction or 
655.21  denial of a license.  In such cases, a fair hearing under 
655.22  section 256.045 shall not be conducted as provided for in 
655.23  sections 626.556, subdivision 10i, and 626.557, subdivision 9d. 
655.24     (b) In consolidated contested case hearings regarding 
655.25  sanctions issued in family child care, child foster care, and 
655.26  adult foster care, the county attorney shall defend the 
655.27  commissioner's orders in accordance with section 245A.16, 
655.28  subdivision 4. 
655.29     (c) The commissioner's final order under subdivision 5 is 
655.30  the final agency action on the issue of maltreatment and 
655.31  disqualification, including for purposes of subsequent 
655.32  background studies under section 245A.04, subdivision 3, and is 
655.33  the only administrative appeal of the final agency 
655.34  determination, specifically, including a challenge to the 
655.35  accuracy and completeness of data under section 13.04. 
655.36     (d) When consolidated hearings under this subdivision 
656.1   involve a licensing sanction based on a previous maltreatment 
656.2   determination for which the commissioner has issued a final 
656.3   order in an appeal of that determination under section 256.045, 
656.4   or the individual failed to exercise the right to appeal the 
656.5   previous maltreatment determination under section 626.556, 
656.6   subdivision 10i, or 626.557, subdivision 9d, the commissioner's 
656.7   order is conclusive on the issue of maltreatment.  In such 
656.8   cases, the scope of the administrative law judge's review shall 
656.9   be limited to the disqualification and the licensing sanction or 
656.10  denial of a license.  In the case of a denial of a license or a 
656.11  licensing sanction issued to a facility based on a maltreatment 
656.12  determination regarding an individual who is not the license 
656.13  holder or a household member, the scope of the administrative 
656.14  law judge's review includes the maltreatment determination. 
656.15     (e) If a maltreatment determination or disqualification, 
656.16  which was not set aside or was not rescinded under section 
656.17  245A.04, subdivision 3b, is the basis for a denial of a license 
656.18  under section 245A.05 or a licensing sanction under section 
656.19  245A.07, and the disqualified subject is an individual other 
656.20  than the license holder and upon whom a background study must be 
656.21  conducted under section 245A.04, subdivision 3, the hearings of 
656.22  all parties may be consolidated into a single contested case 
656.23  hearing upon consent of all parties and the administrative law 
656.24  judge.  
656.25     Subd. 3.  [BURDEN OF PROOF.] (a) At a hearing regarding 
656.26  suspension, immediate suspension, or revocation of a license for 
656.27  family day care or foster care a licensing sanction under 
656.28  section 245A.07, including consolidated hearings under 
656.29  subdivision 2a, the commissioner may demonstrate reasonable 
656.30  cause for action taken by submitting statements, reports, or 
656.31  affidavits to substantiate the allegations that the license 
656.32  holder failed to comply fully with applicable law or rule.  If 
656.33  the commissioner demonstrates that reasonable cause existed, the 
656.34  burden of proof in hearings involving suspension, immediate 
656.35  suspension, or revocation of a family day care or foster care 
656.36  license shifts to the license holder to demonstrate by a 
657.1   preponderance of the evidence that the license holder was in 
657.2   full compliance with those laws or rules that the commissioner 
657.3   alleges the license holder violated, at the time that the 
657.4   commissioner alleges the violations of law or rules occurred. 
657.5      (b) At a hearing on denial of an application, the applicant 
657.6   bears the burden of proof to demonstrate by a preponderance of 
657.7   the evidence that the appellant has complied fully with sections 
657.8   245A.01 to 245A.15 this chapter and other applicable law or rule 
657.9   and that the application should be approved and a license 
657.10  granted. 
657.11     (c) At all other hearings under this section, the 
657.12  commissioner bears the burden of proof to demonstrate, by a 
657.13  preponderance of the evidence, that the violations of law or 
657.14  rule alleged by the commissioner occurred. 
657.15     Subd. 4.  [RECOMMENDATION OF ADMINISTRATIVE LAW JUDGE.] The 
657.16  administrative law judge shall recommend whether or not the 
657.17  commissioner's order should be affirmed.  The recommendations 
657.18  must be consistent with this chapter and the rules of the 
657.19  commissioner.  The recommendations must be in writing and 
657.20  accompanied by findings of fact and conclusions and must be 
657.21  mailed to the parties by certified mail to their last known 
657.22  addresses as shown on the license or application. 
657.23     Subd. 5.  [NOTICE OF THE COMMISSIONER'S FINAL ORDER.] After 
657.24  considering the findings of fact, conclusions, and 
657.25  recommendations of the administrative law judge, the 
657.26  commissioner shall issue a final order.  The commissioner shall 
657.27  consider, but shall not be bound by, the recommendations of the 
657.28  administrative law judge.  The appellant must be notified of the 
657.29  commissioner's final order as required by chapter 14 and 
657.30  Minnesota Rules, parts 1400.8510 to 1400.8612 and successor 
657.31  rules.  The notice must also contain information about the 
657.32  appellant's rights under chapter 14 and Minnesota Rules, parts 
657.33  1400.8510 to 1400.8612 and successor rules.  The institution of 
657.34  proceedings for judicial review of the commissioner's final 
657.35  order shall not stay the enforcement of the final order except 
657.36  as provided in section 14.65.  A license holder and each 
658.1   controlling individual of a license holder whose license has 
658.2   been revoked because of noncompliance with applicable law or 
658.3   rule must not be granted a license for five years following the 
658.4   revocation.  An applicant whose application was denied must not 
658.5   be granted a license for two years following a denial, unless 
658.6   the applicant's subsequent application contains new information 
658.7   which constitutes a substantial change in the conditions that 
658.8   caused the previous denial. 
658.9      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
658.10     Sec. 23.  [245A.144] [REDUCTION OF RISK OF SUDDEN INFANT 
658.11  DEATH SYNDROME IN CHILD CARE PROGRAMS.] 
658.12     License holders must ensure that before staff persons, 
658.13  caregivers, and helpers assist in the care of infants, they 
658.14  receive training on reducing the risk of sudden infant death 
658.15  syndrome.  The training on reducing the risk of sudden infant 
658.16  death syndrome may be provided as orientation training under 
658.17  Minnesota Rules, part 9503.0035, subpart 1, as initial training 
658.18  under Minnesota Rules, part 9502.0385, subpart 2, as in-service 
658.19  training under Minnesota Rules, part 9503.0035, subpart 4, or as 
658.20  ongoing training under Minnesota Rules, part 9502.0385, subpart 
658.21  3.  Training required under this section must be completed at 
658.22  least once every five years. 
658.23     Sec. 24.  Minnesota Statutes 2000, section 245A.16, 
658.24  subdivision 1, is amended to read: 
658.25     Subdivision 1.  [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 
658.26  County agencies and private agencies that have been designated 
658.27  or licensed by the commissioner to perform licensing functions 
658.28  and activities under section 245A.04, to recommend denial of 
658.29  applicants under section 245A.05, to issue correction orders, to 
658.30  issue variances, and recommend fines a conditional license under 
658.31  section 245A.06, or to recommend suspending, or revoking, and 
658.32  making licenses probationary a license or issuing a fine under 
658.33  section 245A.07, shall comply with rules and directives of the 
658.34  commissioner governing those functions and with this 
658.35  section.  The following variances are excluded from the 
658.36  delegation of variance authority and may be issued only by the 
659.1   commissioner: 
659.2      (1) dual licensure of family child care and child foster 
659.3   care, dual licensure of child and adult foster care, and adult 
659.4   foster care and family child care; 
659.5      (2) adult foster care maximum capacity; 
659.6      (3) adult foster care minimum age requirement; 
659.7      (4) child foster care maximum age requirement; 
659.8      (5) variances regarding disqualified individuals; and 
659.9      (6) the required presence of a caregiver in the adult 
659.10  foster care residence during normal sleeping hours. 
659.11     (b) For family day care programs, the commissioner may 
659.12  authorize licensing reviews every two years after a licensee has 
659.13  had at least one annual review. 
659.14     Sec. 25.  Minnesota Statutes 2000, section 245B.08, 
659.15  subdivision 3, is amended to read: 
659.16     Subd. 3.  [SANCTIONS AVAILABLE.] Nothing in this 
659.17  subdivision shall be construed to limit the commissioner's 
659.18  authority to suspend, or revoke, or make conditional a license 
659.19  or issue a fine at any time a license under section 245A.07; 
659.20  make correction orders and require fines make a license 
659.21  conditional for failure to comply with applicable laws or rules 
659.22  under section 245A.06; or deny an application for license under 
659.23  section 245A.05. 
659.24     Sec. 26.  Minnesota Statutes 2000, section 256.045, 
659.25  subdivision 3, is amended to read: 
659.26     Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
659.27  hearings are available for the following:  (1) any person 
659.28  applying for, receiving or having received public assistance, 
659.29  medical care, or a program of social services granted by the 
659.30  state agency or a county agency or the federal Food Stamp Act 
659.31  whose application for assistance is denied, not acted upon with 
659.32  reasonable promptness, or whose assistance is suspended, 
659.33  reduced, terminated, or claimed to have been incorrectly paid; 
659.34  (2) any patient or relative aggrieved by an order of the 
659.35  commissioner under section 252.27; (3) a party aggrieved by a 
659.36  ruling of a prepaid health plan; (4) except as provided under 
660.1   chapter 245A, any individual or facility determined by a lead 
660.2   agency to have maltreated a vulnerable adult under section 
660.3   626.557 after they have exercised their right to administrative 
660.4   reconsideration under section 626.557; (5) any person whose 
660.5   claim for foster care payment according to a placement of the 
660.6   child resulting from a child protection assessment under section 
660.7   626.556 is denied or not acted upon with reasonable promptness, 
660.8   regardless of funding source; (6) any person to whom a right of 
660.9   appeal according to this section is given by other provision of 
660.10  law; (7) an applicant aggrieved by an adverse decision to an 
660.11  application for a hardship waiver under section 
660.12  256B.15; or (8) except as provided under chapter 245A, an 
660.13  individual or facility determined to have maltreated a minor 
660.14  under section 626.556, after the individual or facility has 
660.15  exercised the right to administrative reconsideration under 
660.16  section 626.556; or (9) except as provided under chapter 245A, 
660.17  an individual disqualified under section 245A.04, subdivision 
660.18  3d, on the basis of serious or recurring maltreatment; a 
660.19  preponderance of the evidence that the individual has committed 
660.20  an act or acts that meet the definition of any of the crimes 
660.21  listed in section 245A.04, subdivision 3d, paragraph (a), 
660.22  clauses (1) to (4); or for failing to make reports required 
660.23  under section 626.556, subdivision 3, or 626.557, subdivision 
660.24  3.  Hearings regarding a maltreatment determination under clause 
660.25  (4) or (8) and a disqualification under this clause in which the 
660.26  basis for a disqualification is serious or recurring 
660.27  maltreatment, which has not been set aside or rescinded under 
660.28  section 245A.04, subdivision 3b, shall be consolidated into a 
660.29  single fair hearing.  In such cases, the scope of review by the 
660.30  human services referee shall include both the maltreatment 
660.31  determination and the disqualification.  The failure to exercise 
660.32  the right to an administrative reconsideration shall not be a 
660.33  bar to a hearing under this section if federal law provides an 
660.34  individual the right to a hearing to dispute a finding of 
660.35  maltreatment.  Individuals and organizations specified in this 
660.36  section may contest the specified action, decision, or final 
661.1   disposition before the state agency by submitting a written 
661.2   request for a hearing to the state agency within 30 days after 
661.3   receiving written notice of the action, decision, or final 
661.4   disposition, or within 90 days of such written notice if the 
661.5   applicant, recipient, patient, or relative shows good cause why 
661.6   the request was not submitted within the 30-day time limit. 
661.7      The hearing for an individual or facility under clause 
661.8   (4) or, (8), or (9) is the only administrative appeal to the 
661.9   final agency determination specifically, including a challenge 
661.10  to the accuracy and completeness of data under section 13.04.  
661.11  Hearings requested under clause (4) apply only to incidents of 
661.12  maltreatment that occur on or after October 1, 1995.  Hearings 
661.13  requested by nursing assistants in nursing homes alleged to have 
661.14  maltreated a resident prior to October 1, 1995, shall be held as 
661.15  a contested case proceeding under the provisions of chapter 14.  
661.16  Hearings requested under clause (8) apply only to incidents of 
661.17  maltreatment that occur on or after July 1, 1997.  A hearing for 
661.18  an individual or facility under clause (8) is only available 
661.19  when there is no juvenile court or adult criminal action 
661.20  pending.  If such action is filed in either court while an 
661.21  administrative review is pending, the administrative review must 
661.22  be suspended until the judicial actions are completed.  If the 
661.23  juvenile court action or criminal charge is dismissed or the 
661.24  criminal action overturned, the matter may be considered in an 
661.25  administrative hearing. 
661.26     For purposes of this section, bargaining unit grievance 
661.27  procedures are not an administrative appeal. 
661.28     The scope of hearings involving claims to foster care 
661.29  payments under clause (5) shall be limited to the issue of 
661.30  whether the county is legally responsible for a child's 
661.31  placement under court order or voluntary placement agreement 
661.32  and, if so, the correct amount of foster care payment to be made 
661.33  on the child's behalf and shall not include review of the 
661.34  propriety of the county's child protection determination or 
661.35  child placement decision. 
661.36     (b) A vendor of medical care as defined in section 256B.02, 
662.1   subdivision 7, or a vendor under contract with a county agency 
662.2   to provide social services under section 256E.08, subdivision 4, 
662.3   is not a party and may not request a hearing under this section, 
662.4   except if assisting a recipient as provided in subdivision 4. 
662.5      (c) An applicant or recipient is not entitled to receive 
662.6   social services beyond the services included in the amended 
662.7   community social services plan developed under section 256E.081, 
662.8   subdivision 3, if the county agency has met the requirements in 
662.9   section 256E.081. 
662.10     (d) The commissioner may summarily affirm the county or 
662.11  state agency's proposed action without a hearing when the sole 
662.12  issue is an automatic change due to a change in state or federal 
662.13  law. 
662.14     Sec. 27.  Minnesota Statutes 2000, section 256.045, 
662.15  subdivision 3b, is amended to read: 
662.16     Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT AND 
662.17  DISQUALIFICATION HEARINGS.] The state human services referee 
662.18  shall determine that maltreatment has occurred if a 
662.19  preponderance of evidence exists to support the final 
662.20  disposition under sections 626.556 and 626.557.  For purposes of 
662.21  hearings regarding disqualification, the state human services 
662.22  referee shall affirm the proposed disqualification in an appeal 
662.23  under subdivision 3, paragraph (a), clause (9), if a 
662.24  preponderance of the evidence shows the individual has:  
662.25     (1) committed maltreatment under section 626.556 or 
662.26  626.557, which is serious or recurring; 
662.27     (2) committed an act or acts meeting the definition of any 
662.28  of the crimes listed in section 245A.04, subdivision 3d, 
662.29  paragraph (a), clauses (1) to (4); or 
662.30     (3) failed to make required reports under section 626.556 
662.31  or 626.557, for incidents in which:  
662.32     (i) the final disposition under section 626.556 or 626.557 
662.33  was substantiated maltreatment; and 
662.34     (ii) the maltreatment was recurring or serious; or 
662.35  substantiated serious or recurring maltreatment of a minor under 
662.36  section 626.556 or of a vulnerable adult under section 626.557 
663.1   for which there is a preponderance of evidence that the 
663.2   maltreatment occurred, and that the subject was responsible for 
663.3   the maltreatment.  If the disqualification is affirmed, the 
663.4   state human services referee shall determine whether the 
663.5   individual poses a risk of harm in accordance with the 
663.6   requirements of section 245A.04, subdivision 3b. 
663.7      The state human services referee shall recommend an order 
663.8   to the commissioner of health or human services, as applicable, 
663.9   who shall issue a final order.  The commissioner shall affirm, 
663.10  reverse, or modify the final disposition.  Any order of the 
663.11  commissioner issued in accordance with this subdivision is 
663.12  conclusive upon the parties unless appeal is taken in the manner 
663.13  provided in subdivision 7.  Except as provided under section 
663.14  245A.04, subdivisions 3b, paragraphs (e) and (f), and 3c, in any 
663.15  licensing appeal under chapter 245A and sections 144.50 to 
663.16  144.58 and 144A.02 to 144A.46, the commissioner's determination 
663.17  as to maltreatment is conclusive. 
663.18     Sec. 28.  Minnesota Statutes 2000, section 256.045, 
663.19  subdivision 4, is amended to read: 
663.20     Subd. 4.  [CONDUCT OF HEARINGS.] (a) All hearings held 
663.21  pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 
663.22  according to the provisions of the federal Social Security Act 
663.23  and the regulations implemented in accordance with that act to 
663.24  enable this state to qualify for federal grants-in-aid, and 
663.25  according to the rules and written policies of the commissioner 
663.26  of human services.  County agencies shall install equipment 
663.27  necessary to conduct telephone hearings.  A state human services 
663.28  referee may schedule a telephone conference hearing when the 
663.29  distance or time required to travel to the county agency offices 
663.30  will cause a delay in the issuance of an order, or to promote 
663.31  efficiency, or at the mutual request of the parties.  Hearings 
663.32  may be conducted by telephone conferences unless the applicant, 
663.33  recipient, former recipient, person, or facility contesting 
663.34  maltreatment objects.  The hearing shall not be held earlier 
663.35  than five days after filing of the required notice with the 
663.36  county or state agency.  The state human services referee shall 
664.1   notify all interested persons of the time, date, and location of 
664.2   the hearing at least five days before the date of the hearing.  
664.3   Interested persons may be represented by legal counsel or other 
664.4   representative of their choice, including a provider of therapy 
664.5   services, at the hearing and may appear personally, testify and 
664.6   offer evidence, and examine and cross-examine witnesses.  The 
664.7   applicant, recipient, former recipient, person, or facility 
664.8   contesting maltreatment shall have the opportunity to examine 
664.9   the contents of the case file and all documents and records to 
664.10  be used by the county or state agency at the hearing at a 
664.11  reasonable time before the date of the hearing and during the 
664.12  hearing.  In hearings under subdivision 3, paragraph (a), 
664.13  clauses (4) and, (8), and (9), either party may subpoena the 
664.14  private data relating to the investigation prepared by the 
664.15  agency under section 626.556 or 626.557 that is not otherwise 
664.16  accessible under section 13.04, provided the identity of the 
664.17  reporter may not be disclosed. 
664.18     (b) The private data obtained by subpoena in a hearing 
664.19  under subdivision 3, paragraph (a), clause (4) or, (8), or (9), 
664.20  must be subject to a protective order which prohibits its 
664.21  disclosure for any other purpose outside the hearing provided 
664.22  for in this section without prior order of the district court.  
664.23  Disclosure without court order is punishable by a sentence of 
664.24  not more than 90 days imprisonment or a fine of not more than 
664.25  $700, or both.  These restrictions on the use of private data do 
664.26  not prohibit access to the data under section 13.03, subdivision 
664.27  6.  Except for appeals under subdivision 3, paragraph (a), 
664.28  clauses (4), (5), and (8), and (9), upon request, the county 
664.29  agency shall provide reimbursement for transportation, child 
664.30  care, photocopying, medical assessment, witness fee, and other 
664.31  necessary and reasonable costs incurred by the applicant, 
664.32  recipient, or former recipient in connection with the appeal.  
664.33  All evidence, except that privileged by law, commonly accepted 
664.34  by reasonable people in the conduct of their affairs as having 
664.35  probative value with respect to the issues shall be submitted at 
664.36  the hearing and such hearing shall not be "a contested case" 
665.1   within the meaning of section 14.02, subdivision 3.  The agency 
665.2   must present its evidence prior to or at the hearing, and may 
665.3   not submit evidence after the hearing except by agreement of the 
665.4   parties at the hearing, provided the petitioner has the 
665.5   opportunity to respond. 
665.6      Sec. 29.  Minnesota Statutes 2000, section 626.556, 
665.7   subdivision 10i, as amended by Laws 2001, chapter 178, article 
665.8   2, section 15, is amended to read: 
665.9      Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
665.10  DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
665.11  SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
665.12  provided under paragraph (e), an individual or facility that the 
665.13  commissioner of human services, a local social service agency, 
665.14  or the commissioner of children, families, and learning 
665.15  determines has maltreated a child, or the child's designee an 
665.16  interested person acting on behalf of the child, regardless of 
665.17  the determination, who contests the investigating agency's final 
665.18  determination regarding maltreatment, may request the 
665.19  investigating agency to reconsider its final determination 
665.20  regarding maltreatment.  The request for reconsideration must be 
665.21  submitted in writing to the investigating agency within 15 
665.22  calendar days after receipt of notice of the final determination 
665.23  regarding maltreatment or, if the request is made by an 
665.24  interested person who is not entitled to notice, within 15 days 
665.25  after receipt of the notice by the parent or guardian of the 
665.26  child.  Effective January 1, 2002, an individual who was 
665.27  determined to have maltreated a child under this section and who 
665.28  was disqualified on the basis of serious or recurring 
665.29  maltreatment under section 245A.04, subdivision 3d, may request 
665.30  reconsideration of the maltreatment determination and the 
665.31  disqualification.  The request for reconsideration of the 
665.32  maltreatment determination and the disqualification must be 
665.33  submitted within 30 calendar days of the individual's receipt of 
665.34  the notice of disqualification under section 245A.04, 
665.35  subdivision 3a. 
665.36     (b) Except as provided under paragraphs (e) and (f), if the 
666.1   investigating agency denies the request or fails to act upon the 
666.2   request within 15 calendar days after receiving the request for 
666.3   reconsideration, the person or facility entitled to a fair 
666.4   hearing under section 256.045 may submit to the commissioner of 
666.5   human services or the commissioner of children, families, and 
666.6   learning a written request for a hearing under that section.  
666.7   Section 256.045 also governs hearings requested to contest a 
666.8   final determination of the commissioner of children, families, 
666.9   and learning.  For reports involving maltreatment of a child in 
666.10  a facility, an interested person acting on behalf of the child 
666.11  may request a review by the child maltreatment review panel 
666.12  under section 256.022 if the investigating agency denies the 
666.13  request or fails to act upon the request or if the interested 
666.14  person contests a reconsidered determination.  The investigating 
666.15  agency shall notify persons who request reconsideration of their 
666.16  rights under this paragraph.  The request must be submitted in 
666.17  writing to the review panel and a copy sent to the investigating 
666.18  agency within 30 calendar days of receipt of notice of a denial 
666.19  of a request for reconsideration or of a reconsidered 
666.20  determination.  The request must specifically identify the 
666.21  aspects of the agency determination with which the person is 
666.22  dissatisfied. 
666.23     (c) If, as a result of the a reconsideration or review, the 
666.24  investigating agency changes the final determination of 
666.25  maltreatment, that agency shall notify the parties specified in 
666.26  subdivisions 10b, 10d, and 10f. 
666.27     (d) Except as provided under paragraph (f), if an 
666.28  individual or facility contests the investigating agency's final 
666.29  determination regarding maltreatment by requesting a fair 
666.30  hearing under section 256.045, the commissioner of human 
666.31  services shall assure that the hearing is conducted and a 
666.32  decision is reached within 90 days of receipt of the request for 
666.33  a hearing.  The time for action on the decision may be extended 
666.34  for as many days as the hearing is postponed or the record is 
666.35  held open for the benefit of either party. 
666.36     (e) Effective January 1, 2002, if an individual was 
667.1   disqualified under section 245A.04, subdivision 3d, on the basis 
667.2   of a determination of maltreatment, which was serious or 
667.3   recurring, and the individual has requested reconsideration of 
667.4   the maltreatment determination under paragraph (a) and requested 
667.5   reconsideration of the disqualification under section 245A.04, 
667.6   subdivision 3b, reconsideration of the maltreatment 
667.7   determination and reconsideration of the disqualification shall 
667.8   be consolidated into a single reconsideration.  If an individual 
667.9   disqualified on the basis of a determination of maltreatment, 
667.10  which was serious or recurring requests a fair hearing under 
667.11  paragraph (b), the scope of the fair hearing shall include the 
667.12  maltreatment determination and the disqualification. 
667.13     (f) Effective January 1, 2002, if a maltreatment 
667.14  determination or a disqualification based on serious or 
667.15  recurring maltreatment is the basis for a denial of a license 
667.16  under section 245A.05 or a licensing sanction under section 
667.17  245A.07, the license holder has the right to a contested case 
667.18  hearing under chapter 14 and Minnesota Rules, parts 1400.8510 to 
667.19  1400.8612 and successor rules.  As provided for under section 
667.20  245A.08, subdivision 2a, the scope of the contested case hearing 
667.21  shall include the maltreatment determination, disqualification, 
667.22  and licensing sanction or denial of a license.  In such cases, a 
667.23  fair hearing regarding the maltreatment determination shall not 
667.24  be conducted under paragraph (b).  If the disqualified subject 
667.25  is an individual other than the license holder and upon whom a 
667.26  background study must be conducted under section 245A.04, 
667.27  subdivision 3, the hearings of all parties may be consolidated 
667.28  into a single contested case hearing upon consent of all parties 
667.29  and the administrative law judge. 
667.30     (g) For purposes of this subdivision, "interested person 
667.31  acting on behalf of the child" means a parent or legal guardian; 
667.32  stepparent; grandparent; guardian ad litem; adult stepbrother, 
667.33  stepsister, or sibling; or adult aunt or uncle; unless the 
667.34  person has been determined to be the perpetrator of the 
667.35  maltreatment. 
667.36     Sec. 30.  Minnesota Statutes 2000, section 626.557, 
668.1   subdivision 3, is amended to read: 
668.2      Subd. 3.  [TIMING OF REPORT.] (a) A mandated reporter who 
668.3   has reason to believe that a vulnerable adult is being or has 
668.4   been maltreated, or who has knowledge that a vulnerable adult 
668.5   has sustained a physical injury which is not reasonably 
668.6   explained shall immediately report the information to the common 
668.7   entry point.  If an individual is a vulnerable adult solely 
668.8   because the individual is admitted to a facility, a mandated 
668.9   reporter is not required to report suspected maltreatment of the 
668.10  individual that occurred prior to admission, unless: 
668.11     (1) the individual was admitted to the facility from 
668.12  another facility and the reporter has reason to believe the 
668.13  vulnerable adult was maltreated in the previous facility; or 
668.14     (2) the reporter knows or has reason to believe that the 
668.15  individual is a vulnerable adult as defined in section 626.5572, 
668.16  subdivision 21, clause (4).  
668.17     (b) A person not required to report under the provisions of 
668.18  this section may voluntarily report as described above.  
668.19     (c) Nothing in this section requires a report of known or 
668.20  suspected maltreatment, if the reporter knows or has reason to 
668.21  know that a report has been made to the common entry point. 
668.22     (d) Nothing in this section shall preclude a reporter from 
668.23  also reporting to a law enforcement agency.  
668.24     (e) A mandated reporter who knows or has reason to believe 
668.25  that an error under section 626.5572, subdivision 17, paragraph 
668.26  (c), clause (5), occurred must make a report under this 
668.27  subdivision.  If the reporter or a facility, at any time 
668.28  believes that an investigation by a lead agency will determine 
668.29  or should determine that the reported error was not neglect 
668.30  according to the criteria under section 626.5572, subdivision 
668.31  17, paragraph (c), clause (5), the reporter or facility may 
668.32  provide to the common entry point or directly to the lead agency 
668.33  information explaining how the event meets the criteria under 
668.34  section 626.5572, subdivision 17, paragraph (c), clause (5).  
668.35  The lead agency shall consider this information when making an 
668.36  initial disposition of the report under subdivision 9c. 
669.1      <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2001. 
669.2      Sec. 31.  Minnesota Statutes 2000, section 626.557, 
669.3   subdivision 9d, is amended to read: 
669.4      Subd. 9d.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
669.5   DISPOSITION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
669.6   SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
669.7   provided under paragraph (e), any individual or facility which a 
669.8   lead agency determines has maltreated a vulnerable adult, or the 
669.9   vulnerable adult or an interested person acting on behalf of the 
669.10  vulnerable adult, regardless of the lead agency's determination, 
669.11  who contests the lead agency's final disposition of an 
669.12  allegation of maltreatment, may request the lead agency to 
669.13  reconsider its final disposition.  The request for 
669.14  reconsideration must be submitted in writing to the lead agency 
669.15  within 15 calendar days after receipt of notice of final 
669.16  disposition or, if the request is made by an interested person 
669.17  who is not entitled to notice, within 15 days after receipt of 
669.18  the notice by the vulnerable adult or the vulnerable adult's 
669.19  legal guardian.  An individual who was determined to have 
669.20  maltreated a vulnerable adult under this section and who was 
669.21  disqualified on the basis of serious or recurring maltreatment 
669.22  under section 245A.04, subdivision 3d, may request 
669.23  reconsideration of the maltreatment determination and the 
669.24  disqualification.  The request for reconsideration of the 
669.25  maltreatment determination and the disqualification must be 
669.26  submitted within 30 calendar days of the individual's receipt of 
669.27  the notice of disqualification under section 245A.04, 
669.28  subdivision 3a. 
669.29     (b) Except as provided under paragraphs (e) and (f), if the 
669.30  lead agency denies the request or fails to act upon the request 
669.31  within 15 calendar days after receiving the request for 
669.32  reconsideration, the person or facility entitled to a fair 
669.33  hearing under section 256.045, may submit to the commissioner of 
669.34  human services a written request for a hearing under that 
669.35  statute.  The vulnerable adult, or an interested person acting 
669.36  on behalf of the vulnerable adult, may request a review by the 
670.1   vulnerable adult maltreatment review panel under section 256.021 
670.2   if the lead agency denies the request or fails to act upon the 
670.3   request, or if the vulnerable adult or interested person 
670.4   contests a reconsidered disposition.  The lead agency shall 
670.5   notify persons who request reconsideration of their rights under 
670.6   this paragraph.  The request must be submitted in writing to the 
670.7   review panel and a copy sent to the lead agency within 30 
670.8   calendar days of receipt of notice of a denial of a request for 
670.9   reconsideration or of a reconsidered disposition.  The request 
670.10  must specifically identify the aspects of the agency 
670.11  determination with which the person is dissatisfied.  
670.12     (c) If, as a result of a reconsideration or review, the 
670.13  lead agency changes the final disposition, it shall notify the 
670.14  parties specified in subdivision 9c, paragraph (d). 
670.15     (d) For purposes of this subdivision, "interested person 
670.16  acting on behalf of the vulnerable adult" means a person 
670.17  designated in writing by the vulnerable adult to act on behalf 
670.18  of the vulnerable adult, or a legal guardian or conservator or 
670.19  other legal representative, a proxy or health care agent 
670.20  appointed under chapter 145B or 145C, or an individual who is 
670.21  related to the vulnerable adult, as defined in section 245A.02, 
670.22  subdivision 13. 
670.23     (e) If an individual was disqualified under section 
670.24  245A.04, subdivision 3d, on the basis of a determination of 
670.25  maltreatment, which was serious or recurring, and the individual 
670.26  has requested reconsideration of the maltreatment determination 
670.27  under paragraph (a) and reconsideration of the disqualification 
670.28  under section 245A.04, subdivision 3b, reconsideration of the 
670.29  maltreatment determination and requested reconsideration of the 
670.30  disqualification shall be consolidated into a single 
670.31  reconsideration.  If an individual who was disqualified on the 
670.32  basis of serious or recurring maltreatment requests a fair 
670.33  hearing under paragraph (b), the scope of the fair hearing shall 
670.34  include the maltreatment determination and the disqualification. 
