Text of MN SF 3280 (2010)

S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] A bill for an act 1.1 relating to state government finance; appropriating and transferring money and 1.2 supplementing or reducing appropriations for the Departments of Health and 1.3 Human Services, health-related boards, Emergency Medical Services Board, 1.4 Council on Disabilities, omsbudsman for mental health and developmental 1.5 disabilities, and omsbudsperson for families; establishing, regulating, or 1.6 modifying health care services programs, continuing care services, children 1.7 and family services, and Department of Health provisions; establishing a 1.8 health information exchange; imposing fees and civil penalties; authorizing 1.9 rulemaking; requiring reports; amending Minnesota Statutes 2008, sections 1.10 62J.04, subdivision 3; 62J.17, subdivision 4a; 62J.692, subdivision 4; 119B.011, 1.11 subdivision 15; 119B.13, subdivision 1; 150A.22; 214.40, subdivision 7; 1.12 256.969, subdivision 27; 256B.0625, subdivision 39; 256B.0915, subdivision 1.13 3b; 256B.434, by adding a subdivision; 256B.48, subdivision 1; 256B.5012, 1.14 by adding a subdivision; 256B.76, subdivision 4; 256D.045; 256D.05, 1.15 subdivision 1; 256D.07; 256D.10; 256D.47; 256I.04, subdivision 1; 256J.13, 1.16 subdivision 1; 256J.20, subdivision 3; 256J.21, subdivision 2; 256J.24, 1.17 subdivisions 3, 4; 256J.28, by adding a subdivision; 256J.37, subdivisions 1.18 3a, 9; 256L.04, subdivision 7; 256L.05, subdivision 5; 256L.07, subdivision 1.19 1; 256L.12, subdivision 9; 256L.15, subdivision 2; 257.75, subdivision 7; 1.20 297F.10, subdivision 1; 517.08, subdivision 1c; Minnesota Statutes 2009 1.21 Supplement, sections 62J.495, subdivisions 1a, 3; 157.16, subdivision 3; 1.22 252.025, subdivision 7; 256.969, subdivisions 2b, 3a; 256B.0651, subdivision 1.23 1; 256B.0653, subdivisions 2, 6; 256B.0915, subdivision 3a; 256B.0947, 1.24 subdivision 1; 256B.199; 256D.01, subdivision 1b; 256D.03, subdivision 4; 1.25 256D.44, subdivision 5; 256J.575, subdivision 3; 327.15, subdivision 3; Laws 1.26 2009, chapter 79, article 3, section 18; article 13, sections 3, subdivisions 1, as 1.27 amended, 3, as amended, 4, as amended, 8, as amended; 5, subdivision 8, as 1.28 amended; proposing coding for new law in Minnesota Statutes, chapters 62J; 1.29 256D; repealing Minnesota Statutes 2008, sections 62J.17, subdivisions 1, 3, 5a, 1.30 6a, 8; 62J.321, subdivision 5a; 62J.381; 62J.41, subdivisions 1, 2; 256.742; 1.31 256.969, subdivision 26; 256.979, subdivision 8; 256D.06, subdivision 2; 1.32 256D.46; Minnesota Statutes 2009 Supplement, section 256B.0653, subdivision 1.33 5; Minnesota Rules, parts 9500.1200; 9500.1202; 9500.1206, subparts 1, 1a, 2, 3, 1.34 4a, 4b, 5, 5a, 6, 6a, 6b, 7a, 7b, 8, 8a, 9, 9a, 9b, 11, 11a, 12, 12a, 12b, 12c, 12d, 1.35 12e, 12f, 12g, 12h, 12k, 13a, 14, 14a, 15, 15a, 15b, 15c, 15d, 16a, 17, 18, 18a, 1.36 18b, 18c, 18d, 19a, 19b, 21, 22a, 22b, 23, 23a, 24, 24a, 24b, 25, 25a, 25b, 25c, 1.37 25d, 25e, 25f, 26, 26b, 26c, 28a, 28b, 28c, 28d, 28e, 29, 29a, 29b, 30, 32, 32b, 1.38 32c, 32d, 32e, 32f, 33; 9500.1211; 9500.1213; 9500.1215; 9500.1219, subparts 1.39 1 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] 1, 2, 3, 4; 9500.1221; 9500.1223, subparts 1, 2, 3, 5; 9500.1225; 9500.1226, 2.1 subparts 1, 5, 6, 7, 8, 9; 9500.1231; 9500.1232, subpart 4; 9500.1233, subparts 2.2 1, 2, 3, 5; 9500.1237, subparts 1, 2, 4, 6; 9500.1239; 9500.1243; 9500.1245, 2.3 subparts 1, 2, 3, 4, 5, 6, 7; 9500.1248, subpart 3; 9500.1250; 9500.1254, subparts 2.4 1, 2, 4, 5, 6, 7; 9500.1259, subparts 2, 3, 4; 9500.1261; 9500.1272. 2.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.6 ARTICLE 1 2.7 HEALTH CARE SERVICES 2.8 Section 1. Minnesota Statutes 2009 Supplement, section 256.969, subdivision 2b, 2.9 is amended to read: 2.10 Subd. 2b. Operating payment rates. In determining operating payment rates for 2.11 admissions occurring on or after the rate year beginning January 1, 1991, and every two 2.12 years after, or more frequently as determined by the commissioner, the commissioner shall 2.13 obtain operating data from an updated base year and establish operating payment rates 2.14 per admission for each hospital based on the cost-finding methods and allowable costs of 2.15 the Medicare program in effect during the base year. Rates under the general assistance 2.16 medical care, medical assistance, and MinnesotaCare programs shall not be rebased to 2.17 more current data on January 1, 1997, January 1, 2005, for the first 24 months of the 2.18 rebased period beginning January 1, 2009. For the first three months of the rebased period 2.19 beginning January 1, 2011, rates shall not be rebased at 74.25 percent of the full value 2.20 of the rebasing percentage change. From April 1, 2011, to March 31, 2012, rates shall 2.21 be rebased at 39.2 percent of the full value of the rebasing percentage change. Effective 2.22 April 1, 2012, rates shall be rebased at full value. The base year operating payment rate 2.23 per admission is standardized by the case mix index and adjusted by the hospital cost 2.24 index, relative values, and disproportionate population adjustment. The cost and charge 2.25 data used to establish operating rates shall only reflect inpatient services covered by 2.26 medical assistance and shall not include property cost information and costs recognized 2.27 in outlier payments. 2.28 Sec. 2. Minnesota Statutes 2009 Supplement, section 256.969, subdivision 3a, is 2.29 amended to read: 2.30 Subd. 3a. Payments. (a) Acute care hospital billings under the medical 2.31 assistance program must not be submitted until the recipient is discharged. However, 2.32 the commissioner shall establish monthly interim payments for inpatient hospitals that 2.33 have individual patient lengths of stay over 30 days regardless of diagnostic category. 2.34 Except as provided in section 256.9693, medical assistance reimbursement for treatment 2.35 Article 1 Sec. 2. 2 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] of mental illness shall be reimbursed based on diagnostic classifications. Individual 3.1 hospital payments established under this section and sections 256.9685, 256.9686, and 3.2 256.9695, in addition to third party and recipient liability, for discharges occurring during 3.3 the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 3.4 inpatient services paid for the same period of time to the hospital. This payment limitation 3.5 shall be calculated separately for medical assistance and general assistance medical 3.6 care services. The limitation on general assistance medical care shall be effective for 3.7 admissions occurring on or after July 1, 1991. Services that have rates established under 3.8 subdivision 11 or 12, must be limited separately from other services. After consulting with 3.9 the affected hospitals, the commissioner may consider related hospitals one entity and 3.10 may merge the payment rates while maintaining separate provider numbers. The operating 3.11 and property base rates per admission or per day shall be derived from the best Medicare 3.12 and claims data available when rates are established. The commissioner shall determine 3.13 the best Medicare and claims data, taking into consideration variables of recency of the 3.14 data, audit disposition, settlement status, and the ability to set rates in a timely manner. 3.15 The commissioner shall notify hospitals of payment rates by December 1 of the year 3.16 preceding the rate year. The rate setting data must reflect the admissions data used to 3.17 establish relative values. Base year changes from 1981 to the base year established for the 3.18 rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited 3.19 to the limits ending June 30, 1987, on the maximum rate of increase under subdivision 3.20 1. The commissioner may adjust base year cost, relative value, and case mix index data 3.21 to exclude the costs of services that have been discontinued by the October 1 of the year 3.22 preceding the rate year or that are paid separately from inpatient services. Inpatient stays 3.23 that encompass portions of two or more rate years shall have payments established based 3.24 on payment rates in effect at the time of admission unless the date of admission preceded 3.25 the rate year in effect by six months or more. In this case, operating payment rates for 3.26 services rendered during the rate year in effect and established based on the date of 3.27 admission shall be adjusted to the rate year in effect by the hospital cost index. 3.28 (b) For fee-for-service admissions occurring on or after July 1, 2002, the total 3.29 payment, before third-party liability and spenddown, made to hospitals for inpatient 3.30 services is reduced by .5 percent from the current statutory rates. 3.31 (c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 3.32 admissions occurring on or after July 1, 2003, made to hospitals for inpatient services 3.33 before third-party liability and spenddown, is reduced five percent from the current 3.34 statutory rates. Mental health services within diagnosis related groups 424 to 432, and 3.35 facilities defined under subdivision 16 are excluded from this paragraph. 3.36 Article 1 Sec. 2. 3 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (d) In addition to the reduction in paragraphs (b) and (c), the total payment for 4.1 fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for 4.2 inpatient services before third-party liability and spenddown, is reduced 6.0 percent 4.3 from the current statutory rates. Mental health services within diagnosis related groups 4.4 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. 4.5 Notwithstanding section 256.9686, subdivision 7, for purposes of this paragraph, medical 4.6 assistance does not include general assistance medical care. Payments made to managed 4.7 care plans shall be reduced for services provided on or after January 1, 2006, to reflect 4.8 this reduction. 4.9 (e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 4.10 fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made 4.11 to hospitals for inpatient services before third-party liability and spenddown, is reduced 4.12 3.46 percent from the current statutory rates. Mental health services with diagnosis related 4.13 groups 424 to 432 and facilities defined under subdivision 16 are excluded from this 4.14 paragraph. Payments made to managed care plans shall be reduced for services provided 4.15 on or after January 1, 2009, through June 30, 2009, to reflect this reduction. 4.16 (f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 4.17 fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2010, made 4.18 to hospitals for inpatient services before third-party liability and spenddown, is reduced 4.19 1.9 percent from the current statutory rates. Mental health services with diagnosis related 4.20 groups 424 to 432 and facilities defined under subdivision 16 are excluded from this 4.21 paragraph. Payments made to managed care plans shall be reduced for services provided 4.22 on or after July 1, 2009, through June 30, 2010, to reflect this reduction. 4.23 (g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 4.24 for fee-for-service admissions occurring on or after July 1, 2010, made to hospitals for 4.25 inpatient services before third-party liability and spenddown, is reduced 1.79 percent 4.26 from the current statutory rates. Mental health services with diagnosis related groups 4.27 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. 4.28 Payments made to managed care plans shall be reduced for services provided on or after 4.29 July 1, 2010, to reflect this reduction. 4.30 (h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total 4.31 payment for fee-for-service admissions occurring on or after July 1, 2009, made to 4.32 hospitals for inpatient services before third-party liability and spenddown, is reduced 4.33 one percent from the current statutory rates. Facilities defined under subdivision 16 are 4.34 excluded from this paragraph. Payments made to managed care plans shall be reduced for 4.35 services provided on or after October 1, 2009, to reflect this reduction. 4.36 Article 1 Sec. 2. 4 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total 5.1 payment for fee-for-service admissions occurring on or after July 1, 2010, made to 5.2 hospitals for inpatient services before third-party liability and spenddown, is reduced 5.3 three percent from the current statutory rates. Facilities defined under subdivision 16 are 5.4 excluded from this paragraph. Payments made to managed care plans shall be reduced for 5.5 services provided on or after January 1, 2011, to reflect this reduction. 5.6 Sec. 3. Minnesota Statutes 2008, section 256.969, subdivision 27, is amended to read: 5.7 Subd. 27. Quarterly payment adjustment. (a) In addition to any other payment 5.8 under this section, the commissioner shall make the following payments effective July 5.9 1, 2007: 5.10 (1) for a hospital located in Minnesota and not eligible for payments under 5.11 subdivision 20, with a medical assistance inpatient utilization rate greater than 17.8 5.12 percent of total patient days as of the base year in effect on July 1, 2005, a payment equal 5.13 to 13 percent of the total of the operating and property payment rates; 5.14 (2) for a hospital located in Minnesota in a specified urban area outside of the 5.15 seven-county metropolitan area and not eligible for payments under subdivision 20, with 5.16 a medical assistance inpatient utilization rate less than or equal to 17.8 percent of total 5.17 patient days as of the base year in effect on July 1, 2005, a payment equal to ten percent 5.18 of the total of the operating and property payment rates. For purposes of this clause, the 5.19 following cities are specified urban areas: Detroit Lakes, Rochester, Willmar, Alexandria, 5.20 Austin, Cambridge, Brainerd, Hibbing, Mankato, Duluth, St. Cloud, Grand Rapids, 5.21 Wyoming, Fergus Falls, Albert Lea, Winona, Virginia, Thief River Falls, and Wadena; 5.22 (3) for a hospital located in Minnesota but not located in a specified urban area 5.23 under clause (2), with a medical assistance inpatient utilization rate less than or equal to 5.24 17.8 percent of total patient days as of the base year in effect on July 1, 2005, a payment 5.25 equal to four percent of the total of the operating and property payment rates. A hospital 5.26 located in Woodbury and not in existence during the base year shall be reimbursed under 5.27 this clause; and 5.28 (4) in addition to any payments under clauses (1) to (3), for a hospital located in 5.29 Minnesota and not eligible for payments under subdivision 20 with a medical assistance 5.30 inpatient utilization rate of 17.9 percent of total patient days as of the base year in effect 5.31 on July 1, 2005, a payment equal to eight percent of the total of the operating and property 5.32 payment rates, and for a hospital located in Minnesota and not eligible for payments 5.33 under subdivision 20 with a medical assistance inpatient utilization rate of 59.6 percent 5.34 of total patient days as of the base year in effect on July 1, 2005, a payment equal to 5.35 Article 1 Sec. 3. 5 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] nine percent of the total of the operating and property payment rates. After making any 6.1 ratable adjustments required under paragraph (b), the commissioner shall proportionately 6.2 reduce payments under clauses (2) and (3) by an amount needed to make payments under 6.3 this clause. 6.4 (b) The state share of payments under paragraph (a) shall be equal to federal 6.5 reimbursements to the commissioner to reimburse expenditures reported under section 6.6 256B.199, subdivision 1. The commissioner shall ratably reduce or increase payments 6.7 under this subdivision in order to ensure that these payments equal the amount of 6.8 reimbursement received by the commissioner under section 256B.199, subdivision 1, 6.9 except that payments shall be ratably reduced by an amount equivalent to the state share of 6.10 a four percent reduction in MinnesotaCare and medical assistance payments for inpatient 6.11 hospital services. Effective July 1, 2009, the ratable reduction shall be equivalent to the 6.12 state share of a three percent reduction in these payments. 6.13 (c) The payments under paragraph (a) shall be paid quarterly based on each hospital's 6.14 operating and property payments from the second previous quarter, beginning on July 6.15 15, 2007, or upon federal approval of federal reimbursements under section 256B.199, 6.16 subdivision 1, whichever occurs later. 6.17 (d) The commissioner shall not adjust rates paid to a prepaid health plan under 6.18 contract with the commissioner to reflect payments provided in paragraph (a). 6.19 (e) The commissioner shall maximize the use of available federal money for 6.20 disproportionate share hospital payments and shall maximize payments to qualifying 6.21 hospitals. In order to accomplish these purposes, the commissioner may, in consultation 6.22 with the nonstate entities identified in section 256B.199, subdivision 1, adjust, on a pro 6.23 rata basis if feasible, the amounts reported by nonstate entities under section 256B.199, 6.24 subdivision 1, when application for reimbursement is made to the federal government, 6.25 and otherwise adjust the provisions of this subdivision. The commissioner shall utilize a 6.26 settlement process based on finalized data to maximize revenue under section 256B.199, 6.27 subdivision 1, and payments under this section. 6.28 (f) For purposes of this subdivision, medical assistance does not include general 6.29 assistance medical care. 6.30 Sec. 4. Minnesota Statutes 2008, section 256B.0625, subdivision 39, is amended to 6.31 read: 6.32 Subd. 39. Childhood immunizations. Providers who administer pediatric vaccines 6.33 within the scope of their licensure, and who are enrolled as a medical assistance provider, 6.34 must enroll in the pediatric vaccine administration program established by section 13631 6.35 Article 1 Sec. 4. 6 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] of the Omnibus Budget Reconciliation Act of 1993. Medical assistance shall pay an $8.50 7.1 fee per dose for administration of the vaccine and for all other vaccines supplied at no 7.2 cost by the federal government, including vaccines delivered in a pandemic situation to 7.3 children eligible for medical assistance. Medical assistance does not pay for vaccines that 7.4 are available at no cost from the pediatric vaccine administration program. 7.5 Sec. 5. Minnesota Statutes 2009 Supplement, section 256B.0651, subdivision 1, 7.6 is amended to read: 7.7 Subdivision 1. Definitions. (a) For the purposes of sections 256B.0651 to 7.8 256B.0656 and 256B.0659, the terms in paragraphs (b) to (g) have the meanings given. 7.9 (b) "Activities of daily living" has the meaning given in section 256B.0659, 7.10 subdivision 1, paragraph (b). 7.11 (c) "Assessment" means a review and evaluation of a recipient's need for home 7.12 care services conducted in person. 7.13 (d) "Home care services" means medical assistance covered services that are home 7.14 health agency services, including skilled nurse visits; home health aide visits; physical 7.15 therapy, occupational therapy, respiratory therapy, and language-speech pathology 7.16 therapy; private duty nursing; and personal care assistance. 7.17 (e) "Home residence," effective January 1, 2010, means a residence owned or 7.18 rented by the recipient either alone, with roommates of the recipient's choosing, or with 7.19 an unpaid responsible party or legal representative; or a family foster home where the 7.20 license holder lives with the recipient and is not paid to provide home care services for the 7.21 recipient except as allowed under sections 256B.0652, subdivision 10, and 256B.0654, 7.22 subdivision 4. 7.23 (f) "Medically necessary" has the meaning given in Minnesota Rules, parts 7.24 9505.0170 to 9505.0475. 7.25 (g) "Ventilator-dependent" means an individual who receives mechanical ventilation 7.26 for life support at least six hours per day and is expected to be or has been dependent on a 7.27 ventilator for at least 30 consecutive days. 7.28 Sec. 6. Minnesota Statutes 2009 Supplement, section 256B.0653, subdivision 2, 7.29 is amended to read: 7.30 Subd. 2. Definitions. For the purposes of this section, the following terms have 7.31 the meanings given. 7.32 Article 1 Sec. 6. 7 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (a) "Assessment" means an evaluation of the recipient's medical need for home 8.1 health agency services by a registered nurse or appropriate therapist that is conducted 8.2 within 30 days of a request. 8.3 (b) "Home care therapies" means occupational, physical, and respiratory therapy 8.4 and speech-language pathology services provided in the home by a Medicare certified 8.5 home health agency. 8.6 (c) (b) "Home health agency services" means services delivered in the recipient's 8.7 home residence, except as specified in section 256B.0625, by a home health agency to a 8.8 recipient with medical needs due to illness, disability, or physical conditions. 