670.35     (f) If a maltreatment determination or a disqualification 
670.36  based on serious or recurring maltreatment is the basis for a 
671.1   denial of a license under section 245A.05 or a licensing 
671.2   sanction under section 245A.07, the license holder has the right 
671.3   to a contested case hearing under chapter 14 and Minnesota 
671.4   Rules, parts 1400.8510 to 1400.8612 and successor rules.  As 
671.5   provided for under section 245A.08, the scope of the contested 
671.6   case hearing shall include the maltreatment determination, 
671.7   disqualification, and licensing sanction or denial of a 
671.8   license.  In such cases, a fair hearing shall not be conducted 
671.9   under paragraph (b).  If the disqualified subject is an 
671.10  individual other than the license holder and upon whom a 
671.11  background study must be conducted under section 245A.04, 
671.12  subdivision 3, the hearings of all parties may be consolidated 
671.13  into a single contested case hearing upon consent of all parties 
671.14  and the administrative law judge. 
671.15     (g) Until August 1, 2002, an individual or facility that 
671.16  was determined by the commissioner of human services or the 
671.17  commissioner of health to be responsible for neglect under 
671.18  section 626.5572, subdivision 17, after October 1, 1995, and 
671.19  before August 1, 2001, that believes that the finding of neglect 
671.20  does not meet an amended definition of neglect may request a 
671.21  reconsideration of the determination of neglect.  The 
671.22  commissioner of human services or the commissioner of health 
671.23  shall mail a notice to the last known address of individuals who 
671.24  are eligible to seek this reconsideration.  The request for 
671.25  reconsideration must state how the established findings no 
671.26  longer meet the elements of the definition of neglect.  The 
671.27  commissioner shall review the request for reconsideration and 
671.28  make a determination within 15 calendar days.  The 
671.29  commissioner's decision on this reconsideration is the final 
671.30  agency action. 
671.31     (1) For purposes of compliance with the data destruction 
671.32  schedule under subdivision 12b, paragraph (d), when a finding of 
671.33  substantiated maltreatment has been changed as a result of a 
671.34  reconsideration under this paragraph, the date of the original 
671.35  finding of a substantiated maltreatment must be used to 
671.36  calculate the destruction date. 
672.1      (2) For purposes of any background studies under section 
672.2   245A.04, when a determination of substantiated maltreatment has 
672.3   been changed as a result of a reconsideration under this 
672.4   paragraph, any prior disqualification of the individual under 
672.5   section 245A.04 that was based on this determination of 
672.6   maltreatment shall be rescinded, and for future background 
672.7   studies under section 245A.04 the commissioner must not use the 
672.8   previous determination of substantiated maltreatment as a basis 
672.9   for disqualification or as a basis for referring the 
672.10  individual's maltreatment history to a health-related licensing 
672.11  board under section 245A.04, subdivision 3d, paragraph (b). 
672.12     <b>[EFFECTIVE DATE.]</b> Paragraph (g) of this section is 
672.13  effective the day following final enactment.  Paragraphs (a), 
672.14  (b), (e), and (f) are effective January 1, 2002. 
672.15     Sec. 32.  Minnesota Statutes 2000, section 626.5572, 
672.16  subdivision 17, is amended to read: 
672.17     Subd. 17.  [NEGLECT.] "Neglect" means:  
672.18     (a) The failure or omission by a caregiver to supply a 
672.19  vulnerable adult with care or services, including but not 
672.20  limited to, food, clothing, shelter, health care, or supervision 
672.21  which is: 
672.22     (1) reasonable and necessary to obtain or maintain the 
672.23  vulnerable adult's physical or mental health or safety, 
672.24  considering the physical and mental capacity or dysfunction of 
672.25  the vulnerable adult; and 
672.26     (2) which is not the result of an accident or therapeutic 
672.27  conduct. 
672.28     (b) The absence or likelihood of absence of care or 
672.29  services, including but not limited to, food, clothing, shelter, 
672.30  health care, or supervision necessary to maintain the physical 
672.31  and mental health of the vulnerable adult which a reasonable 
672.32  person would deem essential to obtain or maintain the vulnerable 
672.33  adult's health, safety, or comfort considering the physical or 
672.34  mental capacity or dysfunction of the vulnerable adult. 
672.35     (c) For purposes of this section, a vulnerable adult is not 
672.36  neglected for the sole reason that: 
673.1      (1) the vulnerable adult or a person with authority to make 
673.2   health care decisions for the vulnerable adult under sections 
673.3   144.651, 144A.44, chapter 145B, 145C, or 252A, or section 
673.4   253B.03, or 525.539 to 525.6199, refuses consent or withdraws 
673.5   consent, consistent with that authority and within the boundary 
673.6   of reasonable medical practice, to any therapeutic conduct, 
673.7   including any care, service, or procedure to diagnose, maintain, 
673.8   or treat the physical or mental condition of the vulnerable 
673.9   adult, or, where permitted under law, to provide nutrition and 
673.10  hydration parenterally or through intubation; this paragraph 
673.11  does not enlarge or diminish rights otherwise held under law by: 
673.12     (i) a vulnerable adult or a person acting on behalf of a 
673.13  vulnerable adult, including an involved family member, to 
673.14  consent to or refuse consent for therapeutic conduct; or 
673.15     (ii) a caregiver to offer or provide or refuse to offer or 
673.16  provide therapeutic conduct; or 
673.17     (2) the vulnerable adult, a person with authority to make 
673.18  health care decisions for the vulnerable adult, or a caregiver 
673.19  in good faith selects and depends upon spiritual means or prayer 
673.20  for treatment or care of disease or remedial care of the 
673.21  vulnerable adult in lieu of medical care, provided that this is 
673.22  consistent with the prior practice or belief of the vulnerable 
673.23  adult or with the expressed intentions of the vulnerable adult; 
673.24     (3) the vulnerable adult, who is not impaired in judgment 
673.25  or capacity by mental or emotional dysfunction or undue 
673.26  influence, engages in sexual contact with:  
673.27     (i) a person including a facility staff person when a 
673.28  consensual sexual personal relationship existed prior to the 
673.29  caregiving relationship; or 
673.30     (ii) a personal care attendant, regardless of whether the 
673.31  consensual sexual personal relationship existed prior to the 
673.32  caregiving relationship; or 
673.33     (4) an individual makes an error in the provision of 
673.34  therapeutic conduct to a vulnerable adult which:  (i) does not 
673.35  result in injury or harm which reasonably requires medical or 
673.36  mental health care; or, if it reasonably requires care, 
674.1      (5) an individual makes an error in the provision of 
674.2   therapeutic conduct to a vulnerable adult that results in injury 
674.3   or harm, which reasonably requires the care of a physician; and: 
674.4      (i) the necessary care is sought and provided in a timely 
674.5   fashion as dictated by the condition of the vulnerable adult; 
674.6   and the injury or harm that required care does not result in 
674.7   substantial acute, or chronic injury or illness, or permanent 
674.8   disability above and beyond the vulnerable adult's preexisting 
674.9   condition; 
674.10     (ii) is after receiving care, the health status of the 
674.11  vulnerable adult can be reasonably expected, as determined by 
674.12  the attending physician, to be restored to the vulnerable 
674.13  adult's preexisting condition; 
674.14     (iii) the error is not part of a pattern of errors by the 
674.15  individual; 
674.16     (iv) if in a facility, the error is immediately reported as 
674.17  required under section 626.557, and recorded internally by the 
674.18  employee or person providing services in the facility in order 
674.19  to evaluate and identify corrective action; 
674.20     (v) if in a facility, the facility identifies and takes 
674.21  corrective action and implements measures designed to reduce the 
674.22  risk of further occurrence of this error and similar errors; and 
674.23     (iii) is (vi) if in a facility, the actions required under 
674.24  items (iv) and (v) are sufficiently documented for review and 
674.25  evaluation by the facility and any applicable licensing, 
674.26  certification, and ombudsman agency; and 
674.27     (iv) is not part of a pattern of errors by the individual. 
674.28     (d) Nothing in this definition requires a caregiver, if 
674.29  regulated, to provide services in excess of those required by 
674.30  the caregiver's license, certification, registration, or other 
674.31  regulation. 
674.32     (e) If the findings of an investigation by a lead agency 
674.33  result in a determination of substantiated maltreatment for the 
674.34  sole reason that the actions required of a facility under 
674.35  paragraph (c), clause (5), item (iv), (v), or (vi), were not 
674.36  taken, then the facility is subject to a correction order.  An 
675.1   individual will not be found to have neglected or maltreated the 
675.2   vulnerable adult based solely on the facility's not having taken 
675.3   the actions required under paragraph (c), clause (5), item (iv), 
675.4   (v), or (vi).  This must not alter the lead agency's 
675.5   determination of mitigating factors under section 626.557, 
675.6   subdivision 9c, paragraph (c). 
675.7      Sec. 33.  [FEDERAL LAW CHANGE REQUEST OR WAIVER.] 
675.8      The commissioner of health or human services, whichever is 
675.9   appropriate, shall pursue changes to federal law necessary to 
675.10  allow greater discretion on disciplinary activities of 
675.11  unlicensed health care workers, and apply for necessary federal 
675.12  waivers or approval that would allow for a set-aside process 
675.13  related to disqualifications for nurse aides in nursing homes by 
675.14  July 1, 2002. 
675.15     Sec. 34.  [WAIVER FROM FEDERAL RULES AND REGULATIONS.] 
675.16     By January 2002, the commissioner of health shall work with 
675.17  providers to examine federal rules and regulations prohibiting 
675.18  neglect, abuse, and financial exploitation of residents in 
675.19  licensed nursing facilities and shall apply for federal waivers 
675.20  to: 
675.21     (1) allow the use of Minnesota Statutes, section 626.5572, 
675.22  to control the identification and prevention of maltreatment of 
675.23  residents in licensed nursing facilities, rather than the 
675.24  definitions under federal rules and regulations; and 
675.25     (2) allow the use of Minnesota Statutes, sections 214.104, 
675.26  245A.04, and 626.557 to control the disqualification or 
675.27  discipline of any persons providing services to residents in 
675.28  licensed nursing facilities, rather than the nurse aide registry 
675.29  or other exclusionary provisions of federal rules and 
675.30  regulations. 
675.31     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
675.32     Sec. 35.  [INSTRUCTION TO REVISOR.] 
675.33     (a) The revisor of statutes shall replace any references to 
675.34  "sections 245A.01 to 245A.16" in chapter 245A with "this 
675.35  chapter." 
675.36     (b) The revisor of statutes shall replace references in 
676.1   Minnesota Rules and Minnesota Statutes to "parts 9543.3000 to 
676.2   9543.3090" with "section 245A.04." 
676.3      (c) The revisor of statutes shall replace references in 
676.4   Minnesota Rules and Minnesota Statutes to "part 9543.3070" with 
676.5   "section 245A.04, subdivision 3d." 
676.6      (d) The revisor of statutes shall replace references in 
676.7   Minnesota Rules and Minnesota Statutes to "part 9543.3080" with 
676.8   "section 245A.04, subdivision 3b." 
676.9      Sec. 36.  [REPEALER.] 
676.10     Minnesota Rules, parts 9543.3000; 9543.3010; 9543.3020; 
676.11  9543.3030; 9543.3040; 9543.3050; 9543.3060; 9543.3080; and 
676.12  9543.3090, are repealed. 
676.13                             ARTICLE 15
676.14                          VITAL STATISTICS
676.15     Section 1.  Minnesota Statutes 2000, section 144.212, 
676.16  subdivision 2a, is amended to read: 
676.17     Subd. 2a.  [DELAYED REGISTRATION.] "Delayed registration" 
676.18  means registration of a certificate record of birth or death 
676.19  filed one or more years after the date established by law for 
676.20  filing a certificate of birth or death. 
676.21     Sec. 2.  Minnesota Statutes 2000, section 144.212, 
676.22  subdivision 3, is amended to read: 
676.23     Subd. 3.  [FILE.] "File" means to present a vital record or 
676.24  report for registration to the office of the state registrar and 
676.25  to have the vital record or report accepted for registration by 
676.26  the office of the state registrar. 
676.27     Sec. 3.  Minnesota Statutes 2000, section 144.212, 
676.28  subdivision 5, is amended to read: 
676.29     Subd. 5.  [REGISTRATION.] "Registration" means the 
676.30  acceptance of a vital record for filing by a registrar of vital 
676.31  statistics process by which vital records are completed, filed, 
676.32  and incorporated into the official records of the office of the 
676.33  state registrar. 
676.34     Sec. 4.  Minnesota Statutes 2000, section 144.212, 
676.35  subdivision 7, is amended to read: 
676.36     Subd. 7.  [SYSTEM OF VITAL STATISTICS.] "System of vital 
677.1   statistics" includes the registration, collection, preservation, 
677.2   amendment, and certification of vital records, the collection of 
677.3   other reports required by sections 144.211 to 144.227, and 
677.4   related activities including the tabulation, analysis and, 
677.5   publication, and dissemination of vital statistics. 
677.6      Sec. 5.  Minnesota Statutes 2000, section 144.212, 
677.7   subdivision 8, is amended to read: 
677.8      Subd. 8.  [VITAL RECORD.] "Vital record" means certificates 
677.9   or reports a record or report of birth, death, marriage, 
677.10  dissolution and annulment, and data related thereto.  The birth 
677.11  record is not a medical record of the mother or the child. 
677.12     Sec. 6.  Minnesota Statutes 2000, section 144.212, 
677.13  subdivision 9, is amended to read: 
677.14     Subd. 9.  [VITAL STATISTICS.] "Vital statistics" means the 
677.15  data derived from certificates and records and reports of birth, 
677.16  death, fetal death, induced abortion, marriage, dissolution and 
677.17  annulment, and related reports. 
677.18     Sec. 7.  Minnesota Statutes 2000, section 144.212, 
677.19  subdivision 11, is amended to read: 
677.20     Subd. 11.  [CONSENT TO DISCLOSURE.] "Consent to disclosure" 
677.21  means an affidavit filed with the state registrar which sets 
677.22  forth the following information: 
677.23     (a) (1) the current name and address of the affiant; 
677.24     (b) (2) any previous name by which the affiant was known; 
677.25     (c) (3) the original and adopted names, if known, of the 
677.26  adopted child whose original birth certificate record is to be 
677.27  disclosed; 
677.28     (d) (4) the place and date of birth of the adopted child; 
677.29     (e) (5) the biological relationship of the affiant to the 
677.30  adopted child; and 
677.31     (f) (6) the affiant's consent to disclosure of information 
677.32  from the original unaltered birth certificate record of the 
677.33  adopted child. 
677.34     Sec. 8.  Minnesota Statutes 2000, section 144.214, 
677.35  subdivision 1, is amended to read: 
677.36     Subdivision 1.  [DISTRICTS.] Each county The counties of 
678.1   the state, and the city of St. Paul, shall constitute the 88 87 
678.2   registration districts of the state.  The A local registrar in 
678.3   each county shall be the court administrator of district court 
678.4   in that county designated by the county board of commissioners.  
678.5   The local registrar in any city which maintains local 
678.6   registration of vital statistics shall be the agent of a board 
678.7   of health as authorized under section 145A.04.  In addition, the 
678.8   state registrar may establish registration districts on United 
678.9   States government reservations, and may appoint a local 
678.10  registrar for each registration district so established. 
678.11     Sec. 9.  Minnesota Statutes 2000, section 144.214, 
678.12  subdivision 3, is amended to read: 
678.13     Subd. 3.  [DUTIES.] The local registrar shall examine each 
678.14  certificate of birth and death received pursuant to the rules of 
678.15  the commissioner.  If the certificate is complete it shall be 
678.16  registered.  The local registrar shall enforce the provisions of 
678.17  sections 144.211 to 144.227 and the rules promulgated thereunder 
678.18  within the registration district, and shall promptly report 
678.19  violations of the laws or rules to the state registrar. 
678.20     Sec. 10.  Minnesota Statutes 2000, section 144.214, 
678.21  subdivision 4, is amended to read: 
678.22     Subd. 4.  [DESIGNATED MORTICIANS.] The state registrar may 
678.23  designate licensed morticians to receive records of death for 
678.24  filing certificates of death, to issue burial permits, and to 
678.25  issue permits for the transportation of dead bodies or dead 
678.26  fetuses within a designated territory.  The designated 
678.27  morticians shall perform duties as prescribed by rule of the 
678.28  commissioner. 
678.29     Sec. 11.  Minnesota Statutes 2000, section 144.215, 
678.30  subdivision 1, is amended to read: 
678.31     Subdivision 1.  [WHEN AND WHERE TO FILE.] A certificate 
678.32  record of birth for each live birth which occurs in this state 
678.33  shall be filed with the state registrar or the local registrar 
678.34  of the district in which the birth occurred, within five days 
678.35  after the birth. 
678.36     Sec. 12.  Minnesota Statutes 2000, section 144.215, 
679.1   subdivision 3, is amended to read: 
679.2      Subd. 3.  [FATHER'S NAME; CHILD'S NAME.] In any case in 
679.3   which paternity of a child is determined by a court of competent 
679.4   jurisdiction, a declaration of parentage is executed under 
679.5   section 257.34, or a recognition of parentage is executed under 
679.6   section 257.75, the name of the father shall be entered on the 
679.7   birth certificate record.  If the order of the court declares 
679.8   the name of the child, it shall also be entered on the birth 
679.9   certificate record.  If the order of the court does not declare 
679.10  the name of the child, or there is no court order, then upon the 
679.11  request of both parents in writing, the surname of the child 
679.12  shall be that of the father defined by both parents. 
679.13     Sec. 13.  Minnesota Statutes 2000, section 144.215, 
679.14  subdivision 4, is amended to read: 
679.15     Subd. 4.  [SOCIAL SECURITY NUMBER REGISTRATION.] (a) 
679.16  Parents of a child born within this state shall give their the 
679.17  parents' social security numbers to the office of vital 
679.18  statistics the state registrar at the time of filing the birth 
679.19  certificate record, but the numbers shall not appear on the 
679.20  certificate. 
679.21     (b) The social security numbers are classified as private 
679.22  data, as defined in section 13.02, subdivision 12, on 
679.23  individuals, but the office of vital statistics the state 
679.24  registrar shall provide the a social security number to the 
679.25  public authority responsible for child support services upon 
679.26  request by the public authority for use in the establishment of 
679.27  parentage and the enforcement of child support obligations. 
679.28     Sec. 14.  Minnesota Statutes 2000, section 144.215, 
679.29  subdivision 6, is amended to read: 
679.30     Subd. 6.  [BIRTHS OCCURRING OUTSIDE AN INSTITUTION.] When a 
679.31  birth occurs outside of an institution as defined in subdivision 
679.32  5, the certificate record of birth shall be prepared and filed 
679.33  by one of the following persons, in the indicated order of 
679.34  preference: 
679.35     (1) the physician present at the time of the birth or 
679.36  immediately thereafter; 
680.1      (2) in the absence of a physician, a person, other than the 
680.2   mother, present at the time of the birth or immediately 
680.3   thereafter; 
680.4      (3) the father or mother of the child; or 
680.5      (4) the mother of the child; or 
680.6      (5) in the absence of the father and if the mother is 
680.7   unable, the person with primary responsibility for the premises 
680.8   where the child was born. 
680.9      Sec. 15.  Minnesota Statutes 2000, section 144.215, 
680.10  subdivision 7, is amended to read: 
680.11     Subd. 7.  [EVIDENCE REQUIRED TO REGISTER A NONINSTITUTION 
680.12  BIRTH WITHIN THE FIRST YEAR OF BIRTH.] When a birth occurs in 
680.13  this state outside of an institution, as defined in subdivision 
680.14  5, and the birth certificate record is filed before the first 
680.15  birthday, evidence in support of the facts of birth shall be 
680.16  required when neither the state nor local registrar has personal 
680.17  knowledge regarding the facts of birth.  Evidence shall be 
680.18  presented by the individual responsible for filing 
680.19  the certificate vital record under subdivision 6.  Evidence 
680.20  shall consist of proof that the child was born alive, proof of 
680.21  pregnancy, or and evidence of the mother's presence in this 
680.22  state on the date of the birth.  If the evidence is not 
680.23  acceptable, the state registrar shall advise the applicant of 
680.24  the reason for not filing a birth certificate record and shall 
680.25  further advise the applicant of the right of appeal to a court 
680.26  of competent jurisdiction. 
680.27     Sec. 16.  Minnesota Statutes 2000, section 144.217, is 
680.28  amended to read: 
680.29     144.217 [DELAYED CERTIFICATES RECORDS OF BIRTH.] 
680.30     Subdivision 1.  [EVIDENCE REQUIRED FOR FILING.] Before a 
680.31  delayed certificate record of birth is registered, the person 
680.32  presenting the delayed certificate vital record for registration 
680.33  shall offer evidence of the facts contained in the certificate 
680.34  vital record, as required by the rules of the commissioner. In 
680.35  the absence of the evidence required, the delayed certificate 
680.36  vital record shall not be registered.  No delayed record of 
681.1   birth shall be registered for a deceased person. 
681.2      Subd. 2.  [COURT PETITION.] If a delayed certificate record 
681.3   of birth is rejected under subdivision 1, a person may petition 
681.4   the appropriate court for an order establishing a record of the 
681.5   date and place of the birth and the parentage of the person 
681.6   whose birth is to be registered. The petition shall state: 
681.7      (a) (1) that the person for whom a delayed 
681.8   certificate record of birth is sought was born in this state; 
681.9      (b) (2) that no certificate record of birth can be found in 
681.10  the office of the state or local registrar; 
681.11     (c) (3) that diligent efforts by the petitioner have failed 
681.12  to obtain the evidence required in subdivision 1; 
681.13     (d) (4) that the state registrar has refused to register a 
681.14  delayed certificate record of birth; and 
681.15     (e) (5) other information as may be required by the court. 
681.16     Subd. 3.  [COURT ORDER.] The court shall fix a time and 
681.17  place for a hearing on the petition and shall give the state 
681.18  registrar ten days' notice of the hearing.  The state registrar 
681.19  may appear and testify in the proceeding. If the court is 
681.20  satisfied from the evidence received at the hearing of the truth 
681.21  of the statements in the petition, the court shall order the 
681.22  registration of the delayed certificate vital record. 
681.23     Subd. 4.  [FILING THE ORDER.] A certified copy of the order 
681.24  shall be filed with the state registrar, who shall forward a 
681.25  copy to the local registrar in the district of birth.  Certified 
681.26  copies of the order shall be evidence of the truth of their 
681.27  contents and be admissible as birth certificates. 
681.28     Sec. 17.  Minnesota Statutes 2000, section 144.218, is 
681.29  amended to read: 
681.30     144.218 [REPLACEMENT CERTIFICATES OF BIRTH RECORDS.] 
681.31     Subdivision 1.  [ADOPTION.] Upon receipt of a certified 
681.32  copy of an order, decree, or certificate of adoption, the state 
681.33  registrar shall register a replacement certificate vital record 
681.34  in the new name of the adopted person.  The original certificate 
681.35  record of birth and the certified copy are is confidential 
681.36  pursuant to section 13.02, subdivision 3, and shall not be 
682.1   disclosed except pursuant to court order or section 144.1761 
682.2   144.2252.  A certified copy of the original birth certificate 
682.3   from which the registration number has been deleted and which 
682.4   has been marked "Not for Official Use," or The information 
682.5   contained on the original birth certificate, except for the 
682.6   registration number, record, except for the registration number, 
682.7   shall be provided on request to a parent who is named on the 
682.8   original birth certificate record.  Upon the receipt of a 
682.9   certified copy of a court order of annulment of adoption the 
682.10  state registrar shall restore the original certificate vital 
682.11  record to its original place in the file. 
682.12     Subd. 2.  [ADOPTION OF FOREIGN PERSONS.] In proceedings for 
682.13  the adoption of a person who was born in a foreign country, the 
682.14  court, upon evidence presented by the commissioner of human 
682.15  services from information secured at the port of entry, or upon 
682.16  evidence from other reliable sources, may make findings of fact 
682.17  as to the date and place of birth and parentage.  Upon receipt 
682.18  of certified copies of the court findings and the order or 
682.19  decree of adoption, a certificate of adoption, or a certified 
682.20  copy of a decree issued under section 259.60, the state 
682.21  registrar shall register a birth certificate record in the new 
682.22  name of the adopted person.  The certified copies of the court 
682.23  findings and the order, or decree of adoption, certificate of 
682.24  adoption, or decree issued under section 259.60 are 
682.25  confidential, pursuant to section 13.02, subdivision 3, and 
682.26  shall not be disclosed except pursuant to court order or section 
682.27  144.1761 144.2252.  The birth certificate record shall state the 
682.28  place of birth as specifically as possible, and that 
682.29  the certificate vital record is not evidence of United States 
682.30  citizenship. 
682.31     Subd. 3.  [SUBSEQUENT MARRIAGE OF BIRTH PARENTS.] If, in 
682.32  cases in which a certificate record of birth has been registered 
682.33  pursuant to section 144.215 and the birth parents of the child 
682.34  marry after the birth of the child, a replacement certificate 
682.35  record of birth shall be registered upon presentation of a 
682.36  certified copy of the marriage certificate of the birth parents, 
683.1   and either a recognition of parentage or court adjudication of 
683.2   paternity.  The information presented and the original 
683.3   certificate record of birth are is confidential, pursuant to 
683.4   section 13.02, subdivision 3, and shall not be disclosed except 
683.5   pursuant to court order. 
683.6      Subd. 4.  [INCOMPLETE, INCORRECT, AND MODIFIED CERTIFICATES 
683.7   VITAL RECORDS.] If a court finds that a birth certificate record 
683.8   is incomplete, inaccurate, or false, or if it is being issued 
683.9   pursuant to section 259.10, subdivision 2, it the court may 
683.10  order the registration of a replacement certificate vital 
683.11  record, and, if necessary, set forth the correct information in 
683.12  the order.  Upon receipt of the order, the state registrar shall 
683.13  register a replacement certificate vital record containing the 
683.14  findings of the court, and.  The prior certificate vital record 
683.15  shall be confidential pursuant to section 13.02, subdivision 3, 
683.16  and shall not be disclosed except pursuant to court order. 
683.17     Subd. 5.  [REPLACEMENT OF VITAL RECORDS.] Upon the order of 
683.18  a court of this state, upon the request of a court of another 
683.19  state, upon the filing of a declaration of parentage under 
683.20  section 257.34, or upon the filing of a recognition of parentage 
683.21  with a registrar, a replacement birth record must be registered 
683.22  consistent with the findings of the court, the declaration of 
683.23  parentage, or the recognition of parentage. 
683.24     Sec. 18.  Minnesota Statutes 2000, section 144.221, 
683.25  subdivision 1, is amended to read: 
683.26     Subdivision 1.  [WHEN AND WHERE TO FILE.] A death 
683.27  certificate record for each death which occurs in the state 
683.28  shall be filed with the state registrar or local registrar of 
683.29  the district in which the death occurred or with a mortician 
683.30  appointed designated pursuant to section 144.214, subdivision 4, 
683.31  within five days after death and prior to final disposition. 
683.32     Sec. 19.  Minnesota Statutes 2000, section 144.221, 
683.33  subdivision 3, is amended to read: 
683.34     Subd. 3.  [WHEN NO BODY IS FOUND.] When circumstances 
683.35  suggest that a death has occurred although a dead body cannot be 
683.36  produced to confirm the fact of death, a death certificate 
684.1   record shall not be registered until a court has adjudicated the 
684.2   fact of death.  A certified copy of the court finding shall be 
684.3   attached to the death certificate when it is registered. 
684.4      Sec. 20.  Minnesota Statutes 2000, section 144.222, 
684.5   subdivision 2, is amended to read: 
684.6      Subd. 2.  [SUDDEN INFANT DEATH.] Each infant death which is 
684.7   diagnosed as sudden infant death syndrome shall be 
684.8   reported promptly within five days to the state registrar.  
684.9      Sec. 21.  Minnesota Statutes 2000, section 144.223, is 
684.10  amended to read: 
684.11     144.223 [REPORT OF MARRIAGE.] 
684.12     Data relating to certificates of marriage registered shall 
684.13  be reported to the state registrar by the local registrars 
684.14  registrar or designee of the county board in each of the 87 
684.15  registration districts pursuant to the rules of the 
684.16  commissioner.  The information in clause (1) necessary to 
684.17  compile the report shall be furnished by the applicant prior to 
684.18  the issuance of the marriage license.  The report shall contain 
684.19  the following information: 
684.20     A. (1) personal information on bride and groom: 
684.21     1. (i) name; 
684.22     2. (ii) residence; 
684.23     3. (iii) date and place of birth; 
684.24     4. (iv) race; 
684.25     5. (v) if previously married, how terminated; and 
684.26     6. (vi) signature of applicant and, date signed, and social 
684.27  security number.; and 
684.28     B. (2) information concerning the marriage: 
684.29     1. (i) date of marriage; 
684.30     2. (ii) place of marriage; and 
684.31     3. (iii) civil or religious ceremony. 
684.32     Sec. 22.  Minnesota Statutes 2000, section 144.225, 
684.33  subdivision 1, is amended to read: 
684.34     Subdivision 1.  [PUBLIC INFORMATION; ACCESS TO VITAL 
684.35  RECORDS.] Except as otherwise provided for in this section and 
684.36  section 144.1761 144.2252, information contained in vital 
685.1   records shall be public information.  Physical access to vital 
685.2   records shall be subject to the supervision and regulation of 
685.3   state and local registrars and their employees pursuant to rules 
685.4   promulgated by the commissioner in order to protect vital 
685.5   records from loss, mutilation or destruction and to prevent 
685.6   improper disclosure of vital records which are confidential or 
685.7   private data on individuals, as defined in section 13.02, 
685.8   subdivisions 3 and 12. 
685.9      Sec. 23.  Minnesota Statutes 2000, section 144.225, 
685.10  subdivision 2, is amended to read: 
685.11     Subd. 2.  [DATA ABOUT BIRTHS.] (a) Except as otherwise 
685.12  provided in this subdivision, data pertaining to the birth of a 
685.13  child to a woman who was not married to the child's father when 
685.14  the child was conceived nor when the child was born, including 
685.15  the original certificate record of birth and the certified 
685.16  copy vital record, are confidential data.  At the time of the 
685.17  birth of a child to a woman who was not married to the child's 
685.18  father when the child was conceived nor when the child was born, 
685.19  the mother may designate on the birth registration form whether 
685.20  demographic data pertaining to the birth will be as public 
685.21  data.  Notwithstanding the designation of the data as 
685.22  confidential, it may be disclosed: 
685.23     (1) to a parent or guardian of the child; 
685.24     (2) to the child when the child is 18 16 years of age or 
685.25  older; 
685.26     (3) under paragraph (b) or (e); or 
685.27     (4) pursuant to a court order.  For purposes of this 
685.28  section, a subpoena does not constitute a court order. 
685.29     (b) Unless the child is adopted, data pertaining to the 
685.30  birth of a child that are not accessible to the public become 
685.31  public data if 100 years have elapsed since the birth of the 
685.32  child who is the subject of the data, or as provided under 
685.33  section 13.10, whichever occurs first. 
685.34     (c) If a child is adopted, data pertaining to the child's 
685.35  birth are governed by the provisions relating to adoption 
685.36  records, including sections 13.10, subdivision 5; 144.1761; 
686.1   144.218, subdivision 1; 144.2252; and 259.89.  The birth and 
686.2   death records of the commissioner of health shall be open to 
686.3   inspection by the commissioner of human services and it shall 
686.4   not be necessary for the commissioner of human services to 
686.5   obtain an order of the court in order to inspect records or to 
686.6   secure certified copies of them. 
686.7      (d) The name and address of a mother under paragraph (a) 
686.8   and the child's date of birth may be disclosed to the county 
686.9   social services or public health member of a family services 
686.10  collaborative for purposes of providing services under section 
686.11  124D.23. 