8.9 (d) (c) "Home health aide" means an employee of a home health agency who 8.10 completes medically oriented tasks written in the plan of care for a recipient. 8.11 (e) (d) "Home health agency" means a home care provider agency that is 8.12 Medicare-certified. 8.13 (f) "Occupational therapy services" mean the services defined in Minnesota Rules, 8.14 part 9505.0390. 8.15 (g) "Physical therapy services" mean the services defined in Minnesota Rules, part 8.16 9505.0390. 8.17 (h) "Respiratory therapy services" mean the services defined in chapter 147C and 8.18 Minnesota Rules, part 4668.0003, subpart 37. 8.19 (i) "Speech-language pathology services" mean the services defined in Minnesota 8.20 Rules, part 9505.0390. 8.21 (j) (e) "Skilled nurse visit" means a professional nursing visit to complete nursing 8.22 tasks required due to a recipient's medical condition that can only be safely provided by a 8.23 professional nurse to restore and maintain optimal health. 8.24 (k) (f) "Store-and-forward technology" means telehomecare services that do not 8.25 occur in real time via synchronous transmissions such as diabetic and vital sign monitoring. 8.26 (l) (g) "Telehomecare" means the use of telecommunications technology 8.27 via live, two-way interactive audiovisual technology which may be augmented by 8.28 store-and-forward technology. 8.29 (m) (h) "Telehomecare skilled nurse visit" means a visit by a professional nurse 8.30 to deliver a skilled nurse visit to a recipient located at a site other than the site where 8.31 the nurse is located and is used in combination with face-to-face skilled nurse visits to 8.32 adequately meet the recipient's needs. 8.33 Sec. 7. Minnesota Statutes 2009 Supplement, section 256B.0653, subdivision 6, 8.34 is amended to read: 8.35 Article 1 Sec. 7. 8 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Subd. 6. Noncovered home health agency services. The following are not eligible 9.1 for payment under medical assistance as a home health agency service: 9.2 (1) telehomecare skilled nurses services that is communication between the home 9.3 care nurse and recipient that consists solely of a telephone conversation, facsimile, 9.4 electronic mail, or a consultation between two health care practitioners; 9.5 (2) the following skilled nurse visits: 9.6 (i) for the purpose of monitoring medication compliance with an established 9.7 medication program for a recipient; 9.8 (ii) administering or assisting with medication administration, including injections, 9.9 prefilling syringes for injections, or oral medication setup of an adult recipient, when, 9.10 as determined and documented by the registered nurse, the need can be met by an 9.11 available pharmacy or the recipient or a family member is physically and mentally able 9.12 to self-administer or prefill a medication; 9.13 (iii) services done for the sole purpose of supervision of the home health aide or 9.14 personal care assistant; 9.15 (iv) services done for the sole purpose to train other home health agency workers; 9.16 (v) services done for the sole purpose of blood samples or lab draw when the 9.17 recipient is able to access these services outside the home; and 9.18 (vi) Medicare evaluation or administrative nursing visits required by Medicare; 9.19 (3) home health aide visits when the following activities are the sole purpose for the 9.20 visit: companionship, socialization, household tasks, transportation, and education; and 9.21 (4) home care therapies provided in other settings such as a clinic, day program, or as 9.22 an inpatient or when the recipient can access therapy outside of the recipient's residence. 9.23 Sec. 8. Minnesota Statutes 2009 Supplement, section 256B.0947, subdivision 1, 9.24 is amended to read: 9.25 Subdivision 1. Scope. Effective November 1, 2010 2011, and subject to federal 9.26 approval, medical assistance covers medically necessary, intensive nonresidential 9.27 rehabilitative mental health services as defined in subdivision 2, for recipients as defined 9.28 in subdivision 3, when the services are provided by an entity meeting the standards 9.29 in this section. 9.30 Sec. 9. Minnesota Statutes 2009 Supplement, section 256B.199, is amended to read: 9.31 256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES. 9.32 Subdivision 1. Federal matching funds effective July 1, 2007. (a) Effective July 9.33 1, 2007, the commissioner shall apply for federal matching funds for the expenditures 9.34 Article 1 Sec. 9. 9 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] in paragraphs (b) and (c). These funds are appropriated to the commissioner for the 10.1 payments under section 256.969, subdivision 27. 10.2 (b) The commissioner shall apply for federal matching funds for certified public 10.3 expenditures as follows: 10.4 (1) Hennepin County, Hennepin County Medical Center, Ramsey County, Regions 10.5 Hospital, the University of Minnesota, and Fairview-University Medical Center shall 10.6 report quarterly to the commissioner beginning June 1, 2007, payments made during the 10.7 second previous quarter that may qualify for reimbursement under federal law; 10.8 (2) based on these reports, the commissioner shall apply for federal matching 10.9 funds. These funds are appropriated to the commissioner for the payments under section 10.10 256.969, subdivision 27; and 10.11 (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 10.12 the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share 10.13 hospital payment money expected to be available in the current federal fiscal year. 10.14 (c) The commissioner shall apply for federal matching funds for general assistance 10.15 medical care expenditures as follows: 10.16 (1) for hospital services occurring on or after July 1, 2007, general assistance medical 10.17 care expenditures for fee-for-service inpatient and outpatient hospital payments made by 10.18 the department shall be used to apply for federal matching funds, except as limited below: 10.19 (i) only those general assistance medical care expenditures made to an individual 10.20 hospital that would not cause the hospital to exceed its individual hospital limits under 10.21 section 1923 of the Social Security Act may be considered; and 10.22 (ii) general assistance medical care expenditures may be considered only to the extent 10.23 of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and 10.24 (2) all hospitals must provide any necessary expenditure, cost, and revenue 10.25 information required by the commissioner as necessary for purposes of obtaining federal 10.26 Medicaid matching funds for general assistance medical care expenditures. 10.27 (d) For the period from April 1, 2009, to September 30, 2010, the commissioner shall 10.28 apply for additional federal matching funds available as disproportionate share hospital 10.29 payments under the American Recovery and Reinvestment Act of 2009. These funds shall 10.30 be made available as the state share of payments under section 256.969, subdivision 28. 10.31 The entities required to report certified public expenditures under paragraph (b), clause 10.32 (1), shall report additional certified public expenditures as necessary under this paragraph. 10.33 Subd. 2. Federal matching funds; certain MinnesotaCare expenditures. (a) 10.34 Effective July 1, 2010, the commissioner shall apply for federal matching funds for 10.35 MinnesotaCare expenditures for single adults and households with no children defined in 10.36 Article 1 Sec. 9. 10 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] section 256L.04, subdivision 7, occurring on or after April 1, 2010. These funds shall be 11.1 deposited as provided under section 16A.724, subdivision 3. 11.2 (b) The commissioner shall apply for federal matching funds under section 1923 of 11.3 the Social Security Act for the expenditures in this section in the following sequence: 11.4 (1) general assistance medical care expenditures under subdivision 1, paragraph (c); 11.5 (2) MinnesotaCare expenditures for childless adults under paragraph (a); and 11.6 (3) certified public expenditures under subdivision 1, paragraph (b). 11.7 Subd. 3. Extent of federal match. The commissioner shall apply for federal 11.8 matching funds under section 1923 of the Social Security Act for the expenditures in this 11.9 section only to the extent that Minnesota's disproportionate share hospital allotment has 11.10 not been exhausted by the payments for the medical assistance disproportionate population 11.11 adjustments defined in section 256.969, subdivision 9, paragraph (b). 11.12 Sec. 10. Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read: 11.13 Subd. 4. Critical access dental providers. Effective for dental services rendered 11.14 on or after January 1, 2002, the commissioner shall increase reimbursements to dentists 11.15 and dental clinics deemed by the commissioner to be critical access dental providers. 11.16 For dental services rendered on or after July 1, 2007, the commissioner shall increase 11.17 reimbursement by 30 percent above the reimbursement rate that would otherwise be 11.18 paid to the critical access dental provider. The commissioner shall pay the health plan 11.19 companies in amounts sufficient to reflect increased reimbursements to critical access 11.20 dental providers as approved by the commissioner. In determining which dentists and 11.21 dental clinics shall be deemed critical access dental providers, the commissioner shall 11.22 review Dentists and dental clinics that operate with a mission to serve disproportionately 11.23 large numbers of uninsured and underinsured individuals regardless of their ability to pay, 11.24 may be designated as critical access dental providers. These providers are limited to: 11.25 (1) the utilization rate in the service area in which the dentist or dental clinic operates 11.26 for dental services to patients covered by medical assistance, general assistance medical 11.27 care, or MinnesotaCare as their primary source of coverage; nonprofit community clinics 11.28 that: 11.29 (i) have nonprofit status as specified in chapter 317A; 11.30 (ii) have tax B exempt status as provided in Internal Revenue Code, section 11.31 501(c)(3); 11.32 (iii) are established to provide oral health services to low-income, uninsured, high 11.33 risk, underserved, or other special needs populations; 11.34 (iv) have professional staff familiar with cultural background of clients; 11.35 Article 1 Sec. 10. 11 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (v) charge for services on a sliding fee scale designed to provide assistance to 12.1 low-income clients based on current poverty income guidelines and family size; 12.2 (vi) do not restrict access or services because of a client's financial limitations or 12.3 public assistance status; and 12.4 (vii) have free care available as needed; 12.5 (2) the level of services provided by the dentist or dental clinic to patients covered 12.6 by medical assistance, general assistance medical care, or MinnesotaCare as their primary 12.7 source of coverage; and federally qualified health centers, rural health centers, or public 12.8 health clinics; 12.9 (3) whether the level of services provided by the dentist or dental clinic is critical 12.10 to maintaining adequate levels of patient access within the service area. state-operated 12.11 dental clinics; and 12.12 (4) county-owned and operated hospital based dental clinics. 12.13 In the absence of a critical access dental provider in a service area, the commissioner may 12.14 designate a dentist or dental clinic as a critical access dental provider if the dentist or 12.15 dental clinic is willing to provide care to patients covered by medical assistance, general 12.16 assistance medical care, or MinnesotaCare at a level which significantly increases access 12.17 to dental care in the service area. 12.18 Sec. 11. Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, is 12.19 amended to read: 12.20 Subd. 4. General assistance medical care; services. (a)(i) For a person who is 12.21 eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical 12.22 care covers, except as provided in paragraph (c): 12.23 (1) inpatient hospital services; 12.24 (2) outpatient hospital services; 12.25 (3) services provided by Medicare certified rehabilitation agencies; 12.26 (4) (3) prescription drugs and other products recommended through the process 12.27 established in section 256B.0625, subdivision 13; 12.28 (5) (4) equipment necessary to administer insulin and diagnostic supplies and 12.29 equipment for diabetics to monitor blood sugar level; 12.30 (6) (5) eyeglasses and eye examinations provided by a physician or optometrist; 12.31 (7) (6) hearing aids; 12.32 (8) (7) prosthetic devices; 12.33 (9) (8) laboratory and X-ray services; 12.34 (10) (9) physician's services; 12.35 Article 1 Sec. 11. 12 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (11) (10) medical transportation except special transportation; 13.1 (12) (11) chiropractic services as covered under the medical assistance program; 13.2 (13) (12) podiatric services; 13.3 (14) (13) dental services as covered under the medical assistance program; 13.4 (15) (14) mental health services covered under chapter 256B; 13.5 (16) (15) prescribed medications for persons who have been diagnosed as mentally 13.6 ill as necessary to prevent more restrictive institutionalization; 13.7 (17) (16) medical supplies and equipment, and Medicare premiums, coinsurance 13.8 and deductible payments; 13.9 (18) (17) medical equipment not specifically listed in this paragraph when the use 13.10 of the equipment will prevent the need for costlier services that are reimbursable under 13.11 this subdivision; 13.12 (19) (18) services performed by a certified pediatric nurse practitioner, a 13.13 certified family nurse practitioner, a certified adult nurse practitioner, a certified 13.14 obstetric/gynecological nurse practitioner, a certified neonatal nurse practitioner, or a 13.15 certified geriatric nurse practitioner in independent practice, if (1) the service is otherwise 13.16 covered under this chapter as a physician service, (2) the service provided on an inpatient 13.17 basis is not included as part of the cost for inpatient services included in the operating 13.18 payment rate, and (3) the service is within the scope of practice of the nurse practitioner's 13.19 license as a registered nurse, as defined in section 148.171; 13.20 (20) (19) services of a certified public health nurse or a registered nurse practicing 13.21 in a public health nursing clinic that is a department of, or that operates under the direct 13.22 authority of, a unit of government, if the service is within the scope of practice of the 13.23 public health nurse's license as a registered nurse, as defined in section 148.171; 13.24 (21) (20) telemedicine consultations, to the extent they are covered under section 13.25 256B.0625, subdivision 3b; 13.26 (22) (21) care coordination and patient education services provided by a community 13.27 health worker according to section 256B.0625, subdivision 49; and 13.28 (23) (22) regardless of the number of employees that an enrolled health care provider 13.29 may have, sign language interpreter services when provided by an enrolled health care 13.30 provider during the course of providing a direct, person-to-person covered health care 13.31 service to an enrolled recipient who has a hearing loss and uses interpreting services. 13.32 (ii) Effective October 1, 2003, for a person who is eligible under subdivision 3, 13.33 paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited 13.34 to inpatient hospital services, including physician services provided during the inpatient 13.35 hospital stay. A $1,000 deductible is required for each inpatient hospitalization. 13.36 Article 1 Sec. 11. 13 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (b) Effective August 1, 2005, sex reassignment surgery is not covered under this 14.1 subdivision. 14.2 (c) In order to contain costs, the commissioner of human services shall select 14.3 vendors of medical care who can provide the most economical care consistent with high 14.4 medical standards and shall where possible contract with organizations on a prepaid 14.5 capitation basis to provide these services. The commissioner shall consider proposals by 14.6 counties and vendors for prepaid health plans, competitive bidding programs, block grants, 14.7 or other vendor payment mechanisms designed to provide services in an economical 14.8 manner or to control utilization, with safeguards to ensure that necessary services are 14.9 provided. Before implementing prepaid programs in counties with a county operated or 14.10 affiliated public teaching hospital or a hospital or clinic operated by the University of 14.11 Minnesota, the commissioner shall consider the risks the prepaid program creates for the 14.12 hospital and allow the county or hospital the opportunity to participate in the program in a 14.13 manner that reflects the risk of adverse selection and the nature of the patients served by 14.14 the hospital, provided the terms of participation in the program are competitive with the 14.15 terms of other participants considering the nature of the population served. Payment for 14.16 services provided pursuant to this subdivision shall be as provided to medical assistance 14.17 vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For 14.18 payments made during fiscal year 1990 and later years, the commissioner shall consult 14.19 with an independent actuary in establishing prepayment rates, but shall retain final control 14.20 over the rate methodology. 14.21 (d) Effective January 1, 2008, drug coverage under general assistance medical 14.22 care is limited to prescription drugs that: 14.23 (i) are covered under the medical assistance program as described in section 14.24 256B.0625, subdivisions 13 and 13d; and 14.25 (ii) are provided by manufacturers that have fully executed general assistance 14.26 medical care rebate agreements with the commissioner and comply with the agreements. 14.27 Prescription drug coverage under general assistance medical care must conform to 14.28 coverage under the medical assistance program according to section 256B.0625, 14.29 subdivisions 13 to 13g. 14.30 (e) Recipients eligible under subdivision 3, paragraph (a), shall pay the following 14.31 co-payments for services provided on or after October 1, 2003, and before January 1, 2009: 14.32 (1) $25 for eyeglasses; 14.33 (2) $25 for nonemergency visits to a hospital-based emergency room; 14.34 Article 1 Sec. 11. 14 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (3) $3 per brand-name drug prescription and $1 per generic drug prescription, 15.1 subject to a $12 per month maximum for prescription drug co-payments. No co-payments 15.2 shall apply to antipsychotic drugs when used for the treatment of mental illness; and 15.3 (4) 50 percent coinsurance on restorative dental services. 15.4 (f) Recipients eligible under subdivision 3, paragraph (a), shall include the following 15.5 co-payments for services provided on or after January 1, 2009: 15.6 (1) $25 for nonemergency visits to a hospital-based emergency room; and 15.7 (2) $3 per brand-name drug prescription and $1 per generic drug prescription, 15.8 subject to a $7 per month maximum for prescription drug co-payments. No co-payments 15.9 shall apply to antipsychotic drugs when used for the treatment of mental illness. 15.10 (g) MS 2007 Supp [Expired] 15.11 (h) Effective January 1, 2009, co-payments shall be limited to one per day per 15.12 provider for nonemergency visits to a hospital-based emergency room. Recipients of 15.13 general assistance medical care are responsible for all co-payments in this subdivision. 15.14 The general assistance medical care reimbursement to the provider shall be reduced by the 15.15 amount of the co-payment, except that reimbursement for prescription drugs shall not be 15.16 reduced once a recipient has reached the $7 per month maximum for prescription drug 15.17 co-payments. The provider collects the co-payment from the recipient. Providers may not 15.18 deny services to recipients who are unable to pay the co-payment. 15.19 (i) General assistance medical care reimbursement to fee-for-service providers 15.20 and payments to managed care plans shall not be increased as a result of the removal of 15.21 the co-payments effective January 1, 2009. 15.22 (j) Any county may, from its own resources, provide medical payments for which 15.23 state payments are not made. 15.24 (k) Chemical dependency services that are reimbursed under chapter 254B must not 15.25 be reimbursed under general assistance medical care. 15.26 (l) The maximum payment for new vendors enrolled in the general assistance 15.27 medical care program after the base year shall be determined from the average usual and 15.28 customary charge of the same vendor type enrolled in the base year. 15.29 (m) The conditions of payment for services under this subdivision are the same 15.30 as the conditions specified in rules adopted under chapter 256B governing the medical 15.31 assistance program, unless otherwise provided by statute or rule. 15.32 (n) Inpatient and outpatient payments shall be reduced by five percent, effective July 15.33 1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003, 15.34 and incorporated by reference in paragraph (l). 15.35 Article 1 Sec. 11. 15 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (o) Payments for all other health services except inpatient, outpatient, and pharmacy 16.1 services shall be reduced by five percent, effective July 1, 2003. 16.2 (p) Payments to managed care plans shall be reduced by five percent for services 16.3 provided on or after October 1, 2003. 16.4 (q) A hospital receiving a reduced payment as a result of this section may apply the 16.5 unpaid balance toward satisfaction of the hospital's bad debts. 16.6 (r) Fee-for-service payments for nonpreventive visits shall be reduced by $3 for 16.7 services provided on or after January 1, 2006. For purposes of this subdivision, a visit 16.8 means an episode of service which is required because of a recipient's symptoms, 16.9 diagnosis, or established illness, and which is delivered in an ambulatory setting by 16.10 a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse, 16.11 audiologist, optician, or optometrist. 16.12 (s) Payments to managed care plans shall not be increased as a result of the removal 16.13 of the $3 nonpreventive visit co-payment effective January 1, 2006. 16.14 (t) Payments for mental health services added as covered benefits after December 16.15 31, 2007, are not subject to the reductions in paragraphs (l), (n), (o), and (p). 16.16 (u) Effective for services provided on or after July 1, 2009, total payment rates for 16.17 basic care services shall be reduced by three percent, in accordance with section 256B.766. 16.18 Payments made to managed care plans shall be reduced for services provided on or after 16.19 October 1, 2009, to reflect this reduction. 16.20 (v) Effective for services provided on or after July 1, 2009, payment rates for 16.21 physician and professional services shall be reduced as described under section 256B.76, 16.22 subdivision 1, paragraph (c). Payments made to managed care and county-based 16.23 purchasing plans shall be reduced for services provided on or after October 1, 2009, 16.24 to reflect this reduction. 16.25 (w) Effective January 1, 2011, rehabilitative and therapeutic services described in 16.26 section 256B.0625, subdivisions 8, 8a, and 8b, provided in any outpatient setting are not 16.27 covered under this subdivision. 16.28 Sec. 12. Minnesota Statutes 2008, section 256L.04, subdivision 7, is amended to read: 16.29 Subd. 7. Single adults and households with no children. (a) The definition of 16.30 eligible persons includes all individuals and households with no children who have 16.31 gross family incomes that are equal to or less than 200 75 percent of the federal poverty 16.32 guidelines. 16.33 Article 1 Sec. 12. 16 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (b) Effective July 1, 2009, the definition of eligible persons includes all individuals 17.1 and households with no children who have gross family incomes that are equal to or less 17.2 than 250 percent of the federal poverty guidelines. 17.3 (b) Effective October 1, 2010, the definition of eligible persons includes all 17.4 individuals and households with no children who have gross family incomes that are equal 17.5 to or less than 75 percent of the federal poverty guidelines. 17.6 EFFECTIVE DATE. This section is effective October 1, 2010. 17.7 Sec. 13. Minnesota Statutes 2008, section 256L.05, subdivision 5, is amended to read: 17.8 Subd. 5. Availability of private insurance. The commissioner, in consultation with 17.9 the commissioners of health and commerce, shall provide information regarding the 17.10 availability of private health insurance coverage and the possibility of disenrollment 17.11 under section 256L.07, subdivision 1, paragraphs (b) and (c), to all: (1) families enrolled 17.12 in the MinnesotaCare program whose gross family income is equal to or more than 225 17.13 percent of the federal poverty guidelines; and (2) single adults and households without 17.14 children enrolled in the MinnesotaCare program whose gross family income is equal to 17.15 or more than 165 percent of the federal poverty guidelines. This information must be 17.16 provided upon initial enrollment and annually thereafter. The commissioner shall also 17.17 include information regarding the availability of private health insurance coverage in the 17.18 notice of ineligibility provided to persons subject to disenrollment under section 256L.07, 17.19 subdivision 1, paragraphs (b) and (c). 17.20 EFFECTIVE DATE. This section is effective October 1, 2010. 17.21 Sec. 14. Minnesota Statutes 2008, section 256L.07, subdivision 1, is amended to read: 17.22 Subdivision 1. General requirements. (a) Children enrolled in the original 17.23 children's health plan as of September 30, 1992, children who enrolled in the 17.24 MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549, 17.25 article 4, section 17, and children who have family gross incomes that are equal to or 17.26 less than 150 percent of the federal poverty guidelines are eligible without meeting 17.27 the requirements of subdivision 2 and the four-month requirement in subdivision 3, as 17.28 long as they maintain continuous coverage in the MinnesotaCare program or medical 17.29 assistance. Children who apply for MinnesotaCare on or after the implementation date 17.30 of the employer-subsidized health coverage program as described in Laws 1998, chapter 17.31 407, article 5, section 45, who have family gross incomes that are equal to or less than 150 17.32 Article 1 Sec. 14. 17 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to 18.1 be eligible for MinnesotaCare. 18.2 Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, whose 18.3 income increases above 275 percent of the federal poverty guidelines, are no longer 18.4 eligible for the program and shall be disenrolled by the commissioner. Beginning January 18.5 1, 2008, individuals enrolled in MinnesotaCare under section 256L.04, subdivision 7, 18.6 whose income increases above 200 75 percent of the federal poverty guidelines or 250 18.7 percent of the federal poverty guidelines on or after July 1, 2009, are no longer eligible for 18.8 the program and shall be disenrolled by the commissioner. For persons disenrolled under 18.9 this subdivision, MinnesotaCare coverage terminates the last day of the calendar month 18.10 following the month in which the commissioner determines that the income of a family or 18.11 individual exceeds program income limits. 18.12 (b) Notwithstanding paragraph (a), children may remain enrolled in MinnesotaCare 18.13 if ten percent of their gross individual or gross family income as defined in section 18.14 256L.01, subdivision 4, is less than the annual premium for a policy with a $500 18.15 deductible available through the Minnesota Comprehensive Health Association. Children 18.16 who are no longer eligible for MinnesotaCare under this clause shall be given a 12-month 18.17 notice period from the date that ineligibility is determined before disenrollment. The 18.18 premium for children remaining eligible under this clause shall be the maximum premium 18.19 determined under section 256L.15, subdivision 2, paragraph (b). 18.20 (c) Notwithstanding paragraphs (a) and (b), parents are not eligible for 18.21 MinnesotaCare if gross household income exceeds $57,500 for the 12-month period 18.22 of eligibility. 18.23 EFFECTIVE DATE. This section is effective October 1, 2010. 18.24 Sec. 15. Minnesota Statutes 2008, section 256L.12, subdivision 9, is amended to read: 18.25 Subd. 9. Rate setting; performance withholds. (a) Rates will be prospective, 18.26 per capita, where possible. The commissioner may allow health plans to arrange for 18.27 inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 18.28 an independent actuary to determine appropriate rates. 18.29 (b) For services rendered on or after January 1, 2003, to December 31, 2003, the 18.30 commissioner shall withhold .5 percent of managed care plan payments under this section 18.31 pending completion of performance targets. The withheld funds must be returned no 18.32 sooner than July 1 and no later than July 31 of the following year if performance targets 18.33 in the contract are achieved. A managed care plan may include as admitted assets under 18.34 Article 1 Sec. 15. 18 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] section 62D.044 any amount withheld under this paragraph that is reasonably expected 19.1 to be returned. 19.2 (c) For services rendered on or after January 1, 2004, the commissioner shall 19.3 withhold five percent of managed care plan payments under this section pending 19.4 completion of performance targets. Each performance target must be quantifiable, 19.5 objective, measurable, and reasonably attainable, except in the case of a performance target 19.6 based on a federal or state law or rule. Criteria for assessment of each performance target 19.7 must be outlined in writing prior to the contract effective date. The managed care plan 19.8 must demonstrate, to the commissioner's satisfaction, that the data submitted regarding 19.9 attainment of the performance target is accurate. The commissioner shall periodically 19.10 change the administrative measures used as performance targets in order to improve plan 19.11 performance across a broader range of administrative services. The performance targets 19.12 must include measurement of plan efforts to contain spending on health care services and 19.13 administrative activities. The commissioner may adopt plan-specific performance targets 19.14 that take into account factors affecting only one plan, such as characteristics of the plan's 19.15 enrollee population. The withheld funds must be returned no sooner than July 1 and no 19.16 later than July 31 of the following calendar year if performance targets in the contract are 19.17 achieved. A managed care plan or a county-based purchasing plan under section 256B.692 19.18 may include as admitted assets under section 62D.044 any amount withheld under this 19.19 paragraph that is reasonably expected to be returned. 19.20 (d) For services rendered on or after January 1, 2011, the commissioner shall 19.21 withhold an additional three percent of managed care plan payments under this section. 19.22 The withheld funds must be returned no sooner than July 1, and no later than July 31 of 19.23 the following calendar year. The return of the withhold under this paragraph is not subject 19.24 to the requirements of paragraph (b) or (c). 19.25 (e) A managed care plan or a county-based purchasing plan under section 256B.692 19.26 may include as admitted assets under section 62D.044 any amount withheld under this 19.27 section. 19.28 Sec. 16. Minnesota Statutes 2008, section 256L.15, subdivision 2, is amended to read: 19.29 Subd. 2. Sliding fee scale; monthly gross individual or family income. (a) The 19.30 commissioner shall establish a sliding fee scale to determine the percentage of monthly 19.31 gross individual or family income that households at different income levels must pay 19.32 to obtain coverage through the MinnesotaCare program. The sliding fee scale must be 19.33 based on the enrollee's monthly gross individual or family income. The sliding fee scale 19.34 must contain separate tables based on enrollment of one, two, or three or more persons. 19.35 Article 1 Sec. 16. 19 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Until June 30, 2009, The sliding fee scale begins with a premium of 1.5 percent of 20.1 monthly gross individual or family income for individuals or families with incomes below 20.2 the limits for the medical assistance program for families and children in effect on January 20.3 1, 1999, and proceeds through the following evenly spaced steps: 1.8, 2.3, 3.1, 3.8, 4.8, 20.4 5.9, 7.4, and 8.8 percent. These percentages are matched to evenly spaced income steps 20.5 ranging from the medical assistance income limit for families and children in effect on 20.6 January 1, 1999, to 275 percent of the federal poverty guidelines for the applicable family 20.7 size, up to a family size of five. The sliding fee scale for a family of five must be used 20.8 for families of more than five. The sliding fee scale and percentages are not subject to 20.9 the provisions of chapter 14. If a family or individual reports increased income after 20.10 enrollment, premiums shall be adjusted at the time the change in income is reported. 20.11 (b) Children in families whose gross income is above 275 percent of the federal 20.12 poverty guidelines shall pay the maximum premium. The maximum premium is defined 20.13 as a base charge for one, two, or three or more enrollees so that if all MinnesotaCare 20.14 cases paid the maximum premium, the total revenue would equal the total cost of 20.15 MinnesotaCare medical coverage and administration. In this calculation, administrative 20.16 costs shall be assumed to equal ten percent of the total. The costs of medical coverage 20.17 for pregnant women and children under age two and the enrollees in these groups shall 20.18 be excluded from the total. The maximum premium for two enrollees shall be twice the 20.19 maximum premium for one, and the maximum premium for three or more enrollees shall 20.20 be three times the maximum premium for one. 20.21 (c) Beginning July 1, 2009 2011, MinnesotaCare enrollees shall pay premiums 20.22 according to the premium scale specified in paragraph (d) (a) with the exception that 20.23 children in families with income at or below 150 percent of the federal poverty guidelines 20.24 shall pay a monthly premium of $4. For purposes of paragraph (d), "minimum" means a 20.25 monthly premium of $4. 20.26 (d) The following premium scale is established for individuals and families with 20.27 gross family incomes of 300 percent of the federal poverty guidelines or less: 20.28 Federal Poverty Guideline Range Percent of Average Gross Monthly 20.29 Income 20.30 0-45% minimum 20.31 46-54% 1.1% 20.32 55-81% 1.6% 20.33 82-109% 2.2% 20.34 110-136% 2.9% 20.35 137-164% 3.6% 20.36 165-191% 4.6% 20.37 192-219% 5.6% 20.38 Article 1 Sec. 16. 20 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] 220-248% 6.5% 21.1 249-274% 7.2% 21.2 275-300% 8.0% 21.3 EFFECTIVE DATE. This section is effective July 1, 2011. 21.4 Sec. 17. REPEALER. 21.5 Minnesota Statutes 2008, section 256.969, subdivision 26, is repealed. 21.6 Minnesota Statutes 2009 Supplement, section 256B.0653, subdivision 5, is repealed. 21.7 ARTICLE 2 21.8 CONTINUING CARE 21.9 Section 1. Minnesota Statutes 2009 Supplement, section 256B.0915, subdivision 3a, 21.10 is amended to read: 21.11 Subd. 3a. Elderly waiver cost limits. (a) The monthly limit for the cost of 21.12 waivered services to an individual elderly waiver client except for individuals described 21.13 in paragraph (b) shall be the weighted average monthly nursing facility rate of the case 21.14 mix resident class to which the elderly waiver client would be assigned under Minnesota 21.15 Rules, parts 9549.0050 to 9549.0059, less the recipient's maintenance needs allowance 21.16 as described in subdivision 1d, paragraph (a), until the first day of the state fiscal year in 21.17 which the resident assessment system as described in section 256B.438 for nursing home 21.18 rate determination is implemented. Effective on the first day of the state fiscal year in 21.19 which the resident assessment system as described in section 256B.438 for nursing home 21.20 rate determination is implemented and the first day of each subsequent state fiscal year, the 21.21 monthly limit for the cost of waivered services to an individual elderly waiver client shall 21.22 be the rate of the case mix resident class to which the waiver client would be assigned 21.23 under Minnesota Rules, parts 9549.0050 to 9549.0059, in effect on the last day of the 21.24 previous state fiscal year, adjusted by the greater of any legislatively adopted home and 21.25 community-based services percentage rate increase or the average statewide percentage 21.26 increase in nursing facility payment rates adjustment. 21.27 (b) The monthly limit for the cost of waivered services to an individual elderly 21.28 waiver client assigned to a case mix classification A under paragraph (a) with (1) no 21.29 dependencies in activities of daily living, (2) only one dependency in bathing, dressing, 21.30 grooming, or walking, or (3) a dependency score of less than three if eating is the only 21.31 dependency, shall be the lower of the case mix classification amount for case mix A as 21.32 determined under paragraph (a) or the case mix classification amount for case mix A 21.33 Article 2 Section 1. 21 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] effective on October 1, 2008, per month for all new participants enrolled in the program 22.1 on or after July 1, 2009. This monthly limit shall be applied to all other participants who 22.2 meet this criteria at reassessment. 22.3 (c) If extended medical supplies and equipment or environmental modifications are 22.4 or will be purchased for an elderly waiver client, the costs may be prorated for up to 22.5 12 consecutive months beginning with the month of purchase. If the monthly cost of a 22.6 recipient's waivered services exceeds the monthly limit established in paragraph (a) or 22.7 (b), the annual cost of all waivered services shall be determined. In this event, the annual 22.8 cost of all waivered services shall not exceed 12 times the monthly limit of waivered 22.9 services as described in paragraph (a) or (b). 22.10 Sec. 2. Minnesota Statutes 2008, section 256B.0915, subdivision 3b, is amended to 22.11 read: 22.12 Subd. 3b. Cost limits for elderly waiver applicants who reside in a nursing 22.13 facility. (a) For a person who is a nursing facility resident at the time of requesting a 22.14 determination of eligibility for elderly waivered services, a monthly conversion limit for 22.15 the cost of elderly waivered services may be requested. The monthly conversion limit for 22.16 the cost of elderly waiver services shall be the resident class assigned under Minnesota 22.17 Rules, parts 9549.0050 to 9549.0059, for that resident in the nursing facility where 22.18 the resident currently resides until July 1 of the state fiscal year in which the resident 22.19 assessment system as described in section 256B.438 for nursing home rate determination 22.20 is implemented. Effective on July 1 of the state fiscal year in which the resident 22.21 assessment system as described in section 256B.438 for nursing home rate determination 22.22 is implemented, the monthly conversion limit for the cost of elderly waiver services shall 22.23 be the per diem nursing facility rate as determined by the resident assessment system as 22.24 described in section 256B.438 for that resident residents in the nursing facility where the 22.25 resident currently resides, but in effect on June 30, 2010, and adjusted annually by any 22.26 legislatively adopted percentage change in the elderly waiver services rates. That per 22.27 diem shall be multiplied by 365, and divided by 12, less and reduced by the recipient's 22.28 maintenance needs allowance as described in subdivision 1d. The initially approved 22.29 conversion rate may must be adjusted by the greater of any subsequent legislatively 22.30 adopted home and community-based services percentage rate increase or the average 22.31 statewide percentage increase in nursing facility payment rates adjustment. The limit 22.32 under this subdivision only applies to persons discharged from a nursing facility after a 22.33 minimum 30-day stay and found eligible for waivered services on or after July 1, 1997. 22.34 For conversions from the nursing home to the elderly waiver with consumer directed 22.35 Article 2 Sec. 2. 22 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] community support services, the conversion rate limit is equal to the nursing facility rate 23.1 reduced by a percentage equal to the percentage difference between the consumer directed 23.2 services budget limit that would be assigned according to the federally approved waiver 23.3 plan and the corresponding community case mix cap, but not to exceed 50 percent. 23.4 (b) The following costs must be included in determining the total monthly costs 23.5 for the waiver client: 23.6 (1) cost of all waivered services, including extended medical specialized supplies 23.7 and equipment and environmental modifications and accessibility adaptations; and 23.8 (2) cost of skilled nursing, home health aide, and personal care services reimbursable 23.9 by medical assistance. 23.10 Sec. 3. Minnesota Statutes 2008, section 256B.434, is amended by adding a 23.11 subdivision to read: 23.12 Subd. 22. Nursing facility rate reductions effective July 1, 2010. Effective July 23.13 1, 2010, the commissioner shall decrease the operating payment rates of each nursing 23.14 facility reimbursed under this section by 2.5 percent of the operating payment rate in 23.15 effect on June 30, 2010. 