686.12     (e) The commissioner of human services shall have access to 
686.13  birth records for: 
686.14     (1) the purposes of administering medical assistance, 
686.15  general assistance medical care, and the MinnesotaCare program; 
686.16     (2) child support enforcement purposes; and 
686.17     (3) other public health purposes as determined by the 
686.18  commissioner of health.  
686.19     Sec. 24.  Minnesota Statutes 2000, section 144.225, 
686.20  subdivision 2a, is amended to read: 
686.21     Subd. 2a.  [HEALTH DATA ASSOCIATED WITH BIRTH 
686.22  REGISTRATION.] Information from which an identification of risk 
686.23  for disease, disability, or developmental delay in a mother or 
686.24  child can be made, that is collected in conjunction with birth 
686.25  registration or fetal death reporting, is private data as 
686.26  defined in section 13.02, subdivision 12.  The commissioner may 
686.27  disclose to a local board of health, as defined in section 
686.28  145A.02, subdivision 2, health data associated with birth 
686.29  registration which identifies a mother or child at high risk for 
686.30  serious disease, disability, or developmental delay in order to 
686.31  assure access to appropriate health, social, or educational 
686.32  services.  Notwithstanding the designation of the private data, 
686.33  the commissioner of human services shall have access to health 
686.34  data associated with birth registration for: 
686.35     (1) purposes of administering medical assistance, general 
686.36  assistance medical care, and the MinnesotaCare program; and 
687.1      (2) for other public health purposes as determined by the 
687.2   commissioner of health. 
687.3      Sec. 25.  Minnesota Statutes 2000, section 144.225, 
687.4   subdivision 3, is amended to read: 
687.5      Subd. 3.  [LAWS AND RULES FOR PREPARING CERTIFICATES VITAL 
687.6   RECORDS.] No person shall prepare or issue any certificate vital 
687.7   record which purports to be an original, certified copy, or copy 
687.8   of a vital record except as authorized in sections 144.211 to 
687.9   144.227 or the rules of the commissioner. 
687.10     Sec. 26.  Minnesota Statutes 2000, section 144.225, 
687.11  subdivision 7, as amended by Laws 2001, chapter 15, section 1, 
687.12  is amended to read: 
687.13     Subd. 7.  [CERTIFIED COPY OF BIRTH OR DEATH 
687.14  CERTIFICATE RECORD.] (a) The state or local registrar shall 
687.15  issue a certified copy of a birth or death certificate record or 
687.16  a statement of no vital record found to an individual upon the 
687.17  individual's proper completion of an attestation provided by the 
687.18  commissioner: 
687.19     (1) to a person who has a tangible interest in the 
687.20  requested certificate vital record.  A person who has a tangible 
687.21  interest is: 
687.22     (i) the subject of the certificate vital record; 
687.23     (ii) a child of the subject; 
687.24     (iii) the spouse of the subject; 
687.25     (iv) a parent of the subject; 
687.26     (v) the grandparent or grandchild of the subject; 
687.27     (vi) the party responsible for filing the certificate vital 
687.28  record; 
687.29     (vii) the legal custodian or guardian or conservator of the 
687.30  subject; 
687.31     (viii) a personal representative, by sworn affidavit of the 
687.32  fact that the certified copy is required for administration of 
687.33  the estate; 
687.34     (ix) a successor of the subject, as defined in section 
687.35  524.1-201, if the subject is deceased, by sworn affidavit of the 
687.36  fact that the certified copy is required for administration of 
688.1   the estate; 
688.2      (x) if the requested certificate is a death certificate, a 
688.3   trustee of a trust by sworn affidavit of the fact that the 
688.4   certified copy is needed for the proper administration of the 
688.5   trust; or 
688.6      (xi) a person or entity who demonstrates that a 
688.7   certified copy of the certificate vital record is necessary for 
688.8   the determination or protection of a personal or property right, 
688.9   pursuant to rules adopted by the commissioner; or 
688.10     (xii) adoption agencies in order to complete confidential 
688.11  postadoption searches as required by section 259.83; 
688.12     (2) to any local, state, or federal governmental agency 
688.13  upon request if the certified certificate vital record is 
688.14  necessary for the governmental agency to perform its authorized 
688.15  duties.  An authorized governmental agency includes the 
688.16  department of human services, the department of revenue, and the 
688.17  United States Immigration and Naturalization Service; 
688.18     (3) to an attorney upon evidence of the attorney's license; 
688.19     (4) pursuant to a court order issued by a court of 
688.20  competent jurisdiction.  For purposes of this section, a 
688.21  subpoena does not constitute a court order; or 
688.22     (5) to a representative authorized by a person under 
688.23  clauses (1) to (4). 
688.24     (b) The state or local registrar shall also issue a 
688.25  certified death record to an individual described in paragraph 
688.26  (a), clause (1), items (ii) to (vii), if, on behalf of the 
688.27  individual, a mortician designated to receive death certificates 
688.28  under section 144.214, subdivision 4, furnishes the registrar 
688.29  with a properly completed attestation in the form provided by 
688.30  the commissioner within 180 days of the time of death of the 
688.31  subject of the death record.  This paragraph is not subject to 
688.32  the requirements specified in Minnesota Rules, part 4601.2600, 
688.33  subpart 5, item B. 
688.34     Sec. 27.  [144.2252] [ACCESS TO ORIGINAL BIRTH RECORD AFTER 
688.35  ADOPTION.] 
688.36     (a) Whenever an adopted person requests the state registrar 
689.1   to disclose the information on the adopted person's original 
689.2   birth record, the state registrar shall act according to section 
689.3   259.89. 
689.4      (b) The state registrar shall provide a transcript of an 
689.5   adopted person's original birth record to an authorized 
689.6   representative of a federally recognized American Indian tribe 
689.7   for the sole purpose of determining the adopted person's 
689.8   eligibility for enrollment or membership.  Information contained 
689.9   in the birth record may not be used to provide the adopted 
689.10  person information about the person's birth parents, except as 
689.11  provided in this section or section 259.83. 
689.12     Sec. 28.  Minnesota Statutes 2000, section 144.226, 
689.13  subdivision 1, is amended to read: 
689.14     Subdivision 1.  [WHICH SERVICES ARE FOR FEE.] The fees for 
689.15  the following services shall be the following or an amount 
689.16  prescribed by rule of the commissioner: 
689.17     (a) The fee for the issuance of a certified copy or 
689.18  certification of a vital record, or a certification that the 
689.19  vital record cannot be found is $8.  No fee shall be charged for 
689.20  a certified birth or death record that is reissued within one 
689.21  year of the original issue, if an amendment is made to the vital 
689.22  record and if the previously issued vital record is surrendered. 
689.23     (b) The fee for the replacement of a birth record for all 
689.24  events, except adoption when filing a recognition of parentage 
689.25  pursuant to section 257.73, subdivision 1, is $20. 
689.26     (c) The fee for the filing of a delayed registration of 
689.27  birth or death is $20. 
689.28     (d) The fee for the amendment of any vital record when 
689.29  requested more than one year 45 days after the filing of the 
689.30  vital record is $20.  No fee shall be charged for an amendment 
689.31  requested within one year 45 days after the filing of the 
689.32  certificate vital record. 
689.33     (e) The fee for the verification of information from vital 
689.34  records is $8 when the applicant furnishes the specific 
689.35  information to locate the vital record.  When the applicant does 
689.36  not furnish specific information, the fee is $20 per hour for 
690.1   staff time expended.  Specific information shall include 
690.2   includes the correct date of the event and the correct name of 
690.3   the registrant.  Fees charged shall approximate the costs 
690.4   incurred in searching and copying the vital records.  The fee 
690.5   shall be payable at the time of application. 
690.6      (f) The fee for issuance of a certified or noncertified 
690.7   copy of any document on file pertaining to a vital record or a 
690.8   certification statement that the record a related document 
690.9   cannot be found is $8. 
690.10     Sec. 29.  Minnesota Statutes 2000, section 144.226, 
690.11  subdivision 3, is amended to read: 
690.12     Subd. 3.  [BIRTH CERTIFICATE COPY RECORD SURCHARGE.] In 
690.13  addition to any fee prescribed under subdivision 1, there shall 
690.14  be a nonrefundable surcharge of $3 for each certified copy of a 
690.15  birth certificate, record and for a certification that the vital 
690.16  record cannot be found.  The local or state registrar shall 
690.17  forward this amount to the commissioner of finance for deposit 
690.18  into the account for the children's trust fund for the 
690.19  prevention of child abuse established under section 119A.12.  
690.20  This surcharge shall not be charged under those circumstances in 
690.21  which no fee for a certified copy of a birth certificate record 
690.22  is permitted under subdivision 1, paragraph (a).  Upon 
690.23  certification by the commissioner of finance that the assets in 
690.24  that fund exceed $20,000,000, this surcharge shall be 
690.25  discontinued. 
690.26     Sec. 30.  Minnesota Statutes 2000, section 144.227, is 
690.27  amended to read: 
690.28     144.227 [PENALTIES.] 
690.29     Subdivision 1.  [FALSE STATEMENTS.] Whoever A person who 
690.30  intentionally makes any a false statement in a certificate, 
690.31  vital record, or report required to be filed under sections 
690.32  144.211 to 144.214 or 144.216 to 144.227, or in an application 
690.33  for an amendment thereof, or in an application for a 
690.34  certified copy of a vital record, or who supplies false 
690.35  information intending that the information be used in the 
690.36  preparation of any a report, vital record, certificate, or 
691.1   amendment thereof, is guilty of a misdemeanor. 
691.2      Subd. 2.  [FRAUD.] Any A person who, without lawful 
691.3   authority and with the intent to deceive, willfully and 
691.4   knowingly makes, counterfeits, alters, obtains, possesses, uses, 
691.5   or sells any a certificate, vital record, or report required to 
691.6   be filed under sections 144.211 to 144.227, or a certified copy 
691.7   of a certificate, vital record, or report, is guilty of a gross 
691.8   misdemeanor. 
691.9      Subd. 3.  [BIRTH REGISTRATION.] Whoever A person who 
691.10  intentionally makes a false statement in a registration required 
691.11  under section 144.215 or in an application for an amendment to 
691.12  such a registration, or who intentionally supplies false 
691.13  information intending that the information be used in the 
691.14  preparation of a registration under section 144.215 is guilty of 
691.15  a gross misdemeanor.  This offense shall be prosecuted by the 
691.16  county attorney. 
691.17     Sec. 31.  Minnesota Statutes 2000, section 260C.317, 
691.18  subdivision 4, is amended to read: 
691.19     Subd. 4.  [RIGHTS OF TERMINATED PARENT.] Upon entry of an 
691.20  order terminating the parental rights of any person who is 
691.21  identified as a parent on the original birth certificate of the 
691.22  child as to whom the parental rights are terminated, the court 
691.23  shall cause written notice to be made to that person setting 
691.24  forth: 
691.25     (a) (1) the right of the person to file at any time with 
691.26  the state registrar of vital statistics a consent to disclosure, 
691.27  as defined in section 144.212, subdivision 11; 
691.28     (b) (2) the right of the person to file at any time with 
691.29  the state registrar of vital statistics an affidavit stating 
691.30  that the information on the original birth certificate shall not 
691.31  be disclosed as provided in section 144.1761 144.2252; and 
691.32     (c) (3) the effect of a failure to file either a consent to 
691.33  disclosure, as defined in section 144.212, subdivision 11, or an 
691.34  affidavit stating that the information on the original birth 
691.35  certificate shall not be disclosed.  
691.36     Sec. 32.  [REVISOR'S INSTRUCTION.] 
692.1      (a) The revisor of statutes shall change the terms 
692.2   "certificate of birth," "birth certificate," or similar terms to 
692.3   "record of birth," "birth record," or similar terms wherever 
692.4   they appear in Minnesota Statutes and Minnesota Rules. 
692.5      (b) The revisor of statutes shall change the terms 
692.6   "certificate of death," "death certificate," or similar terms to 
692.7   "record of death," "death record," or similar terms wherever 
692.8   they appear in Minnesota Statutes and Minnesota Rules. 
692.9      (c) The revisor of statutes shall change the term "office 
692.10  of vital statistics" to "office of the state registrar" wherever 
692.11  it appears in Minnesota Statutes and Minnesota Rules. 
692.12     Sec. 33.  [REPEALER.] 
692.13     Minnesota Statutes 2000, sections 144.1761; 144.217, 
692.14  subdivision 4; and 144.219, are repealed. 
692.15                             ARTICLE 16
692.16                         PATIENT PROTECTION
692.17     Section 1.  Minnesota Statutes 2000, section 45.027, 
692.18  subdivision 6, is amended to read: 
692.19     Subd. 6.  [VIOLATIONS AND PENALTIES.] The commissioner may 
692.20  impose a civil penalty not to exceed $10,000 per violation upon 
692.21  a person who violates any law, rule, or order related to the 
692.22  duties and responsibilities entrusted to the commissioner unless 
692.23  a different penalty is specified.  If a civil penalty is imposed 
692.24  on a health carrier as defined in section 62A.011, the 
692.25  commissioner must divide 50 percent of the amount among any 
692.26  policy holders or certificate holders affected by the violation, 
692.27  unless the commissioner certifies in writing that the division 
692.28  and distribution to enrollees would be too administratively 
692.29  complex or that the number of enrollees affected by the penalty 
692.30  would result in a distribution of less than $50 per enrollee.  
692.31     Sec. 2.  [62D.109] [SERVICES ASSOCIATED WITH CLINICAL 
692.32  TRIALS.] 
692.33     A health maintenance organization must inform an enrollee 
692.34  who is a participant in a clinical trial upon inquiry by the 
692.35  enrollee that coverage shall be provided as required under the 
692.36  enrollee's health maintenance contract or under state or federal 
693.1   rule or statute. 
693.2      Sec. 3.  Minnesota Statutes 2000, section 62D.17, 
693.3   subdivision 1, is amended to read: 
693.4      Subdivision 1.  [ADMINISTRATIVE PENALTY.] The commissioner 
693.5   of health may, for any violation of statute or rule applicable 
693.6   to a health maintenance organization, or in lieu of suspension 
693.7   or revocation of a certificate of authority under section 
693.8   62D.15, levy an administrative penalty in an amount up to 
693.9   $25,000 for each violation.  In the case of contracts or 
693.10  agreements made pursuant to section 62D.05, subdivisions 2 to 4, 
693.11  each contract or agreement entered into or implemented in a 
693.12  manner which violates sections 62D.01 to 62D.30 shall be 
693.13  considered a separate violation.  In determining the level of an 
693.14  administrative penalty, the commissioner shall consider the 
693.15  following factors: 
693.16     (1) the number of enrollees affected by the violation; 
693.17     (2) the effect of the violation on enrollees' health and 
693.18  access to health services; 
693.19     (3) if only one enrollee is affected, the effect of the 
693.20  violation on that enrollee's health; 
693.21     (4) whether the violation is an isolated incident or part 
693.22  of a pattern of violations; and 
693.23     (5) the economic benefits derived by the health maintenance 
693.24  organization or a participating provider by virtue of the 
693.25  violation. 
693.26     Reasonable notice in writing to the health maintenance 
693.27  organization shall be given of the intent to levy the penalty 
693.28  and the reasons therefor, and the health maintenance 
693.29  organization may have 15 days within which to file a written 
693.30  request for an administrative hearing and review of the 
693.31  commissioner of health's determination.  Such administrative 
693.32  hearing shall be subject to judicial review pursuant to chapter 
693.33  14.  If an administrative penalty is levied, the commissioner 
693.34  must divide 50 percent of the amount among any enrollees 
693.35  affected by the violation, unless the commissioner certifies in 
693.36  writing that the division and distribution to enrollees would be 
694.1   too administratively complex or that the number of enrollees 
694.2   affected by the penalty would result in a distribution of less 
694.3   than $50 per enrollee. 
694.4      Sec. 4.  Minnesota Statutes 2000, section 62J.38, is 
694.5   amended to read: 
694.6      62J.38 [COST CONTAINMENT DATA FROM GROUP PURCHASERS.] 
694.7      (a) The commissioner shall require group purchasers to 
694.8   submit detailed data on total health care spending for each 
694.9   calendar year.  Group purchasers shall submit data for the 1993 
694.10  calendar year by April 1, 1994, and each April 1 thereafter 
694.11  shall submit data for the preceding calendar year. 
694.12     (b) The commissioner shall require each group purchaser to 
694.13  submit data on revenue, expenses, and member months, as 
694.14  applicable.  Revenue data must distinguish between premium 
694.15  revenue and revenue from other sources and must also include 
694.16  information on the amount of revenue in reserves and changes in 
694.17  reserves.  Expenditure data, including raw data from claims, may 
694.18  must distinguish between costs incurred for patient care and 
694.19  administrative costs.  Patient care and administrative costs 
694.20  must include only expenses incurred on behalf of health plan 
694.21  members and must not include the cost of providing health care 
694.22  services for nonmembers at facilities owned by the group 
694.23  purchaser or affiliate.  Expenditure data must be provided 
694.24  separately for the following categories or and for other 
694.25  categories required by the commissioner:  physician services, 
694.26  dental services, other professional services, inpatient hospital 
694.27  services, outpatient hospital services, emergency, pharmacy 
694.28  services and other nondurable medical goods, mental health, and 
694.29  chemical dependency services, other expenditures, subscriber 
694.30  liability, and administrative costs.  Administrative costs must 
694.31  include costs for marketing; advertising; overhead; salaries and 
694.32  benefits of central office staff who do not provide direct 
694.33  patient care; underwriting; lobbying; claims processing; 
694.34  provider contracting and credentialing; detection and prevention 
694.35  of payment for fraudulent or unjustified requests for 
694.36  reimbursement or services; clinical quality assurance and other 
695.1   types of medical care quality improvement efforts; concurrent or 
695.2   prospective utilization review as defined in section 62M.02; 
695.3   costs incurred to acquire a hospital, clinic, or health care 
695.4   facility, or the assets thereof; capital costs incurred on 
695.5   behalf of a hospital or clinic; lease payments; or any other 
695.6   costs incurred pursuant to a partnership, joint venture, 
695.7   integration, or affiliation agreement with a hospital, clinic, 
695.8   or other health care provider.  Capital costs and costs incurred 
695.9   must be recorded according to standard accounting principles.  
695.10  The reports of this data must also separately identify expenses 
695.11  for local, state, and federal taxes, fees, and assessments.  The 
695.12  commissioner may require each group purchaser to submit any 
695.13  other data, including data in unaggregated form, for the 
695.14  purposes of developing spending estimates, setting spending 
695.15  limits, and monitoring actual spending and costs.  In addition 
695.16  to reporting administrative costs incurred to acquire a 
695.17  hospital, clinic, or health care facility, or the assets 
695.18  thereof; or any other costs incurred pursuant to a partnership, 
695.19  joint venture, integration, or affiliation agreement with a 
695.20  hospital, clinic, or other health care provider; reports 
695.21  submitted under this section also must include the payments made 
695.22  during the calendar year for these purposes.  The commissioner 
695.23  shall make public, by group purchaser data collected under this 
695.24  paragraph in accordance with section 62J.321, subdivision 5.  
695.25  Workers' compensation insurance plans and automobile insurance 
695.26  plans are exempt from complying with this paragraph as it 
695.27  relates to the submission of administrative costs. 
695.28     (c) The commissioner may collect information on: 
695.29     (1) premiums, benefit levels, managed care procedures, and 
695.30  other features of health plan companies; 
695.31     (2) prices, provider experience, and other information for 
695.32  services less commonly covered by insurance or for which 
695.33  patients commonly face significant out-of-pocket expenses; and 
695.34     (3) information on health care services not provided 
695.35  through health plan companies, including information on prices, 
695.36  costs, expenditures, and utilization. 
696.1      (d) All group purchasers shall provide the required data 
696.2   using a uniform format and uniform definitions, as prescribed by 
696.3   the commissioner. 
696.4      Sec. 5.  Minnesota Statutes 2000, section 62M.02, 
696.5   subdivision 21, is amended to read: 
696.6      Subd. 21.  [UTILIZATION REVIEW ORGANIZATION.] "Utilization 
696.7   review organization" means an entity including but not limited 
696.8   to an insurance company licensed under chapter 60A to offer, 
696.9   sell, or issue a policy of accident and sickness insurance as 
696.10  defined in section 62A.01; a health service plan licensed under 
696.11  chapter 62C; a health maintenance organization licensed under 
696.12  chapter 62D; a community integrated service network licensed 
696.13  under chapter 62N; an accountable provider network operating 
696.14  under chapter 62T; a fraternal benefit society operating under 
696.15  chapter 64B; a joint self-insurance employee health plan 
696.16  operating under chapter 62H; a multiple employer welfare 
696.17  arrangement, as defined in section 3 of the Employee Retirement 
696.18  Income Security Act of 1974 (ERISA), United States Code, title 
696.19  29, section 1103, as amended; a third party administrator 
696.20  licensed under section 60A.23, subdivision 8, which conducts 
696.21  utilization review and determines certification of an admission, 
696.22  extension of stay, or other health care services for a Minnesota 
696.23  resident; or any entity performing utilization review that is 
696.24  affiliated with, under contract with, or conducting utilization 
696.25  review on behalf of, a business entity in this state.  
696.26  Utilization review organization does not include a clinic or 
696.27  health care system acting pursuant to a written delegation 
696.28  agreement with an otherwise regulated utilization review 
696.29  organization that contracts with the clinic or health care 
696.30  system.  The regulated utilization review organization is 
696.31  accountable for the delegated utilization review activities of 
696.32  the clinic or health care system. 
696.33     Sec. 6.  [62Q.121] [LICENSURE OF MEDICAL DIRECTORS.] 
696.34     (a) No health plan company may employ a person as a medical 
696.35  director unless the person is licensed as a physician in this 
696.36  state.  This section does not apply to a health plan company 
697.1   that is assessed less than three percent of the total amount 
697.2   assessed by the Minnesota comprehensive health association. 
697.3      (b) For purposes of this section, "medical director" means 
697.4   a physician employed by a health plan company who has direct 
697.5   decision-making authority, based upon medical training and 
697.6   knowledge, regarding the health plan company's medical 
697.7   protocols, medical policies, or coverage of treatment of a 
697.8   particular enrollee, regardless of the physician's title. 
697.9      (c) This section applies only to medical directors who make 
697.10  recommendations or decisions that involve or affect enrollees 
697.11  who live in this state. 
697.12     (d) Each health plan company that is subject to this 
697.13  section shall provide the commissioner with the names and 
697.14  licensure information of its medical directors and shall provide 
697.15  updates no later than 30 days after any changes. 
697.16     Sec. 7.  Minnesota Statutes 2000, section 62Q.56, is 
697.17  amended to read: 
697.18     62Q.56 [CONTINUITY OF CARE.] 
697.19     Subdivision 1.  [CHANGE IN HEALTH CARE PROVIDER; GENERAL 
697.20  NOTIFICATION.] (a) If enrollees are required to access services 
697.21  through selected primary care providers for coverage, the health 
697.22  plan company shall prepare a written plan that provides for 
697.23  continuity of care in the event of contract termination between 
697.24  the health plan company and any of the contracted primary care 
697.25  providers, specialists, or general hospital providers.  The 
697.26  written plan must explain: 
697.27     (1) how the health plan company will inform affected 
697.28  enrollees, insureds, or beneficiaries about termination at least 
697.29  30 days before the termination is effective, if the health plan 
697.30  company or health care network cooperative has received at least 
697.31  120 days' prior notice; 
697.32     (2) how the health plan company will inform the affected 
697.33  enrollees about what other participating providers are available 
697.34  to assume care and how it will facilitate an orderly transfer of 
697.35  its enrollees from the terminating provider to the new provider 
697.36  to maintain continuity of care; 
698.1      (3) the procedures by which enrollees will be transferred 
698.2   to other participating providers, when special medical needs, 
698.3   special risks, or other special circumstances, such as cultural 
698.4   or language barriers, require them to have a longer transition 
698.5   period or be transferred to nonparticipating providers; 
698.6      (4) who will identify enrollees with special medical needs 
698.7   or at special risk and what criteria will be used for this 
698.8   determination; and 
698.9      (5) how continuity of care will be provided for enrollees 
698.10  identified as having special needs or at special risk, and 
698.11  whether the health plan company has assigned this responsibility 
698.12  to its contracted primary care providers. 
698.13     (b) If the contract termination was not for cause, 
698.14  enrollees can request a referral to the terminating provider for 
698.15  up to 120 days if they have special medical needs or have other 
698.16  special circumstances, such as cultural or language barriers.  
698.17  The health plan company can require medical records and other 
698.18  supporting documentation in support of the requested referral.  
698.19  Each request for referral to a terminating provider shall be 
698.20  considered by the health plan company on a case-by-case 
698.21  basis. For purposes of this section, contract termination 
698.22  includes nonrenewal.  
698.23     (c) If the contract termination was for cause, enrollees 
698.24  must be notified of the change and transferred to participating 
698.25  providers in a timely manner so that health care services remain 
698.26  available and accessible to the affected enrollees.  The health 
698.27  plan company is not required to refer an enrollee back to the 
698.28  terminating provider if the termination was for cause. 
698.29     Subd. 1a.  [CHANGE IN HEALTH CARE PROVIDER; TERMINATION NOT 
698.30  FOR CAUSE.] (a) If the contract termination was not for cause 
698.31  and the contract was terminated by the health plan company, the 
698.32  health plan company must provide the terminated provider and all 
698.33  enrollees being treated by that provider with notification of 
698.34  the enrollees' rights to continuity of care with the terminated 
698.35  provider.  
698.36     (b) The health plan company must provide, upon request, 
699.1   authorization to receive services that are otherwise covered 
699.2   under the terms of the health plan through the enrollee's 
699.3   current provider: 
699.4      (1) for up to 120 days if the enrollee is engaged in a 
699.5   current course of treatment for one or more of the following 
699.6   conditions: 
699.7      (i) an acute condition; 
699.8      (ii) a life-threatening mental or physical illness; 
699.9      (iii) pregnancy beyond the first trimester of pregnancy; 
699.10     (iv) a physical or mental disability defined as an 
699.11  inability to engage in one or more major life activities, 
699.12  provided that the disability has lasted or can be expected to 
699.13  last for at least one year, or can be expected to result in 
699.14  death; or 
699.15     (v) a disabling or chronic condition that is in an acute 
699.16  phase; or 
699.17     (2) for the rest of the enrollee's life if a physician 
699.18  certifies that the enrollee has an expected lifetime of 180 days 
699.19  or less.  
699.20  For all requests for authorization to receive services under 
699.21  this paragraph, the health plan company must grant the request 
699.22  unless the enrollee does not meet the criteria provided in this 
699.23  paragraph. 
699.24     (c) The health plan company shall prepare a written plan 
699.25  that provides a process for coverage determinations regarding 
699.26  continuity of care of up to 120 days for enrollees who request 
699.27  continuity of care with their former provider, if the enrollee: 
699.28     (1) is receiving culturally appropriate services and the 
699.29  health plan company does not have a provider in its preferred 
699.30  provider network with special expertise in the delivery of those 
699.31  culturally appropriate services within the time and distance 
699.32  requirements of section 62D.124, subdivision 1; or 
699.33     (2) does not speak English and the health plan company does 
699.34  not have a provider in its preferred provider network who can 
699.35  communicate with the enrollee, either directly or through an 
699.36  interpreter, within the time and distance requirements of 
700.1   section 62D.124, subdivision 1. 
700.2   The written plan must explain the criteria that will be used to 
700.3   determine whether a need for continuity of care exists and how 
700.4   it will be provided.  
700.5      Subd. 1b.  [CHANGE IN HEALTH CARE PROVIDER; TERMINATION FOR 
700.6   CAUSE.] If the contract termination was for cause, enrollees 
700.7   must be notified of the change and transferred to participating 
700.8   providers in a timely manner so that health care services remain 
700.9   available and accessible to the affected enrollees.  The health 
700.10  plan company is not required to refer an enrollee back to the 
700.11  terminating provider if the termination was for cause. 
700.12     Subd. 2.  [CHANGE IN HEALTH PLANS.] (a) The health plan 
700.13  company shall prepare a written plan that provides a process for 
700.14  coverage determinations for continuity of care for new enrollees 
700.15  with special needs, special risks, or other special 
700.16  circumstances, such as cultural or language barriers, who 
700.17  request continuity of care with their former provider for up to 
700.18  120 days.  The written plan must explain the criteria that will 
700.19  be used for determining special needs cases, and how continuity 
700.20  of care will be provided.  If an enrollee is subject to a change 
700.21  in health plans, the enrollee's new health plan company must 
700.22  provide, upon request, authorization to receive services that 
700.23  are otherwise covered under the terms of the new health plan 
700.24  through the enrollee's current provider: 
700.25     (1) for up to 120 days if the enrollee is engaged in a 
700.26  current course of treatment for one or more of the following 
700.27  conditions: 
700.28     (i) an acute condition; 
700.29     (ii) a life-threatening mental or physical illness; 
700.30     (iii) pregnancy beyond the first trimester of pregnancy; 
700.31     (iv) a physical or mental disability defined as an 
700.32  inability to engage in one or more major life activities, 
700.33  provided that the disability has lasted or can be expected to 
700.34  last for at least one year, or can be expected to result in 
700.35  death; or 
700.36     (v) a disabling or chronic condition that is in an acute 
701.1   phase; or 
701.2      (2) for the rest of the enrollee's life if a physician 
701.3   certifies that the enrollee has an expected lifetime of 180 days 
701.4   or less.  
701.5   For all requests for authorization under this paragraph, the 
701.6   health plan company must grant the request for authorization 
701.7   unless the enrollee does not meet the criteria provided in this 
701.8   paragraph. 
701.9      (b) The health plan company shall prepare a written plan 
701.10  that provides a process for coverage determinations regarding 
701.11  continuity of care of up to 120 days for new enrollees who 
701.12  request continuity of care with their former provider, if the 
701.13  new enrollee: 
701.14     (1) is receiving culturally appropriate services and the 
701.15  health plan company does not have a provider in its preferred 
701.16  provider network with special expertise in the delivery of those 
701.17  culturally appropriate services within the time and distance 
701.18  requirements of section 62D.124, subdivision 1; or 
701.19     (2) does not speak English and the health plan company does 
701.20  not have a provider in its preferred provider network who can 
701.21  communicate with the enrollee, either directly or through an 
701.22  interpreter, within the time and distance requirements of 
701.23  section 62D.124, subdivision 1. 
701.24  The written plan must explain the criteria that will be used to 
701.25  determine whether a need for continuity of care exists and how 
701.26  it will be provided. 
701.27     (b) (c) This subdivision applies only to group coverage and 
701.28  continuation and conversion coverage, and applies only to 
701.29  changes in health plans made by the employer. 
701.30     Subd. 2a.  [LIMITATIONS.] (a) Subdivisions 1, 1a, 1b, and 2 
701.31  apply only if the enrollee's health care provider agrees to: 
701.32     (1) accept as payment in full the lesser of the health plan 
701.33  company's reimbursement rate for in-network providers for the 
701.34  same or similar service or the enrollee's health care provider's 
701.35  regular fee for that service; 
701.36     (2) adhere to the health plan company's preauthorization 
702.1   requirements; and 
702.2      (3) provide the health plan company with all necessary 
702.3   medical information related to the care provided to the enrollee.
702.4      (b) Nothing in this section requires a health plan company 
702.5   to provide coverage for a health care service or treatment that 
702.6   is not covered under the enrollee's health plan.  
702.7      Subd. 2b.  [REQUEST FOR AUTHORIZATION.] The health plan 
702.8   company may require medical records and other supporting 
702.9   documentation to be submitted with the requests for 
702.10  authorization made under subdivision 1, 1a, 1b, or 2.  If the 
702.11  authorization is denied, the health plan company must explain 
702.12  the criteria it used to make its decision on the request for 
702.13  authorization.  If the authorization is granted, the health plan 
702.14  company must explain how continuity of care will be provided. 