23.16 Sec. 4. Minnesota Statutes 2008, section 256B.48, subdivision 1, is amended to read: 23.17 Subdivision 1. Prohibited practices. A nursing facility is not eligible to receive 23.18 medical assistance payments unless it refrains from all of the following: 23.19 (a) Charging private paying residents rates for similar services which exceed those 23.20 which are approved by the state agency for medical assistance recipients as determined by 23.21 the prospective desk audit rate, except under the following circumstances: 23.22 (1) the nursing facility may : 23.23 (1) (i) charge private paying residents a higher rate for a private room,; and 23.24 (2) (ii) charge for special services which are not included in the daily rate if medical 23.25 assistance residents are charged separately at the same rate for the same services in 23.26 addition to the daily rate paid by the commissioner.; 23.27 (2) effective July 1, 2010, through September 30, 2011, nursing facilities may charge 23.28 private paying residents rates up to two percent higher than the allowable payment rate 23.29 determined by the commissioner for the RUG's group currently assigned to the resident; 23.30 (3) effective October 1, 2011, through September 30, 2012, nursing facilities 23.31 may charge private paying residents rates up to four percent higher than the allowable 23.32 payment rate determined by the commissioner for the RUG's group currently assigned 23.33 to the resident; and 23.34 Article 2 Sec. 4. 23 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (4) effective October 1, 2012, through September 30, 2013, nursing facilities may 24.1 charge private paying residents rates up to six percent higher than the allowable payment 24.2 rate determined by the commissioner for the RUG's group currently assigned to the 24.3 resident. 24.4 Nothing in this section precludes a nursing facility from charging a rate allowable 24.5 under the facility's single room election option under Minnesota Rules, part 9549.0060, 24.6 subpart 11. Services covered by the payment rate must be the same regardless of payment 24.7 source. Special services, if offered, must be available to all residents in all areas of the 24.8 nursing facility and charged separately at the same rate. Residents are free to select 24.9 or decline special services. Special services must not include services which must be 24.10 provided by the nursing facility in order to comply with licensure or certification standards 24.11 and that if not provided would result in a deficiency or violation by the nursing facility. 24.12 Services beyond those required to comply with licensure or certification standards must 24.13 not be charged separately as a special service if they were included in the payment rate for 24.14 the previous reporting year. A nursing facility that charges a private paying resident a rate 24.15 in violation of this clause is subject to an action by the state of Minnesota or any of its 24.16 subdivisions or agencies for civil damages. A private paying resident or the resident's legal 24.17 representative has a cause of action for civil damages against a nursing facility that charges 24.18 the resident rates in violation of this clause. The damages awarded shall include three 24.19 times the payments that result from the violation, together with costs and disbursements, 24.20 including reasonable attorneys' fees or their equivalent. A private paying resident or the 24.21 resident's legal representative, the state, subdivision or agency, or a nursing facility may 24.22 request a hearing to determine the allowed rate or rates at issue in the cause of action. 24.23 Within 15 calendar days after receiving a request for such a hearing, the commissioner 24.24 shall request assignment of an administrative law judge under sections 14.48 to 14.56 to 24.25 conduct the hearing as soon as possible or according to agreement by the parties. The 24.26 administrative law judge shall issue a report within 15 calendar days following the close 24.27 of the hearing. The prohibition set forth in this clause shall not apply to facilities licensed 24.28 as boarding care facilities which are not certified as skilled or intermediate care facilities 24.29 level I or II for reimbursement through medical assistance. 24.30 (b) Effective October 1, 2013, paragraph (a) no longer applies, except that special 24.31 services, if offered, must be available to all residents of the nursing facility and charged 24.32 separately at the same rate. Residents are free to select or decline special services. Special 24.33 services must not include services which must be provided by the nursing facility in order 24.34 to comply with licensure or certification standards and that if not provided would result in 24.35 a deficiency or violation by the nursing facility. 24.36 Article 2 Sec. 4. 24 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (c)(1) Charging, soliciting, accepting, or receiving from an applicant for admission 25.1 to the facility, or from anyone acting in behalf of the applicant, as a condition of 25.2 admission, expediting the admission, or as a requirement for the individual's continued 25.3 stay, any fee, deposit, gift, money, donation, or other consideration not otherwise required 25.4 as payment under the state plan. For residents on medical assistance, medical assistance 25.5 payment according to the state plan must be accepted as payment in full for continued 25.6 stay, except where otherwise provided for under statute; 25.7 (2) requiring an individual, or anyone acting in behalf of the individual, to loan 25.8 any money to the nursing facility; 25.9 (3) requiring an individual, or anyone acting in behalf of the individual, to promise 25.10 to leave all or part of the individual's estate to the facility; or 25.11 (4) requiring a third-party guarantee of payment to the facility as a condition of 25.12 admission, expedited admission, or continued stay in the facility. 25.13 Nothing in this paragraph would prohibit discharge for nonpayment of services in 25.14 accordance with state and federal regulations. 25.15 (c) (d) Requiring any resident of the nursing facility to utilize a vendor of health 25.16 care services chosen by the nursing facility. A nursing facility may require a resident 25.17 to use pharmacies that utilize unit dose packing systems approved by the Minnesota 25.18 Board of Pharmacy, and may require a resident to use pharmacies that are able to meet 25.19 the federal regulations for safe and timely administration of medications such as systems 25.20 with specific number of doses, prompt delivery of medications, or access to medications 25.21 on a 24-hour basis. Notwithstanding the provisions of this paragraph, nursing facilities 25.22 shall not restrict a resident's choice of pharmacy because the pharmacy utilizes a specific 25.23 system of unit dose drug packing. 25.24 (d) (e) Providing differential treatment on the basis of status with regard to public 25.25 assistance. 25.26 (e) (f) Discriminating in admissions, services offered, or room assignment on the 25.27 basis of status with regard to public assistance or refusal to purchase special services. 25.28 Discrimination in admissions discrimination, services offered, or room assignment shall 25.29 include, but is not limited to: 25.30 (1) basing admissions decisions upon assurance by the applicant to the nursing 25.31 facility, or the applicant's guardian or conservator, that the applicant is neither eligible for 25.32 nor will seek information or assurances regarding current or future eligibility for public 25.33 assistance for payment of nursing facility care costs; and 25.34 (2) engaging in preferential selection from waiting lists based on an applicant's 25.35 ability to pay privately or an applicant's refusal to pay for a special service. 25.36 Article 2 Sec. 4. 25 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] The collection and use by a nursing facility of financial information of any applicant 26.1 pursuant to a preadmission screening program established by law shall not raise an 26.2 inference that the nursing facility is utilizing that information for any purpose prohibited 26.3 by this paragraph. 26.4 (f) (g) Requiring any vendor of medical care as defined by section 256B.02, 26.5 subdivision 7, who is reimbursed by medical assistance under a separate fee schedule, 26.6 to pay any amount based on utilization or service levels or any portion of the vendor's 26.7 fee to the nursing facility except as payment for renting or leasing space or equipment 26.8 or purchasing support services from the nursing facility as limited by section 256B.433. 26.9 All agreements must be disclosed to the commissioner upon request of the commissioner. 26.10 Nursing facilities and vendors of ancillary services that are found to be in violation of 26.11 this provision shall each be subject to an action by the state of Minnesota or any of its 26.12 subdivisions or agencies for treble civil damages on the portion of the fee in excess of that 26.13 allowed by this provision and section 256B.433. Damages awarded must include three 26.14 times the excess payments together with costs and disbursements including reasonable 26.15 attorney's fees or their equivalent. 26.16 (g) (h) Refusing, for more than 24 hours, to accept a resident returning to the same 26.17 bed or a bed certified for the same level of care, in accordance with a physician's order 26.18 authorizing transfer, after receiving inpatient hospital services. 26.19 (i) For a period not to exceed 180 days, the commissioner may continue to make 26.20 medical assistance payments to a nursing facility or boarding care home which is in 26.21 violation of this section if extreme hardship to the residents would result. In these cases 26.22 the commissioner shall issue an order requiring the nursing facility to correct the violation. 26.23 The nursing facility shall have 20 days from its receipt of the order to correct the violation. 26.24 If the violation is not corrected within the 20-day period the commissioner may reduce 26.25 the payment rate to the nursing facility by up to 20 percent. The amount of the payment 26.26 rate reduction shall be related to the severity of the violation and shall remain in effect 26.27 until the violation is corrected. The nursing facility or boarding care home may appeal the 26.28 commissioner's action pursuant to the provisions of chapter 14 pertaining to contested 26.29 cases. An appeal shall be considered timely if written notice of appeal is received by the 26.30 commissioner within 20 days of notice of the commissioner's proposed action. 26.31 In the event that the commissioner determines that a nursing facility is not eligible 26.32 for reimbursement for a resident who is eligible for medical assistance, the commissioner 26.33 may authorize the nursing facility to receive reimbursement on a temporary basis until the 26.34 resident can be relocated to a participating nursing facility. 26.35 Article 2 Sec. 4. 26 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Certified beds in facilities which do not allow medical assistance intake on July 1, 27.1 1984, or after shall be deemed to be decertified for purposes of section 144A.071 only. 27.2 Sec. 5. Minnesota Statutes 2008, section 256B.5012, is amended by adding a 27.3 subdivision to read: 27.4 Subd. 9. ICF/MR rate decreases effective July 1, 2010. Effective July 1, 2010, 27.5 the commissioner shall decrease the operating payment rate of each facility reimbursed 27.6 under this section by 2.5 percent of the operating payment rates in effect on June 30, 2010. 27.7 For each facility, the commissioner shall implement the rate reduction, based on occupied 27.8 beds, using the percentage specified in this subdivision multiplied by the total payment 27.9 rate, including the variable rate but excluding the property-related payment rate, in effect 27.10 on the preceding date. The total rate reduction shall include the adjustment provided in 27.11 section 256B.5012, subdivision 7. 27.12 Sec. 6. COLA COMPENSATION REQUIREMENTS. 27.13 Effective July 1, 2010, providers who received rate increases under Minnesota 27.14 Statutes, sections 256B.431, subdivision 41; 256B.434, subdivision 19; and 256B.5012, 27.15 subdivision 7; Laws 2007, chapter 147, article 7, section 71, as amended by Laws 2008, 27.16 chapter 363, article 15, section 17; and Laws 2008, chapter 363, article 18, section 3, 27.17 subdivision 6, paragraph (c), for state fiscal years 2008 and 2009 are no longer required 27.18 to continue or retain employee compensation or wage-related increases required by 27.19 those sections or by other laws or statutes enacted earlier in which compensation-related 27.20 increases were required as a condition of receiving a rate increase. 27.21 Sec. 7. PROVIDER RATE AND GRANT REDUCTIONS. 27.22 (a) The commissioner of human services shall decrease grants, allocations, 27.23 reimbursement rates, or rate limits, as applicable, by 2.5 percent effective July 1, 2010, for 27.24 services rendered on or after that date. County or tribal contracts for services specified 27.25 in this section must be amended to pass through these rate reductions within 60 days of 27.26 the effective date of the decrease and must be retroactive from the effective date of the 27.27 rate decrease. 27.28 (b) The rate changes described in this section must be provided to: 27.29 (1) home and community-based waivered services for persons with developmental 27.30 disabilities or related conditions, including consumer-directed community supports, under 27.31 Minnesota Statutes, section 256B.501; 27.32 Article 2 Sec. 7. 27 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (2) home and community-based waivered services for the elderly, including 28.1 consumer-directed community supports, under Minnesota Statutes, section 256B.0915; 28.2 (3) waivered services under community alternatives for disabled individuals, 28.3 including consumer-directed community supports, under Minnesota Statutes, section 28.4 256B.49; 28.5 (4) community alternative care waivered services, including consumer-directed 28.6 community supports, under Minnesota Statutes, section 256B.49; 28.7 (5) traumatic brain injury waivered services, including consumer-directed 28.8 community supports, under Minnesota Statutes, section 256B.49; 28.9 (6) nursing services and home health services under Minnesota Statutes, section 28.10 256B.0625, subdivision 6a; 28.11 (7) personal care services and qualified professional supervision of personal care 28.12 services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a; 28.13 (8) private duty nursing services under Minnesota Statutes, section 256B.0625, 28.14 subdivision 7; 28.15 (9) day training and habilitation services for adults with developmental disabilities 28.16 or related conditions under Minnesota Statutes, sections 252.40 to 252.46, including the 28.17 additional cost of rate adjustments on day training and habilitation services, provided as a 28.18 social service under Minnesota Statutes, section 256M.60; 28.19 (10) alternative care services under Minnesota Statutes, section 256B.0913; 28.20 (11) semi-independent living services (SILS) under Minnesota Statutes, section 28.21 252.275, including SILS funding under county social services grants formerly funded 28.22 under Minnesota Statutes, chapter 256I; 28.23 (12) community support services for deaf and hard-of-hearing adults with mental 28.24 illness who use or wish to use sign language as their primary means of communication 28.25 under Minnesota Statutes, section 256.01, subdivision 2; and deaf and hard-of-hearing 28.26 grants under Minnesota Statutes, sections 256C.233, 256C.25, and 256C.261; Laws 1985, 28.27 First Special Session chapter 9, article 1; Laws 1997, chapter 203, article 1, section 2, 28.28 subdivision 8, as amended by Laws 1997, First Special Session chapter 5, section 20; 28.29 and Laws 2007, chapter 147, article 19, section 3, subdivision 8, as amended by Laws 28.30 2008, chapter 317, section 3; 28.31 (13) consumer support grants under Minnesota Statutes, section 256.476; 28.32 (14) family support grants under Minnesota Statutes, section 252.32; 28.33 (15) aging grants under Minnesota Statutes, sections 256.975 to 256.977, 256B.0917, 28.34 and 256B.0928; 28.35 Article 2 Sec. 7. 28 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (16) disability linkage line grants under Minnesota Statutes, section 256.01, 29.1 subdivision 24; and 29.2 (17) housing access grants under Minnesota Statutes, section 256B.0658. 29.3 (c) To implement the rate reductions in this section and in Minnesota Statutes, 29.4 section 256B.434, subdivision 22, capitation rates paid by the commissioner to managed 29.5 care organizations under Minnesota Statutes, section 256B.69, must reflect a 5.0 percent 29.6 reduction for the specified services for the period January 1, 2011, through June 30, 2011, 29.7 and a 2.5 percent reduction for those services on and after July 1, 2011. 29.8 ARTICLE 3 29.9 CHILDREN AND FAMILY SERVICES 29.10 Section 1. Minnesota Statutes 2008, section 119B.011, subdivision 15, is amended to 29.11 read: 29.12 Subd. 15. Income. "Income" means earned or unearned income received by all 29.13 family members, including public assistance cash benefits and at-home infant child 29.14 care subsidy payments, unless specifically excluded and child support and maintenance 29.15 distributed to the family under section 256.741, subdivision 15. The following are 29.16 excluded from income: funds used to pay for health insurance premiums for family 29.17 members, Supplemental Security Income, scholarships, work-study income, and grants 29.18 that cover costs or reimbursement for tuition, fees, books, and educational supplies; 29.19 student loans for tuition, fees, books, supplies, and living expenses; state and federal 29.20 earned income tax credits; assistance specifically excluded as income by law; in-kind 29.21 income such as food support, energy assistance, foster care assistance, medical assistance, 29.22 child care assistance, and housing subsidies; earned income of full-time or part-time 29.23 students up to the age of 19, who have not earned a high school diploma or GED high 29.24 school equivalency diploma including earnings from summer employment; grant awards 29.25 under the family subsidy program; nonrecurring lump-sum income only to the extent that 29.26 it is earmarked and used for the purpose for which it is paid; and any income assigned to 29.27 the public authority according to section 256.741. 29.28 EFFECTIVE DATE. This section is effective March 1, 2011. 29.29 Sec. 2. Minnesota Statutes 2008, section 119B.13, subdivision 1, is amended to read: 29.30 Subdivision 1. Subsidy restrictions. (a) Beginning July 1, 2006 March 1, 2011, the 29.31 maximum rate paid for child care assistance in any county or multicounty region under the 29.32 Article 3 Sec. 2. 29 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] child care fund shall be the rate for like-care arrangements in the county effective January 30.1 1, 2006 2010, increased decreased by six five percent. 30.2 (b) Rate changes shall be implemented for services provided in September 2006 30.3 unless a participant eligibility redetermination or a new provider agreement is completed 30.4 between July 1, 2006, and August 31, 2006. 30.5 As necessary, appropriate notice of adverse action must be made according to 30.6 Minnesota Rules, part 3400.0185, subparts 3 and 4. 30.7 New cases approved on or after July 1, 2006, shall have the maximum rates under 30.8 paragraph (a), implemented immediately. 30.9 (c) (b) Every year, the commissioner shall survey rates charged by child care 30.10 providers in Minnesota to determine the 75th percentile for like-care arrangements in 30.11 counties. When the commissioner determines that, using the commissioner's established 30.12 protocol, the number of providers responding to the survey is too small to determine 30.13 the 75th percentile rate for like-care arrangements in a county or multicounty region, 30.14 the commissioner may establish the 75th percentile maximum rate based on like-care 30.15 arrangements in a county, region, or category that the commissioner deems to be similar. 30.16 (d) (c) A rate which includes a special needs rate paid under subdivision 3 or under a 30.17 school readiness service agreement paid under section 119B.231, may be in excess of the 30.18 maximum rate allowed under this subdivision. 30.19 (e) (d) The department shall monitor the effect of this paragraph on provider rates. 30.20 The county shall pay the provider's full charges for every child in care up to the maximum 30.21 established. The commissioner shall determine the maximum rate for each type of care on 30.22 an hourly, full-day, and weekly basis, including special needs and disability care. 30.23 (f) (e) When the provider charge is greater than the maximum provider rate allowed, 30.24 the parent is responsible for payment of the difference in the rates in addition to any 30.25 family co-payment fee. 30.26 (g) (f) All maximum provider rates changes shall be implemented on the Monday 30.27 following the effective date of the maximum provider rate. 30.28 EFFECTIVE DATE. This section is effective March 1, 2011. 30.29 Sec. 3. Minnesota Statutes 2009 Supplement, section 256D.01, subdivision 1b, is 30.30 amended to read: 30.31 Subd. 1b. Rules Personal needs allowance. The commissioner shall adopt rules 30.32 to set standards of assistance and methods of calculating payment to conform with 30.33 subdivision 1a. When a recipient is a resident of a licensed residential facility, except 30.34 shelters for the homeless or shelters under section 611A.31, the recipient is not eligible for 30.35 Article 3 Sec. 3. 