702.15     Subd. 3.  [DISCLOSURES DISCLOSURE.] The written plans 
702.16  required under this section must be made available upon request 
702.17  to enrollees or prospective enrollees Information regarding an 
702.18  enrollee's rights under this section must be included in member 
702.19  contracts or certificates of coverage and must be provided by a 
702.20  health plan company upon request of an enrollee or prospective 
702.21  enrollee. 
702.22     Sec. 8.  Minnesota Statutes 2000, section 62Q.58, is 
702.23  amended to read: 
702.24     62Q.58 [ACCESS TO SPECIALTY CARE.] 
702.25     Subdivision 1.  [STANDING REFERRAL.] A health plan company 
702.26  shall establish a procedure by which an enrollee may apply 
702.27  for and, if appropriate, receive a standing referral to a health 
702.28  care provider who is a specialist if a referral to a specialist 
702.29  is required for coverage.  This procedure for a standing 
702.30  referral must specify the necessary criteria and conditions, 
702.31  which must be met in order for an enrollee to obtain a standing 
702.32  referral managed care review and approval an enrollee must 
702.33  obtain before such a standing referral is permitted. 
702.34     Subd. 1a.  [MANDATORY STANDING REFERRAL.] (a) An enrollee 
702.35  who requests a standing referral to a specialist qualified to 
702.36  treat the specific condition described in clauses (1) to (5) 
703.1   must be given a standing referral for visits to such a 
703.2   specialist if benefits for such treatment are provided under the 
703.3   health plan and the enrollee has any of the following conditions:
703.4      (1) a chronic health condition; 
703.5      (2) a life-threatening mental or physical illness; 
703.6      (3) pregnancy beyond the first trimester of pregnancy; 
703.7      (4) a degenerative disease or disability; or 
703.8      (5) any other condition or disease of sufficient 
703.9   seriousness and complexity to require treatment by a specialist. 
703.10     (b) Nothing in this section limits the application of 
703.11  section 62Q.52 specifying direct access to obstetricians and 
703.12  gynecologists. 
703.13     (c) Paragraph (a) does not apply to health plans issued 
703.14  under sections 43A.23 to 43A.31. 
703.15     Subd. 2.  [COORDINATION OF SERVICES.] A primary care 
703.16  provider or primary care group shall remain responsible for 
703.17  coordinating the care of an enrollee who has received a standing 
703.18  referral to a specialist.  The specialist shall not make any 
703.19  secondary referrals related to primary care services without 
703.20  prior approval by the primary care provider or primary care 
703.21  group.  However, An enrollee with a standing referral to a 
703.22  specialist may request primary care services from that 
703.23  specialist.  The specialist, in agreement with the enrollee and 
703.24  primary care provider or primary care group, may elect to 
703.25  provide primary care services to that the enrollee, authorize 
703.26  tests and services, and make secondary referrals according to 
703.27  procedures established by the health plan company.  The health 
703.28  plan company may limit the primary care services, tests and 
703.29  services, and secondary referrals authorized under this 
703.30  subdivision to those that are related to the specific condition 
703.31  or conditions for which the standing referral was made. 
703.32     Subd. 3.  [DISCLOSURE.] Information regarding referral 
703.33  procedures must be included in member contracts or certificates 
703.34  of coverage and must be provided to an enrollee or prospective 
703.35  enrollee by a health plan company upon request. 
703.36     Subd. 4.  [REFERRAL.] (a) If a standing referral is 
704.1   authorized under subdivision 1 or is mandatory under subdivision 
704.2   1a, the health plan company must provide a referral to an 
704.3   appropriate participating specialist who is reasonably available 
704.4   and accessible to provide the treatment or to a nonparticipating 
704.5   specialist if the health plan company does not have an 
704.6   appropriate participating specialist who is reasonably available 
704.7   and accessible to treat the enrollee's condition or disease. 
704.8      (b) If an enrollee receives services from a 
704.9   nonparticipating specialist because a participating specialist 
704.10  is not available, services must be provided at no additional 
704.11  cost to the enrollee beyond what the enrollee would otherwise 
704.12  pay for services received from a participating specialist. 
704.13     Sec. 9.  [COVERAGE OF CLINICAL TRIALS.] 
704.14     The commissioners of health and commerce shall, in 
704.15  consultation with the commissioner of employee relations, 
704.16  convene a work group to study health plan coverage of clinical 
704.17  trials.  The work group shall be made up of representatives of 
704.18  consumers, patient advocates, health plan companies, purchasers, 
704.19  providers, and other health care professionals involved in the 
704.20  care and treatment of patients.  The work group shall consider 
704.21  definitions of routine patient costs, protocol-induced costs, 
704.22  and high-quality clinical trials.  The work group shall also 
704.23  consider guidelines for voluntary agreements for health plan 
704.24  coverage of routine patient costs incurred by patients 
704.25  participating in high-quality clinical trials.  The commissioner 
704.26  shall submit the findings and the recommendations of the work 
704.27  group to the chairs of the health policy and finance committees 
704.28  in the senate and the house by January 15, 2002. 
704.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
704.30  following final enactment. 
704.31     Sec. 10.  [QUALITY OF PATIENT CARE.] 
704.32     The commissioner of health shall evaluate the feasibility 
704.33  of collecting data on the quality of patient care provided in 
704.34  hospitals, outpatient surgical centers, and other health care 
704.35  facilities.  In the evaluation, the commissioner shall examine 
704.36  the appropriate roles of the public and private sectors and the 
705.1   need for risk-adjusting data.  The evaluation must consider 
705.2   mechanisms to identify the quality of nursing care provided to 
705.3   consumers by examining variables such as skin breakdown and 
705.4   patient injuries.  Any plan developed to collect data must also 
705.5   address issues related to the release of the data in a useful 
705.6   form to the public.  The commissioner shall prepare and 
705.7   distribute a written report of the evaluation by January 15, 
705.8   2002. 
705.9      Sec. 11.  [EFFECTIVE DATE.] 
705.10     Sections 1 and 3 are effective for violations committed on 
705.11  or after August 1, 2001.  Section 4 is effective beginning with 
705.12  the report for the 2001 calendar year.  Sections 2, 5, and 10 
705.13  are effective the day following final enactment.  Sections 7 and 
705.14  8 are effective January 1, 2002, and apply to health plans 
705.15  issued or renewed on or after that date. 
705.16                             ARTICLE 17 
705.17                           APPROPRIATIONS 
705.18  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
705.19     The sums shown in the columns marked "APPROPRIATIONS" are 
705.20  appropriated from the general fund, or any other fund named, to 
705.21  the agencies and for the purposes specified in the following 
705.22  sections of this article, to be available for the fiscal years 
705.23  indicated for each purpose.  The figures "2002" and "2003" where 
705.24  used in this article, mean that the appropriation or 
705.25  appropriations listed under them are available for the fiscal 
705.26  year ending June 30, 2002, or June 30, 2003, respectively.  
705.27  Where a dollar amount appears in parentheses, it means a 
705.28  reduction of an appropriation.  
705.29                          SUMMARY BY FUND 
705.30  APPROPRIATIONS                                      BIENNIAL
705.31                            2002          2003           TOTAL
705.32  General          $3,082,223,000 $3,405,497,000 $6,487,720,000
705.33  State Government
705.34  Special Revenue      38,529,000     40,672,000     79,201,000
705.35  Health Care
705.36  Access              222,097,000    282,403,000    504,500,000
705.37  Federal TANF        301,748,000    293,939,000    595,687,000
706.1   Lottery Prize Fund    1,453,000      1,456,000      2,909,000
706.2   TOTAL            $3,646,050,000 $4,023,967,000 $7,670,017,000
706.3                                              APPROPRIATIONS 
706.4                                          Available for the Year 
706.5                                              Ending June 30 
706.6                                             2002         2003 
706.7   Sec. 2.  COMMISSIONER OF 
706.8   HUMAN SERVICES 
706.9   Subdivision 1.  Total 
706.10  Appropriation                     $3,466,506,000 $3,843,465,000
706.11                Summary by Fund
706.12  General           2,967,431,000 3,290,620,000
706.13  State Government
706.14  Special Revenue         520,000       534,000
706.15  Health Care 
706.16  Access              211,354,000   272,916,000
706.17  Federal TANF        285,748,000   277,939,000
706.18  Lottery Cash Flow     1,453,000     1,456,000
706.19  [RECEIPTS FOR SYSTEMS PROJECTS.] 
706.20  Appropriations and federal receipts for 
706.21  information system projects for MAXIS, 
706.22  PRISM, MMIS, and SSIS must be deposited 
706.23  in the state system account authorized 
706.24  in Minnesota Statutes, section 
706.25  256.014.  Money appropriated for 
706.26  computer projects approved by the 
706.27  Minnesota office of technology, funded 
706.28  by the legislature, and approved by the 
706.29  commissioner of finance may be 
706.30  transferred from one project to another 
706.31  and from development to operations as 
706.32  the commissioner of human services 
706.33  considers necessary.  Any unexpended 
706.34  balance in the appropriation for these 
706.35  projects does not cancel but is 
706.36  available for ongoing development and 
706.37  operations. 
706.38  [GIFTS.] Notwithstanding Minnesota 
706.39  Statutes, chapter 7, the commissioner 
706.40  may accept on behalf of the state 
706.41  additional funding from sources other 
706.42  than state funds for the purpose of 
706.43  financing the cost of assistance 
706.44  program grants or nongrant 
706.45  administration.  All additional funding 
706.46  is appropriated to the commissioner for 
706.47  use as designated by the grantor of 
706.48  funding. 
706.49  [SYSTEMS CONTINUITY.] In the event of 
706.50  disruption of technical systems or 
706.51  computer operations, the commissioner 
706.52  may use available grant appropriations 
706.53  to ensure continuity of payments for 
706.54  maintaining the health, safety, and 
706.55  well-being of clients served by 
706.56  programs administered by the department 
706.57  of human services.  Grant funds must be 
706.58  used in a manner consistent with the 
707.1   original intent of the appropriation. 
707.2   [SPECIAL REVENUE FUND INFORMATION.] On 
707.3   December 1, 2001, and December 1, 2002, 
707.4   the commissioner shall provide the 
707.5   chairs of the house health and human 
707.6   services finance committee and the 
707.7   senate health, human services and 
707.8   corrections budget division with 
707.9   detailed fund balance information for 
707.10  each special revenue fund account.  
707.11  [FEDERAL ADMINISTRATIVE REIMBURSEMENT.] 
707.12  Federal administrative reimbursement 
707.13  resulting from MinnesotaCare outreach 
707.14  grants and the Minnesota senior health 
707.15  options project are appropriated to the 
707.16  commissioner for these and other 
707.17  activities related to improving access 
707.18  to information and assistance, 
707.19  simplifying the application and 
707.20  enrollment process, and providing 
707.21  information on any changes in program 
707.22  eligibility. 
707.23  [NONFEDERAL SHARE TRANSFERS.] The 
707.24  nonfederal share of activities for 
707.25  which federal administrative 
707.26  reimbursement is appropriated to the 
707.27  commissioner may be transferred to the 
707.28  special revenue fund. 
707.29  [TANF FUNDS APPROPRIATED TO OTHER 
707.30  ENTITIES.] Any expenditures from the 
707.31  TANF block grant shall be expended in 
707.32  accordance with the requirements and 
707.33  limitations of part A of title IV of 
707.34  the Social Security Act, as amended, 
707.35  and any other applicable federal 
707.36  requirement or limitation.  Prior to 
707.37  any expenditure of these funds, the 
707.38  commissioner shall assure that funds 
707.39  are expended in compliance with the 
707.40  requirements and limitations of federal 
707.41  law and that any reporting requirements 
707.42  of federal law are met.  It shall be 
707.43  the responsibility of any entity to 
707.44  which these funds are appropriated to 
707.45  implement a memorandum of understanding 
707.46  with the commissioner that provides the 
707.47  necessary assurance of compliance prior 
707.48  to any expenditure of funds.  The 
707.49  commissioner shall receipt TANF funds 
707.50  appropriated to other state agencies 
707.51  and coordinate all related interagency 
707.52  accounting transactions necessary to 
707.53  implement these appropriations.  
707.54  Unexpended TANF funds appropriated to 
707.55  any state, local, or nonprofit entity 
707.56  cancel at the end of the state fiscal 
707.57  year unless appropriating language 
707.58  permits otherwise. 
707.59  [TANF FUNDS TRANSFERRED TO OTHER 
707.60  FEDERAL GRANTS.] The commissioner must 
707.61  authorize transfers from TANF to other 
707.62  federal block grants so that funds are 
707.63  available to meet the annual 
707.64  expenditure needs as appropriated.  
707.65  Transfers may be authorized prior to 
707.66  the expenditure year with the agreement 
708.1   of the receiving entity.  Transferred 
708.2   funds must be expended in the year for 
708.3   which the funds were appropriated 
708.4   unless appropriation language permits 
708.5   otherwise.  In accelerating transfer 
708.6   authorizations, the commissioner must 
708.7   aim to preserve the future potential 
708.8   transfer capacity from TANF to other 
708.9   block grants. 
708.10  [TANF MAINTENANCE OF EFFORT.] (a) In 
708.11  order to meet the basic maintenance of 
708.12  effort (MOE) requirements of the TANF 
708.13  block grant specified under Code of 
708.14  Federal Regulations, title 45, section 
708.15  263.1, the commissioner may only report 
708.16  nonfederal money expended for allowable 
708.17  activities listed in the following 
708.18  clauses as TANF MOE expenditures: 
708.19  (1) MFIP cash and food assistance 
708.20  benefits under Minnesota Statutes, 
708.21  chapter 256J; 
708.22  (2) the child care assistance programs 
708.23  under Minnesota Statutes, sections 
708.24  119B.03 and 119B.05, and county child 
708.25  care administrative costs under 
708.26  Minnesota Statutes, section 119B.15; 
708.27  (3) state and county MFIP 
708.28  administrative costs under Minnesota 
708.29  Statutes, chapters 256J and 256K; 
708.30  (4) state, county, and tribal MFIP 
708.31  employment services under Minnesota 
708.32  Statutes, chapters 256J and 256K; 
708.33  (5) expenditures made on behalf of 
708.34  noncitizen MFIP recipients who qualify 
708.35  for the medical assistance without 
708.36  federal financial participation program 
708.37  under Minnesota Statutes, section 
708.38  256B.06, subdivision 4, paragraphs (d), 
708.39  (e), and (j); 
708.40  (6) the Minnesota Education Now and 
708.41  Babies Later (MN ENABL) program under 
708.42  Minnesota Statutes, section 145.9255; 
708.43  and 
708.44  (7) expenditures for family planning 
708.45  activities under Minnesota Statutes, 
708.46  section 145.925.  
708.47  (b) The commissioner shall ensure that 
708.48  sufficient qualified nonfederal 
708.49  expenditures are made each year to meet 
708.50  the state's TANF MOE requirements.  For 
708.51  the activities listed in paragraph (a), 
708.52  clauses (2) to (7), the commissioner 
708.53  may only report expenditures that are 
708.54  excluded from the definition of 
708.55  assistance under Code of Federal 
708.56  Regulations, title 45, section 260.31. 
708.57  (c) By August 31 of each year, the 
708.58  commissioner shall make a preliminary 
708.59  calculation to determine the likelihood 
708.60  that the state will meet its annual 
708.61  federal work participation requirement 
709.1   under Code of Federal Regulations, 
709.2   title 45, sections 261.21 and 261.23, 
709.3   after adjustment for any caseload 
709.4   reduction credit under Code of Federal 
709.5   Regulations, title 45, section 261.41.  
709.6   If the commissioner determines that the 
709.7   state will meet its federal work 
709.8   participation rate for the federal 
709.9   fiscal year ending that September, the 
709.10  commissioner may reduce the expenditure 
709.11  under paragraph (a), clause (1), to the 
709.12  extent allowed under Code of Federal 
709.13  Regulations, title 45, section 
709.14  263.1(a)(2). 
709.15  (d) For fiscal years beginning with 
709.16  state fiscal year 2003, the 
709.17  commissioner shall assure that the 
709.18  maintenance of effort used by the 
709.19  commissioner of finance for the 
709.20  February and November forecasts 
709.21  required under Minnesota Statutes, 
709.22  section 16A.103, contains expenditures 
709.23  under paragraph (a), clause (1), equal 
709.24  to at least 25 percent of the total 
709.25  required under Code of Federal 
709.26  Regulations, title 45, section 263.1. 
709.27  (e) If nonfederal expenditures for the 
709.28  programs and purposes listed in 
709.29  paragraph (a) are insufficient to meet 
709.30  the state's TANF MOE requirements, the 
709.31  commissioner shall recommend additional 
709.32  allowable sources of nonfederal 
709.33  expenditures to the legislature, if the 
709.34  legislature is or will be in session to 
709.35  take action to specify additional 
709.36  sources of nonfederal expenditures for 
709.37  TANF MOE before a federal penalty is 
709.38  imposed.  The commissioner shall 
709.39  otherwise provide notice to the 
709.40  legislative commission on planning and 
709.41  fiscal policy under paragraph (g). 
709.42  (f) If the commissioner uses authority 
709.43  granted under section 10, or similar 
709.44  authority granted by a subsequent 
709.45  legislature, to meet the state's TANF 
709.46  MOE requirements in a reporting period, 
709.47  the commissioner shall inform the 
709.48  chairs of the appropriate legislative 
709.49  committees about all transfers made 
709.50  under that authority for this purpose.  
709.51  (g) If the commissioner determines that 
709.52  nonfederal expenditures under paragraph 
709.53  (a) are insufficient to meet TANF MOE 
709.54  expenditure requirements, and if the 
709.55  legislature is not or will not be in 
709.56  session to take timely action to avoid 
709.57  a federal penalty, the commissioner may 
709.58  report nonfederal expenditures from 
709.59  other allowable sources as TANF MOE 
709.60  expenditures after the requirements of 
709.61  this paragraph are met.  The 
709.62  commissioner may report nonfederal 
709.63  expenditures in addition to those 
709.64  specified under paragraph (a) as 
709.65  nonfederal TANF MOE expenditures, but 
709.66  only ten days after the commissioner of 
709.67  finance has first submitted the 
710.1   commissioner's recommendations for 
710.2   additional allowable sources of 
710.3   nonfederal TANF MOE expenditures to the 
710.4   members of the legislative commission 
710.5   on planning and fiscal policy for their 
710.6   review. 
710.7   (h) The commissioner of finance shall 
710.8   not incorporate any changes in federal 
710.9   TANF expenditures or nonfederal 
710.10  expenditures for TANF MOE that may 
710.11  result from reporting additional 
710.12  allowable sources of nonfederal TANF 
710.13  MOE expenditures under the interim 
710.14  procedures in paragraph (g) into the 
710.15  February or November forecasts required 
710.16  under Minnesota Statutes, section 
710.17  16A.103, unless the commissioner of 
710.18  finance has approved the additional 
710.19  sources of expenditures under paragraph 
710.20  (g). 
710.21  (i) The provisions of Minnesota 
710.22  Statutes, section 256.011, subdivision 
710.23  3, which require that federal grants or 
710.24  aids secured or obtained under that 
710.25  subdivision be used to reduce any 
710.26  direct appropriations provided by law, 
710.27  do not apply if the grants or aids are 
710.28  federal TANF funds. 
710.29  (j) Notwithstanding section 13 of this 
710.30  article, paragraph (a), clauses (1) to 
710.31  (5), and paragraphs (b) to (j) expire 
710.32  June 30, 2005. 
710.33  [CAPITATION RATE INCREASE.] Of the 
710.34  health care access fund appropriations 
710.35  to the University of Minnesota in the 
710.36  higher education omnibus appropriation 
710.37  bill, $2,537,000 in fiscal year 2002 
710.38  and $2,537,000 in fiscal year 2003 to 
710.39  be used to increase the capitation 
710.40  payments under Minnesota Statutes, 
710.41  section 256B.69.  Notwithstanding the 
710.42  provisions of section 13, this 
710.43  provision shall not expire. 
710.44  Subd. 2.  Agency Management 
710.45  General              38,093,000    38,206,000
710.46  State Government
710.47  Special Revenue         403,000       415,000
710.48  Health Care 
710.49  Access                3,631,000     3,673,000
710.50  Federal TANF            225,000       265,000
710.51  The amounts that may be spent from the 
710.52  appropriation for each purpose are as 
710.53  follows: 
710.54  (a) Financial Operations 
710.55  General               6,872,000     7,041,000
710.56  Health Care
710.57  Access                  815,000       828,000
711.1   Federal TANF            225,000       265,000
711.2   (b) Legal & Regulation Operations 
711.3   General               8,550,000     8,392,000
711.4   State Government
711.5   Special Revenue         403,000       415,000
711.6   Health Care
711.7   Access                  239,000       244,000
711.8   (c) Management Operations 
711.9   General              22,671,000    22,773,000
711.10  [CORE LICENSING ACTIVITIES.] Of the 
711.11  general fund appropriation, $1,138,000 
711.12  in fiscal year 2002 and $923,000 in 
711.13  fiscal year 2003 is to support 14 new 
711.14  licensor positions.  Of this amount, 
711.15  $72,000 in fiscal year 2002 and 
711.16  $107,000 in fiscal year 2003 is to 
711.17  cover maintenance and operational costs 
711.18  for a new computer system, which will 
711.19  provide public access to licensing 
711.20  information. In order to receive 
711.21  continued appropriations for these 
711.22  purposes, by January 1, 2003, the 
711.23  commissioner shall: 
711.24  (1) reduce the average length of time 
711.25  to complete investigations of licensing 
711.26  complaints within 75 days; 
711.27  (2) complete all licensing reviews 
711.28  within the one-year and two-year 
711.29  intervals set forth in statutes; and 
711.30  (3) complete negative licensing action 
711.31  decisions within 45 days of county 
711.32  recommendations. 
711.33  [UPDATING FEDERAL POVERTY GUIDELINES.] 
711.34  Annual updates to the federal poverty 
711.35  guidelines are effective each July 1, 
711.36  following publication by the United 
711.37  States Department of Health and Human 
711.38  Services for health care programs under 
711.39  Minnesota Statutes, chapters 256, 256B, 
711.40  256D, and 256L. 
711.41  Health Care
711.42  Access                2,577,000     2,601,000
711.43  Subd. 3.  Administrative Reimbursement/
711.44  Passthrough 
711.45  Federal TANF                          60,565,000     51,992,000 
711.46  Subd. 4.  Children's Services Grants 
711.47  General              64,348,000    68,107,000
711.48  Federal TANF          6,290,000     6,290,000
711.49  [ADOPTION ASSISTANCE INCENTIVE GRANTS.] 
711.50  Federal funds available during fiscal 
711.51  year 2002 and fiscal year 2003, for 
711.52  adoption incentive grants are 
711.53  appropriated to the commissioner for 
712.1   these purposes. 
712.2   [FEDERAL CHILD WELFARE OUTCOMES 
712.3   FUNDING.] The commissioner may seek and 
712.4   expend federal funds to assist in 
712.5   evaluating strategies to improve 
712.6   outcomes for children in the child 
712.7   welfare services system, including 
712.8   reducing the disproportionate share of 
712.9   minority youth in out-of-home care. 
712.10  [ADOPTION ASSISTANCE AND RELATIVE 
712.11  CUSTODY ASSISTANCE.] The commissioner 
712.12  may transfer unencumbered appropriation 
712.13  balances for adoption assistance and 
712.14  relative custody assistance between 
712.15  fiscal years and between programs. 
712.16  [TANF TRANSFER TO SOCIAL SERVICES.] 
712.17  $4,650,000 is appropriated to the 
712.18  commissioner in fiscal year 2002 and in 
712.19  fiscal year 2003 for purposes of 
712.20  increasing services for families with 
712.21  children whose incomes are at or below 
712.22  200 percent of the federal poverty 
712.23  guidelines.  The commissioner shall 
712.24  authorize a sufficient transfer of 
712.25  funds from the state's federal TANF 
712.26  block grant to the state's federal 
712.27  social services block grant to meet 
712.28  this appropriation. 
712.29  [SOCIAL SERVICES BLOCK GRANT FUNDS FOR 
712.30  CONCURRENT PERMANENCY PLANNING.] 
712.31  Notwithstanding Minnesota Statutes, 
712.32  section 256E.07, $4,650,000 in fiscal 
712.33  year 2002 and $4,650,000 in fiscal year 
712.34  2003 in social services block grant 
712.35  funds allocated to the commissioner 
712.36  under title XX of the Social Security 
712.37  Act are available for distribution to 
712.38  counties under the formula in Minnesota 
712.39  Statutes, section 260C.213, for the 
712.40  purposes of concurrent permanency 
712.41  planning. 
712.42  Subd. 5.  Children's Services Management
712.43  General               3,845,000     5,724,000
712.44  [FEDERAL FINANCIAL PARTICIPATION 
712.45  MAXIMIZATION FOR OUT-OF-HOME CARE.] The 
712.46  commissioner of human services and the 
712.47  commissioner of corrections shall 
712.48  cooperate in efforts to maximize 
712.49  federal financial participation in the 
712.50  costs of providing out-of-home 
712.51  placements for juveniles. 
712.52  Subd. 6.  Basic Health Care Grants
712.53                Summary by Fund
712.54  General           1,125,000,000 1,324,114,000
712.55  Health Care
712.56  Access              190,450,000   251,159,000
712.57  The amounts that may be spent from this 
712.58  appropriation for each purpose are as 
712.59  follows: 
713.1   (a) MinnesotaCare Grants  
713.2   Health Care
713.3   Access              188,900,000   250,409,000
713.4   [MINNESOTACARE FEDERAL RECEIPTS.] 
713.5   Receipts received as a result of 
713.6   federal participation pertaining to 
713.7   administrative costs of the Minnesota 
713.8   health care reform waiver shall be 
713.9   deposited as nondedicated revenue in 
713.10  the health care access fund.  Receipts 
713.11  received as a result of federal 
713.12  participation pertaining to grants 
713.13  shall be deposited in the federal fund 
713.14  and shall offset health care access 
713.15  funds for payments to providers. 
713.16  [MINNESOTACARE FUNDING.] The 
713.17  commissioner may expend money 
713.18  appropriated from the health care 
713.19  access fund for MinnesotaCare in either 
713.20  fiscal year of the biennium. 
713.21  [MINNESOTACARE PAYMENTS FOR PREGNANT 
713.22  WOMEN AND CHILDREN UNDER THE AGE OF 
713.23  TWO.] Payments for pregnant women and 
713.24  children under the age of two who are 
713.25  enrolled in the MinnesotaCare program 
713.26  shall be paid from the health care 
713.27  access fund effective January 1, 2003.  
713.28  [DENTAL ACCESS GRANTS.] Of this 
713.29  appropriation, $800,000 in fiscal year 
713.30  2002 is to be distributed as dental 
713.31  access grants in accordance with 
713.32  Minnesota Statutes, section 256B.53.  
713.33  If the amount appropriated is not used 
713.34  within the fiscal year, the 
713.35  commissioner of finance shall transfer 
713.36  any remaining amount to the 
713.37  commissioner of health to be 
713.38  distributed as rural hospital capital 
713.39  improvement grants for fiscal year 2003.
713.40  (b) MA Basic Health Care Grants -
713.41  Families and Children
713.42  General             440,097,000   523,911,000
713.43  [INDIAN HEALTH SERVICES FEDERAL MATCH.] 
713.44  In the event the federal medical 
713.45  assistance percentage rate increases to 
713.46  100 percent for services provided as a 
713.47  result of a referral by the federal 
713.48  Indian health service or a tribal 
713.49  provider, the commissioner is 
713.50  authorized to increase the payment rate 
713.51  for referrals by ten percent as an 
713.52  incentive for the completion of 
713.53  documentation required for increased 
713.54  federal participation.  Unspent state 
713.55  medical assistance appropriations 
713.56  resulting from the increase in the 
713.57  federal medical assistance percentage 
713.58  rate shall be transferred to the 
713.59  appropriate account and are available 
713.60  to the commissioner for covering the 
713.61  costs of out-stationed health care 
713.62  program eligibility services on 
713.63  reservations.  The base appropriation 
714.1   for the 2004-2005 biennium for these 
714.2   services must not exceed the state 
714.3   medical assistance savings.  These 
714.4   actions are intended to improve access 
714.5   to health care and assist in 
714.6   eliminating disparities in health 
714.7   status for American Indian people. 
714.8   [IMMUNIZATION INFORMATION SERVICE.] Of 
714.9   the general fund appropriation, 
714.10  $500,000 the first year and $1,000,000 
714.11  the second year is available to the 
714.12  commissioner to support maintenance of 
714.13  current registry activities related to 
714.14  tracking medical assistance-eligible 
714.15  children.  Base funding for 
714.16  immunization registries is reduced by 
714.17  $250,000 per year. 
714.18  (c) MA Basic Health Care Grants - 
714.19  Elderly and Disabled
714.20  General             519,082,000   607,994,000
714.21  (d) General Assistance Medical Care
714.22  General             156,981,000   178,333,000
714.23  (e) Health Care Grants - Other Assistance  
714.24  General               8,840,000    13,876,000
714.25  Health Care Access    1,550,000       750,000
714.26  [STOP-LOSS FUND ACCOUNT.] Of the 
714.27  general fund appropriation, $149,000 in 
714.28  fiscal year 2003 is to the commissioner 
714.29  to be deposited in the stop-loss fund 
714.30  account to be distributed in accordance 
714.31  with Minnesota Statutes, section 
714.32  256.956. 
714.33  Subd. 7.  Basic Health Care Management
714.34  General              21,578,000    15,049,000
714.35  Health Care
714.36  Access               15,940,000    16,735,000
714.37  The amounts that may be spent from this 
714.38  appropriation for each purpose are as 
714.39  follows: 
714.40  (a) Health Care Policy Administration
714.41  General               2,916,000     3,076,000
714.42  Health Care 
714.43  Access                  578,000       595,000
714.44  [ENROLLMENT STUDY.] Of the general fund 
714.45  appropriation, $100,000 in fiscal year 
714.46  2003 is for the commissioner to develop 
714.47  a report on the length of enrollment 
714.48  and continuity of enrollment for 
714.49  children enrolled in MinnesotaCare and 
714.50  medical assistance and evaluate the 
714.51  impact of the changes to eligibility in 
714.52  these programs enacted in 2001.  This 
714.53  report shall be submitted by January 
714.54  15, 2005, to the legislature and shall 
715.1   be updated annually afterward 
715.2   thereafter as necessary. 
715.3   [DEDICATION OF FEDERAL MATCH.] Enhanced 
715.4   federal match available for the use of 
715.5   a professional review organization for 
715.6   prior authorization and inpatient 
715.7   admission certification shall be 
715.8   dedicated to the commissioner for these 
715.9   purposes.  A portion of these funds 
715.10  must be used for activities to decrease 
715.11  unnecessary pharmaceutical costs in 
715.12  medical assistance. 
715.13  (b) Health Care Operations
715.14  General              18,662,000    11,973,000
715.15  Health Care
715.16  Access               15,362,000    16,140,000
715.17  [PREPAID MEDICAL PROGRAMS.] The 
715.18  nonfederal share of the prepaid medical 
715.19  assistance program fund, which has been 
715.20  appropriated to fund county managed 
715.21  care advocacy and enrollment operating 
715.22  costs, shall be disbursed as grants 
715.23  using either a reimbursement or block 
715.24  grant mechanism and may also be 
715.25  transferred between grants and nongrant 
715.26  administration costs with approval of 
715.27  the commissioner of finance. 