30 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] a full general assistance standard. The state standard of assistance for those recipients who 31.1 have personal needs not otherwise provided for is the personal needs allowance authorized 31.2 for medical assistance recipients under section 256B.35. 31.3 EFFECTIVE DATE. This section is effective December 1, 2010. 31.4 Sec. 4. Minnesota Statutes 2008, section 256D.045, is amended to read: 31.5 256D.045 SOCIAL SECURITY NUMBER REQUIRED. 31.6 To be eligible for general assistance under sections 256D.01 to 256D.21, an 31.7 individual must provide the individual's Social Security number to the county agency or 31.8 submit proof that an application has been made. An individual who refuses to provide 31.9 a Social Security number because of a well-established religious objection as described 31.10 in Code of Federal Regulations, title 42, section 435.910, may be eligible for general 31.11 assistance medical care under section 256D.03. The provisions of this section do not 31.12 apply to the determination of eligibility for emergency general assistance under section 31.13 256D.06, subdivision 2. This provision applies to eligible children under the age of 18 31.14 effective July 1, 1997. 31.15 EFFECTIVE DATE. This section is effective December 1, 2010. 31.16 Sec. 5. Minnesota Statutes 2008, section 256D.05, subdivision 1, is amended to read: 31.17 Subdivision 1. Eligibility. (a) Each assistance unit with income and resources 31.18 less than the standard of assistance established by the commissioner and with a member 31.19 who is a resident of the state shall be eligible for and entitled to general assistance if 31.20 the assistance unit is: 31.21 (1) a person who is suffering from a professionally certified permanent or temporary 31.22 illness, injury, or incapacity which is expected to continue for more than 30 days and 31.23 which prevents the person from obtaining or retaining employment; 31.24 (2) a person whose presence in the home on a substantially continuous basis is 31.25 required because of the professionally certified illness, injury, incapacity, or the age of 31.26 another member of the household; 31.27 (3) (1) a person who has been placed in, and is residing in, a licensed or certified 31.28 facility for purposes of physical or mental health or rehabilitation, or in an approved 31.29 chemical dependency domiciliary facility, if the placement is based on illness or incapacity 31.30 and is according to a plan developed or approved by the county agency through its director 31.31 or designated representative; or 31.32 Article 3 Sec. 5. 31 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (4) (2) a person who resides in a shelter facility described in subdivision 3; section 32.1 611A.31. 32.2 (5) a person not described in clause (1) or (3) who is diagnosed by a licensed 32.3 physician, psychological practitioner, or other qualified professional, as developmentally 32.4 disabled or mentally ill, and that condition prevents the person from obtaining or retaining 32.5 employment; 32.6 (6) a person who has an application pending for, or is appealing termination of 32.7 benefits from, the Social Security disability program or the program of supplemental 32.8 security income for the aged, blind, and disabled, provided the person has a professionally 32.9 certified permanent or temporary illness, injury, or incapacity which is expected to 32.10 continue for more than 30 days and which prevents the person from obtaining or retaining 32.11 employment; 32.12 (7) a person who is unable to obtain or retain employment because advanced age 32.13 significantly affects the person's ability to seek or engage in substantial work; 32.14 (8) a person who has been assessed by a vocational specialist and, in consultation 32.15 with the county agency, has been determined to be unemployable for purposes of this 32.16 clause; a person is considered employable if there exist positions of employment in the 32.17 local labor market, regardless of the current availability of openings for those positions, 32.18 that the person is capable of performing. The person's eligibility under this category must 32.19 be reassessed at least annually. The county agency must provide notice to the person not 32.20 later than 30 days before annual eligibility under this item ends, informing the person of the 32.21 date annual eligibility will end and the need for vocational assessment if the person wishes 32.22 to continue eligibility under this clause. For purposes of establishing eligibility under this 32.23 clause, it is the applicant's or recipient's duty to obtain any needed vocational assessment; 32.24 (9) a person who is determined by the county agency, according to permanent rules 32.25 adopted by the commissioner, to be learning disabled, provided that if a rehabilitation plan 32.26 for the person is developed or approved by the county agency, the person is following 32.27 the plan; 32.28 (10) a child under the age of 18 who is not living with a parent, stepparent, or legal 32.29 custodian, and only if: the child is legally emancipated or living with an adult with the 32.30 consent of an agency acting as a legal custodian; the child is at least 16 years of age 32.31 and the general assistance grant is approved by the director of the county agency or a 32.32 designated representative as a component of a social services case plan for the child; or the 32.33 child is living with an adult with the consent of the child's legal custodian and the county 32.34 agency. For purposes of this clause, "legally emancipated" means a person under the age 32.35 of 18 years who: (i) has been married; (ii) is on active duty in the uniformed services of 32.36 Article 3 Sec. 5. 32 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] the United States; (iii) has been emancipated by a court of competent jurisdiction; or (iv) 33.1 is otherwise considered emancipated under Minnesota law, and for whom county social 33.2 services has not determined that a social services case plan is necessary, for reasons other 33.3 than the child has failed or refuses to cooperate with the county agency in developing 33.4 the plan; 33.5 (11) a person who is eligible for displaced homemaker services, programs, or 33.6 assistance under section 116L.96, but only if that person is enrolled as a full-time student; 33.7 (12) a person who lives more than four hours round-trip traveling time from any 33.8 potential suitable employment; 33.9 (13) a person who is involved with protective or court-ordered services that prevent 33.10 the applicant or recipient from working at least four hours per day; 33.11 (14) a person over age 18 whose primary language is not English and who is 33.12 attending high school at least half time; or 33.13 (15) a person whose alcohol and drug addiction is a material factor that contributes 33.14 to the person's disability; applicants who assert this clause as a basis for eligibility must 33.15 be assessed by the county agency to determine if they are amenable to treatment; if the 33.16 applicant is determined to be not amenable to treatment, but is otherwise eligible for 33.17 benefits, then general assistance must be paid in vendor form, for the individual's shelter 33.18 costs up to the limit of the grant amount, with the residual, if any, paid according to section 33.19 256D.09, subdivision 2a; if the applicant is determined to be amenable to treatment, then 33.20 in order to receive benefits, the applicant must be in a treatment program or on a waiting 33.21 list and the benefits must be paid in vendor form, for the individual's shelter costs, up to 33.22 the limit of the grant amount, with the residual, if any, paid according to section 256D.09, 33.23 subdivision 2a. 33.24 (b) As a condition of eligibility under paragraph (a), clauses clause (1), (3), (5), (8), 33.25 and (9), the recipient must complete an interim assistance agreement and must apply 33.26 for other maintenance benefits as specified in section 256D.06, subdivision 5, and must 33.27 comply with efforts to determine the recipient's eligibility for those other maintenance 33.28 benefits. 33.29 (c) The burden of providing documentation for a county agency to use to verify 33.30 eligibility for general assistance or for exemption from the food stamp employment 33.31 and training program is upon the applicant or recipient. The county agency shall use 33.32 documents already in its possession to verify eligibility, and shall help the applicant or 33.33 recipient obtain other existing verification necessary to determine eligibility which the 33.34 applicant or recipient does not have and is unable to obtain. 33.35 EFFECTIVE DATE. This section is effective December 1, 2010. 33.36 Article 3 Sec. 5. 33 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Sec. 6. Minnesota Statutes 2008, section 256D.07, is amended to read: 34.1 256D.07 TIME OF PAYMENT OF ASSISTANCE. 34.2 An applicant for general assistance or general assistance medical care authorized 34.3 by section 256D.03, subdivision 3, shall be deemed eligible if the application and the 34.4 verification of the statement on that application demonstrate that the applicant is within 34.5 the eligibility criteria established by sections 256D.01 to 256D.21 and any applicable rules 34.6 of the commissioner. Any person requesting general assistance or general assistance 34.7 medical care shall be permitted by the county agency to make an application for assistance 34.8 as soon as administratively possible and in no event later than the fourth day following 34.9 the date on which assistance is first requested, and no county agency shall require that a 34.10 person requesting assistance appear at the offices of the county agency more than once 34.11 prior to the date on which the person is permitted to make the application. The application 34.12 shall be in writing in the manner and upon the form prescribed by the commissioner 34.13 and attested to by the oath of the applicant or in lieu thereof shall contain the following 34.14 declaration which shall be signed by the applicant: "I declare that this application has 34.15 been examined by me and to the best of my knowledge and belief is a true and correct 34.16 statement of every material point." On the date that general assistance is first requested, 34.17 the county agency shall inquire and determine whether the person requesting assistance 34.18 is in immediate need of food, shelter, clothing, assistance for necessary transportation, 34.19 or other emergency assistance pursuant to section 256D.06, subdivision 2. A person in 34.20 need of emergency assistance shall be granted emergency assistance immediately, and 34.21 necessary emergency assistance shall continue for up to 30 days following the date of 34.22 application. A determination of an applicant's eligibility for general assistance shall be 34.23 made by the county agency as soon as the required verifications are received by the county 34.24 agency and in no event later than 30 days following the date that the application is made. 34.25 Any verifications required of the applicant shall be reasonable, and the commissioner 34.26 shall by rule establish reasonable verifications. General assistance shall be granted to an 34.27 eligible applicant without the necessity of first securing action by the board of the county 34.28 agency. The first month's grant must be computed to cover the time period starting with 34.29 the date a signed application form is received by the county agency or from the date that 34.30 the applicant meets all eligibility factors, whichever occurs later. 34.31 If upon verification and due investigation it appears that the applicant provided 34.32 false information and the false information materially affected the applicant's eligibility 34.33 for general assistance or general assistance medical care provided pursuant to section 34.34 256D.03, subdivision 3, or the amount of the applicant's general assistance grant, the 34.35 county agency may refer the matter to the county attorney. The county attorney may 34.36 Article 3 Sec. 6. 34 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] commence a criminal prosecution or a civil action for the recovery of any general 35.1 assistance wrongfully received, or both. 35.2 EFFECTIVE DATE. This section is effective December 1, 2010. 35.3 Sec. 7. Minnesota Statutes 2008, section 256D.10, is amended to read: 35.4 256D.10 ADMINISTRATIVE HEARING PRIOR TO ADVERSE ACTION. 35.5 No grant of general assistance except one made pursuant to section 256D.06, 35.6 subdivision 2; or 256D.08, subdivision 2, shall be reduced, terminated, or suspended 35.7 unless the recipient receives notice and is afforded an opportunity to be heard prior to 35.8 any action by the county agency. 35.9 Nothing herein shall deprive a recipient of the right to full administrative and judicial 35.10 review of an order or determination of a county agency as provided for in section 256.045 35.11 subsequent to any action taken by a county agency after a prior hearing. 35.12 EFFECTIVE DATE. This section is effective December 1, 2010. 35.13 Sec. 8. Minnesota Statutes 2009 Supplement, section 256D.44, subdivision 5, is 35.14 amended to read: 35.15 Subd. 5. Special needs. In addition to the state standards of assistance established in 35.16 subdivisions 1 to 4, payments are allowed for the following special needs of recipients of 35.17 Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 35.18 center, or a group licensed residential housing facility. 35.19 (a) The county agency shall pay a monthly allowance for medically prescribed 35.20 diets if the cost of those additional dietary needs cannot be met through some other 35.21 maintenance benefit. The need for special diets or dietary items must be prescribed by 35.22 a licensed physician. Costs for special diets shall be determined as percentages of the 35.23 allotment for a one-person household under the thrifty food plan as defined by the United 35.24 States Department of Agriculture. The types of diets and the percentages of the thrifty 35.25 food plan that are covered are as follows: 35.26 (1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan; 35.27 (2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent 35.28 of thrifty food plan; 35.29 (3) controlled protein diet, less than 40 grams and requires special products, 125 35.30 percent of thrifty food plan; 35.31 (4) low cholesterol diet, 25 percent of thrifty food plan; 35.32 (5) high residue diet, 20 percent of thrifty food plan; 35.33 Article 3 Sec. 8. 35 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (6) pregnancy and lactation diet, 35 percent of thrifty food plan; 36.1 (7) gluten-free diet, 25 percent of thrifty food plan; 36.2 (8) lactose-free diet, 25 percent of thrifty food plan; 36.3 (9) antidumping diet, 15 percent of thrifty food plan; 36.4 (10) hypoglycemic diet, 15 percent of thrifty food plan; or 36.5 (11) ketogenic diet, 25 percent of thrifty food plan. 36.6 (b) Payment for nonrecurring special needs must be allowed for necessary home 36.7 repairs or necessary repairs or replacement of household furniture and appliances using 36.8 the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, 36.9 as long as other funding sources are not available. 36.10 (c) A fee for guardian or conservator service is allowed at a reasonable rate 36.11 negotiated by the county or approved by the court. This rate shall not exceed five percent 36.12 of the assistance unit's gross monthly income up to a maximum of $100 per month. If the 36.13 guardian or conservator is a member of the county agency staff, no fee is allowed. 36.14 (d) The county agency shall continue to pay a monthly allowance of $68 for 36.15 restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 36.16 1990, and who eats two or more meals in a restaurant daily. The allowance must continue 36.17 until the person has not received Minnesota supplemental aid for one full calendar month 36.18 or until the person's living arrangement changes and the person no longer meets the criteria 36.19 for the restaurant meal allowance, whichever occurs first. 36.20 (e) A fee of ten percent of the recipient's gross income or $25, whichever is less, 36.21 is allowed for representative payee services provided by an agency that meets the 36.22 requirements under SSI regulations to charge a fee for representative payee services. This 36.23 special need is available to all recipients of Minnesota supplemental aid regardless of 36.24 their living arrangement. 36.25 (f)(1) Notwithstanding the language in this subdivision, (b) An amount equal to the 36.26 maximum allotment authorized by the federal Food Stamp Program for a single individual 36.27 which is in effect on the first day of July of each year will be added to the standards of 36.28 assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify 36.29 as shelter needy and are: (i) relocating from an institution, or an adult mental health 36.30 residential treatment program under section 256B.0622; (ii) eligible for the self-directed 36.31 supports option as defined under section 256B.0657, subdivision 2; or (iii) home and 36.32 community-based waiver recipients living in their own home or rented or leased apartment 36.33 which is not owned, operated, or controlled by a provider of service not related by blood 36.34 or marriage. 36.35 Article 3 Sec. 8. 36 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the 37.1 shelter needy benefit under this paragraph is considered a household of one. An eligible 37.2 individual who receives this benefit prior to age 65 may continue to receive the benefit 37.3 after the age of 65. 37.4 (3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that 37.5 exceed 40 percent of the assistance unit's gross income before the application of this 37.6 special needs standard. "Gross income" for the purposes of this section is the applicant's or 37.7 recipient's income as defined in section 256D.35, subdivision 10, or the standard specified 37.8 in subdivision 3, paragraph (a) or (b), whichever is greater. A recipient of a federal or 37.9 state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be 37.10 considered shelter needy for purposes of this paragraph. 37.11 (g) (c) Notwithstanding this subdivision, to access housing and services as provided 37.12 in paragraph (f) (b), the recipient may choose housing that may or may not be owned, 37.13 operated, or controlled by the recipient's service provider if the housing is located in a 37.14 multifamily building of six or more units. The maximum number of units that may be used 37.15 by recipients of this program shall be 50 percent of the units in a building. The department 37.16 shall develop an exception process to the 50 percent maximum. This paragraph expires 37.17 on June 30, 2011. 37.18 EFFECTIVE DATE. This section is effective October 1, 2010. 37.19 Sec. 9. [256D.441] SHORT-TERM AID PROGRAM. 37.20 Subdivision 1. Short-term aid program. A grant of short-term aid shall, to the 37.21 extent funds are available, be made to an eligible single adult, married couple, or family 37.22 where the recipient requests temporary assistance not exceeding 30 days if (1) a crisis 37.23 situation appears to exist under written criteria adopted by the county agency, (2) the 37.24 individual or family is ineligible for MFIP or DWP and has not received a consolidated 37.25 fund emergency grant within 12 months of application, and (3) the individual or family's 37.26 annual net income is no greater than 200 percent of the federal poverty guidelines for the 37.27 previous calendar year. 37.28 Subd. 2. County to advise. If an applicant or recipient relates facts to the county 37.29 agency which may be sufficient to constitute a crisis situation, the county agency shall, 37.30 to the extent funds are available, advise the person of the procedure for applying for aid 37.31 according to this subdivision. A short-term aid grant is available to a recipient not more 37.32 than once in a 12-month period. 37.33 Subd. 3. Limited funding. (a) Funding for the short-term aid program is limited 37.34 to the appropriation. Each fiscal year the commissioner shall allocate to counties the 37.35 Article 3 Sec. 9. 37 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] money appropriated for short-term aid grants based on each county agency's average 38.1 share of state's former emergency general assistance expenditures and any subsequent 38.2 short-term aid expenditures for the immediate past three fiscal years as determined by the 38.3 commissioner. The commissioner may reallocate any unspent amounts to other counties. 38.4 No county shall be allocated less than $1,000 for the fiscal year. 38.5 (b) Any short-term aid expenditures by a county above the amount of the 38.6 commissioner's allocation to the county must be made from county funds. 38.7 EFFECTIVE DATE. This section is effective December 1, 2010. 38.8 Sec. 10. Minnesota Statutes 2008, section 256D.47, is amended to read: 38.9 256D.47 PAYMENT METHODS. 38.10 Minnesota supplemental aid payments must be issued to the recipient, a protective 38.11 payee, or a conservator or guardian of the recipient's estate in the form of county warrants 38.12 immediately redeemable in cash, electronic benefits transfer, or by direct deposit into the 38.13 recipient's account in a financial institution. Minnesota supplemental aid payments must 38.14 be issued regularly on the first day of the month. The supplemental aid warrants must be 38.15 mailed only to the address at which the recipient resides, unless another address has been 38.16 approved in advance by the county agency. Vendor payments must not be issued by the 38.17 county agency except for nonrecurring emergency need payments; at the request of the 38.18 recipient; for special needs, other than special diets; or when the agency determines the 38.19 need for protective payments exist. 38.20 EFFECTIVE DATE. This section is effective October 1, 2010. 38.21 Sec. 11. Minnesota Statutes 2008, section 256I.04, subdivision 1, is amended to read: 38.22 Subdivision 1. Individual eligibility requirements. (a) An individual is eligible for 38.23 and entitled to a group residential housing payment to be made on the individual's behalf 38.24 if the county agency has approved the individual's residence in a group residential housing 38.25 setting and the individual meets the requirements in paragraph (a) or (b) this subdivision. 38.26 (a) (b) The individual is aged, blind, or is over 18 years of age and disabled as 38.27 determined under the criteria used by the title II program of the Social Security Act, 38.28 and meets the resource restrictions and standards of the supplemental security income 38.29 program, and the individual's countable income after deducting the (1) exclusions and 38.30 disregards of the SSI program, (2) the medical assistance personal needs allowance 38.31 under section 256B.35, and (3) an amount equal to the income actually made available 38.32 to a community spouse by an elderly waiver recipient under the provisions of sections 38.33 Article 3 Sec. 11. 38 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] 256B.0575, paragraph (a), clause (4), and 256B.058, subdivision 2, is less than the 39.1 monthly rate specified in the county agency's agreement with the provider of group 39.2 residential housing in which the individual resides. 39.3 (b) The individual meets a category of eligibility under section 256D.05, subdivision 39.4 1, paragraph (a), and the individual's resources are less than the standards specified by 39.5 section 256D.08, and the individual's countable income as determined under sections 39.6 256D.01 to 256D.21, less the medical assistance personal needs allowance under section 39.7 256B.35 is less than the monthly rate specified in the county agency's agreement with the 39.8 provider of group residential housing in which the individual resides. 39.9 (c) Each assistance unit with income and resources less than the standard of 39.10 assistance for group residential housing established by the commissioner who is a resident 39.11 of the state shall be eligible for and entitled to group residential housing if the assistance 39.12 unit is a person who has been placed in, and is residing in, a licensed or certified facility 39.13 for purposes of physical or mental health or rehabilitation, or in an approved chemical 39.14 dependency domiciliary facility, if the placement is based on illness or incapacity and is 39.15 according to a plan developed or approved by the county agency through its director or 39.16 designated representative. 39.17 (d) As a condition of eligibility under paragraph (c), the recipient shall complete an 39.18 interim assistance agreement and must apply for other maintenance benefits for which 39.19 the individual may be eligible. 39.20 EFFECTIVE DATE. This section is effective December 1, 2010. 39.21 Sec. 12. Minnesota Statutes 2008, section 256J.13, subdivision 1, is amended to read: 39.22 Subdivision 1. Minor child or pregnant woman. The assistance unit must 39.23 include at least one minor child or a pregnant woman. If a minor child is a recipient 39.24 of Supplemental Security Income or Minnesota supplemental aid, the assistance unit 39.25 is eligible for MFIP, but the needs of the minor child receiving Supplemental Security 39.26 Income or Minnesota supplemental aid must not be taken into account when the county 39.27 agency determines the amount of the assistance payment to be paid to the assistance unit. 39.28 EFFECTIVE DATE. This section is effective November 1, 2010. 39.29 Sec. 13. Minnesota Statutes 2008, section 256J.20, subdivision 3, is amended to read: 39.30 Subd. 3. Other property limitations. To be eligible for MFIP, the equity value of all 39.31 nonexcluded real and personal property of the assistance unit must not exceed $2,000 for 39.32 Article 3 Sec. 13. 39 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to (19) 40.1 (18) must be excluded when determining the equity value of real and personal property: 40.2 (1) a licensed vehicle up to a loan value of less than or equal to $15,000. If the 40.3 assistance unit owns more than one licensed vehicle, the county agency shall determine the 40.4 loan value of all additional vehicles and exclude the combined loan value of less than or 40.5 equal to $7,500. The county agency shall apply any excess loan value as if it were equity 40.6 value to the asset limit described in this section, excluding: (i) the value of one vehicle 40.7 per physically disabled person when the vehicle is needed to transport the disabled unit 40.8 member; this exclusion does not apply to mentally disabled people; (ii) the value of special 40.9 equipment for a disabled member of the assistance unit; and (iii) any vehicle used for 40.10 long-distance travel, other than daily commuting, for the employment of a unit member. 40.11 To establish the loan value of vehicles, a county agency must use the N.A.D.A. 40.12 Official Used Car Guide, Midwest Edition, for newer model cars. When a vehicle is not 40.13 listed in the guidebook, or when the applicant or participant disputes the loan value listed 40.14 in the guidebook as unreasonable given the condition of the particular vehicle, the county 40.15 agency may require the applicant or participant document the loan value by securing a 40.16 written statement from a motor vehicle dealer licensed under section 168.27, stating 40.17 the amount that the dealer would pay to purchase the vehicle. The county agency shall 40.18 reimburse the applicant or participant for the cost of a written statement that documents 40.19 a lower loan value; 40.20 (2) the value of life insurance policies for members of the assistance unit; 40.21 (3) one burial plot per member of an assistance unit; 40.22 (4) the value of personal property needed to produce earned income, including 40.23 tools, implements, farm animals, inventory, business loans, business checking and 40.24 savings accounts used at least annually and used exclusively for the operation of a 40.25 self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use 40.26 is to produce income and if the vehicles are essential for the self-employment business; 40.27 (5) the value of personal property not otherwise specified which is commonly 40.28 used by household members in day-to-day living such as clothing, necessary household 40.29 furniture, equipment, and other basic maintenance items essential for daily living; 40.30 (6) the value of real and personal property owned by a recipient of Supplemental 40.31 Security Income or Minnesota supplemental aid; 40.32 (7) (6) the value of corrective payments, but only for the month in which the 40.33 payment is received and for the following month; 40.34 (8) (7) a mobile home or other vehicle used by an applicant or participant as the 40.35 applicant's or participant's home; 40.36 Article 3 Sec. 13. 40 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (9) (8) money in a separate escrow account that is needed to pay real estate taxes or 41.1 insurance and that is used for this purpose; 41.2 (10) (9) money held in escrow to cover employee FICA, employee tax withholding, 41.3 sales tax withholding, employee worker compensation, business insurance, property rental, 41.4 property taxes, and other costs that are paid at least annually, but less often than monthly; 41.5 (11) (10) monthly assistance payments for the current month's or short-term 41.6 emergency needs under section 256J.626, subdivision 2; 41.7 (12) (11) the value of school loans, grants, or scholarships for the period they are 41.8 intended to cover; 41.9 (13) (12) payments listed in section 256J.21, subdivision 2, clause (9), which are 41.10 held in escrow for a period not to exceed three months to replace or repair personal or 41.11 real property; 41.12 (14) (13) income received in a budget month through the end of the payment month; 41.13 (15) (14) savings from earned income of a minor child or a minor parent that are set 41.14 aside in a separate account designated specifically for future education or employment 41.15 costs; 41.16 (16) (15) the federal earned income credit, Minnesota working family credit, state 41.17 and federal income tax refunds, state homeowners and renters credits under chapter 41.18 290A, property tax rebates and other federal or state tax rebates in the month received 41.19 and the following month; 41.20 (17) (16) payments excluded under federal law as long as those payments are held in 41.21 a separate account from any nonexcluded funds; 41.22 (18) (17) the assets of children ineligible to receive MFIP benefits because foster 41.23 care or adoption assistance payments are made on their behalf; and 41.24 (19) (18) the assets of persons whose income is excluded under section 256J.21, 41.25 subdivision 2, clause (43). 41.26 EFFECTIVE DATE. This section is effective November 1, 2010. 41.27 Sec. 14. Minnesota Statutes 2008, section 256J.21, subdivision 2, is amended to read: 41.28 Subd. 2. Income exclusions. The following must be excluded in determining a 41.29 family's available income: 41.30 (1) payments for basic care, difficulty of care, and clothing allowances received for 41.31 providing family foster care to children or adults under Minnesota Rules, parts 9555.5050 41.32 to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used 41.33 for care and maintenance of a third-party beneficiary who is not a household member; 41.34 Article 3 Sec. 14. 41 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (2) reimbursements for employment training received through the Workforce 42.1 Investment Act of 1998, United States Code, title 20, chapter 73, section 9201; 42.2 (3) reimbursement for out-of-pocket expenses incurred while performing volunteer 42.3 services, jury duty, employment, or informal carpooling arrangements directly related to 42.4 employment; 42.5 (4) all educational assistance, except the county agency must count graduate student 42.6 teaching assistantships, fellowships, and other similar paid work as earned income and, 42.7 after allowing deductions for any unmet and necessary educational expenses, shall 42.8 count scholarships or grants awarded to graduate students that do not require teaching 42.9 or research as unearned income; 42.10 (5) loans, regardless of purpose, from public or private lending institutions, 42.11 governmental lending institutions, or governmental agencies; 42.12 (6) loans from private individuals, regardless of purpose, provided an applicant or 42.13 participant documents that the lender expects repayment; 42.14 (7)(i) state income tax refunds; and 42.15 (ii) federal income tax refunds; 42.16 (8)(i) federal earned income credits; 42.17 (ii) Minnesota working family credits; 42.18 (iii) state homeowners and renters credits under chapter 290A; and 42.19 (iv) federal or state tax rebates; 42.20 (9) funds received for reimbursement, replacement, or rebate of personal or real 42.21 property when these payments are made by public agencies, awarded by a court, solicited 42.22 through public appeal, or made as a grant by a federal agency, state or local government, 42.23 or disaster assistance organizations, subsequent to a presidential declaration of disaster; 42.24 (10) the portion of an insurance settlement that is used to pay medical, funeral, and 42.25 burial expenses, or to repair or replace insured property; 42.26 (11) reimbursements for medical expenses that cannot be paid by medical assistance; 42.27 (12) payments by a vocational rehabilitation program administered by the state 42.28 under chapter 268A, except those payments that are for current living expenses; 42.29 (13) in-kind income, including any payments directly made by a third party to a 42.30 provider of goods and services; 42.31 (14) assistance payments to correct underpayments, but only for the month in which 42.32 the payment is received; 42.33 (15) payments for short-term emergency needs under section 256J.626, subdivision 42.34 2; 42.35 (16) funeral and cemetery payments as provided by section 256.935; 42.36 Article 3 Sec. 14. 42 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in 43.1 a calendar month; 43.2 (18) any form of energy assistance payment made through Public Law 97-35, 43.3 Low-Income Home Energy Assistance Act of 1981, payments made directly to energy 43.4 providers by other public and private agencies, and any form of credit or rebate payment 43.5 issued by energy providers; 43.6 (19) Supplemental Security Income (SSI), including retroactive SSI payments and 43.7 other income of an SSI recipient, except as described in section 256J.37, subdivision 3b; 43.8 (20) Minnesota supplemental aid, including retroactive payments; 43.9 (21) (19) proceeds from the sale of real or personal property; 43.10 (22) (20) state adoption assistance payments under section 259.67, and up to an 43.11 equal amount of county adoption assistance payments; 43.12 (23) (21) state-funded family subsidy program payments made under section 252.32 43.13 to help families care for children with developmental disabilities, consumer support 43.14 grant funds under section 256.476, and resources and services for a disabled household 43.15 member under one of the home and community-based waiver services programs under 43.16 chapter 256B; 43.17 (24) (22) interest payments and dividends from property that is not excluded from 43.18 and that does not exceed the asset limit; 43.19 (25) (23) rent rebates; 43.20 (26) (24) income earned by a minor caregiver, minor child through age 6, or a 43.21 minor child who is at least a half-time student in an approved elementary or secondary 43.22 education program; 43.23 (27) (25) income earned by a caregiver under age 20 who is at least a half-time 43.24 student in an approved elementary or secondary education program; 43.25 (28) (26) MFIP child care payments under section 119B.05; 43.26 (29) (27) all other payments made through MFIP to support a caregiver's pursuit of 43.27 greater economic stability; 43.28 (30) (28) income a participant receives related to shared living expenses; 43.29 (31) (29) reverse mortgages; 43.30 (32) (30) benefits provided by the Child Nutrition Act of 1966, United States Code, 43.31 title 42, chapter 13A, sections 1771 to 1790; 43.32 (33) (31) benefits provided by the women, infants, and children (WIC) nutrition 43.33 program, United States Code, title 42, chapter 13A, section 1786; 43.34 (34) (32) benefits from the National School Lunch Act, United States Code, title 42, 43.35 chapter 13, sections 1751 to 1769e; 43.36 Article 3 Sec. 14. 43 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (35) (33) relocation assistance for displaced persons under the Uniform Relocation 44.1 Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title 44.2 42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States 44.3 Code, title 12, chapter 13, sections 1701 to 1750jj; 44.4 (36) (34) benefits from the Trade Act of 1974, United States Code, title 19, chapter 44.5 12, part 2, sections 2271 to 2322; 44.6 (37) (35) war reparations payments to Japanese Americans and Aleuts under United 44.7 States Code, title 50, sections 1989 to 1989d; 44.8 (38) (36) payments to veterans or their dependents as a result of legal settlements 44.9 regarding Agent Orange or other chemical exposure under Public Law 101-239, section 44.10 10405, paragraph (a)(2)(E); 44.11 (39) (37) income that is otherwise specifically excluded from MFIP consideration in 44.12 federal law, state law, or federal regulation; 44.13 (40) (38) security and utility deposit refunds; 44.14 (41) (39) American Indian tribal land settlements excluded under Public Laws 44.15 98-123, 98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, 44.16 Leech Lake, and Mille Lacs reservations and payments to members of the White Earth 44.17 Band, under United States Code, title 25, chapter 9, section 331, and chapter 16, section 44.18 1407; 44.19 (42) (40) all income of the minor parent's parents and stepparents when determining 44.20 the grant for the minor parent in households that include a minor parent living with parents 44.21 or stepparents on MFIP with other children; 44.22 (43) (41) income of the minor parent's parents and stepparents equal to 200 percent 44.23 of the federal poverty guideline for a family size not including the minor parent and the 44.24 minor parent's child in households that include a minor parent living with parents or 44.25 stepparents not on MFIP when determining the grant for the minor parent. The remainder 44.26 of income is deemed as specified in section 256J.37, subdivision 1b; 44.27 (44) (42) payments made to children eligible for relative custody assistance under 44.28 section 257.85; 44.29 (45) (43) vendor payments for goods and services made on behalf of a client unless 44.30 the client has the option of receiving the payment in cash; 44.31 (46) (44) the principal portion of a contract for deed payment; and 44.32 (47) (45) cash payments to individuals enrolled for full-time service as a volunteer 44.33 under AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, 44.34 AmeriCorps National, and AmeriCorps NCCC. 44.35 EFFECTIVE DATE. This section is effective November 1, 2010. 44.36 Article 3 Sec. 14. 44 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Sec. 15. Minnesota Statutes 2008, section 256J.24, subdivision 3, is amended to read: 45.1 Subd. 3. Individuals who must be excluded from an assistance unit. (a) The 45.2 following individuals who are part of the assistance unit determined under subdivision 2 45.3 are ineligible to receive MFIP: 45.4 (1) individuals who are recipients of Supplemental Security Income or Minnesota 45.5 supplemental aid; 45.6 (2) (1) individuals disqualified from the food stamp or food support program or 45.7 MFIP, until the disqualification ends; 45.8 (3) (2) children on whose behalf federal, state or local foster care payments are made, 45.9 except as provided in sections 256J.13, subdivision 2, and 256J.74, subdivision 2; and 45.10 (4) (3) children receiving ongoing monthly adoption assistance payments under 45.11 section 259.67. 45.12 (b) The exclusion of a person under this subdivision does not alter the mandatory 45.13 assistance unit composition. 45.14 EFFECTIVE DATE. This section is effective November 1, 2010. 45.15 Sec. 16. Minnesota Statutes 2008, section 256J.24, subdivision 4, is amended to read: 45.16 Subd. 4. Individuals who may elect to be included in the assistance unit. (a) The 45.17 minor child's eligible caregiver may choose to be in the assistance unit, if the caregiver 45.18 is not required to be in the assistance unit under subdivision 2. If the eligible caregiver 45.19 chooses to be in the assistance unit, that person's spouse must also be in the unit. 45.20 (b) Any minor child not related as a sibling, stepsibling, or adopted sibling to the 45.21 minor child in the unit, but for whom there is an eligible caregiver may elect to be in 45.22 the unit. 45.23 (c) A foster care provider of a minor child who is receiving federal, state, or local 45.24 foster care maintenance payments may elect to receive MFIP if the provider meets the 45.25 definition of caregiver under section 256J.08, subdivision 11. If the provider chooses to 45.26 receive MFIP, the spouse of the provider must also be included in the assistance unit with 45.27 the provider. The provider and spouse are eligible for assistance even if the only minor 45.28 child living in the provider's home is receiving foster care maintenance payments. 45.29 (d) The adult caregiver or caregivers of a minor parent are eligible to be a separate 45.30 assistance unit from the minor parent and the minor parent's child when: 45.31 (1) the adult caregiver or caregivers have no other minor children in the household; 45.32 (2) the minor parent and the minor parent's child are living together with the adult 45.33 caregiver or caregivers; and 45.34 Article 3 Sec. 16. 45 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (3) the minor parent and the minor parent's child receive MFIP, or would be eligible 46.1 to receive MFIP, if they were not receiving SSI benefits. 46.2 EFFECTIVE DATE. This section is effective November 1, 2010. 