715.28  Subd. 8.  State-Operated Services
715.29  General             211,390,000   207,065,000
715.30  [MITIGATION RELATED TO STATE-OPERATED 
715.31  SERVICES RESTRUCTURING.] Money 
715.32  appropriated to finance mitigation 
715.33  expenses related to restructuring 
715.34  state-operated services programs and 
715.35  administrative services may be 
715.36  transferred between fiscal years within 
715.37  the biennium. 
715.38  [STATE-OPERATED SERVICES CHEMICAL 
715.39  DEPENDENCY PROGRAMS.] When the 
715.40  operations of the state-operated 
715.41  services chemical dependency fund 
715.42  created in Minnesota Statutes, section 
715.43  246.18, subdivision 2, are impeded by 
715.44  projected cash deficiencies resulting 
715.45  from delays in the receipt of grants, 
715.46  dedicated income, or other similar 
715.47  receivables, and when the deficiencies 
715.48  would be corrected within the budget 
715.49  period involved, the commissioner of 
715.50  finance may transfer general fund cash 
715.51  reserves into this account as necessary 
715.52  to meet cash demands.  The cash flow 
715.53  transfers must be returned to the 
715.54  general fund in the fiscal year that 
715.55  the transfer was made.  Any interest 
715.56  earned on general fund cash flow 
715.57  transfers accrues to the general fund 
715.58  and not the state-operated services 
715.59  chemical dependency fund. 
715.60  [STATE-OPERATED SERVICES 
715.61  RESTRUCTURING.] For purposes of 
716.1   restructuring state-operated services, 
716.2   any state-operated services employee 
716.3   whose position is to be eliminated 
716.4   shall be afforded the options provided 
716.5   in applicable collective bargaining 
716.6   agreements.  All salary and mitigation 
716.7   allocations from fiscal year 2002 shall 
716.8   be carried forward into fiscal year 
716.9   2003.  Provided there is no conflict 
716.10  with any collective bargaining 
716.11  agreement, any state-operated services 
716.12  position reduction must only be 
716.13  accomplished through mitigation, 
716.14  attrition, transfer, and other measures 
716.15  as provided in state or applicable 
716.16  collective bargaining agreements and in 
716.17  Minnesota Statutes, section 252.50, 
716.18  subdivision 11, and not through layoff. 
716.19  [REPAIRS AND BETTERMENTS.] The 
716.20  commissioner may transfer unencumbered 
716.21  appropriation balances between fiscal 
716.22  years within the biennium for the state 
716.23  residential facilities repairs and 
716.24  betterments account and special 
716.25  equipment. 
716.26  [NAMES REQUIRED ON MONUMENTS.] (a) Of 
716.27  this appropriation, $250,000 in fiscal 
716.28  year 2002 is to the commissioner for 
716.29  grants to community-based or statewide 
716.30  organizations for the purpose of 
716.31  purchasing and placing cemetery grave 
716.32  markers or memorial monuments that 
716.33  include the available names of 
716.34  individuals at cemeteries located at 
716.35  regional treatment centers operated or 
716.36  formerly operated by the commissioner.  
716.37  Individual monuments shall not be 
716.38  placed if the family of the deceased 
716.39  resident objects to the placement of 
716.40  the monument. 
716.41  (b) To be eligible for a grant, a 
716.42  community-based or statewide 
716.43  organization must include members of 
716.44  local service or charitable 
716.45  organizations, members of the business 
716.46  community, persons with mental illness 
716.47  or developmental disabilities, and to 
716.48  the extent possible, family members of 
716.49  deceased residents of the regional 
716.50  treatment center, and present or former 
716.51  employees of the regional treatment 
716.52  center sites. 
716.53  (c) Any unexpended portion of this 
716.54  appropriation shall not cancel but 
716.55  shall be available in fiscal year 2003 
716.56  for these purposes.  This is a one-time 
716.57  appropriation and shall not become part 
716.58  of the base level funding for the 
716.59  2004-2005 biennium. 
716.60  [BUILDING REMODELING.] The commissioner 
716.61  shall use $400,000 from the 
716.62  appropriation for repairs and 
716.63  betterments to remodel building 6 at 
716.64  the Brainerd regional human services 
716.65  center to make the structure suitable 
716.66  for school programs.  The Brainerd 
717.1   school district shall reimburse the 
717.2   commissioner $200,000 in fiscal year 
717.3   2002 and $200,000 in fiscal year 2003 
717.4   through a lease agreement for these 
717.5   remodeling costs. 
717.6   Subd. 9.  Continuing Care Grants 
717.7   General           1,359,103,000 1,472,247,000
717.8   Lottery Prize Fund    1,308,000     1,308,000
717.9   The amounts that may be spent from this 
717.10  appropriation for each purpose are as 
717.11  follows: 
717.12  (a) Community Social Services
717.13  Block Grants
717.14      48,715,000     49,690,000 
717.15  [CSSA TRADITIONAL APPROPRIATION.] 
717.16  Notwithstanding Minnesota Statutes, 
717.17  section 256E.06, subdivisions 1 and 2, 
717.18  the appropriations available under that 
717.19  section in fiscal years 2002 and 2003 
717.20  must be distributed to each county 
717.21  proportionately to the aid received by 
717.22  the county in calendar year 2000.  
717.23  [SOCIAL SERVICES GRANT REDUCTION.] Any 
717.24  reduction to social services 
717.25  supplemental grants base budgets shall 
717.26  be applied to funds awarded to counties 
717.27  under Minnesota Statutes, section 
717.28  256E.06, subdivision 2b, paragraph (b), 
717.29  item 1. 
717.30  (b) Aging Adult Service Grants
717.31      13,779,000     15,852,000 
717.32  [AGING AND ADULT SERVICE GRANT 
717.33  CARRYFORWARD AUTHORITY.] (a) Money 
717.34  appropriated for Senior LinkAge line, 
717.35  community services grants, and access 
717.36  demonstration project grants shall be 
717.37  used by the commissioner to maximize 
717.38  federal reimbursement according to 
717.39  federal law, rule, and regulation. 
717.40  (b) Unexpended funds appropriated for 
717.41  Senior LinkAge line, community services 
717.42  grants, and access demonstration 
717.43  project grants for fiscal year 2002 do 
717.44  not cancel but are available to the 
717.45  commissioner for these purposes for 
717.46  fiscal year 2003. 
717.47  [HOME-SHARING GRANTS.] Of this 
717.48  appropriation, $225,000 in fiscal year 
717.49  2002 and $400,000 in fiscal year 2003 
717.50  is for the home-sharing grant program 
717.51  under Minnesota Statutes, section 
717.52  256.973.  This appropriation shall 
717.53  become part of the base level funding 
717.54  for the 2004-2005 biennium. 
717.55  [THE CENTER FOR VICTIMS OF TORTURE.] Of 
717.56  the appropriation for fiscal year 2002, 
717.57  $300,000 is for a grant to the center 
718.1   for victims of torture.  The grant is 
718.2   to be used to conduct continuing 
718.3   education and training of health care 
718.4   and human service workers on how to 
718.5   identify torture survivors, provide 
718.6   appropriate care and make referrals, 
718.7   and to establish a network of care 
718.8   providers who will offer pro bono 
718.9   services for survivors of politically 
718.10  motivated torture.  This is a one-time 
718.11  appropriation requiring a one-to-one, 
718.12  nonstate, in-kind match, and is 
718.13  available until expended. 
718.14  [PLANNING AND SERVICE DEVELOPMENT.] Of 
718.15  this appropriation, $900,000 in fiscal 
718.16  year 2002 and $1,100,000 in fiscal year 
718.17  2003 is for distribution to county 
718.18  boards and area agencies on aging for 
718.19  planning and development of community 
718.20  services under Minnesota Statutes, 
718.21  section 256B.437, subdivision 2. 
718.22  For fiscal year 2002, the commissioner 
718.23  shall distribute $8,000 to each 
718.24  county.  Counties with more than 10,000 
718.25  persons over age 65 shall receive a 
718.26  distribution of an additional 42 cents 
718.27  for each person over age 65.  The 
718.28  amount distributed to each area agency 
718.29  on aging shall be $5,000.  
718.30  For fiscal year 2003, the commissioner 
718.31  shall distribute $10,000 to each 
718.32  county.  Counties with more than 10,000 
718.33  persons over age 65 shall receive a 
718.34  distribution of an additional 50 cents 
718.35  for each person over age 65.  The 
718.36  amount distributed to each area agency 
718.37  on aging shall be $5,000. 
718.38  (c) Deaf and Hard-of-Hearing 
718.39  Services Grants
718.40       1,953,000      1,785,000
718.41  [SERVICES TO DEAF PERSONS WITH MENTAL 
718.42  ILLNESS.] (a) Of this appropriation, 
718.43  $125,000 in fiscal year 2002 and 
718.44  $60,000 in fiscal year 2003 is for a 
718.45  grant to a nonprofit agency that 
718.46  currently serves deaf and 
718.47  hard-of-hearing adults with mental 
718.48  illness through residential programs 
718.49  and supportive housing outreach 
718.50  activities.  The grant must be used to 
718.51  continue and maintain community support 
718.52  services for deaf and hard-of-hearing 
718.53  adults with mental illness who use or 
718.54  wish to use sign language as their 
718.55  primary means of communication. 
718.56  (b) The grant for fiscal year 2003 
718.57  shall be increased by $65,000 minus 
718.58  earnings achieved by the grantee 
718.59  through participation in the medical 
718.60  assistance rehabilitation option for 
718.61  persons with mental illness under 
718.62  Minnesota Statutes, section 256B.0623.  
718.63  The grant shall not be less than 
718.64  $60,000. 
719.1   (c) The base level funding for the 
719.2   2004-2005 biennium shall be $125,000 
719.3   minus earnings achieved by the grantee 
719.4   through participation in the medical 
719.5   assistance rehabilitation option for 
719.6   persons with mental illness under 
719.7   Minnesota Statutes, section 256B.0623.  
719.8   [COMMISSION SERVING DEAF AND 
719.9   HARD-OF-HEARING PEOPLE.] Of this 
719.10  appropriation, $5,000 in fiscal year 
719.11  2002 is to the commissioner for the 
719.12  Minnesota commission serving deaf and 
719.13  hard-of-hearing people to carry out the 
719.14  duties under Minnesota Statutes, 
719.15  section 256C.28. 
719.16  (d) Mental Health Grants 
719.17  General              50,571,000    52,407,000
719.18  Lottery Prize Fund    1,308,000     1,308,000
719.19  [TRANSFER TO DOER.] Of the general fund 
719.20  appropriation, $265,000 in fiscal year 
719.21  2003 is for a transfer to the 
719.22  commissioner of employee relations for 
719.23  costs associated with modifications in 
719.24  the Mental Health Commitment Act. 
719.25  [MENTAL HEALTH COUNSELING FOR FARM 
719.26  FAMILIES.] Of the general fund 
719.27  appropriation, $150,000 in fiscal year 
719.28  2002 and $150,000 in fiscal year 2003 
719.29  is to be transferred to the board of 
719.30  trustees of the Minnesota state 
719.31  colleges and universities for mental 
719.32  health counseling support to farm 
719.33  families and business operators through 
719.34  the farm business management program at 
719.35  Central Lakes College and Ridgewater 
719.36  College.  This appropriation is 
719.37  available until June 30, 2003.  This is 
719.38  a one-time appropriation and shall not 
719.39  be added to the base for the 2004-2005 
719.40  biennium. 
719.41  [COSTS ASSOCIATED WITH STATE INMATES 
719.42  WITH MENTAL ILLNESS.] (a) Of the 
719.43  general fund appropriation, $125,000 in 
719.44  fiscal year 2002 and $185,000 in fiscal 
719.45  year 2003 is for evaluation and support 
719.46  staff to do discharge planning under 
719.47  Minnesota Statutes, section 244.054, 
719.48  for persons with serious and persistent 
719.49  mental illness being discharged from 
719.50  prison.  These staff shall be employed 
719.51  by the commissioner but assigned at the 
719.52  direction of the commissioner of 
719.53  corrections. 
719.54  (b) Of the general fund appropriation, 
719.55  the following amounts shall be 
719.56  transferred to the commissioner of 
719.57  corrections for the purposes indicated: 
719.58  (1) $258,000 in fiscal year 2002 and 
719.59  $258,000 in fiscal year 2003 for the 
719.60  staff and travel costs associated with 
719.61  discharge planning under Minnesota 
719.62  Statutes, section 244.054, for persons 
720.1   with serious and persistent mental 
720.2   illness; and 
720.3   (2) $24,000 in fiscal year 2002 and 
720.4   $24,000 in fiscal year 2003 for the 
720.5   cost of medications for state inmates 
720.6   with serious and persistent mental 
720.7   illness. 
720.8   [COMPULSIVE GAMBLING.] Of the 
720.9   appropriation from the lottery prize 
720.10  fund to the commissioner for the 
720.11  compulsive gambling treatment program 
720.12  $150,000 in fiscal year 2002 and 
720.13  $150,000 in fiscal year 2003 is for a 
720.14  grant to a compulsive gambling council 
720.15  located in St. Louis county.  The 
720.16  gambling council shall provide a 
720.17  statewide compulsive gambling 
720.18  prevention and education project for 
720.19  adolescents.  This is a one-time 
720.20  appropriation and shall not become part 
720.21  of the base appropriation for the 
720.22  2004-2005 biennium. 
720.23  The unencumbered balance of the 
720.24  appropriation from the lottery prize 
720.25  fund in the first year of the biennium 
720.26  does not cancel but is available for 
720.27  the second year. 
720.28  (e) Medical Assistance Long-Term 
720.29  Care Facilities
720.30     577,665,000    580,331,000
720.31  (f) Community Support Grants
720.32      12,875,000     13,097,000 
720.33  [REGION 10 QUALITY ASSURANCE 
720.34  COMMISSION.] (1) Of the appropriation 
720.35  from the general fund for the biennium 
720.36  ending June 30, 2003, $548,000 is to 
720.37  the commissioner of human services to 
720.38  be allocated to the region 10 quality 
720.39  assurance commission for operating 
720.40  costs of the alternative quality 
720.41  assurance licensing project and for 
720.42  grants to counties participating in 
720.43  that project. 
720.44  (2) $50,000 is appropriated from the 
720.45  general fund to the commissioner of 
720.46  human services for the biennium ending 
720.47  June 30, 2003, for the region 10 
720.48  quality assurance commission to conduct 
720.49  the evaluation required under Minnesota 
720.50  Statutes, section 256B.0951, 
720.51  subdivision 9. 
720.52  (3) $150,000 is appropriated from the 
720.53  general fund to the commissioner of 
720.54  human services for the biennium ending 
720.55  June 30, 2003, for the commissioner to 
720.56  conduct the project evaluation required 
720.57  for the federal 1115 waiver of ICF/MR 
720.58  regulations. 
720.59  (g) Medical Assistance Long-Term 
720.60  Care Waivers and Home Care
721.1      452,146,000    532,075,000 
721.2   [NURSING FACILITY OPERATED BY THE RED 
721.3   LAKE BAND OF CHIPPEWA INDIANS.] (1) The 
721.4   medical assistance payment rates for 
721.5   the 47-bed nursing facility operated by 
721.6   the Red Lake Band of Chippewa Indians 
721.7   must be calculated according to 
721.8   allowable reimbursement costs under the 
721.9   medical assistance program, as 
721.10  specified in Minnesota Statutes, 
721.11  section 246.50, and are subject to the 
721.12  facility-specific Medicare upper limits.
721.13  (2) In addition, the commissioner shall 
721.14  make available rate adjustments for the 
721.15  biennium beginning July 1, 2001, on the 
721.16  same basis as the adjustments provided 
721.17  to nursing facilities under Minnesota 
721.18  Statutes, section 256B.431.  The 
721.19  commissioner must use the facility's 
721.20  final 2000 and 2001 Medicare cost 
721.21  reports to calculate the adjustments.  
721.22  This rate increase shall become part of 
721.23  the facility's base rate for future 
721.24  rate years. 
721.25  [MORATORIUM EXCEPTIONS.] During each 
721.26  year of the biennium beginning July 1, 
721.27  2001, the commissioner of health may 
721.28  approve moratorium exception projects 
721.29  under Minnesota Statutes, section 
721.30  144A.073, for which the full annualized 
721.31  state share of medical assistance costs 
721.32  does not exceed $2,000,000. 
721.33  [LONG-TERM CARE CONSULTATION SERVICES.] 
721.34  Effective July 1, 2001, the 
721.35  preadmission screening program shall be 
721.36  known as long-term care consultation 
721.37  services.  Payment to all counties 
721.38  shall be established at the payment 
721.39  amount in effect for preadmission 
721.40  screening in fiscal year 2001, plus 
721.41  $349,000 in fiscal year 2002 and 
721.42  $510,000 in fiscal year 2003, 
721.43  distributed between counties following 
721.44  the proportionate distribution of the 
721.45  fiscal year 2001 statewide payments. 
721.46  (h) Alternative Care Grants  
721.47  General              75,780,000    89,749,000
721.48  [ALTERNATIVE CARE TRANSFER.] Any money 
721.49  allocated to the alternative care 
721.50  program that is not spent for the 
721.51  purposes indicated does not cancel but 
721.52  shall be transferred to the medical 
721.53  assistance account. 
721.54  [ALTERNATIVE CARE APPROPRIATION.] The 
721.55  commissioner may expend the money 
721.56  appropriated for the alternative care 
721.57  program for that purpose in either year 
721.58  of the biennium. 
721.59  (i) Group Residential Housing
721.60  General              79,261,000    87,356,000
722.1   (j) Chemical Dependency
722.2   Entitlement Grants
722.3   General              41,200,000    43,811,000
722.4   [FEDERAL SUBSTANCE ABUSE PREVENTION AND 
722.5   TREATMENT BLOCK GRANT ALLOCATION.] The 
722.6   commissioner shall allocate $10,000,000 
722.7   from the federal substance abuse 
722.8   prevention and treatment block grant 
722.9   each year of the biennium ending June 
722.10  30, 2003, to chemical dependency 
722.11  services provided to persons eligible 
722.12  under Minnesota Statutes, section 
722.13  254B.04, subdivision 1, paragraph (a).  
722.14  Beginning July 1, 2003, the 
722.15  commissioner shall allocate $9,000,000 
722.16  from the federal substance abuse 
722.17  prevention and treatment block grant 
722.18  each year of the biennium ending June 
722.19  30, 2005, to chemical dependency 
722.20  services provided to persons eligible 
722.21  under Minnesota Statutes, section 
722.22  254B.04, subdivision 1, paragraph (a).  
722.23  Notwithstanding section 13, this rider 
722.24  expires June 30, 2005. 
722.25  (k) Chemical Dependency 
722.26  Nonentitlement Grants
722.27  General               5,158,000     6,094,000
722.28  Subd. 10.  Continuing Care Management
722.29  General              22,678,000    23,208,000
722.30  State Government
722.31  Special Revenue         117,000       119,000
722.32  Lottery Prize Fund      145,000       148,000
722.33  [DAY TRAINING TASK FORCE.] Of the 
722.34  general fund appropriation, $100,000 in 
722.35  fiscal year 2002 and $100,000 in fiscal 
722.36  year 2003 is for the day training and 
722.37  habilitation restructuring task force 
722.38  to begin the planning and 
722.39  implementation process.  This 
722.40  appropriation shall not become part of 
722.41  base level funding for the biennium 
722.42  beginning July 1, 2003. 
722.43  [COUNTY INVOLVEMENT COSTS.] Of the 
722.44  general fund appropriation, up to 
722.45  $384,000 in fiscal year 2002 and up to 
722.46  $514,000 in fiscal year 2003 is for the 
722.47  commissioner to allocate to counties 
722.48  for resident relocation costs resulting 
722.49  from planned closures under Minnesota 
722.50  Statutes, section 256B.437, and 
722.51  resident relocations under Minnesota 
722.52  Statutes, section 144A.161.  Unexpended 
722.53  funds for fiscal year 2002 do not 
722.54  cancel but are available to the 
722.55  commissioner for this purpose in fiscal 
722.56  year 2003. 
722.57  [RELOCATION AND DIVERSION FUNDING 
722.58  CARRYFORWARD.] General fund 
722.59  appropriations for administrative 
722.60  activities related to relocating or 
723.1   diverting persons with disabilities 
723.2   under the age of 65 from institutional 
723.3   settings are available for either year 
723.4   of the biennium. 
723.5   [STARTER GRANT.] In the event that the 
723.6   commissioner receives federal grant 
723.7   funds for a Real Choice System Change 
723.8   Starter Grant from the Health Care 
723.9   Financing Administration, the money is 
723.10  appropriated to the commissioner to be 
723.11  used for the purposes defined in the 
723.12  federal application.  This rider is 
723.13  effective the day following final 
723.14  enactment. 
723.15  Subd. 11.  Economic Support Grants
723.16  General              97,876,000    91,452,000
723.17  Federal TANF        216,175,000   218,449,000
723.18  The amounts that may be spent from this 
723.19  appropriation for each purpose are as 
723.20  follows: 
723.21  (a) Assistance to Families Grants
723.22  General              34,195,000    25,142,000
723.23  Federal TANF        146,200,000   139,874,000
723.24  (b) Work Grants              
723.25  General               9,844,000     9,844,000
723.26  Federal TANF         67,253,000    69,403,000
723.27  [LOCAL INTERVENTION GRANTS FOR 
723.28  SELF-SUFFICIENCY CARRYFORWARD.] 
723.29  Unexpended funds appropriated for local 
723.30  intervention grants under Minnesota 
723.31  Statutes, section 256J.625, for fiscal 
723.32  year 2002 do not cancel but are 
723.33  available to the commissioner for these 
723.34  purposes in fiscal year 2003. 
723.35  [SUPPORTED WORK.] $4,850,000 is 
723.36  appropriated from the TANF fund to the 
723.37  commissioner of human services for the 
723.38  biennium ending June 30, 2003, to 
723.39  counties and tribes that submit a plan 
723.40  that describes the county's supported 
723.41  work program under Minnesota Statutes, 
723.42  section 256J.425, subdivision 4, clause 
723.43  (v), and provides the number of 
723.44  individuals to be served in the 
723.45  supported work program.  
723.46  Counties and tribes that submit a 
723.47  supported work plan that is approved by 
723.48  the commissioner shall receive an 
723.49  allocation based on the average 
723.50  proportion of the MFIP caseload that 
723.51  has received MFIP assistance for 52 out 
723.52  of the last 60 months, as sampled on 
723.53  March 31, June 30, September 30, and 
723.54  December 31 of the previous calendar 
723.55  year, less the number of child-only 
723.56  cases and cases where all the 
723.57  caregivers are age 60 or over, provided 
724.1   the county documents the need for 
724.2   supported work.  Two-parent cases, with 
724.3   the exception of those with a caregiver 
724.4   age 60 or over, will be multiplied by a 
724.5   factor of two.  Of the amount available 
724.6   for supported work: 
724.7   (1) $1,350,000 is allocated in fiscal 
724.8   year 2002; and 
724.9   (2) $3,500,000 is allocated in fiscal 
724.10  years 2003 and 2004.  
724.11  Unspent funds may be reallocated each 
724.12  January based on the number of approved 
724.13  supported work plans and need verified 
724.14  by counties and tribes. 
724.15  [MODIFICATION OF PRIOR TANF 
724.16  APPROPRIATION.] Clauses (1) and (2) 
724.17  apply to the appropriation in Laws 
724.18  2000, chapter 488, article 8, section 
724.19  2, subdivision 6, of $250,000 for 
724.20  fiscal year 2001 in federal TANF funds 
724.21  to the commissioner to contract with 
724.22  the board of trustees of the Minnesota 
724.23  state colleges and universities to 
724.24  provide tuition waivers to employees of 
724.25  health care and human services 
724.26  providers that are members of 
724.27  qualifying consortia operating under 
724.28  Minnesota Statutes, sections 116L.10 to 
724.29  116L.15: 
724.30  (1) the appropriation shall not cancel 
724.31  but shall be available until expended; 
724.32  and 
724.33  (2) the amendments made in this act to 
724.34  the matching requirements of Minnesota 
724.35  Statutes, chapter 116L, shall apply to 
724.36  this appropriation. 
724.37  [WELFARE-TO-WORK GRANTS.] Of the 
724.38  federal TANF appropriation, $5,000,000 
724.39  each year in fiscal year 2002 and 
724.40  fiscal year 2003 is for welfare-to-work 
724.41  programs administered by the 
724.42  commissioner of economic security that 
724.43  have utilized all of the federal 
724.44  welfare-to-work funding received.  The 
724.45  commissioner of economic security shall 
724.46  establish guidelines for distributing 
724.47  the funds to local workforce service 
724.48  areas based on current expenditures and 
724.49  documented need and, by January 15, 
724.50  2003, shall report to the chairs of the 
724.51  house health and human services finance 
724.52  committee and the senate health, human 
724.53  services and corrections budget 
724.54  division on the use of state and 
724.55  federal funds appropriated for 
724.56  welfare-to-work programs and the 
724.57  effectiveness of such programs.  This 
724.58  is a one-time appropriation and shall 
724.59  not be added to the base-level funding 
724.60  for the 2003-2004 biennium. 
724.61  (c) Economic Support Grants -      
724.62  Other Assistance
725.1   General               2,514,000     4,145,000
725.2   Federal TANF          2,462,000     8,912,000
725.3   [TANF TRANSFER TO CHILD CARE AND 
725.4   DEVELOPMENT BLOCK GRANT.] $1,462,000 in 
725.5   fiscal year 2002 and $7,912,000 for 
725.6   fiscal year 2003 is appropriated to the 
725.7   commissioner of children, families, and 
725.8   learning for the purposes of Minnesota 
725.9   Statutes, section 119B.05.  The 
725.10  commissioner of human services shall 
725.11  authorize a sufficient transfer of 
725.12  funds from the state's federal TANF 
725.13  block grant to the state's child care 
725.14  and development fund block grant to 
725.15  meet this appropriation. 
725.16  [MINNESOTA FOOD ASSISTANCE PROGRAM.] Of 
725.17  the general fund appropriation, 
725.18  $1,214,000 in fiscal year 2003 is for 
725.19  the Minnesota food assistance program. 
725.20  (d) Child Support Enforcement
725.21  General               4,239,000     4,239,000
725.22  Federal TANF            260,000       260,000
725.23  [CHILD SUPPORT PAYMENT CENTER.] 
725.24  Payments to the commissioner from other 
725.25  governmental units, private 
725.26  enterprises, and individuals for 
725.27  services performed by the child support 
725.28  payment center must be deposited in the 
725.29  state systems account authorized under 
725.30  Minnesota Statutes, section 256.014.  
725.31  These payments are appropriated to the 
725.32  commissioner for the operation of the 
725.33  child support payment center or system, 
725.34  according to Minnesota Statutes, 
725.35  section 256.014. 
725.36  (e) General Assistance
725.37  General              17,156,000    16,481,000
725.38  [GENERAL ASSISTANCE STANDARD.] The 
725.39  commissioner shall set the monthly 
725.40  standard of assistance for general 
725.41  assistance units consisting of an adult 
725.42  recipient who is childless and 
725.43  unmarried or living apart from his or 
725.44  her parents or a legal guardian at 
725.45  $203.  The commissioner may reduce this 
725.46  amount in accordance with Laws 1997, 
725.47  chapter 85, article 3, section 54. 
725.48  (f) Minnesota Supplemental Aid
725.49  General              29,678,000    31,351,000
725.50  (g) Refugee Services         
725.51  General                 250,000       250,000
725.52  Subd. 12.  Economic Support  
725.53  Management
725.54  General              23,520,000    45,448,000
726.1   Health Care
726.2   Access                1,333,000     1,349,000
726.3   Federal TANF          2,493,000       943,000
726.4   The amounts that may be spent from this 
726.5   appropriation for each purpose are as 
726.6   follows: 
726.7   (a) Economic Support Policy  
726.8   Administration
726.9   General               8,464,000     7,704,000
726.10  Federal TANF          2,493,000       943,000
726.11  [FOOD STAMP ADMINISTRATIVE 
726.12  REIMBURSEMENT.] The commissioner shall 
726.13  reduce quarterly food stamp 
726.14  administrative reimbursement to 
726.15  counties in fiscal years 2002 and 2003 
726.16  by the amount that the United States 
726.17  Department of Health and Human Services 
726.18  determines to be the county random 
726.19  moment study share of the food stamp 
726.20  adjustment under Public Law Number 
726.21  105-185.  The reductions shall be 
726.22  allocated to each county in proportion 
726.23  to each county's contribution, if any, 
726.24  to the amount of the adjustment.  Any 
726.25  adjustment to medical assistance 
726.26  administrative reimbursement that is 
726.27  based on the United States Department 
726.28  of Health and Human Services' 
726.29  determinations under Public Law Number 
726.30  105-185 shall be distributed to 
726.31  counties in the same manner.  
726.32  [EMPLOYMENT SERVICES TRACKING SYSTEM.] 
726.33  Of the federal TANF appropriation, 
726.34  $1,750,000 in fiscal year 2002 and 
726.35  $200,000 in fiscal year 2003 are for 
726.36  development of an employment tracking 
726.37  system in collaboration with the 
726.38  department of economic security.  
726.39  Unexpended funds in fiscal year 2002 do 
726.40  not cancel but are available to the 
726.41  commissioner for these purposes in 
726.42  fiscal year 2003.  This is a one-time 
726.43  appropriation and shall not be added to 
726.44  the base-level funding for the 
726.45  2004-2005 biennium. 
726.46  [FINANCIAL INSTITUTION DATA MATCH AND 
726.47  PAYMENT OF FEES.] The commissioner is 
726.48  authorized to allocate up to $310,000 
726.49  each year in fiscal year 2002 and 
726.50  fiscal year 2003 from the PRISM special 
726.51  revenue account to make payments to 
726.52  financial institutions in exchange for 
726.53  performing data matches between account 
726.54  information held by financial 
726.55  institutions and the public authority's 
726.56  database of child support obligors as 
726.57  authorized by Minnesota Statutes, 
726.58  section 13B.06, subdivision 7. 
726.59  (b) Economic Support Operations 
726.60  General              15,056,000    37,744,000
727.1   Health Care 
727.2   Access                1,333,000     1,349,000
727.3   [SPENDING AUTHORITY FOR FOOD STAMP 
727.4   ENHANCED FUNDING.] In the event that 
727.5   Minnesota qualifies for the United 
727.6   States Department of Agriculture Food 
727.7   and Nutrition Services Food Stamp 
727.8   Program enhanced funding beginning in 
727.9   federal fiscal year 1998, the funding 
727.10  is appropriated to the commissioner.  
727.11  The commissioner shall retain funds 
727.12  from the enhanced funding in an amount 
727.13  sufficient to fund the Minnesota Food 
727.14  Assistance Program in state fiscal year 
727.15  2002.  Twenty-five percent of the 
727.16  remaining balance shall be retained by 
727.17  the commissioner, with the other 75 
727.18  percent divided among the counties 
727.19  according to a formula that takes into 
727.20  account each county's impact on the 
727.21  statewide food stamp error rate. 
727.22  Sec. 3.  COMMISSIONER OF HEALTH 
727.23  Subdivision 1.  Total 
727.24  Appropriation                        132,300,000    133,852,000
727.25                Summary by Fund
727.26  General              78,727,000    79,651,000 
727.27  State Government 
727.28  Special Revenue      26,830,000    28,714,000 
727.29  Health Care 
727.30  Access               10,743,000     9,487,000 
727.31  Federal TANF         16,000,000    16,000,000 
727.32  Subd. 2.  Family and 
727.33  Community Health                      67,753,000     68,379,000 
727.34                Summary by Fund
727.35  General              47,110,000    46,680,000
727.36  State Government 
727.37  Special Revenue         961,000     1,987,000 
727.38  Health Care 
727.39  Access                3,682,000     3,712,000 
727.40  Federal TANF         16,000,000    16,000,000 
727.41  [HEALTH DISPARITIES.] Of the general 
727.42  fund appropriation, $4,950,000 each 
727.43  year is for reducing health 
727.44  disparities.  Of the amounts available: 
727.45  (1) $1,400,000 each year is for 
727.46  competitive grants under Minnesota 
727.47  Statutes, section 145.928, subdivision 
727.48  7, to eligible applicants to reduce 
727.49  health disparities in infant mortality 
727.50  rates and adult and child immunization 
727.51  rates. 
727.52  (2) $2,200,000 each year is for 
727.53  competitive grants under Minnesota 
727.54  Statutes, section 145.928, subdivision 
728.1   8, to eligible applicants to reduce 
728.2   health disparities in breast and 
728.3   cervical cancer screening rates, 
728.4   HIV/AIDS and sexually transmitted 
728.5   infection rates, cardiovascular disease 
728.6   rates, diabetes rates, and rates of 
728.7   accidental injuries and violence. 
728.8   (3) $500,000 each year is for grants to 
728.9   tribal governments under Minnesota 
728.10  Statutes, section 145.928, subdivision 
728.11  10, to implement cultural interventions 
728.12  to reduce health disparities. 
728.13  (4) $500,000 each year is for state 
728.14  administrative costs associated with 
728.15  implementation of Minnesota Statutes, 
728.16  section 145.928, subdivisions 1, 2, 3, 
728.17  4, 5, 6, 7, 8, 10, 11, 12, and 13. 
728.18  (5) $100,000 each year is for state 
728.19  operations associated with 
728.20  implementation of Minnesota Statutes, 
728.21  section 145.928, subdivision 9. 
728.22  (6) $250,000 each year is for grants 
728.23  under Minnesota Statutes, section 
728.24  145.928, subdivision 9, to community 
728.25  health boards to improve access to 
728.26  health screening and follow-up services 
728.27  for foreign-born populations. 
728.28  [MN ENABL.] Of the TANF appropriation, 
728.29  $1,000,000 each year is for the MN 
728.30  ENABL program. 
728.31  [MN ENABL CARRYFORWARD.] Any unexpended 
728.32  balance of the TANF funds appropriated 
728.33  for MN ENABL in the first year of the 
728.34  biennium does not cancel but is 
728.35  available for the second year.  
728.36  [TANF LOCAL PUBLIC HEALTH PROMOTION 
728.37  PROGRAM.] Of the TANF appropriation, 
728.38  $2,000,000 each year is appropriated to 
728.39  the commissioner for the following 
728.40  purposes:  
728.41  (1) $1,900,000 each year is to be 
728.42  distributed under Minnesota Statutes, 
728.43  section 144.396, subdivision 7, for 
728.44  local public health promotion and 
728.45  protection related to high risk 
728.46  behaviors by youth; and 
728.47  (2) $100,000 each year is for state 
728.48  administration for evaluation and 
728.49  technical assistance activities related 
728.50  to Minnesota Statutes, section 144.396, 
728.51  subdivision 7. 
728.52  [TANF LOCAL PUBLIC HEALTH PROMOTION 
728.53  CARRYFORWARD.] Any unexpended balance 
728.54  of the TANF funds appropriated for 
728.55  local public health promotion and 
728.56  protection in the first year of the 
728.57  biennium does not cancel but is 
728.58  available for the second year.  
728.59  [INFANT MORTALITY REDUCTION.] Of the 
728.60  TANF appropriation, $2,000,000 each 
729.1   year is for grants under Minnesota 
729.2   Statutes, section 145.928, subdivision 
729.3   7, to reduce infant mortality. 
729.4   [REDUCING INFANT MORTALITY 
729.5   CARRYFORWARD.] Any unexpended balance 
729.6   of the TANF funds appropriated for 
729.7   reducing infant mortality in the first 
729.8   year of the biennium does not cancel 
729.9   but is available for the second year. 
729.10  [HOME VISITING PROGRAM.] Of the TANF 
729.11  appropriation, $4,000,000 each year is 
729.12  for the home visiting program under 
729.13  Minnesota Statutes, section 145A.17. 
729.14  [POISON INFORMATION SYSTEM.] Of the 
729.15  general fund appropriation, $1,360,000 
729.16  each fiscal year is for poison control 
729.17  system grants under Minnesota Statutes, 
729.18  section 145.93.  This is a one-time 
729.19  appropriation that shall not become 
729.20  part of base-level funding in 2004-2005.
729.21  [WIC TRANSFERS.] The general fund 
729.22  appropriation for the women, infants, 
729.23  and children (WIC) food supplement 
729.24  program is available for either year of 
729.25  the biennium.  Transfers of these funds 
729.26  between fiscal years must be either to 
729.27  maximize federal funds or to minimize 
729.28  fluctuations in the number of program 
729.29  participants. 
729.30  [MINNESOTA CHILDREN WITH SPECIAL HEALTH 
729.31  NEEDS CARRYFORWARD.] General fund 
729.32  appropriations for treatment services 
729.33  in the services for Minnesota children 
729.34  with special health needs program are 
729.35  available for either year of the 
729.36  biennium. 
729.37  [HEALTH STATUS IMPROVEMENT GRANTS.] Of 
729.38  the general fund appropriation, 
729.39  $120,000 each year is to the 
729.40  commissioner to award grants to improve 
729.41  the quality of health care services 
729.42  provided to children.  Priority shall 
729.43  be given to grant applications that: 
729.44  (1) develop "best practices guidelines" 
729.45  for primary and preventative health 
729.46  care services to all children in 
729.47  Minnesota, regardless of payor; 
729.48  (2) design and implement 
729.49  community-based education and 
729.50  evaluation programs for physicians and 
729.51  other direct care providers to 
729.52  implement best practices guidelines; 
729.53  and 
729.54  (3) reduce disparities in access to 
729.55  health care services and in health 
729.56  status of Minnesota children. 
729.57  [FAMILY HOME VISITING CARRYFORWARD.] 
729.58  Any unexpended balance of the TANF 
729.59  funds appropriated for family home 
729.60  visiting in the first year of the 
729.61  biennium does not cancel but is 
730.1   available for the second year. 
730.2   [SUICIDE PREVENTION.] Of the general 
730.3   fund appropriation, $1,100,000 each 
730.4   fiscal year is for suicide prevention 
730.5   activities under Minnesota Statutes, 
730.6   section 145.56.  Of the amounts 
730.7   available: 
730.8   (1) $75,000 each fiscal year is for 
730.9   refining, coordinating, and 
730.10  implementing the suicide prevention 
730.11  plan according to Minnesota Statutes, 
730.12  section 145.56, subdivisions 1, 3, 4, 
730.13  and 5. 
730.14  (2) $1,025,000 each fiscal year is to 
730.15  fund community-based programs under 
730.16  Minnesota Statutes, section 145.56, 
730.17  subdivision 2. 
730.18  [RURAL HEALTH TECHNOLOGY DEMONSTRATION 
730.19  PROJECT.] The commissioner may include 
730.20  as an eligible activity through the 
730.21  department's rural health grant 
730.22  programs a demonstration project which 
730.23  will model and pilot the introduction 
730.24  of technologies designed to increase 
730.25  rural hospital and clinics' vital 
730.26  services, retain patients in their 
730.27  local communities for treatment and 
730.28  care, reduce outmigration of patients 
730.29  to distant providers, and improve the 
730.30  health and wellness of rural residents, 
730.31  especially the elderly. 
730.32  [ONE-TIME REDUCTION FOR FAMILY PLANNING 
730.33  SPECIAL PROJECT GRANTS.] For fiscal 
730.34  year 2003, base-level funding for the 
730.35  Family Planning Special Project Grants 
730.36  under Minnesota Statutes, section 
730.37  145.925, shall be reduced by $690,000.  
730.38  This reduction is contingent upon the 
730.39  receipt of a federal 1115 waiver for a 
730.40  medical assistance demonstration 
730.41  project for family planning services. 
730.42  Subd. 3.  Access and Quality 
730.43  Improvement                           28,526,000     28,067,000 
730.44                Summary by Fund
730.45  General              12,818,000    13,563,000 
730.46  State Government 
730.47  Special Revenue       8,647,000     8,729,000 
730.48  Health Care 
730.49  Access                7,061,000     5,775,000 
730.50  [PURCHASING ALLIANCES.] Of the health 
730.51  care access fund appropriation, 
730.52  $200,000 the first year and $50,000 the 
730.53  second year is for grants to 
730.54  organizations developing health care 
730.55  purchasing alliances established under 
730.56  Minnesota Statutes, chapter 62T.  Of 
730.57  this appropriation, $50,000 the first 
730.58  year is for a grant to the University 
730.59  of Minnesota-Crookston to support the 
730.60  northwest purchasing alliance; $50,000 
731.1   the first year is for a grant to the 
731.2   southwest regional development 
731.3   commission to support the southwest 
731.4   purchasing alliance; $50,000 the first 
731.5   year is for a grant to the arrowhead 
731.6   regional development commission to 
731.7   support the development of a northeast 
731.8   Minnesota purchasing alliance; and 
731.9   $50,000 each year is for a grant to the 
731.10  Brainerd lakes area chamber of commerce 
731.11  education association to support the 
731.12  north central purchasing alliance.  The 
731.13  state grants must be matched on a 
731.14  one-to-one basis by nonstate funds.  
731.15  This is a one-time appropriation and 
731.16  shall not become part of the base-level 
731.17  funding for the 2004-2005 biennium. 
731.18  [SUPPLEMENTAL NURSING SERVICES AGENCY 
731.19  REGISTRATION EFFECTIVE DATE.] 
731.20  Notwithstanding the effective date of 
731.21  Minnesota Statutes, sections 144A.71 to 
731.22  144A.74, a supplemental nursing 
731.23  services agency must register with the 
731.24  commissioner not later than August 31, 
731.25  2001. 
731.26  [INITIAL MEDICARE CERTIFICATION COSTS.] 
731.27  Of the appropriation from the state 
731.28  government special revenue fund, 
731.29  $135,000 each year is for initial 
731.30  Medicare certification surveys.  The 
731.31  appropriation shall be recovered 
731.32  through provider fees according to 
731.33  Minnesota Statutes, section 144.122, 
731.34  paragraph (e).  Any unspent portion of 
731.35  this appropriation shall be deposited 
731.36  in the state government special revenue 
731.37  fund. 
731.38  [HEALTH CARE SAFETY NET.] (a) Of the 
731.39  health care access fund appropriation, 
731.40  $3,308,000 in the first year and 
731.41  $2,120,000 in the second year is for a 
731.42  grant program to provide rural hospital 
731.43  capital improvement grants described in 
731.44  Minnesota Statutes, section 144.148. 
731.45  (b) The commissioner of finance shall 
731.46  make base-level adjustments for fiscal 
731.47  year 2004 funding in this program as 
731.48  follows: 
731.49  (1) reduce the health care access fund 
731.50  base by $2,120,000; and 
731.51  (2) increase the general fund base by 
731.52  $2,120,000. 
731.53  [HOME CARE PROVIDERS FEE WAIVER.] 
731.54  Notwithstanding the provisions of 
731.55  Minnesota Rules, chapter 4669, and 
731.56  Minnesota Statutes, section 144A.4605, 
731.57  subdivision 5, the commissioner of 
731.58  health may, during the biennium 
731.59  beginning July 1, 2001, waive license 
731.60  fees for all home care providers who 
731.61  hold a current license as of June 30, 
731.62  2001, for the purpose of reducing 
731.63  surplus home care fees in the state 
731.64  government special revenue fund. 
732.1   [RURAL AMBULANCE STUDY.] (a) The 
732.2   commissioner shall direct the rural 
732.3   health advisory committee to conduct a 
732.4   study and make recommendations 
732.5   regarding the challenges faced by rural 
732.6   ambulance services related to:  
732.7   personnel shortages for volunteer 
732.8   ambulance services; personnel shortages 
732.9   for full-time, paid ambulance services; 
732.10  funding for ambulance operations; and 
732.11  the impact on rural ambulance services 
732.12  from changes in ambulance reimbursement 
732.13  as a result of the federal Balanced 
732.14  Budget Act of 1997, Public Law Number 
732.15  105-33. 
732.16  (b) The advisory committee may also 
732.17  examine and make recommendations on:  
732.18  (1) whether state law allows adequate 
732.19  flexibility to address operational and 
732.20  staffing problems encountered by rural 
732.21  ambulance services; and 
732.22  (2) whether current incentive programs, 
732.23  such as the volunteer ambulance 
732.24  recruitment program and state 
732.25  reimbursement for volunteer training, 
732.26  are adequate to ensure ambulance 
732.27  service volunteers will be available in 
732.28  rural areas. 
732.29  (c) The advisory committee shall 
732.30  identify existing state, regional, and 
732.31  local resources supporting the 
732.32  provision of local ambulance services 
732.33  in rural areas. 
732.34  (d) The advisory committee shall, if 
732.35  appropriate, make recommendations for 
732.36  addressing alternative delivery models 
732.37  for rural volunteer ambulance 
732.38  services.  Such alternatives may 
732.39  include, but are not limited to, 
732.40  multiprovider service coalitions, 
732.41  purchasing cooperatives, regional 
732.42  response strategies, and different 
732.43  utilization of first responder and 
732.44  rescue squads. 
732.45  (e) In conducting its study, the 
732.46  advisory committee shall consult with 
732.47  groups broadly representative of rural 
732.48  health and emergency medical services.  
732.49  Such groups may include:  local elected 
732.50  officials; ambulance and emergency 
732.51  medical services associations; 
732.52  hospitals and nursing homes; 
732.53  physicians, nurses, and mid-level 
732.54  practitioners; rural health groups; the 
732.55  emergency medical services regulatory 
732.56  board and regional emergency medical 
732.57  services boards; and fire and sheriff's 
732.58  departments. 
732.59  (f) The advisory committee shall report 
732.60  its findings and recommendations to the 
732.61  commissioner by September 1, 2002. 
732.62  (g) Data on an emergency medical 
732.63  services provider organization, private 
733.1   or nonprofit payor, or provider that 
733.2   are collected and maintained as part of 
733.3   this study are private data on 
733.4   individuals or nonpublic data as 
733.5   defined in Minnesota Statutes, section 
733.6   13.02. 
733.7   [LICENSE FEES.] Notwithstanding the 
733.8   provisions of Minnesota Statutes, 
733.9   sections 144.122, 144.53, and 144A.07, 
733.10  a health care facility licensed under 
733.11  the provisions of Minnesota Statutes, 
733.12  chapter 144 or 144A, may submit the 
733.13  required fee for licensure renewal in 
733.14  quarterly installments.  Any health 
733.15  care facility requesting to pay the 
733.16  renewal fees in quarterly payments 
733.17  shall make the request at the time of 
733.18  license renewal.  Facilities licensed 
733.19  under the provisions of Minnesota 
733.20  Statutes, chapter 144, shall submit 
733.21  quarterly payments by January 1, April 
733.22  1, July 1, and October 1 of each year.  
733.23  Nursing homes licensed under Minnesota 
733.24  Statutes, chapter 144A, shall submit 
733.25  the first quarterly payment with the 
733.26  application for renewal, and the 
733.27  remaining payments shall be submitted 
733.28  at three-month intervals from the 
733.29  license expiration date.  The 
733.30  commissioner of health can require full 
733.31  payment of any outstanding balance if a 
733.32  quarterly payment is late.  Full 
733.33  payment of the annual renewal fee will 
733.34  be required in the event that the 
733.35  facility is sold or ceases operation 
733.36  during the licensure year.  Failure to 
733.37  pay the licensure fee is grounds for 
733.38  the nonrenewal of the license. 
733.39  Subd. 4.  Health Protection           30,566,000     31,539,000 
733.40                Summary by Fund 
733.41  General              13,495,000    13,696,000 
733.42  State Government 
733.43  Special Revenue      17,071,000    17,843,000 
733.44  [EMERGING HEALTH THREATS.] (a) Of the 
733.45  general fund appropriation, $1,600,000 
733.46  in the first year and $1,800,000 in the 
733.47  second year are to increase the state 
733.48  capacity to identify and respond to 
733.49  emerging health threats.  
733.50  (b) Of these amounts, $1,300,000 in the 
733.51  first year and $1,500,000 in the second 
733.52  year are to expand state laboratory 
733.53  capacity to identify infectious disease 
733.54  organisms, evaluate environmental 
733.55  contaminants, develop new analytical 
733.56  techniques, provide emergency response, 
733.57  and support local government by 
733.58  training health care system workers to 
733.59  deal with biological and chemical 
733.60  health threats.  
733.61  (c) $300,000 each year is to train, 
733.62  consult, and otherwise assist local 
733.63  officials responding to clandestine 
734.1   drug laboratories and minimizing health 
734.2   risks to responders and the public.  
734.3   [BASE FUNDING TRANSFER PROHIBITION.] 
734.4   The proposal to transfer base funds 
734.5   from grants to operations within the 
734.6   health protection program shall not be 
734.7   implemented. 
734.8   [COMMUNITY HEALTH EDUCATION AND 
734.9   PROMOTION PROGRAM ON FOOD SAFETY.] (a) 
734.10  Of the general fund appropriation, 
734.11  $200,000 in fiscal year 2002 is for a 
734.12  grant to the city of Minneapolis to 
734.13  establish a community-based health 
734.14  education and promotion program on food 
734.15  safety in the Latino, Somali, and 
734.16  Southeast Asian communities. 
734.17  (b) The program shall consist of direct 
734.18  training of food industry operators and 
734.19  workers on safe handling of food and 
734.20  proper operation of food establishments 
734.21  and a community consumer awareness 
734.22  campaign to increase community 
734.23  awareness of food safety and access to 
734.24  food regulatory services.  
734.25  (c) This is a one-time appropriation 
734.26  and shall not become part of the base 
734.27  level funding for the 2004-2005 
734.28  biennium. 
734.29  Subd. 5.  Management and 
734.30  Support Services                       5,455,000      5,867,000 
734.31                Summary by Fund
734.32  General               5,304,000     5,712,000 
734.33  State Government 
734.34  Special Revenue         151,000       155,000 
734.35  Sec. 4.  VETERANS NURSING   
734.36  HOMES BOARD                           30,948,000     30,030,000 
734.37  [VETERANS HOMES SPECIAL REVENUE 
734.38  ACCOUNT.] The general fund 
734.39  appropriations made to the board may be 
734.40  transferred to a veterans homes special 
734.41  revenue account in the special revenue 
734.42  fund in the same manner as other 
734.43  receipts are deposited according to 
734.44  Minnesota Statutes, section 198.34, and 
734.45  are appropriated to the board for the 
734.46  operation of board facilities and 
734.47  programs. 
734.48  [SETTING COST OF CARE.] The cost of 
734.49  care for the domiciliary residents at 
734.50  the Minneapolis veterans home for 
734.51  fiscal year 2002 and fiscal year 2003 
734.52  shall be calculated based on 100 
734.53  percent occupancy. 
734.54  [DEFICIENCY FUNDING.] Of the general 
734.55  fund appropriation in fiscal year 2002, 
734.56  $2,000,000 is available with the 
734.57  approval of the commissioner of 
734.58  finance.  Approval of the commissioner 
734.59  of finance is contingent upon review of 
735.1   the board's submittal of a report 
735.2   outlining the following: 
735.3   (1) a long-term revenue outlook for the 
735.4   homes; 
735.5   (2) a review and recommendation of 
735.6   alternative funding sources for the 
735.7   homes' operations; and 
735.8   (3) administrative and service options 
735.9   to bring cost growth in line with 
735.10  revenues. 
735.11  Sec. 5.  HEALTH-RELATED BOARDS 
735.12  Subdivision 1.  Total       
735.13  Appropriation                         11,179,000     11,424,000 
735.14  [STATE GOVERNMENT SPECIAL REVENUE 
735.15  FUND.] The appropriations in this 
735.16  section are from the state government 
735.17  special revenue fund. 
735.18  [NO SPENDING IN EXCESS OF REVENUES.] 
735.19  The commissioner of finance shall not 
735.20  permit the allotment, encumbrance, or 
735.21  expenditure of money appropriated in 
735.22  this section in excess of the 
735.23  anticipated biennial revenues or 
735.24  accumulated surplus revenues from fees 
735.25  collected by the boards.  Neither this 
735.26  provision nor Minnesota Statutes, 
735.27  section 214.06, applies to transfers 
735.28  from the general contingent account. 
735.29  Subd. 2.  Board of Chiropractic 
735.30  Examiners                                372,000        384,000
735.31  Subd. 3.  Board of Dentistry             946,000        855,000
735.32  [EXPANDED DUTIES.] Of this 
735.33  appropriation, $115,000 in fiscal year 
735.34  2002 is to the board for the costs 
735.35  associated with the expanded duties 
735.36  relative to the regulation of dental 
735.37  hygienists and foreign-trained 
735.38  dentists.  This is a one-time 
735.39  appropriation and shall not become part 
735.40  of the base level funding for the 
735.41  2004-2005 biennium. 
735.42  Subd. 4.  Board of Dietetic
735.43  and Nutrition Practice                    98,000        101,000
735.44  Subd. 5.  Board of Marriage and 
735.45  Family Therapy                           114,000        118,000
735.46  [FEE INCREASE.] The board may increase 
735.47  fees to meet the requirements of 
735.48  Minnesota Statutes, section 214.06. 
735.49  Subd. 6.  Board of Medical  
735.50  Practice                               3,334,000      3,400,000
735.51  Subd. 7.  Board of Nursing             2,769,000      2,902,000
735.52  [HEALTH PROFESSIONAL SERVICES 
735.53  ACTIVITY.] Of these appropriations, 
735.54  $515,000 the first year and $546,000 
735.55  the second year are for the health 
736.1   professional services activity. 
736.2   [FEE INCREASE.] The board may increase 
736.3   fees to meet the requirements of 
736.4   Minnesota Statutes, section 214.06.  
736.5   Subd. 8.  Board of Nursing
736.6   Home Administrators                     200,000        198,000
736.7   Subd. 9.  Board of Optometry              93,000         96,000
736.8   Subd. 10.  Board of Pharmacy           1,336,000      1,386,000
736.9   [ADMINISTRATIVE SERVICES UNIT.] Of this 
736.10  appropriation, $354,000 the first year 
736.11  and $359,000 the second year are for 
736.12  the health boards administrative 
736.13  services unit.  The administrative 
736.14  services unit may receive and expend 
736.15  reimbursements for services performed 
736.16  for other agencies. 
736.17  Subd. 11.  Board of Physical Therapy     191,000        197,000
736.18  Subd. 12.  Board of Podiatry              53,000         45,000
736.19  Subd. 13.  Board of Psychology           669,000        680,000
736.20  Subd. 14.  Board of Social Work          846,000        873,000
736.21  Subd. 15.  Board of Veterinary 
736.22  Medicine                                 158,000        189,000
736.23  Sec. 6.  EMERGENCY MEDICAL
736.24  SERVICES BOARD                         2,770,000      2,775,000 
736.25  [COMPREHENSIVE ADVANCED LIFE SUPPORT 
736.26  EDUCATIONAL PROGRAM.] Of this 
736.27  appropriation, $300,000 in fiscal year 
736.28  2002 and $300,000 in fiscal year 2003 
736.29  is to increase funding for the 
736.30  comprehensive advanced life support 
736.31  educational program under Minnesota 
736.32  Statutes, section 144E.37.  
736.33  [AUTOMATIC DEFIBRILLATOR STUDY.] Of 
736.34  this appropriation, $32,000 in fiscal 
736.35  year 2002 is to the board to study, in 
736.36  consultation with the commissioner of 
736.37  public safety, and report to the 
736.38  legislature by December 15, 2002, 
736.39  regarding the availability of automatic 
736.40  defibrillators outside the seven-county 
736.41  metropolitan area.  The report shall 
736.42  include recommendations to make these 
736.43  devices accessible within a reasonable 
736.44  distance through the nonmetropolitan 
736.45  area, including recommendations for 
736.46  funding their acquisition and 
736.47  distribution. 
736.48  Sec. 7.  COUNCIL ON DISABILITY           692,000        714,000
736.49  Sec. 8.  OMBUDSMAN FOR MENTAL 
736.50  HEALTH AND MENTAL RETARDATION          1,419,000      1,462,000
736.51  Sec. 9.  OMBUDSMAN
736.52  FOR FAMILIES                             236,000        245,000
736.53  Sec. 10.  TRANSFERS 
737.1   Subdivision 1.  Grants
737.2   The commissioner of human services, 
737.3   with the approval of the commissioner 
737.4   of finance, and after notification of 
737.5   the chair of the senate health, human 
737.6   services and corrections budget 
737.7   division and the chair of the house 
737.8   health and human services finance 
737.9   committee, may transfer unencumbered 
737.10  appropriation balances for the biennium 
737.11  ending June 30, 2003, within fiscal 
737.12  years among the MFIP, general 
737.13  assistance, general assistance medical 
737.14  care, medical assistance, Minnesota 
737.15  supplemental aid, and group residential 
737.16  housing programs, and the entitlement 
737.17  portion of the chemical dependency 
737.18  consolidated treatment fund, and 
737.19  between fiscal years of the biennium. 
737.20  Subd. 2.  Administration
737.21  Positions, salary money, and nonsalary 
737.22  administrative money may be transferred 
737.23  within the departments of human 
737.24  services and health and within the 
737.25  programs operated by the veterans 
737.26  nursing homes board as the 
737.27  commissioners and the board consider 
737.28  necessary, with the advance approval of 
737.29  the commissioner of finance.  The 
737.30  commissioner or the board shall inform 
737.31  the chairs of the house health and 
737.32  human services finance committee and 
737.33  the senate health, human services and 
737.34  corrections budget division quarterly 
737.35  about transfers made under this 
737.36  provision. 
737.37  Subd. 3.  Prohibited Transfers 
737.38  Grant money shall not be transferred to 
737.39  operations within the departments of 
737.40  human services and health and within 
737.41  the programs operated by the veterans 
737.42  nursing homes board without the 
737.43  approval of the legislature. 
737.44  Sec. 11.  INDIRECT COSTS NOT TO
737.45  FUND PROGRAMS
737.46  The commissioners of health and of 
737.47  human services shall not use indirect 
737.48  cost allocations to pay for the 
737.49  operational costs of any program for 
737.50  which they are responsible. 
737.51  Sec. 12.  CARRYOVER LIMITATION 
737.52  None of the appropriations in this 
737.53  article which are allowed to be carried 
737.54  forward from fiscal year 2002 to fiscal 
737.55  year 2003 shall become part of the base 
737.56  level funding for the 2004-2005 
737.57  biennial budget, unless specifically 
737.58  directed by the legislature. 
737.59  Sec. 13.  SUNSET OF UNCODIFIED LANGUAGE
737.60  All uncodified language contained in 
738.1   this article expires on June 30, 2003, 
738.2   unless a different expiration date is 
738.3   explicit. 
738.4   Sec. 14.  REIMBURSEMENT TO LOCAL GOVERNMENTS 
738.5   During the fiscal year beginning July 
738.6   1, 2001, if a county or other local 
738.7   unit of government advances money from 
738.8   its own resources to carry out a 
738.9   program under state law for which it is 
738.10  authorized to spend money received from 
738.11  a state agency, and the advance of 
738.12  local money was made necessary because 
738.13  of a delay in the appropriation of 
738.14  state or federal money, the state 
738.15  agency administering the program must 
738.16  use the state or federal money, when it 
738.17  becomes available, to reimburse the 
738.18  local government for the advance of 
738.19  local money to pay obligations that 
738.20  would otherwise have been paid from the 
738.21  state or federal money. 
738.22  Sec. 15.  RETROACTIVITY
738.23  A contract encumbered or a grant 
738.24  awarded by the commissioners of health, 
738.25  human services, or corrections before 
738.26  September 1, 2001, may be made 
738.27  retroactive to July 1, 2001. 
738.28     Sec. 16.  [246.141] [PROJECT LABOR.] 
738.29     Wages for project labor may be paid by the commissioner out 
738.30  of repairs and betterments money if the individual is to be 
738.31  engaged in a construction project or a repair project of 
738.32  short-term and nonrecurring nature.  Compensation for project 
738.33  labor shall be based on the prevailing wage rates, as defined in 
738.34  section 177.42, subdivision 6.  Project laborers are excluded 
738.35  from the provisions of sections 43A.22 to 43A.30, and shall not 
738.36  be eligible for state-paid insurance and benefits. 
738.37     Sec. 17.  [EFFECTIVE DATE.] 
738.38     The provisions in this act are effective July 1, 2001, 
738.39  unless a different effective date is specified. 
738.40                             ARTICLE 18
738.41                          CRIMINAL JUSTICE
738.42  Section 1.  [CRIMINAL JUSTICE APPROPRIATIONS.] 
738.43     The sums shown in the columns marked "APPROPRIATIONS" are 
738.44  appropriated from the general fund, or another fund named, to 
738.45  the agencies and for the purposes specified in this act, to be 
738.46  available for the fiscal years indicated for each purpose.  The 
738.47  figures "2002" and "2003" where used in this article, mean that 
739.1   the appropriation or appropriations listed under them are 
739.2   available for the year ending June 30, 2002, or June 30, 2003, 
739.3   respectively. 
739.4                           SUMMARY BY FUND
739.5                            2002          2003           TOTAL
739.6   General           $  413,000,000  $  429,246,000   $  842,246,000
739.7   Special Revenue   $    1,389,000  $    1,242,000   $    2,631,000
739.8   TOTAL             $  414,389,000  $  430,488,000   $  844,877,000
739.9                                              APPROPRIATIONS 
739.10                                         Available for the Year 
739.11                                             Ending June 30 
739.12                                            2002         2003 
739.13  Sec. 2.  BOARD OF PUBLIC DEFENSE 
739.14  Subdivision 1.  Total       
739.15  Appropriation                         50,723,000     54,709,000
739.16  [APPROPRIATIONS FOR PROGRAMS.] The 
739.17  amounts that may be spent from this 
739.18  appropriation for each program are 
739.19  specified in the following subdivisions.
739.20  [TRANSCRIPT COSTS.] During the biennium 
739.21  ending June 30, 2003, the state public 
739.22  defender may, with the approval of the 
739.23  commissioner of finance, transfer funds 
739.24  for transcript costs from the office of 
739.25  administrative services to the state 
739.26  public defender. 
739.27  [PROHIBITION ON USE OF FUNDS FOR 
739.28  CERTAIN LAWSUITS.] None of this 
739.29  appropriation shall be used to pay for 
739.30  lawsuits against public agencies or 
739.31  public officials to change social or 
739.32  public policy.  
739.33  [PROHIBITION ON USE OF FUNDS FOR 
739.34  LOBBYING.] None of this appropriation 
739.35  shall be used to pay an employee solely 
739.36  to provide lobbying services or 
739.37  legislative advocacy or to serve solely 
739.38  as a legislative liaison. 
739.39  [PUBLIC DEFENSE CORPORATIONS.] The 
739.40  board of public defense shall continue 
739.41  to fund the existing public defense 
739.42  corporations under Minnesota Statutes, 
739.43  section 611.216. 
739.44  Subd. 2.  State Public Defender 
739.45       3,450,000      3,734,000
739.46  Subd. 3.  Administrative Services
739.47  Office
739.48       2,167,000      2,543,000
739.49  Subd. 4.  District Public Defense 
739.50      45,106,000     48,432,000
740.1   [COSTS ASSOCIATED WITH FELONY-LEVEL 
740.2   PENALTY FOR IMPAIRED DRIVING.] $125,000 
740.3   the second year is for costs associated 
740.4   with increased trials and appeals due 
740.5   to the felony-level driving while 
740.6   impaired penalty. 