46.3 Sec. 17. Minnesota Statutes 2008, section 256J.28, is amended by adding a subdivision 46.4 to read: 46.5 Subd. 6. Choice of stand-alone food support for MFIP assistance units. MFIP 46.6 assistance units that receive no MFIP cash benefits may be eligible for more food support 46.7 under the stand-alone food support program than they are receiving under the food portion 46.8 of MFIP. County financial workers shall discuss the option of receiving stand-alone food 46.9 support with participants at the time they lose their MFIP cash benefit. If requested by 46.10 the participant, financial workers shall calculate the benefit the family would receive 46.11 on stand-alone food support. Participants are not required to complete a food support 46.12 application when MFIP is canceled but they must provide the necessary verifications to 46.13 determine eligibility for the stand-alone food support program. 46.14 EFFECTIVE DATE. This section is effective November 1, 2010. 46.15 Sec. 18. Minnesota Statutes 2008, section 256J.37, subdivision 3a, is amended to read: 46.16 Subd. 3a. Rental subsidies; unearned income. (a) Effective July 1, 2003, the 46.17 county agency shall count $50 of the value of public and assisted rental subsidies provided 46.18 through the Department of Housing and Urban Development (HUD) as unearned income 46.19 to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as 46.20 unearned income when the subsidy is less than $50. The income from this subsidy shall 46.21 be budgeted according to section 256J.34. 46.22 (b) The provisions of this subdivision shall not apply to an MFIP assistance unit 46.23 which includes a participant who is: 46.24 (1) age 60 or older; 46.25 (2) a caregiver who is suffering from an illness, injury, or incapacity that has been 46.26 certified by a qualified professional when the illness, injury, or incapacity is expected 46.27 to continue for more than 30 days and prevents the person from obtaining or retaining 46.28 employment; or 46.29 (3) a caregiver whose presence in the home is required due to the illness or 46.30 incapacity of another member in the assistance unit, a relative in the household, or a foster 46.31 child in the household when the illness or incapacity and the need for the participant's 46.32 Article 3 Sec. 18. 46 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] presence in the home has been certified by a qualified professional and is expected to 47.1 continue for more than 30 days. 47.2 (c) The provisions of this subdivision shall not apply to an MFIP assistance unit 47.3 where the parental caregiver is an SSI or Retirement, Survivors, Disability Insurance 47.4 (RSDI) recipient. 47.5 (d) Prior to implementing this provision, the commissioner must identify the MFIP 47.6 participants subject to this provision and provide written notice to these participants at 47.7 least 30 days before the first grant reduction. The notice must inform the participant of the 47.8 basis for the potential grant reduction, the exceptions to the provision, if any, and inform 47.9 the participant of the steps necessary to claim an exception. A person who is found not to 47.10 meet one of the exceptions to the provision must be notified and informed of the right to a 47.11 fair hearing under section 256J.40. The notice must also inform the participant that the 47.12 participant may be eligible for a rent reduction resulting from a reduction in the MFIP 47.13 grant and encourage the participant to contact the local housing authority. 47.14 EFFECTIVE DATE. This section is effective November 1, 2010. 47.15 Sec. 19. Minnesota Statutes 2008, section 256J.37, subdivision 9, is amended to read: 47.16 Subd. 9. Unearned income. (a) The county agency must apply unearned income 47.17 to the MFIP standard of need. When determining the amount of unearned income, the 47.18 county agency must deduct the costs necessary to secure payments of unearned income. 47.19 These costs include legal fees, medical fees, and mandatory deductions such as federal 47.20 and state income taxes. 47.21 (b) The county agency must convert unearned income received on a periodic basis to 47.22 monthly amounts by prorating the income over the number of months represented by the 47.23 frequency of the payments. The county agency must begin counting the monthly amount 47.24 in the month the periodic payment is received and budget it according to the assistance 47.25 unit's budget cycle. 47.26 (c) The county agency must deduct the fees paid from SSI and Retirement, 47.27 Survivors, Disability Insurance (RSDI) benefits to organizational representative payees. 47.28 EFFECTIVE DATE. This section is effective November 1, 2010. 47.29 Sec. 20. Minnesota Statutes 2009 Supplement, section 256J.575, subdivision 3, 47.30 is amended to read: 47.31 Subd. 3. Eligibility. (a) The following MFIP participants are eligible for the 47.32 services under this section: 47.33 Article 3 Sec. 20. 47 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (1) a participant who meets the requirements for or has been granted a hardship 48.1 extension under section 256J.425, subdivision 2 or 3, except that it is not necessary for 48.2 the participant to have reached or be approaching 60 months of eligibility for this section 48.3 to apply; 48.4 (2) a participant who is applying for or receiving Supplemental Security Income or 48.5 Social Security disability insurance; 48.6 (3) a participant who is a noncitizen who has been in the United States for 12 or 48.7 fewer months; and 48.8 (4) a participant who is age 60 or older. 48.9 (b) Families must meet all other eligibility requirements for MFIP established in 48.10 this chapter. Families are eligible for financial assistance to the same extent as if they 48.11 were participating in MFIP. 48.12 (c) (b) A participant under paragraph (a), clause (3), must be provided with English 48.13 as a second language opportunities and skills training for up to 12 months. After 12 48.14 months, the case manager and participant must determine whether the participant should 48.15 continue with English as a second language classes or skills training, or both, and continue 48.16 to receive family stabilization services. 48.17 (d) (c) If a county agency or employment services provider has information that 48.18 an MFIP participant may meet the eligibility criteria set forth in this subdivision, the 48.19 county agency or employment services provider must assist the participant in obtaining 48.20 the documentation necessary to determine eligibility. 48.21 EFFECTIVE DATE. This section is effective November 1, 2010. 48.22 Sec. 21. Minnesota Statutes 2008, section 257.75, subdivision 7, is amended to read: 48.23 Subd. 7. Hospital and Department of Health distribution of educational 48.24 materials; recognition form. Hospitals that provide obstetric services and the state 48.25 registrar of vital statistics shall distribute the educational materials and recognition 48.26 of parentage forms prepared by the commissioner of human services to new parents 48.27 and, shall assist parents in understanding the recognition of parentage form, including 48.28 following the provisions for notice under subdivision 5, shall aid new parents in properly 48.29 completing the recognition of parentage form, including providing notary services, and 48.30 shall timely file the completed recognition of parentage form with the office of the state 48.31 registrar of vital statistics. On and after January 1, 1994, hospitals may not distribute the 48.32 declaration of parentage forms. 48.33 EFFECTIVE DATE. This section is effective July 1, 2010. 48.34 Article 3 Sec. 21. 48 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Sec. 22. Minnesota Statutes 2008, section 517.08, subdivision 1c, is amended to read: 49.1 Subd. 1c. Disposition of license fee. (a) Of the marriage license fee collected 49.2 pursuant to subdivision 1b, paragraph (a), $25 must be retained by the county. The local 49.3 registrar must pay $85 to the commissioner of management and budget to be deposited 49.4 as follows: 49.5 (1) $50 $55 in the general fund; 49.6 (2) $3 in the state government special revenue fund to be appropriated to the 49.7 commissioner of public safety for parenting time centers under section 119A.37; 49.8 (3) $2 in the special revenue fund to be appropriated to the commissioner of health 49.9 for developing and implementing the MN ENABL program under section 145.9255; and 49.10 (4) $25 in the special revenue fund is appropriated to the commissioner of 49.11 employment and economic development for the displaced homemaker program under 49.12 section 116L.96; and. 49.13 (5) $5 in the special revenue fund is appropriated to the commissioner of human 49.14 services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under 49.15 section 256.742. 49.16 (b) Of the $40 fee under subdivision 1b, paragraph (b), $25 must be retained by the 49.17 county. The local registrar must pay $15 to the commissioner of management and budget 49.18 to be deposited as follows: 49.19 (1) $5 as provided in paragraph (a), clauses (2) and (3); and 49.20 (2) $10 in the special revenue fund is appropriated to the commissioner of 49.21 employment and economic development for the displaced homemaker program under 49.22 section 116L.96. 49.23 (c) The increase in the marriage license fee under paragraph (a) provided for in Laws 49.24 2004, chapter 273, and disbursement of the increase in that fee to the special fund for the 49.25 Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a), 49.26 clause (5), is contingent upon the receipt of federal funding under United States Code, title 49.27 42, section 1315, for purposes of the initiative. 49.28 EFFECTIVE DATE. This section is effective July 1, 2010. 49.29 Sec. 23. REVISOR'S INSTRUCTION. 49.30 The revisor of statutes, with the assistance of the Department of Human Services, 49.31 shall prepare legislation for the 2011 legislative session that identifies additional laws or 49.32 rules that require an amendment to effectuate the repeal of the general assistance program 49.33 under Minnesota Statutes, sections 256D.01 to 256D.21 with the exception of provisions 49.34 necessary to implement the personal needs allowance under sections 256D.01, subdivision 49.35 Article 3 Sec. 23. 49 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] 1b, and 256D.05, subdivision 1, paragraph (a), clauses (1) and (2). The legislation 50.1 must include any cross-reference corrections, including corrections to punctuation and 50.2 grammar, that are required as a result of the repeal. 50.3 Sec. 24. REPEALER. 50.4 (a) Minnesota Statutes 2008, sections 256.742; and 256.979, subdivision 8, are 50.5 repealed. 50.6 (b) Minnesota Statutes 2008, sections 256D.06, subdivision 2; and 256D.46, are 50.7 repealed effective December 1, 2010. 50.8 (c) Minnesota Rules, parts 9500.1200; 9500.1202; 9500.1206, subparts 1, 1a, 2, 3, 50.9 4a, 4b, 5, 5a, 6, 6a, 6b, 7a, 7b, 8, 8a, 9, 9a, 9b, 11, 11a, 12, 12a, 12b, 12c, 12d, 12e, 12f, 50.10 12g, 12h, 12k, 13a, 14, 14a, 15, 15a, 15b, 15c, 15d, 16a, 17, 18, 18a, 18b, 18c, 18d, 19a, 50.11 19b, 21, 22a, 22b, 23, 23a, 24, 24a, 24b, 25, 25a, 25b, 25c, 25d, 25e, 25f, 26, 26b, 26c, 50.12 28a, 28b, 28c, 28d, 28e, 29, 29a, 29b, 30, 32, 32b, 32c, 32d, 32e, 32f, and 33; 9500.1211; 50.13 9500.1213; 9500.1215; 9500.1219, subparts 1, 2, 3, and 4; 9500.1221; 9500.1223, 50.14 subparts 1, 2, 3, and 5; 9500.1225; 9500.1226, subparts 1, 5, 6, 7, 8, and 9; 9500.1231; 50.15 9500.1232, subpart 4; 9500.1233, subparts 1, 2, 3, and 5; 9500.1237, subparts 1, 2, 4, and 50.16 6; 9500.1239; 9500.1243; 9500.1245, subparts 1, 2, 3, 4, 5, 6, and 7; 9500.1248, subpart 50.17 3; 9500.1250; 9500.1254, subparts 1, 2, 4, 5, 6, and 7; 9500.1259, subparts 2, 3, and 4; 50.18 9500.1261; and 9500.1272, are repealed effective December 1, 2010. 50.19 ARTICLE 4 50.20 DEPARTMENT OF HEALTH 50.21 Section 1. Minnesota Statutes 2008, section 62J.04, subdivision 3, is amended to read: 50.22 Subd. 3. Cost containment duties. The commissioner shall: 50.23 (1) establish statewide and regional cost containment goals for total health care 50.24 spending under this section and collect data as described in sections 62J.38 to 62J.41 50.25 62J.40 to monitor statewide achievement of the cost containment goals; 50.26 (2) divide the state into no fewer than four regions, with one of those regions being 50.27 the Minneapolis/St. Paul metropolitan statistical area but excluding Chisago, Isanti, 50.28 Wright, and Sherburne Counties, for purposes of fostering the development of regional 50.29 health planning and coordination of health care delivery among regional health care 50.30 systems and working to achieve the cost containment goals; 50.31 (3) monitor the quality of health care throughout the state and take action as 50.32 necessary to ensure an appropriate level of quality; 50.33 Article 4 Section 1. 50 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (4) issue recommendations regarding uniform billing forms, uniform electronic 51.1 billing procedures and data interchanges, patient identification cards, and other uniform 51.2 claims and administrative procedures for health care providers and private and public 51.3 sector payers. In developing the recommendations, the commissioner shall review the 51.4 work of the work group on electronic data interchange (WEDI) and the American National 51.5 Standards Institute (ANSI) at the national level, and the work being done at the state and 51.6 local level. The commissioner may adopt rules requiring the use of the Uniform Bill 51.7 82/92 form, the National Council of Prescription Drug Providers (NCPDP) 3.2 electronic 51.8 version, the Centers for Medicare and Medicaid Services 1500 form, or other standardized 51.9 forms or procedures; 51.10 (5) undertake health planning responsibilities; 51.11 (6) authorize, fund, or promote research and experimentation on new technologies 51.12 and health care procedures; 51.13 (7) within the limits of appropriations for these purposes, administer or contract for 51.14 statewide consumer education and wellness programs that will improve the health of 51.15 Minnesotans and increase individual responsibility relating to personal health and the 51.16 delivery of health care services, undertake prevention programs including initiatives to 51.17 improve birth outcomes, expand childhood immunization efforts, and provide start-up 51.18 grants for worksite wellness programs; 51.19 (8) undertake other activities to monitor and oversee the delivery of health care 51.20 services in Minnesota with the goal of improving affordability, quality, and accessibility of 51.21 health care for all Minnesotans; and 51.22 (9) make the cost containment goal data available to the public in a 51.23 consumer-oriented manner. 51.24 Sec. 2. Minnesota Statutes 2008, section 62J.17, subdivision 4a, is amended to read: 51.25 Subd. 4a. Expenditure reporting. Each hospital, outpatient surgical center, 51.26 and diagnostic imaging center, and physician clinic shall report annually to the 51.27 commissioner on all major spending commitments, in the form and manner specified by 51.28 the commissioner. The report shall include the following information: 51.29 (a) a description of major spending commitments made during the previous year, 51.30 including the total dollar amount of major spending commitments and purpose of the 51.31 expenditures; 51.32 (b) the cost of land acquisition, construction of new facilities, and renovation of 51.33 existing facilities; 51.34 (c) the cost of purchased or leased medical equipment, by type of equipment; 51.35 Article 4 Sec. 2. 51 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (d) expenditures by type for specialty care and new specialized services; 52.1 (e) information on the amount and types of added capacity for diagnostic imaging 52.2 services, outpatient surgical services, and new specialized services; and 52.3 (f) information on investments in electronic medical records systems. 52.4 For hospitals and outpatient surgical centers, this information shall be included in reports 52.5 to the commissioner that are required under section 144.698. For diagnostic imaging 52.6 centers, this information shall be included in reports to the commissioner that are required 52.7 under section 144.565. For physician clinics, this information shall be included in reports 52.8 to the commissioner that are required under section 62J.41. For all other health care 52.9 providers that are subject to this reporting requirement, reports must be submitted to the 52.10 commissioner by March 1 each year for the preceding calendar year. 52.11 Sec. 3. Minnesota Statutes 2008, section 62J.692, subdivision 4, is amended to read: 52.12 Subd. 4. Distribution of funds. (a) Following the distribution described under 52.13 paragraph (b), the commissioner shall annually distribute the available medical education 52.14 funds to all qualifying applicants based on a distribution formula that reflects a summation 52.15 of two factors: 52.16 (1) a public program volume factor, which is determined by the total volume of 52.17 public program revenue received by each training site as a percentage of all public 52.18 program revenue received by all training sites in the fund pool; and 52.19 (2) a supplemental public program volume factor, which is determined by providing 52.20 a supplemental payment of 20 percent of each training site's grant to training sites whose 52.21 public program revenue accounted for at least 0.98 percent of the total public program 52.22 revenue received by all eligible training sites. Grants to training sites whose public 52.23 program revenue accounted for less than 0.98 percent of the total public program revenue 52.24 received by all eligible training sites shall be reduced by an amount equal to the total 52.25 value of the supplemental payment. 52.26 Public program revenue for the distribution formula includes revenue from medical 52.27 assistance, prepaid medical assistance, general assistance medical care, and prepaid 52.28 general assistance medical care. Training sites that receive no public program revenue 52.29 are ineligible for funds available under this subdivision. For purposes of determining 52.30 training-site level grants to be distributed under paragraph (a), total statewide average 52.31 costs per trainee for medical residents is based on audited clinical training costs per trainee 52.32 in primary care clinical medical education programs for medical residents. Total statewide 52.33 average costs per trainee for dental residents is based on audited clinical training costs 52.34 per trainee in clinical medical education programs for dental students. Total statewide 52.35 Article 4 Sec. 3. 52 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] average costs per trainee for pharmacy residents is based on audited clinical training costs 53.1 per trainee in clinical medical education programs for pharmacy students. 53.2 (b) $5,350,000 of the available medical education funds shall be distributed as 53.3 follows: 53.4 (1) $1,475,000 to the University of Minnesota Medical Center-Fairview; 53.5 (2) $2,075,000 to the University of Minnesota School of Dentistry; and 53.6 (3) $1,800,000 to the Academic Health Center. 53.7 (c) Funds distributed shall not be used to displace current funding appropriations 53.8 from federal or state sources. 53.9 (d) Funds shall be distributed to the sponsoring institutions indicating the amount 53.10 to be distributed to each of the sponsor's clinical medical education programs based on 53.11 the criteria in this subdivision and in accordance with the commissioner's approval letter. 53.12 Each clinical medical education program must distribute funds allocated under paragraph 53.13 (a) to the training sites as specified in the commissioner's approval letter. Sponsoring 53.14 institutions, which are accredited through an organization recognized by the Department 53.15 of Education or the Centers for Medicare and Medicaid Services, may contract directly 53.16 with training sites to provide clinical training. To ensure the quality of clinical training, 53.17 those accredited sponsoring institutions must: 53.18 (1) develop contracts specifying the terms, expectations, and outcomes of the clinical 53.19 training conducted at sites; and 53.20 (2) take necessary action if the contract requirements are not met. Action may 53.21 include the withholding of payments under this section or the removal of students from 53.22 the site. 53.23 (e) Any funds not distributed in accordance with the commissioner's approval letter 53.24 must be returned to the medical education and research fund within 30 days of receiving 53.25 notice from the commissioner. The commissioner shall distribute returned funds to the 53.26 appropriate training sites in accordance with the commissioner's approval letter. 53.27 (f) A maximum of $150,000 of the funds dedicated to the commissioner under 53.28 section 297F.10, subdivision 1, clause (2), may be used by the commissioner for 53.29 administrative expenses associated with implementing this section. 53.30 (g) Beginning in fiscal year 2011, the amounts distributed in paragraph (b) shall be 53.31 reduced proportionally to achieve a state share reduction of $1,500,000. 