740.7   Sec. 3.  CORRECTIONS 
740.8   Subdivision 1.  Total 
740.9   Appropriation                        362,820,000    374,682,000
740.10                Summary by Fund
740.11  General             361,431,000   373,440,000
740.12  Special Revenue       1,389,000     1,242,000
740.13  [APPROPRIATIONS FOR PROGRAMS.] The 
740.14  amounts that may be spent from this 
740.15  appropriation for each program are 
740.16  specified in the following subdivisions.
740.17  [UNENCUMBERED BALANCES.] Any 
740.18  unencumbered balances remaining in the 
740.19  first year do not cancel but are 
740.20  available for the second year of the 
740.21  biennium. 
740.22  [TRANSFER OF POSITIONS AND 
740.23  ADMINISTRATIVE MONEY.] Positions and 
740.24  administrative money may be transferred 
740.25  within the department of corrections as 
740.26  the commissioner considers necessary, 
740.27  upon the advance approval of the 
740.28  commissioner of finance. 
740.29  [TRANSFER OF SALARY FUNDS.] For the 
740.30  biennium ending June 30, 2003, the 
740.31  commissioner of corrections may, with 
740.32  the approval of the commissioner of 
740.33  finance, transfer funds to or from 
740.34  salaries. 
740.35  [CONTRACTS WITH PRIVATE CORPORATIONS.] 
740.36  During the biennium ending June 30, 
740.37  2003, the commissioner may enter into 
740.38  contracts with private corporations or 
740.39  governmental units of the state of 
740.40  Minnesota to house adult offenders 
740.41  committed to the commissioner of 
740.42  corrections.  Every effort shall be 
740.43  made to house individuals committed to 
740.44  the commissioner of corrections in 
740.45  Minnesota correctional facilities. 
740.46  [REDUCTION IN SERVICES OR STAFFING.] 
740.47  During the biennium ending June 30, 
740.48  2003, if it is necessary to reduce 
740.49  services or staffing within a 
740.50  correctional facility, the commissioner 
740.51  or the commissioner's designee shall 
740.52  meet with affected exclusive 
740.53  representatives.  The commissioner 
740.54  shall make every reasonable effort to 
740.55  retain correctional officer and prison 
740.56  industry employees should reductions be 
740.57  necessary. 
740.58  Subd. 2.  Correctional Institutions
741.1                 Summary by Fund
741.2                           2002          2003
741.3   General             225,365,000   232,584,000
741.4   Special Revenue         932,000       785,000
741.5   [CONTRACTS FOR BEDS AT RUSH CITY.] If 
741.6   the commissioner contracts with other 
741.7   states, local units of government, or 
741.8   the federal government to rent beds in 
741.9   the Rush City correctional facility, 
741.10  the commissioner shall charge a per 
741.11  diem under the contract, to the extent 
741.12  possible, that is equal to or greater 
741.13  than the per diem cost of housing 
741.14  Minnesota inmates in the facility.  The 
741.15  per diem cost for housing inmates of 
741.16  other states, local units of 
741.17  government, or the federal government 
741.18  at this facility shall be based on the 
741.19  assumption that the facility is at or 
741.20  near capacity.  Notwithstanding any 
741.21  laws to the contrary, the commissioner 
741.22  may use the per diem appropriation to 
741.23  operate the state correctional 
741.24  institutions. 
741.25  [FAITH-BASED PRERELEASE PROGRAM.] 
741.26  $100,000 the first year and $100,000 
741.27  the second year are for:  (1) 
741.28  developing a request for proposals from 
741.29  vendors to privately operate a 
741.30  partially publicly funded, faith-based 
741.31  prerelease program with a community 
741.32  reintegration component at a 
741.33  correctional facility with a custody 
741.34  level of less than four; and (2) 
741.35  implementing the program.  The 
741.36  commissioner shall issue the request 
741.37  for proposals by November 1, 2001, and 
741.38  shall select a vendor to begin 
741.39  operating the program by January 1, 
741.40  2002.  
741.41  In order to receive the appropriation, 
741.42  the commissioner must obtain an equal 
741.43  share of matching grants from the 
741.44  federal government or private sources.  
741.45  Both financial and in-kind resources 
741.46  can serve to fulfill the match 
741.47  requirement. 
741.48  [PER DIEM REDUCTION PLAN.] The 
741.49  commissioner may use any cost savings 
741.50  generated through the implementation of 
741.51  a per diem reduction plan for capital 
741.52  improvements, which will contribute to 
741.53  further per diem reductions at adult 
741.54  correctional facilities. 
741.55  [PRISON HEALTH CARE COMMISSION.] The 
741.56  commissioner of corrections may 
741.57  establish a prison health care 
741.58  commission to develop an inmate health 
741.59  care plan to be provided to offenders 
741.60  under the custody of the department.  
741.61  The purpose of the prison health care 
741.62  commission shall be to specify the 
741.63  level of health care services to be 
742.1   provided to offenders and to define and 
742.2   develop a detailed list of diagnoses 
742.3   and treatments that will be provided 
742.4   within the resources appropriated to 
742.5   the department of corrections for 
742.6   offender health care.  The department 
742.7   of corrections shall use this list to 
742.8   manage health care priorities to ensure 
742.9   the availability of life-saving 
742.10  treatments and maintain an acceptable 
742.11  level of health care services for all 
742.12  offenders within appropriated resources.
742.13  If established, the prison health care 
742.14  commission shall be comprised of the 
742.15  following members: 
742.16  (1) the commissioner of the department 
742.17  of corrections, who will act as the 
742.18  chair of the commission; 
742.19  (2) the medical director of the 
742.20  department of corrections; 
742.21  (3) two members of the legislature 
742.22  appointed by the governor; 
742.23  (4) a representative of the department 
742.24  of human services; and 
742.25  (5) two wardens of Minnesota 
742.26  correctional facilities. 
742.27  If a prison health care commission is 
742.28  established, an interagency workgroup 
742.29  consisting of representatives of the 
742.30  departments of health, commerce, human 
742.31  services, and corrections shall provide 
742.32  technical assistance to the prison 
742.33  health care commission. 
742.34  If established, the prison health care 
742.35  commission shall provide a report to 
742.36  the governor and the chairs and ranking 
742.37  minority members of the house and 
742.38  senate committees and divisions having 
742.39  jurisdiction over crime prevention and 
742.40  judiciary finance that recommends and 
742.41  explains a hierarchy of health services 
742.42  that represents the comparative 
742.43  benefits of each service to the entire 
742.44  population to be served.  The report 
742.45  must be submitted within 12 months of 
742.46  the commission's formation date. 
742.47  [BED IMPACT OF FELONY-LEVEL PENALTY FOR 
742.48  IMPAIRED DRIVING.] $2,137,000 the 
742.49  second year is for increased costs due 
742.50  to the bed impact of the felony-level 
742.51  driving while impaired penalty. 
742.52  Subd. 3.  Juvenile Services
742.53      13,984,000     14,283,000 
742.54  [JUVENILE FEMALE FUNDING AND 
742.55  PROGRAMMING.] In order to maximize 
742.56  federal IV-E funding for juvenile 
742.57  females committed to the commissioner 
742.58  of corrections, the department of 
742.59  corrections shall make necessary 
743.1   changes to the juvenile females 
743.2   facility and program in order to be in 
743.3   compliance with IV-E guidelines and 
743.4   requirements.  All new IV-E funds 
743.5   generated by eligible juvenile females 
743.6   committed to the commissioner or placed 
743.7   in the department of corrections 
743.8   program for juvenile females shall be 
743.9   deposited in the general fund. 
743.10  Subd. 4.  Community Services
743.11                Summary by Fund
743.12  General             109,252,000   113,488,000
743.13  Special Revenue         150,000       150,000
743.14  [SUPERVISION OF FELONY-LEVEL OFFENDERS 
743.15  IN NON-CCA COUNTIES.] $410,000 the 
743.16  first year and $550,000 the second year 
743.17  are for probation and supervised 
743.18  release services.  This appropriation 
743.19  shall be used solely for the purpose of 
743.20  hiring new probation officers for 
743.21  supervision of felony-level offenders 
743.22  in noncommunity corrections act 
743.23  counties. 
743.24  [COUNTY PROBATION OFFICER 
743.25  REIMBURSEMENTS.] $831,000 the first 
743.26  year and $1,100,000 the second year are 
743.27  for county probation officer 
743.28  reimbursements to bring the state's 
743.29  funding to 50 percent of the cost of 
743.30  providing these services.  Those funds 
743.31  in excess of the state's 50 percent 
743.32  contribution are for the purpose of 
743.33  hiring new probation officers for 
743.34  supervision of juvenile and 
743.35  misdemeanant offenders in these 
743.36  counties. 
743.37  [COMMUNITY CORRECTIONS ACT SUBSIDY 
743.38  FUNDING.] $7,500,000 the first year and 
743.39  $7,500,000 the second year are for an 
743.40  increase in community corrections act 
743.41  subsidy funding to be distributed 
743.42  according to the community corrections 
743.43  aid formula in Minnesota Statutes, 
743.44  section 401.10.  In fiscal year 2002, 
743.45  the commissioner shall distribute the 
743.46  same amount of money to the Hennepin 
743.47  county community corrections agency, 
743.48  the Ramsey county community corrections 
743.49  agency, the Anoka county community 
743.50  corrections agency, the Arrowhead 
743.51  community corrections agency, the 
743.52  Dodge-Fillmore-Olmsted community 
743.53  corrections agency, and the tri-county 
743.54  (Polk, Norman, and Red Lake) community 
743.55  corrections agency as was distributed 
743.56  in fiscal year 2001 for productive day 
743.57  initiative programs.  The legislature 
743.58  intends that those programs receiving 
743.59  this money shall be funded by the 
743.60  counties beginning with the fiscal year 
743.61  starting July 1, 2002. The commissioner 
743.62  of corrections may not make these 
743.63  distributions for productive day 
743.64  initiative programs, unless the program 
744.1   has submitted to the commissioner a 
744.2   self-sufficiency plan detailing how the 
744.3   program will operate without a state 
744.4   appropriation after July 1, 2002. 
744.5   [INCREASED SUPERVISION OF ADULT SEX 
744.6   OFFENDERS.] $1,731,000 the first year 
744.7   and $2,000,000 the second year are for 
744.8   enhanced supervision of adult felony 
744.9   sex offenders by employing additional 
744.10  probation officers to reduce the 
744.11  caseloads of probation officers 
744.12  supervising sex offenders on probation 
744.13  or supervised release and/or to provide 
744.14  job training and placement and 
744.15  treatment for these offenders. 
744.16  Of this appropriation, $150,000 each 
744.17  year is for a grant to a multicounty 
744.18  community corrections agency to 
744.19  continue to provide increased 
744.20  supervision of and treatment to sex 
744.21  offenders who are on probation, 
744.22  intensive community supervision, 
744.23  supervised release, or intensive 
744.24  supervised release.  This grant must be 
744.25  used to maintain the number of 
744.26  offenders supervised by officers with 
744.27  specialized caseloads to an average of 
744.28  35 offenders.  This appropriation shall 
744.29  become part of the base budget of the 
744.30  department of corrections for an annual 
744.31  grant to the multicounty community 
744.32  corrections agency for this purpose.  
744.33  The grant recipient must report by 
744.34  January 15, 2004, to the house and 
744.35  senate committees with jurisdiction 
744.36  over criminal justice policy and 
744.37  funding on the outcomes of the program, 
744.38  including comparative recidivism rates. 
744.39  The commissioner shall distribute the 
744.40  remaining funds with 25 percent of the 
744.41  money appropriated to non-Community 
744.42  Corrections Act counties and 75 percent 
744.43  appropriated to Community Corrections 
744.44  Act counties.  The commissioner shall 
744.45  distribute the appropriation to 
744.46  Community Corrections Act counties 
744.47  according to the formula contained in 
744.48  Minnesota Statutes, section 401.10.  
744.49  Each Community Corrections Act 
744.50  jurisdiction and the department's 
744.51  probation and supervised release unit 
744.52  shall submit to the commissioner an 
744.53  analysis of need along with a plan to 
744.54  meet these needs and reduce adult 
744.55  felony sex offender caseloads and/or 
744.56  provide the job training and placement 
744.57  and treatment for these offenders.  
744.58  Upon approval of the plans, the 
744.59  non-Community Corrections Act portion 
744.60  of these funds shall be appropriated to 
744.61  the department and the distribution 
744.62  shall be based on statewide need.  The 
744.63  Community Corrections Act funds shall 
744.64  be disbursed as grants to each 
744.65  Community Corrections Act 
744.66  jurisdiction.  These appropriations may 
744.67  not be used to supplant existing state 
744.68  or county probation officer positions. 
745.1   [RESTORATIVE JUSTICE PROGRAMS.] 
745.2   $300,000 the first year and $300,000 
745.3   the second year are for grants related 
745.4   to restorative justice programs as 
745.5   defined in Minnesota Statutes, section 
745.6   611A.775.  Grant awards must be 
745.7   allocated in a balanced manner among 
745.8   rural, suburban, and urban 
745.9   organizations operating restorative 
745.10  justice programs.  Preference must be 
745.11  given to organizations or programs that:
745.12  (1) are currently operating and have 
745.13  had successful results; 
745.14  (2) are community-based; and 
745.15  (3) are supported by both private and 
745.16  public funding. 
745.17  [JUVENILE RESIDENTIAL TREATMENT 
745.18  GRANTS.] $5,208,000 the first year and 
745.19  $8,000,000 the second year are for 
745.20  juvenile residential treatment grants. 
745.21  [STUDY ON EXTENDED JURISDICTION 
745.22  JUVENILES.] $40,000 the first year is a 
745.23  one-time appropriation for a grant to 
745.24  the Institute on Criminal Justice, 
745.25  University of Minnesota Law School, to 
745.26  be used to study the sanctions imposed 
745.27  by judges on extended jurisdiction 
745.28  juveniles whose juvenile court 
745.29  disposition is revoked.  The study must 
745.30  include, at a minimum, the following 
745.31  information on these offenders: 
745.32  (1) the offense for which the offender 
745.33  originally was convicted as an extended 
745.34  jurisdiction juvenile; 
745.35  (2) the provisions of the juvenile 
745.36  disposition and the adult criminal 
745.37  sentence originally imposed by the 
745.38  sentencing court; 
745.39  (3) the reason why the juvenile 
745.40  disposition was revoked; 
745.41  (4) if the offender's stayed prison 
745.42  sentence was executed, the duration of 
745.43  the executed sentence; and 
745.44  (5) if the offender's stayed prison 
745.45  sentence was not executed, the adult 
745.46  criminal sanctions that were imposed as 
745.47  a condition of the stayed sentence 
745.48  including, but not limited to, jail 
745.49  time, restitution, fine, probation, 
745.50  home detention, and treatment. If 
745.51  possible, the study shall include a 
745.52  comparison of the adult criminal 
745.53  sanctions imposed on revoked extended 
745.54  jurisdiction juvenile offenders with 
745.55  the criminal sanctions imposed on 
745.56  similarly-situated adult criminal 
745.57  offenders at the time of their initial 
745.58  sentencing. 
745.59  The institute must present its findings 
745.60  to the chairs and ranking minority 
746.1   members of the house and senate 
746.2   committees having jurisdiction over 
746.3   criminal justice funding and policy by 
746.4   November 15, 2001. 
746.5   [STUDY ON FELONY-LEVEL PENALTY FOR 
746.6   DRIVING WHILE IMPAIRED.] $20,000 the 
746.7   first year is a one-time appropriation 
746.8   for a grant to the Institute on 
746.9   Criminal Justice, University of 
746.10  Minnesota Law School, to be used to 
746.11  formulate a research plan for 
746.12  evaluating the implementation and 
746.13  impact of a law authorizing a felony 
746.14  penalty for repeat impaired driving 
746.15  offenders.  The research plan shall 
746.16  outline the steps needed to conduct a 
746.17  rigorous evaluation that addresses both 
746.18  the impact of a felony DWI law on 
746.19  reoffense rates and its fiscal impact 
746.20  on the criminal justice system.  The 
746.21  plan also must estimate the cost of 
746.22  conducting the evaluation. 
746.23  At a minimum, the institute must: 
746.24  (1) identify and convene an advisory 
746.25  group to assist in identifying 
746.26  pertinent data sources and outline 
746.27  strategies for accessing these sources; 
746.28  (2) estimate the number of cases on 
746.29  which data would need to be collected 
746.30  so that statistical analysis could be 
746.31  performed on both a baseline population 
746.32  of offenders sentenced before the 
746.33  effective date of the felony penalty 
746.34  and a population of offenders sentenced 
746.35  to a felony-level penalty; 
746.36  (3) outline a sampling methodology to 
746.37  ensure that all ten judicial districts 
746.38  are adequately represented in the 
746.39  sample; 
746.40  (4) identify practitioners at the 
746.41  judicial district level to serve as 
746.42  contacts for research staff and to 
746.43  answer questions about programmatic 
746.44  costs; 
746.45  (5) identify the process for manually 
746.46  collecting, from individual judicial 
746.47  districts, information on sentences 
746.48  imposed on the populations of offenders 
746.49  being studied; 
746.50  (6) establish specific criteria 
746.51  delineating how to assess the fiscal 
746.52  impact of the felony DWI statute; and 
746.53  (7) recommend a time frame within which 
746.54  the evaluation study could be completed.
746.55  The institute must submit the research 
746.56  plan to the chairs and ranking minority 
746.57  members of the house and senate 
746.58  committees having jurisdiction over 
746.59  criminal justice funding and policy by 
746.60  December 15, 2001. 
747.1   [BUDGET REDUCTION; EXTENDED 
747.2   JURISDICTION JUVENILE GRANTS.] A 
747.3   $1,400,000 reduction each year in the 
747.4   base budget appropriation for community 
747.5   services must be directed to reductions 
747.6   in extended jurisdiction juvenile 
747.7   grants. 
747.8   [EXTENDED JURISDICTION JUVENILE 
747.9   GRANTS.] The commissioner of 
747.10  corrections may grant to counties up to 
747.11  $9,500 per extended jurisdiction 
747.12  juvenile offender each year. 
747.13  [COMMUNITY PRESERVATION UNIT MISSION.] 
747.14  The commissioner of corrections must 
747.15  rename the community preservation unit 
747.16  consistent with a revised mission for 
747.17  the unit that focuses on working with 
747.18  minority communities on post-release 
747.19  services, reentry, or other similar 
747.20  matters.  This mission must be 
747.21  consistent with the department of 
747.22  corrections' overall mission.  By 
747.23  September 1, 2001, the commissioner of 
747.24  corrections must report to the chairs 
747.25  and ranking minority members of the 
747.26  house and senate committees with 
747.27  jurisdiction over criminal justice 
747.28  policy and funding on the unit's new 
747.29  name, mission, and how this mission 
747.30  fits with the department of 
747.31  corrections' overall mission.  The 
747.32  community preservation unit and its 
747.33  successor must not award or administer 
747.34  grants until its new mission has been 
747.35  implemented and the commissioner has 
747.36  reported to the legislature. 
747.37  [BUDGET REDUCTION; COMMUNITY 
747.38  PRESERVATION UNIT.] An $85,000 
747.39  reduction the first year must be 
747.40  directed at cuts to the community 
747.41  preservation unit and its successor. 
747.42  [COMMUNITY SUPERVISION COSTS RELATED TO 
747.43  FELONY-LEVEL DRIVING WHILE IMPAIRED 
747.44  OFFENSE.] $197,000 the second year is 
747.45  for increased community supervision 
747.46  costs due to the felony-level driving 
747.47  while impaired penalty. 
747.48  Subd. 5.  Management Services
747.49                Summary by Fund
747.50  General              12,830,000    13,085,000
747.51  Special Revenue         307,000       307,000
747.52  [CENTRAL OFFICE EFFICIENCY INITIATIVE.] 
747.53  The commissioner must develop a plan to 
747.54  improve the efficiency of the central 
747.55  office.  In part, the commissioner must 
747.56  consider reductions in personnel levels 
747.57  and the consolidation of functions.  By 
747.58  January 15, 2002, the commissioner must 
747.59  report to the chairs and ranking 
747.60  minority members of the senate and 
747.61  house committees and divisions having 
747.62  jurisdiction over criminal justice 
748.1   funding on a central office efficiency 
748.2   plan and what changes, if any, have 
748.3   been initiated.  The report may be 
748.4   combined with the report on per diem 
748.5   reductions. 
748.6   Sec. 4.  CORRECTIONS OMBUDSMAN          323,000        336,000
748.7   Sec. 5.  SENTENCING        
748.8   GUIDELINES COMMISSION                   523,000        550,000 
748.9   [SALARY INCREASE FOR EXECUTIVE 
748.10  DIRECTOR.] Up to $10,000 the first year 
748.11  and $20,000 the second year may be used 
748.12  to increase the salary of the executive 
748.13  director of the sentencing guidelines 
748.14  commission. 
748.15  [SEARCH FOR EXECUTIVE DIRECTOR.] Any 
748.16  search conducted to fill the position 
748.17  of executive director of the sentencing 
748.18  guidelines commission shall be done on 
748.19  a statewide basis. 
748.20  Sec. 6.  PUBLIC SAFETY                     -0-         84,000
748.21  [TRIAL SUPPORT COSTS FOR FELONY-LEVEL 
748.22  PENALTY FOR IMPAIRED DRIVING.] $84,000 
748.23  the second year is for increased costs 
748.24  associated with providing trial support 
748.25  due to the felony-level driving while 
748.26  impaired penalty. 
748.27  Sec. 7.  ATTORNEY GENERAL                  -0-        127,000
748.28  [COSTS ASSOCIATED WITH FELONY-LEVEL 
748.29  DRIVING WHILE IMPAIRED PENALTY.] 
748.30  $127,000 the second year is for costs 
748.31  associated with increased appeals due 
748.32  to the felony-level driving while 
748.33  impaired penalty. 
748.34     Sec. 8.  Minnesota Statutes 2000, section 15A.083, 
748.35  subdivision 4, is amended to read: 
748.36     Subd. 4.  [RANGES FOR OTHER JUDICIAL POSITIONS.] Salaries 
748.37  or salary ranges are provided for the following positions in the 
748.38  judicial branch of government.  The appointing authority of any 
748.39  position for which a salary range has been provided shall fix 
748.40  the individual salary within the prescribed range, considering 
748.41  the qualifications and overall performance of the employee.  The 
748.42  supreme court shall set the salary of the state court 
748.43  administrator and the salaries of district court 
748.44  administrators.  The salary of the state court administrator or 
748.45  a district court administrator may not exceed the salary of a 
748.46  district court judge.  If district court administrators die, the 
748.47  amounts of their unpaid salaries for the months in which their 
748.48  deaths occur must be paid to their estates.  The salary of the 
749.1   state public defender must be 95 percent of the salary of the 
749.2   attorney general shall be fixed by the state board of public 
749.3   defense but must not exceed the salary of a district court judge.
749.4                                           Salary or Range
749.5                                              Effective 
749.6                                            July 1, 1994
749.7   Board on judicial standards
749.8   executive director                      $44,000-60,000 
749.9      Sec. 9.  Minnesota Statutes 2000, section 241.272, 
749.10  subdivision 6, is amended to read: 
749.11     Subd. 6.  [USE OF FEES.] Excluding correctional fees 
749.12  collected from offenders supervised by department agents under 
749.13  the authority of section 244.19, subdivision 1, paragraph (a), 
749.14  clause (3), all correctional fees collected under this section 
749.15  go to the general fund.  Fees collected by agents under the 
749.16  authority of section 244.19, subdivision 1, paragraph (a), 
749.17  clause (3), shall go to the county treasurer in the county where 
749.18  supervision is provided.  These fees may only be used in 
749.19  accordance with section 244.18, subdivision 6. 
749.20     Sec. 10.  Minnesota Statutes 2000, section 241.32, is 
749.21  amended by adding a subdivision to read: 
749.22     Subd. 4.  [EMERGENCY HOUSING RENTAL AGREEMENTS.] The 
749.23  commissioner of corrections may enter into rental agreements per 
749.24  industry standards for emergency housing for inmates. 
749.25     Sec. 11.  Minnesota Statutes 2000, section 241.45, is 
749.26  amended to read: 
749.27     241.45 [PUBLICATION OF RECOMMENDATIONS; REPORTS.] 
749.28     Subdivision 1.  The ombudsman may publish conclusions and 
749.29  suggestions by transmitting them to the office of the governor. 
749.30  Before announcing a conclusion or recommendation that expressly 
749.31  or impliedly criticizes an administrative agency, or any person, 
749.32  the ombudsman shall consult with that agency or person.  When 
749.33  publishing an opinion adverse to an administrative agency, or 
749.34  any person, the ombudsman shall include in such publication any 
749.35  statement of reasonable length made to the ombudsman by that 
749.36  agency or person in defense or mitigation of the action. 
750.1      Subd. 2.  In addition to whatever reports the ombudsman may 
750.2   make on an ad hoc basis, the ombudsman shall biennially at the 
750.3   end of each year report to the governor concerning the exercise 
750.4   of the ombudsman's functions during the preceding biennium 
750.5   year.  The biennial report is due on or before the beginning of 
750.6   the legislative session following the end of the biennium. 
750.7      Sec. 12.  Minnesota Statutes 2000, section 242.192, is 
750.8   amended to read: 
750.9      242.192 [CHARGES TO COUNTIES.] 
750.10     (a) Until June 30, 2001 2002, the commissioner shall charge 
750.11  counties or other appropriate jurisdictions 65 percent of the 
750.12  per diem cost of confinement, excluding educational costs and 
750.13  nonbillable service, of juveniles at the Minnesota correctional 
750.14  facility-Red Wing and of juvenile females committed to the 
750.15  commissioner of corrections.  This charge applies to juveniles 
750.16  committed to the commissioner of corrections and juveniles 
750.17  admitted to the Minnesota correctional facility-Red Wing under 
750.18  established admissions criteria.  This charge applies to both 
750.19  counties that participate in the Community Corrections Act and 
750.20  those that do not.  The commissioner shall determine the per 
750.21  diem cost of confinement based on projected population, pricing 
750.22  incentives, market conditions, and the requirement that expense 
750.23  and revenue balance out over a period of two years.  All money 
750.24  received under this section must be deposited in the state 
750.25  treasury and credited to the general fund. 
750.26     (b) Until June 30, 2001 2002, the department of corrections 
750.27  shall be responsible for 35 percent of the per diem cost of 
750.28  confinement described in this section. 
750.29     Sec. 13.  Minnesota Statutes 2000, section 243.51, 
750.30  subdivision 1, is amended to read: 
750.31     Subdivision 1.  [CONTRACTING WITH OTHER STATES AND FEDERAL 
750.32  GOVERNMENT.] The commissioner of corrections is hereby 
750.33  authorized to contract with agencies and bureaus of the United 
750.34  States and with the proper officials of other states or a county 
750.35  of this state for the custody, care, subsistence, education, 
750.36  treatment and training of persons convicted of criminal offenses 
751.1   constituting felonies in the courts of this state, the United 
751.2   States, or other states of the United States.  Such contracts 
751.3   shall provide for reimbursing the state of Minnesota for all 
751.4   costs or other expenses involved, and, to the extent possible, 
751.5   require payment to the department of corrections of a per diem 
751.6   amount that is substantially equal to or greater than the per 
751.7   diem for the cost of housing Minnesota inmates at the same 
751.8   facility.  This per diem cost shall be based on the assumption 
751.9   that the facility is at or near capacity.  Any prisoner 
751.10  transferred to the state of Minnesota pursuant to this 
751.11  subdivision shall be subject to the terms and conditions of the 
751.12  prisoner's original sentence as if the prisoner were serving the 
751.13  same within the confines of the state in which the conviction 
751.14  and sentence was had or in the custody of the United States.  
751.15  Nothing herein shall deprive such inmate of the right to parole 
751.16  or the rights to legal process in the courts of this state.  
751.17     Sec. 14.  Minnesota Statutes 2000, section 243.51, 
751.18  subdivision 3, is amended to read: 
751.19     Subd. 3.  [TEMPORARY DETENTION.] The commissioner of 
751.20  corrections is authorized to contract with agencies and bureaus 
751.21  of the United States and with the appropriate officials of any 
751.22  other state or county of this state for the temporary detention 
751.23  of any person in custody pursuant to any process issued under 
751.24  the authority of the United States, other states of the United 
751.25  States, or the district courts of this state.  The contract 
751.26  shall provide for reimbursement to the state of Minnesota for 
751.27  all costs and expenses involved, and, to the extent possible, 
751.28  require payment to the department of corrections of a per diem 
751.29  amount that is substantially equal to or greater than the per 
751.30  diem for the cost of housing Minnesota inmates at the same 
751.31  facility.  This per diem cost shall be based on the assumption 
751.32  that the facility is at or near capacity. 
751.33     Sec. 15.  Minnesota Statutes 2000, section 357.021, 
751.34  subdivision 6, is amended to read: 
751.35     Subd. 6.  [SURCHARGES ON CRIMINAL AND TRAFFIC OFFENDERS.] 
751.36  (a) The court shall impose and the court administrator shall 
752.1   collect a $25 $35 surcharge on every person convicted of any 
752.2   felony, gross misdemeanor, misdemeanor, or petty misdemeanor 
752.3   offense, other than a violation of a law or ordinance relating 
752.4   to vehicle parking.  The surcharge shall be imposed whether or 
752.5   not the person is sentenced to imprisonment or the sentence is 
752.6   stayed.  
752.7      (b) If the court fails to impose a surcharge as required by 
752.8   this subdivision, the court administrator shall show the 
752.9   imposition of the $25 surcharge, collect the surcharge and 
752.10  correct the record. 
752.11     (c) The court may not waive payment of the surcharge 
752.12  required under this subdivision.  Upon a showing of indigency or 
752.13  undue hardship upon the convicted person or the convicted 
752.14  person's immediate family, the sentencing court may authorize 
752.15  payment of the surcharge in installments. 
752.16     (d) The court administrator or other entity collecting a 
752.17  surcharge shall forward it to the state treasurer. 
752.18     (e) If the convicted person is sentenced to imprisonment 
752.19  and has not paid the surcharge before the term of imprisonment 
752.20  begins, the chief executive officer of the correctional facility 
752.21  in which the convicted person is incarcerated shall collect the 
752.22  surcharge from any earnings the inmate accrues from work 
752.23  performed in the facility or while on conditional release.  The 
752.24  chief executive officer shall forward the amount collected to 
752.25  the state treasurer. 
752.26     Sec. 16.  Minnesota Statutes 2000, section 357.021, 
752.27  subdivision 7, is amended to read: 
752.28     Subd. 7.  [DISBURSEMENT OF SURCHARGES BY STATE TREASURER.] 
752.29  (a) Except as provided in paragraphs (b) and (c), the state 
752.30  treasurer shall disburse surcharges received under subdivision 6 
752.31  and section 97A.065, subdivision 2, as follows: 
752.32     (1) one percent of the surcharge shall be credited to the 
752.33  game and fish fund to provide peace officer training for 
752.34  employees of the department of natural resources who are 
752.35  licensed under sections 626.84 to 626.863, and who possess peace 
752.36  officer authority for the purpose of enforcing game and fish 
753.1   laws; 
753.2      (2) 39 percent of the surcharge shall be credited to the 
753.3   peace officers training account in the special revenue fund; and 
753.4      (3) 60 percent of the surcharge shall be credited to the 
753.5   general fund.  
753.6      (b) The state treasurer shall credit $3 of each surcharge 
753.7   received under subdivision 6 and section 97A.065, subdivision 2, 
753.8   to a criminal justice special projects account in the special 
753.9   revenue fund.  This account is available for appropriation to 
753.10  the commissioner of public safety for grants to law enforcement 
753.11  agencies and for other purposes authorized by the legislature. 
753.12     (c) In addition to any amounts credited under paragraph 
753.13  (a), the state treasurer shall credit $7 of each surcharge 
753.14  received under subdivision 6 and section 97A.065, subdivision 2, 
753.15  to the general fund. 
753.16     Sec. 17.  [LEGISLATIVE RECOMMENDATIONS; STATE POLICY PLAN.] 
753.17     By December 1, 2001, the commissioner of corrections must 
753.18  submit legislative recommendations to the chairs and ranking 
753.19  minority members of the house and senate committees having 
753.20  jurisdiction over criminal justice policy and funding regarding 
753.21  the impact of entering into, or not entering into, the updated 
753.22  interstate compact on adult offenders, as proposed by the 
753.23  council of state governments.  The commissioner must consult 
753.24  with other professionals in the corrections field and must 
753.25  consult with states that both have and have not entered into the 
753.26  compact.  The commissioner must develop a plan for state policy 
753.27  in regard to handling interstate transfers of adult offenders.  
753.28  The commissioner must be prepared to act on and implement the 
753.29  recommendations and plan in 2002.  In developing the legislative 
753.30  recommendations and state policy plan, the commissioner must 
753.31  consider fiscal impacts.  Any costs associated with developing 
753.32  the legislative recommendations and state policy plan under this 
753.33  section must be absorbed within the commissioner's current 
753.34  budget. 
753.35     Sec. 18.  Minnesota Statutes 2000, section 611.23, is 
753.36  amended to read: 
754.1      611.23 [OFFICE OF STATE PUBLIC DEFENDER; APPOINTMENT; 
754.2   SALARY.] 
754.3      The state public defender is responsible to the state board 
754.4   of public defense.  The state public defender shall be appointed 
754.5   by the state board of public defense for a term of four years, 
754.6   except as otherwise provided in this section, and until a 
754.7   successor is appointed and qualified.  The state public defender 
754.8   shall be a full-time qualified attorney, licensed to practice 
754.9   law in this state, serve in the unclassified service of the 
754.10  state, and be removed only for cause by the appointing 
754.11  authority.  Vacancies in the office shall be filled by the 
754.12  appointing authority for the unexpired term.  The salary of the 
754.13  state public defender shall be fixed by the state board of 
754.14  public defense but must not exceed the salary of the chief 
754.15  deputy attorney general a district court judge.  Terms of the 
754.16  state public defender shall commence on July 1.  The state 
754.17  public defender shall devote full time to the performance of 
754.18  duties and shall not engage in the general practice of law. 
754.19     Sec. 19.  [INSTRUCTION TO REVISOR; LEGISLATIVE INTENT.] 
754.20     The surcharge increase contained in Minnesota Statutes, 
754.21  section 357.021, in this act supersedes any other increases to 
754.22  the surcharge enacted in the 2001 First Special Session. 
754.23     Sec. 20.  [USE OF BRYNE GRANT FUNDS FOR RESTORATIVE JUSTICE 
754.24  GRANTS.] 
754.25     In fiscal years 2002 and 2003, the commissioner of public 
754.26  safety shall use the same amount of federal Bryne grant funds 
754.27  for grants to restorative justice programs as was used in fiscal 
754.28  year 2001. 
754.29     Sec. 21.  [STUDY ON OMBUDSMAN FOR CORRECTIONS.] 
754.30     The office of the governor, in consultation with the 
754.31  department of administration, shall conduct a study of various 
754.32  models to deliver the services provided by the ombudsman for 
754.33  corrections, including the effects of privatizing certain 
754.34  functions of the ombudsman for corrections.  The office must 
754.35  report its finding and recommendations to the chairs and ranking 
754.36  minority members of the senate and house committees responsible 
755.1   for corrections policy and finance by February 1, 2002. 
755.2      Sec. 22.  [EFFECTIVE DATE.] 
755.3      The provisions of this article are effective July 1, 2001. 
755.4                              ARTICLE 19
755.5                    FELONY DRIVING WHILE IMPAIRED
755.6      Section 1.  [62Q.137] [COVERAGE FOR CHEMICAL DEPENDENCY 
755.7   TREATMENT PROVIDED BY THE DEPARTMENT OF CORRECTIONS.] 
755.8      (a) Any health plan that provides coverage for chemical 
755.9   dependency treatment must cover chemical dependency treatment 
755.10  provided to an enrollee by the department of corrections while 
755.11  the enrollee is committed to the custody of the commissioner of 
755.12  corrections following a conviction for a first-degree driving 
755.13  while impaired offense under section 169A.24 if:  (1) a court of 
755.14  competent jurisdiction makes a preliminary determination based 
755.15  on a chemical use assessment conducted under section 169A.70 
755.16  that treatment may be appropriate and includes this 
755.17  determination as part of the sentencing order; and (2) the 
755.18  department of corrections makes a determination based on a 
755.19  chemical assessment conducted while the individual is in the 
755.20  custody of the department that treatment is appropriate.  
755.21  Treatment provided by the department of corrections that meets 
755.22  the requirements of this section shall not be subject to a 
755.23  separate medical necessity determination under the health plan 
755.24  company's utilization review procedures.  
755.25     (b) The health plan company must be given a copy of the 
755.26  court's preliminary determination and supporting documents and 
755.27  the assessment conducted by the department of corrections.  
755.28     (c) Payment rates for treatment provided by the department 
755.29  of corrections shall not exceed the lowest rate for outpatient 
755.30  chemical dependency treatment paid by the health plan company to 
755.31  a participating provider of the health plan company.  
755.32     (d) For purposes of this section, chemical dependency 
755.33  treatment means all covered services that are intended to treat 
755.34  chemical dependency and that are covered by the enrollee's 
755.35  health plan or by law. 
755.36     Sec. 2.  Minnesota Statutes 2000, section 169A.07, is 
756.1   amended to read: 
756.2      169A.07 [FIRST-TIME DWI VIOLATOR; OFF-ROAD RECREATIONAL 
756.3   VEHICLE OR MOTORBOAT.] 
756.4      A person who violates section 169A.20 (driving while 
756.5   impaired) while using an off-road recreational vehicle or 
756.6   motorboat and who does not have a qualified prior impaired 
756.7   driving incident is subject only to the criminal penalty 
756.8   provided in section 169A.25 (first-degree second-degree driving 
756.9   while impaired), 169A.26 (second-degree third-degree driving 
756.10  while impaired), or 169A.27 (third-degree fourth-degree driving 
756.11  while impaired); and loss of operating privileges as provided in 
756.12  section 84.91, subdivision 1 (operation of snowmobiles or 
756.13  all-terrain vehicles by persons under the influence of alcohol 
756.14  or controlled substances), or 86B.331, subdivision 1 (operation 
756.15  of motorboats while using alcohol or with a physical or mental 
756.16  disability), whichever is applicable.  The person is not subject 
756.17  to the provisions of section 169A.275, subdivision 5, 
756.18  (submission to the level of care recommended in chemical use 
756.19  assessment for repeat offenders and offenders with alcohol 
756.20  concentration of 0.20 or more); 169A.277 (long-term monitoring); 
756.21  169A.285 (penalty assessment); 169A.44 (conditional release); 
756.22  169A.54 (impaired driving convictions and adjudications; 
756.23  administrative penalties); or 169A.54, subdivision 11 (chemical 
756.24  use assessment); the license revocation sanctions of sections 
756.25  169A.50 to 169A.53 (implied consent law); or the plate 
756.26  impoundment provisions of section 169A.60 (administrative 
756.27  impoundment of plates). 
756.28     Sec. 3.  Minnesota Statutes 2000, section 169A.20, 
756.29  subdivision 3, is amended to read: 
756.30     Subd. 3.  [SENTENCE.] A person who violates this section 
756.31  may be sentenced as provided in section 169A.24 (first-degree 
756.32  driving while impaired), 169A.25 (first-degree second-degree 
756.33  driving while impaired), 169A.26 (second-degree third-degree 
756.34  driving while impaired), or 169A.27 (third-degree fourth-degree 
756.35  driving while impaired). 
756.36     Sec. 4.  [169A.24] [FIRST-DEGREE DRIVING WHILE IMPAIRED.] 
757.1      Subdivision 1.  [DEGREE DESCRIBED.] A person who violates 
757.2   section 169A.20 (driving while impaired) is guilty of 
757.3   first-degree driving while impaired if the person: 
757.4      (1) commits the violation within ten years of the first of 
757.5   three or more qualified prior impaired driving incidents; or 
757.6      (2) has previously been convicted of a felony under this 
757.7   section. 
757.8      Subd. 2.  [CRIMINAL PENALTY.] A person who commits 
757.9   first-degree driving while impaired is guilty of a felony and 
757.10  may be sentenced to imprisonment for not more than seven years, 
757.11  or to payment of a fine of not more than $14,000, or both.  The 
757.12  person is subject to the mandatory penalties described in 
757.13  section 169A.276 (mandatory penalties; felony violations). 
757.14     Sec. 5.  Minnesota Statutes 2000, section 169A.25, is 
757.15  amended to read: 
757.16     169A.25 [FIRST-DEGREE SECOND-DEGREE DRIVING WHILE 
757.17  IMPAIRED.] 
757.18     Subdivision 1.  [DEGREE DESCRIBED.] A person who violates 
757.19  section 169A.20 (driving while impaired) is guilty of 
757.20  first-degree second-degree driving while impaired if two or more 
757.21  aggravating factors were present when the violation was 
757.22  committed. 
757.23     Subd. 2.  [CRIMINAL PENALTY.] First-degree Second-degree 
757.24  driving while impaired is a gross misdemeanor.  The mandatory 
757.25  penalties described in section 169A.275 and the long-term 
757.26  monitoring described in section 169A.277 may be applicable. 
757.27     Sec. 6.  Minnesota Statutes 2000, section 169A.26, is 
757.28  amended to read: 
757.29     169A.26 [SECOND-DEGREE THIRD-DEGREE DRIVING WHILE 
757.30  IMPAIRED.] 
757.31     Subdivision 1.  [DEGREE DESCRIBED.] A person who violates 
757.32  section 169A.20 (driving while impaired) is guilty of 
757.33  second-degree third-degree driving while impaired if one 
757.34  aggravating factor was present when the violation was committed. 
757.35     Subd. 2.  [CRIMINAL PENALTY.] Second-degree Third-degree 
757.36  driving while impaired is a gross misdemeanor.  The mandatory 
758.1   penalties described in section 169A.275 and the long-term 
758.2   monitoring described in section 169A.277 may be applicable. 
758.3      Sec. 7.  Minnesota Statutes 2000, section 169A.27, is 
758.4   amended to read: 
758.5      169A.27 [THIRD-DEGREE FOURTH-DEGREE DRIVING WHILE 
758.6   IMPAIRED.] 
758.7      Subdivision 1.  [DEGREE DESCRIBED.] A person who violates 
758.8   section 169A.20 (driving while impaired) is guilty of 
758.9   third-degree fourth-degree driving while impaired. 
758.10     Subd. 2.  [CRIMINAL PENALTY.] Third-degree Fourth-degree 
758.11  driving while impaired is a misdemeanor. 
758.12     Sec. 8.  Minnesota Statutes 2000, section 169A.275, is 
758.13  amended to read: 
758.14     169A.275 [MANDATORY PENALTIES; NONFELONY VIOLATIONS.] 
758.15     Subdivision 1.  [SECOND OFFENSE.] (a) The court shall 
758.16  sentence a person who is convicted of a violation of section 
758.17  169A.20 (driving while impaired) within ten years of a qualified 
758.18  prior impaired driving incident to either:  
758.19     (1) a minimum of 30 days of incarceration, at least 48 
758.20  hours of which must be served consecutively in a local 
758.21  correctional facility; or 
758.22     (2) eight hours of community work service for each day less 
758.23  than 30 days that the person is ordered to serve in a local 
758.24  correctional facility.  
758.25  Notwithstanding section 609.135 (stay of imposition or execution 
758.26  of sentence), the penalties in this paragraph must be executed, 
758.27  unless the court departs from the mandatory minimum sentence 
758.28  under paragraph (b) or (c). 
758.29     (b) Prior to sentencing, the prosecutor may file a motion 
758.30  to have a defendant described in paragraph (a) sentenced without 
758.31  regard to the mandatory minimum sentence established by that 
758.32  paragraph.  The motion must be accompanied by a statement on the 
758.33  record of the reasons for it.  When presented with the 
758.34  prosecutor's motion and if it finds that substantial mitigating 
758.35  factors exist, the court shall sentence the defendant without 
758.36  regard to the mandatory minimum sentence established by 
759.1   paragraph (a).  
759.2      (c) The court may, on its own motion, sentence a defendant 
759.3   described in paragraph (a) without regard to the mandatory 
759.4   minimum sentence established by that paragraph if it finds that 
759.5   substantial mitigating factors exist and if its sentencing 
759.6   departure is accompanied by a statement on the record of the 
759.7   reasons for it.  The court also may sentence the defendant 
759.8   without regard to the mandatory minimum sentence established by 
759.9   paragraph (a) if the defendant is sentenced to probation and 
759.10  ordered to participate in a program established under section 
759.11  169A.74 (pilot programs of intensive probation for repeat DWI 
759.12  offenders). 
759.13     (d) When any portion of the sentence required by paragraph 
759.14  (a) is not executed, the court should impose a sentence that is 
759.15  proportional to the extent of the offender's prior criminal and 
759.16  moving traffic violation record.  Any sentence required under 
759.17  paragraph (a) must include a mandatory sentence that is not 
759.18  subject to suspension or a stay of imposition or execution, and 
759.19  that includes incarceration for not less than 48 consecutive 
759.20  hours or at least 80 hours of community work service. 
759.21     Subd. 2.  [THIRD OFFENSE.] (a) The court shall sentence a 
759.22  person who is convicted of a violation of section 169A.20 
759.23  (driving while impaired) within ten years of the first of two 
759.24  qualified prior impaired driving incidents to either: 
759.25     (1) a minimum of 90 days of incarceration, at least 30 days 
759.26  of which must be served consecutively in a local correctional 
759.27  facility; or 
759.28     (2) a program of intensive supervision of the type 
759.29  described in section 169A.74 (pilot programs of intensive 
759.30  probation for repeat DWI offenders) that requires the person to 
759.31  consecutively serve at least six days in a local correctional 
759.32  facility.  
759.33     (b) The court may order that the person serve not more than 
759.34  60 days of the minimum penalty under paragraph (a), clause (1), 
759.35  on home detention or in an intensive probation program described 
759.36  in section 169A.74. 
760.1      (c) Notwithstanding section 609.135, the penalties in this 
760.2   subdivision must be imposed and executed. 
760.3      Subd. 3.  [FOURTH OFFENSE.] (a) Unless the court commits 
760.4   the person to the custody of the commissioner of corrections as 
760.5   provided in section 169A.276 (mandatory penalties; felony 
760.6   violations), the court shall sentence a person who is convicted 
760.7   of a violation of section 169A.20 (driving while impaired) 
760.8   within ten years of the first of three qualified prior impaired 
760.9   driving incidents to either: 
760.10     (1) a minimum of 180 days of incarceration, at least 30 
760.11  days of which must be served consecutively in a local 
760.12  correctional facility; or 
760.13     (2) a program of intensive supervision of the type 
760.14  described in section 169A.74 (pilot programs of intensive 
760.15  probation for repeat DWI offenders) that requires the person to 
760.16  consecutively serve at least six days in a local correctional 
760.17  facility.  
760.18     (b) The court may order that the person serve not more than 
760.19  150 days of the minimum penalty under paragraph (a), clause (1), 
760.20  on home detention or in an intensive probation program described 
760.21  in section 169A.74.  Notwithstanding section 609.135, the 
760.22  penalties in this subdivision must be imposed and executed. 
760.23     Subd. 4.  [FIFTH OFFENSE OR MORE.] (a) Unless the court 
760.24  commits the person to the custody of the commissioner of 
760.25  corrections as provided in section 169A.276 (mandatory 
760.26  penalties; felony violations), the court shall sentence a person 
760.27  who is convicted of a violation of section 169A.20 (driving 
760.28  while impaired) within ten years of the first of four or more 
760.29  qualified prior impaired driving incidents to either: 
760.30     (1) a minimum of one year of incarceration, at least 60 
760.31  days of which must be served consecutively in a local 
760.32  correctional facility; or 
760.33     (2) a program of intensive supervision of the type 
760.34  described in section 169A.74 (pilot programs of intensive 
760.35  probation for repeat DWI offenders) that requires the person to 
760.36  consecutively serve at least six days in a local correctional 
761.1   facility.  
761.2      (b) The court may order that the person serve the remainder 
761.3   of the minimum penalty under paragraph (a), clause (1), on 
761.4   intensive probation using an electronic monitoring system or, if 
761.5   such a system is unavailable, on home detention.  
761.6   Notwithstanding section 609.135, the penalties in this 
761.7   subdivision must be imposed and executed. 
761.8      Subd. 5.  [LEVEL OF CARE RECOMMENDED IN CHEMICAL USE 
761.9   ASSESSMENT.] Unless the court commits the person to the custody 
761.10  of the commissioner of corrections as provided in section 
761.11  169A.276 (mandatory penalties; felony violations), in addition 
761.12  to other penalties required under this section, the court shall 
761.13  order a person to submit to the level of care recommended in the 
761.14  chemical use assessment conducted under section 169A.70 (alcohol 
761.15  safety program; chemical use assessments) if the person is 
761.16  convicted of violating section 169A.20 (driving while impaired) 
761.17  while having an alcohol concentration of 0.20 or more as 
761.18  measured at the time, or within two hours of the time, of the 
761.19  offense or if the violation occurs within ten years of one or 
761.20  more qualified prior impaired driving incidents. 
761.21     Sec. 9.  [169A.276] [MANDATORY PENALTIES; FELONY 
761.22  VIOLATIONS.] 
761.23     Subdivision 1.  [MANDATORY PRISON SENTENCE.] (a) The court 
761.24  shall sentence a person who is convicted of a violation of 
761.25  section 169A.20 (driving while impaired) under the circumstances 
761.26  described in section 169A.24 (first-degree driving while 
761.27  impaired) to imprisonment for not less than three years.  In 
761.28  addition, the court may order the person to pay a fine of not 
761.29  more than $14,000.  
761.30     (b) The court may stay execution of this mandatory sentence 
761.31  as provided in subdivision 2 (stay of mandatory sentence), but 
761.32  may not stay imposition or adjudication of the sentence or 
761.33  impose a sentence that has a duration of less than three years. 
761.34     (c) An offender committed to the custody of the 
761.35  commissioner of corrections under this subdivision, is not 
761.36  eligible for release as provided in section 241.26, 244.065, 
762.1   244.12, or 244.17, unless the offender has successfully 
762.2   completed a chemical dependency treatment program while in 
762.3   prison.  
762.4      (d) Notwithstanding the statutory maximum sentence provided 
762.5   in section 169A.24 (first-degree driving while impaired), when 
762.6   the court commits a person to the custody of the commissioner of 
762.7   corrections under this subdivision, it shall provide that after 
762.8   the person has been released from prison the commissioner shall 
762.9   place the person on conditional release for five years.  The 
762.10  commissioner shall impose any conditions of release that the 
762.11  commissioner deems appropriate including, but not limited to, 
762.12  successful completion of an intensive probation program as 
762.13  described in section 169A.74 (pilot programs of intensive 
762.14  probation for repeat DWI offenders).  If the person fails to 
762.15  comply with any condition of release, the commissioner may 
762.16  revoke the person's conditional release and order the person to 
762.17  serve all or part of the remaining portion of the conditional 
762.18  release term in prison.  The commissioner may not dismiss the 
762.19  person from supervision before the conditional release term 
762.20  expires.  Except as otherwise provided in this section, 
762.21  conditional release is governed by provisions relating to 
762.22  supervised release.  The failure of a court to direct the 
762.23  commissioner of corrections to place the person on conditional 
762.24  release, as required in this paragraph, does not affect the 
762.25  applicability of the conditional release provisions to the 
762.26  person. 
762.27     (e) The commissioner shall require persons placed on 
762.28  supervised or conditional release under this subdivision to pay 
762.29  as much of the costs of the supervision as possible.  The 
762.30  commissioner shall develop appropriate standards for this.  
762.31     Subd. 2.  [STAY OF MANDATORY SENTENCE.] The provisions of 
762.32  sections 169A.275 (mandatory penalties; nonfelony violations), 
762.33  subdivision 3 or 4, and subdivision 5, and 169A.283 (stay of 
762.34  execution of sentence), apply if the court stays execution of 
762.35  the sentence under subdivision 1 (mandatory prison sentence).  
762.36  In addition, the provisions of section 169A.277 (long-term 
763.1   monitoring) may apply.  
763.2      Subd. 3.  [DRIVER'S LICENSE REVOCATION; NO STAY PERMITTED.] 
763.3   The court may not stay the execution of the driver's license 
763.4   revocation provisions of section 169A.54 (impaired driving 
763.5   convictions and adjudications; administrative penalties). 
763.6      Sec. 10.  Minnesota Statutes 2000, section 169A.283, 
763.7   subdivision 1, is amended to read: 
763.8      Subdivision 1.  [STAY AUTHORIZED.] Except as otherwise 
763.9   provided in section sections 169A.275 (mandatory penalties; 
763.10  nonfelony violations) and 169A.276 (mandatory penalties; felony 
763.11  violations), when a court sentences a person convicted of a 
763.12  violation of section 169A.20 (driving while impaired), the court 
763.13  may stay execution of the criminal sentence described in section 
763.14  169A.25 169A.24 (first-degree driving while impaired), 169A.26 
763.15  169A.25 (second-degree driving while impaired), or 169A.27 
763.16  169A.26 (third-degree driving while impaired), or 169A.27 
763.17  (fourth-degree driving while impaired) on the condition that the 
763.18  convicted person submit to the level of care recommended in the 
763.19  chemical use assessment report required under section 169A.70 
763.20  (alcohol safety programs; chemical use assessments).  If the 
763.21  court does not order a level of care in accordance with the 
763.22  assessment report recommendation as a condition of a stay of 
763.23  execution, it shall state on the record its reasons for not 
763.24  following the assessment report recommendation. 
763.25     Sec. 11.  Minnesota Statutes 2000, section 169A.40, 
763.26  subdivision 3, is amended to read: 
763.27     Subd. 3.  [FIRST-DEGREE AND SECOND-DEGREE DWI OFFENDERS; 
763.28  CUSTODIAL ARREST.] Notwithstanding rule 6.01 of the Rules of 
763.29  Criminal Procedure, a peace officer acting without a warrant who 
763.30  has decided to proceed with the prosecution of a person for 
763.31  violating section 169A.20 (driving while impaired), shall arrest 
763.32  and take the person into custody if the officer has reason to 
763.33  believe the violation occurred under the circumstances described 
763.34  in section 169A.24 (first-degree driving while impaired) or 
763.35  169A.25 (first-degree second-degree driving while impaired).  
763.36  The person shall be detained until the person's first court 
764.1   appearance. 
764.2      Sec. 12.  Minnesota Statutes 2000, section 169A.63, 
764.3   subdivision 1, is amended to read: 
764.4      Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
764.5   the following terms have the meanings given them. 
764.6      (b) "Appropriate agency" means a law enforcement agency 
764.7   that has the authority to make an arrest for a violation of a 
764.8   designated offense or to require a test under section 169A.51 
764.9   (chemical tests for intoxication). 
764.10     (c) "Designated license revocation" includes a license 
764.11  revocation under section 169A.52 (license revocation for test 
764.12  failure or refusal) or a license disqualification under section 
764.13  171.165 (commercial driver's license disqualification) resulting 
764.14  from a violation of section 169A.52; within ten years of the 
764.15  first of two or more qualified prior impaired driving incidents. 
764.16     (d) "Designated offense" includes: 
764.17     (1) a violation of section 169A.20 (driving while impaired) 
764.18  under the circumstances described in section 169A.24 
764.19  (first-degree driving while impaired) or 169A.25 (first-degree 
764.20  second-degree driving while impaired); or 
764.21     (2) a violation of section 169A.20 or an ordinance in 
764.22  conformity with it: 
764.23     (i) by a person whose driver's license or driving 
764.24  privileges have been canceled as inimical to public safety under 
764.25  section 171.04, subdivision 1, clause (10); or 
764.26     (ii) by a person who is subject to a restriction on the 
764.27  person's driver's license under section 171.09 (commissioner's 
764.28  license restrictions), which provides that the person may not 
764.29  use or consume any amount of alcohol or a controlled substance. 
764.30     (e) "Motor vehicle" and "vehicle" do not include a vehicle 
764.31  which is stolen or taken in violation of the law. 
764.32     (f) "Owner" means the registered owner of the motor vehicle 
764.33  according to records of the department of public safety and 
764.34  includes a lessee of a motor vehicle if the lease agreement has 
764.35  a term of 180 days or more. 
764.36     (g) "Prosecuting authority" means the attorney in the 
765.1   jurisdiction in which the designated offense occurred who is 
765.2   responsible for prosecuting violations of a designated offense. 
765.3      Sec. 13.  Minnesota Statutes 2000, section 171.29, 
765.4   subdivision 2, is amended to read: 
765.5      Subd. 2.  [FEES, ALLOCATION.] (a) A person whose driver's 
765.6   license has been revoked as provided in subdivision 1, except 
765.7   under section 169A.52 or 169A.54, shall pay a $30 fee before the 
765.8   driver's license is reinstated. 
765.9      (b) A person whose driver's license has been revoked as 
765.10  provided in subdivision 1 under section 169A.52 or 169A.54 shall 
765.11  pay a $250 fee plus a $40 surcharge before the driver's license 
765.12  is reinstated.  Beginning July 1, 2002, the surcharge is $145.  
765.13  Beginning July 1, 2003, the surcharge is $380.  The $250 fee is 
765.14  to be credited as follows: 
765.15     (1) Twenty percent must be credited to the trunk highway 
765.16  fund. 
765.17     (2) Fifty-five percent must be credited to the general fund.
765.18     (3) Eight percent must be credited to a separate account to 
765.19  be known as the bureau of criminal apprehension account.  Money 
765.20  in this account may be appropriated to the commissioner of 
765.21  public safety and the appropriated amount must be apportioned 80 
765.22  percent for laboratory costs and 20 percent for carrying out the 
765.23  provisions of section 299C.065. 
765.24     (4) Twelve percent must be credited to a separate account 
765.25  to be known as the alcohol-impaired driver education account.  
765.26  Money in the account is appropriated as follows: 
765.27     (i) the first $200,000 in a fiscal year to the commissioner 
765.28  of children, families, and learning for programs for elementary 
765.29  and secondary school students; and 
765.30     (ii) the remainder credited in a fiscal year to the 
765.31  commissioner of transportation to be spent as grants to the 
765.32  Minnesota highway safety center at St. Cloud State University 
765.33  for programs relating to alcohol and highway safety education in 
765.34  elementary and secondary schools. 
765.35     (5) Five percent must be credited to a separate account to 
765.36  be known as the traumatic brain injury and spinal cord injury 
766.1   account.  The money in the account is annually appropriated to 
766.2   the commissioner of health to be used as follows:  35 percent 
766.3   for a contract with a qualified community-based organization to 
766.4   provide information, resources, and support to assist persons 
766.5   with traumatic brain injury and their families to access 
766.6   services, and 65 percent to maintain the traumatic brain injury 
766.7   and spinal cord injury registry created in section 144.662.  For 
766.8   the purposes of this clause, a "qualified community-based 
766.9   organization" is a private, not-for-profit organization of 
766.10  consumers of traumatic brain injury services and their family 
766.11  members.  The organization must be registered with the United 
766.12  States Internal Revenue Service under section 501(c)(3) as a 
766.13  tax-exempt organization and must have as its purposes:  
766.14     (i) the promotion of public, family, survivor, and 
766.15  professional awareness of the incidence and consequences of 
766.16  traumatic brain injury; 
766.17     (ii) the provision of a network of support for persons with 
766.18  traumatic brain injury, their families, and friends; 
766.19     (iii) the development and support of programs and services 
766.20  to prevent traumatic brain injury; 
766.21     (iv) the establishment of education programs for persons 
766.22  with traumatic brain injury; and 
766.23     (v) the empowerment of persons with traumatic brain injury 
766.24  through participation in its governance. 
766.25  No patient's name, identifying information or identifiable 
766.26  medical data will be disclosed to the organization without the 
766.27  informed voluntary written consent of the patient or patient's 
766.28  guardian, or if the patient is a minor, of the parent or 
766.29  guardian of the patient. 
766.30     (c) The $40 surcharge must be credited to a separate 
766.31  account to be known as the remote electronic alcohol monitoring 
766.32  program account.  The commissioner shall transfer the balance of 
766.33  this account to the commissioner of finance on a monthly basis 
766.34  for deposit in the general fund. 
766.35     (d) When these fees are collected by a licensing agent, 
766.36  appointed under section 171.061, a handling charge is imposed in 
767.1   the amount specified under section 171.061, subdivision 4.  The 
767.2   reinstatement fees and surcharge must be deposited in an 
767.3   approved state depository as directed under section 171.061, 
767.4   subdivision 4. 
767.5      Sec. 14.  [SUPERVISION LEVEL.] 
767.6      Nothing in this article requires a different level of 
767.7   supervision for offenders than is currently required by law. 
767.8      Sec. 15.  [FELONY DWI STUDY.] 
767.9      By January 15, 2004, and each year thereafter through 
767.10  January 15, 2007, the commissioner of corrections must report to 
767.11  the chairs and ranking minority members of the house and senate 
767.12  committees having jurisdiction over criminal justice and 
767.13  judiciary finance issues on the implementation and effects of 
767.14  the felony level driving while impaired offense.  The report 
767.15  must include the following information on felony level driving 
767.16  while impaired offenses: 
767.17     (1) the number of persons convicted; 
767.18     (2) the number of trials taken to verdict, separating out 
767.19  cases tried to a judge versus cases tried to a jury, and the 
767.20  number of convictions for each; 
767.21     (3) the number of offenders incarcerated locally and the 
767.22  term of incarceration; 
767.23     (4) the number placed on probation and the length of the 
767.24  probation; 
767.25     (5) the number for whom probation is revoked, the reasons 
767.26  for revocation, and the consequences imposed; 
767.27     (6) the number given an executed prison sentence upon 
767.28  conviction and the length of the sentence; 
767.29     (7) the number given an executed prison sentence upon 
767.30  revocation of probation and the length of sentence; 
767.31     (8) the number who successfully complete treatment in 
767.32  prison; 
767.33     (9) the number placed on intensive supervision following 
767.34  release from incarceration; 
767.35     (10) the number who violate supervised release and the 
767.36  consequences imposed; and 
768.1      (11) any other information the commissioner deems relevant 
768.2   to estimating future costs. 
768.3      Sec. 16.  [REPORT ON INSURANCE COVERAGE.] 
768.4      By February 1, 2004, the commissioner of corrections shall 
768.5   report to the chairs of the senate and house committees with 
768.6   jurisdiction over criminal justice funding on the number of 
768.7   cases in which a felony DWI offender had private health 
768.8   insurance coverage for chemical dependency treatment, and the 
768.9   results of the commissioner's attempts to obtain coverage for 
768.10  this treatment under Minnesota Statutes, section 62Q.137.  
768.11     Sec. 17.  [EFFECTIVE DATE.] 
768.12     Sections 1 to 12 and 14 to 16 are effective August 1, 2002, 
768.13  and apply to crimes committed on or after that date.  However, 
768.14  violations occurring before August 1, 2002, that are listed in 
768.15  Minnesota Statutes, section 169A.03, subdivisions 20 and 21, are 
768.16  considered qualified prior impaired driving incidents for 
768.17  purposes of this act.  Section 13 is effective July 1, 2001.