53.32 Sec. 4. Minnesota Statutes 2008, section 150A.22, is amended to read: 53.33 150A.22 DONATED DENTAL SERVICES. 53.34 Article 4 Sec. 4. 53 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (a) Within available appropriations, the commissioner of health shall may contract 54.1 with the Minnesota Dental Association, or another appropriate and qualified organization 54.2 to develop and operate a donated dental services program to provide dental care to public 54.3 program recipients and the uninsured through dentists who volunteer their services 54.4 without compensation. As part of the contract, the commissioner shall include specific 54.5 performance and outcome measures that the contracting organization must meet. The 54.6 donated dental services program shall: 54.7 (1) establish a network of volunteer dentists, including dental specialties, to donate 54.8 dental services to eligible individuals; 54.9 (2) establish a system to refer eligible individuals to the appropriate volunteer 54.10 dentists; and 54.11 (3) develop and implement a public awareness campaign to educate eligible 54.12 individuals about the availability of the program. 54.13 (b) Available funding for the program may be used for administrative or technical 54.14 support. The organization contracting with the commissioner shall provide an annual 54.15 report that accounts for funding appropriated to the program by the state, documents the 54.16 number of individuals served by the program and the number of dentists participating as 54.17 program providers, and provides data on meeting the specific performance and outcome 54.18 measures identified by the commissioner. 54.19 Sec. 5. Minnesota Statutes 2009 Supplement, section 157.16, subdivision 3, is 54.20 amended to read: 54.21 Subd. 3. Establishment fees; definitions. (a) The following fees are required 54.22 for food and beverage service establishments, youth camps, hotels, motels, lodging 54.23 establishments, public pools, and resorts licensed under this chapter. Food and beverage 54.24 service establishments must pay the highest applicable fee under paragraph (d), clause 54.25 (1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable 54.26 fee under paragraph (d), clause (6) or (7). The license fee for new operators previously 54.27 licensed under this chapter for the same calendar year is one-half of the appropriate annual 54.28 license fee, plus any penalty that may be required. The license fee for operators opening 54.29 on or after October 1 is one-half of the appropriate annual license fee, plus any penalty 54.30 that may be required. 54.31 (b) All food and beverage service establishments, except special event food stands, 54.32 and all hotels, motels, lodging establishments, public pools, and resorts shall pay an 54.33 annual base fee of $150. 54.34 Article 4 Sec. 5. 54 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (c) A special event food stand shall pay a flat fee of $50 annually. "Special event 55.1 food stand" means a fee category where food is prepared or served in conjunction with 55.2 celebrations, county fairs, or special events from a special event food stand as defined 55.3 in section 157.15. 55.4 (d) In addition to the base fee in paragraph (b), each food and beverage service 55.5 establishment, other than a special event food stand, and each hotel, motel, lodging 55.6 establishment, public pool, and resort shall pay an additional annual fee for each fee 55.7 category, additional food service, or required additional inspection specified in this 55.8 paragraph: 55.9 (1) Limited food menu selection, $60. "Limited food menu selection" means a fee 55.10 category that provides one or more of the following: 55.11 (i) prepackaged food that receives heat treatment and is served in the package; 55.12 (ii) frozen pizza that is heated and served; 55.13 (iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal; 55.14 (iv) soft drinks, coffee, or nonalcoholic beverages; or 55.15 (v) cleaning for eating, drinking, or cooking utensils, when the only food served 55.16 is prepared off site. 55.17 (2) Small establishment, including boarding establishments, $120. "Small 55.18 establishment" means a fee category that has no salad bar and meets one or more of 55.19 the following: 55.20 (i) possesses food service equipment that consists of no more than a deep fat fryer, a 55.21 grill, two hot holding containers, and one or more microwave ovens; 55.22 (ii) serves dipped ice cream or soft serve frozen desserts; 55.23 (iii) serves breakfast in an owner-occupied bed and breakfast establishment; 55.24 (iv) is a boarding establishment; or 55.25 (v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum 55.26 patron seating capacity of not more than 50. 55.27 (3) Medium establishment, $310. "Medium establishment" means a fee category 55.28 that meets one or more of the following: 55.29 (i) possesses food service equipment that includes a range, oven, steam table, salad 55.30 bar, or salad preparation area; 55.31 (ii) possesses food service equipment that includes more than one deep fat fryer, 55.32 one grill, or two hot holding containers; or 55.33 (iii) is an establishment where food is prepared at one location and served at one or 55.34 more separate locations. 55.35 Article 4 Sec. 5. 55 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Establishments meeting criteria in clause (2), item (v), are not included in this fee 56.1 category. 56.2 (4) Large establishment, $540. "Large establishment" means either: 56.3 (i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a 56.4 medium establishment, (B) seats more than 175 people, and (C) offers the full menu 56.5 selection an average of five or more days a week during the weeks of operation; or 56.6 (ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium 56.7 establishment, and (B) prepares and serves 500 or more meals per day. 56.8 (5) Other food and beverage service, including food carts, mobile food units, 56.9 seasonal temporary food stands, and seasonal permanent food stands, $60. 56.10 (6) Beer or wine table service, $60. "Beer or wine table service" means a fee 56.11 category where the only alcoholic beverage service is beer or wine, served to customers 56.12 seated at tables. 56.13 (7) Alcoholic beverage service, other than beer or wine table service, $165. 56.14 "Alcohol beverage service, other than beer or wine table service" means a fee 56.15 category where alcoholic mixed drinks are served or where beer or wine are served from 56.16 a bar. 56.17 (8) Lodging per sleeping accommodation unit, $10, including hotels, motels, 56.18 lodging establishments, and resorts, up to a maximum of $1,000. "Lodging per sleeping 56.19 accommodation unit" means a fee category including the number of guest rooms, cottages, 56.20 or other rental units of a hotel, motel, lodging establishment, or resort; or the number of 56.21 beds in a dormitory. 56.22 (9) First public pool, $325; each additional public pool, $175. "Public pool" means a 56.23 fee category that has the meaning given in section 144.1222, subdivision 4. 56.24 (10) First spa, $175; each additional spa, $100. "Spa pool" means a fee category that 56.25 has the meaning given in Minnesota Rules, part 4717.0250, subpart 9. 56.26 (11) Private sewer or water, $60. "Individual private water" means a fee category 56.27 with a water supply other than a community public water supply as defined in Minnesota 56.28 Rules, chapter 4720. "Individual private sewer" means a fee category with an individual 56.29 sewage treatment system which uses subsurface treatment and disposal. 56.30 (12) Additional food service, $150. "Additional food service" means a location at 56.31 a food service establishment, other than the primary food preparation and service area, 56.32 used to prepare or serve food to the public. 56.33 (13) Additional inspection fee, $360. "Additional inspection fee" means a fee to 56.34 conduct the second inspection each year for elementary and secondary education facility 56.35 Article 4 Sec. 5. 56 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] school lunch programs when required by the Richard B. Russell National School Lunch 57.1 Act. 57.2 (e) A fee for review of construction plans must accompany the initial license 57.3 application for restaurants, hotels, motels, lodging establishments, resorts, seasonal food 57.4 stands, and mobile food units. The fee for this construction plan review is as follows: 57.5 Service Area Type Fee 57.6 Food limited food menu $275 57.7 small establishment $400 57.8 medium establishment $450 57.9 large food establishment $500 57.10 additional food service $150 57.11 Transient food service food cart $250 57.12 seasonal permanent food stand $250 57.13 seasonal temporary food stand $250 57.14 mobile food unit $350 57.15 Alcohol beer or wine table service $150 57.16 alcohol service from bar $250 57.17 Lodging less than 25 rooms $375 57.18 25 to less than 100 rooms $400 57.19 100 rooms or more $500 57.20 less than five cabins $350 57.21 five to less than ten cabins $400 57.22 ten cabins or more $450 57.23 (f) When existing food and beverage service establishments, hotels, motels, lodging 57.24 establishments, resorts, seasonal food stands, and mobile food units are extensively 57.25 remodeled, a fee must be submitted with the remodeling plans. The fee for this 57.26 construction plan review is as follows: 57.27 Service Area Type Fee 57.28 Food limited food menu $250 57.29 small establishment $300 57.30 medium establishment $350 57.31 large food establishment $400 57.32 additional food service $150 57.33 Transient food service food cart $250 57.34 seasonal permanent food stand $250 57.35 seasonal temporary food stand $250 57.36 mobile food unit $250 57.37 Alcohol beer or wine table service $150 57.38 alcohol service from bar $250 57.39 Lodging less than 25 rooms $250 57.40 25 to less than 100 rooms $300 57.41 Article 4 Sec. 5. 57 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] 100 rooms or more $450 58.1 less than five cabins $250 58.2 five to less than ten cabins $350 58.3 ten cabins or more $400 58.4 (g) Special event food stands are not required to submit construction or remodeling 58.5 plans for review. 58.6 (h) Youth camps shall pay an annual single fee for food and lodging as follows: 58.7 (1) camps with up to 99 campers, $325; 58.8 (2) camps with 100 to 199 campers, $550; and 58.9 (3) camps with 200 or more campers, $750. 58.10 (i) A youth camp which pays fees under paragraph (d) of this subdivision is not 58.11 required to pay fees under paragraph (h) of this subdivision. 58.12 Sec. 6. Minnesota Statutes 2008, section 297F.10, subdivision 1, is amended to read: 58.13 Subdivision 1. Tax and use tax on cigarettes. Revenue received from cigarette 58.14 taxes, as well as related penalties, interest, license fees, and miscellaneous sources of 58.15 revenue shall be deposited by the commissioner in the state treasury and credited as 58.16 follows: 58.17 (1) $22,220,000 for fiscal year 2006 and $22,250,000 for fiscal year 2007 and each 58.18 year thereafter must be credited to the Academic Health Center special revenue fund 58.19 hereby created and is annually appropriated to the Board of Regents at the University of 58.20 Minnesota for Academic Health Center funding at the University of Minnesota; and 58.21 (2) $8,553,000 for fiscal year 2006 and $8,550,000 for fiscal year 2007 and each year 58.22 thereafter The following amounts must be credited to the medical education and research 58.23 costs account hereby created in the special revenue fund and is annually appropriated to 58.24 the commissioner of health for distribution under section 62J.692, subdivision 4; and: 58.25 (i) $8,553,000 in fiscal year 2006; 58.26 (ii) $8,550,000 in fiscal year 2007 through fiscal year 2009; 58.27 (iii) $7,550,000 in fiscal year 2010; and 58.28 (iv) $7,050,000 in fiscal year 2011 and each year thereafter; and 58.29 (3) the balance of the revenues derived from taxes, penalties, and interest (under 58.30 this chapter) and from license fees and miscellaneous sources of revenue shall be credited 58.31 to the general fund. 58.32 Sec. 7. Minnesota Statutes 2009 Supplement, section 327.15, subdivision 3, is 58.33 amended to read: 58.34 Article 4 Sec. 7. 58 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Subd. 3. Fees, manufactured home parks and recreational camping areas. (a) 59.1 The following fees are required for manufactured home parks and recreational camping 59.2 areas licensed under this chapter. Recreational camping areas and manufactured home 59.3 parks shall pay the highest applicable base fee under paragraph (c) (b). The license fee 59.4 for new operators of a manufactured home park or recreational camping area previously 59.5 licensed under this chapter for the same calendar year is one-half of the appropriate annual 59.6 license fee, plus any penalty that may be required. The license fee for operators opening 59.7 on or after October 1 is one-half of the appropriate annual license fee, plus any penalty 59.8 that may be required. 59.9 (b) All manufactured home parks and recreational camping areas shall pay the 59.10 following annual base fee: 59.11 (1) a manufactured home park, $150; and 59.12 (2) a recreational camping area with: 59.13 (i) 24 or less sites, $50; 59.14 (ii) 25 to 99 sites, $212; and 59.15 (iii) 100 or more sites, $300. 59.16 In addition to the base fee, manufactured home parks and recreational camping areas shall 59.17 pay $4 for each licensed site. This paragraph does not apply to special event recreational 59.18 camping areas or to. Operators of a manufactured home park or a recreational camping 59.19 area also licensed under section 157.16 for the same location shall pay only one base fee, 59.20 whichever is the highest of the base fees found in this section or section 157.16. 59.21 (c) In addition to the fee in paragraph (b), each manufactured home park or 59.22 recreational camping area shall pay an additional annual fee for each fee category 59.23 specified in this paragraph: 59.24 (1) Manufactured home parks and recreational camping areas with public swimming 59.25 pools and spas shall pay the appropriate fees specified in section 157.16. 59.26 (2) Individual private sewer or water, $60. "Individual private water" means a fee 59.27 category with a water supply other than a community public water supply as defined in 59.28 Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with a 59.29 subsurface sewage treatment system which uses subsurface treatment and disposal. 59.30 (d) The following fees must accompany a plan review application for initial 59.31 construction of a manufactured home park or recreational camping area: 59.32 (1) for initial construction of less than 25 sites, $375; 59.33 (2) for initial construction of 25 to 99 sites, $400; and 59.34 (3) for initial construction of 100 or more sites, $500. 59.35 Article 4 Sec. 7. 59 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (e) The following fees must accompany a plan review application when an existing 60.1 manufactured home park or recreational camping area is expanded: 60.2 (1) for expansion of less than 25 sites, $250; 60.3 (2) for expansion of 25 to 99 sites, $300; and 60.4 (3) for expansion of 100 or more sites, $450. 60.5 Sec. 8. REPEALER. 60.6 Minnesota Statutes 2008, sections 62J.17, subdivisions 1, 3, 5a, 6a, and 8; 62J.321, 60.7 subdivision 5a; 62J.381; and 62J.41, subdivisions 1 and 2, are repealed. 60.8 ARTICLE 5 60.9 E-HEALTH TECHNOLOGY 60.10 Section 1. Minnesota Statutes 2009 Supplement, section 62J.495, subdivision 1a, 60.11 is amended to read: 60.12 Subd. 1a. Definitions. (a) "Certified electronic health record technology" means an 60.13 electronic health record that is certified pursuant to section 3001(c)(5) of the HITECH 60.14 Act to meet the standards and implementation specifications adopted under section 3004 60.15 as applicable. 60.16 (b) "Commissioner" means the commissioner of health. 60.17 (c) "Pharmaceutical electronic data intermediary" means any entity that provides 60.18 the infrastructure to connect computer systems or other electronic devices utilized 60.19 by prescribing practitioners with those used by pharmacies, health plans, third-party 60.20 administrators, and pharmacy benefit managers in order to facilitate the secure 60.21 transmission of electronic prescriptions, refill authorization requests, communications, 60.22 and other prescription-related information between such entities. 60.23 (d) "HITECH Act" means the Health Information Technology for Economic and 60.24 Clinical Health Act in division A, title XIII and division B, title IV of the American 60.25 Recovery and Reinvestment Act of 2009, including federal regulations adopted under 60.26 that act. 60.27 (e) "Interoperable electronic health record" means an electronic health record that 60.28 securely exchanges health information with another electronic health record system that 60.29 meets requirements specified in subdivision 3, and national requirements for certification 60.30 under the HITECH Act. 60.31 (f) "Qualified electronic health record" means an electronic record of health-related 60.32 information on an individual that includes patient demographic and clinical health 60.33 information and has the capacity to: 60.34 Article 5 Section 1. 60 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (1) provide clinical decision support; 61.1 (2) support physician order entry; 61.2 (3) capture and query information relevant to health care quality; and 61.3 (4) exchange electronic health information with, and integrate such information 61.4 from, other sources. 61.5 Sec. 2. Minnesota Statutes 2009 Supplement, section 62J.495, subdivision 3, is 61.6 amended to read: 61.7 Subd. 3. Interoperable electronic health record requirements. To meet the 61.8 requirements of subdivision 1, hospitals and health care providers must meet the following 61.9 criteria when implementing an interoperable electronic health records system within their 61.10 hospital system or clinical practice setting. 61.11 (a) The electronic health record must be a qualified electronic health record. 61.12 (b) The electronic health record must be certified by the Office of the National 61.13 Coordinator pursuant to the HITECH Act. This criterion only applies to hospitals and 61.14 health care providers only if a certified electronic health record product for the provider's 61.15 particular practice setting is available. This criterion shall be considered met if a hospital 61.16 or health care provider is using an electronic health records system that has been certified 61.17 within the last three years, even if a more current version of the system has been certified 61.18 within the three-year period. 61.19 (c) The electronic health record must meet the standards established according to 61.20 section 3004 of the HITECH Act as applicable. 61.21 (d) The electronic health record must have the ability to generate information on 61.22 clinical quality measures and other measures reported under sections 4101, 4102, and 61.23 4201 of the HITECH Act. 61.24 (e) The electronic health record system must be connected to a state-certified 61.25 health information organization either directly or through a connection facilitated by a 61.26 state-certified health data intermediary as defined in section 62J.498. 61.27 (e) (f) A health care provider who is a prescriber or dispenser of legend drugs must 61.28 have an electronic health record system that meets the requirements of section 62J.497. 61.29 Sec. 3. [62J.498] HEALTH INFORMATION EXCHANGE. 61.30 Subdivision 1. Definitions. The following definitions apply to sections 62J.498 to 61.31 62J.4982: 61.32 (a) "Clinical transaction" means any meaningful use transaction that is not covered 61.33 by section 62J.536. 61.34 Article 5 Sec. 3. 61 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (b) "Commissioner" means the commissioner of health. 62.1 (c) "Direct health information exchange" means the electronic transmission of 62.2 health-related information through a direct connection between the electronic health 62.3 record systems of health care providers without the use of a health data intermediary. 62.4 (d) "Health care provider" or "provider" means a health care provider or provider as 62.5 defined in section 62J.03, subdivision 8. 62.6 (e) "Health data intermediary" means an entity that provides the infrastructure to 62.7 connect computer systems or other electronic devices used by health care providers, 62.8 laboratories, pharmacies, health plans, third-party administrators, or pharmacy benefit 62.9 managers to facilitate the secure transmission of health information, including 62.10 pharmaceutical electronic data intermediaries as defined in section 62J.495. This does not 62.11 include health care providers engaged in direct health information exchange. 62.12 (f) "Health information exchange" means the electronic transmission of 62.13 health-related information between organizations according to nationally recognized 62.14 standards. 62.15 (g) "Health information exchange service provider" means a health data intermediary 62.16 or health information organization that has been issued a certificate of authority by the 62.17 commissioner under section 62J.4981. 62.18 (h) "Health information organization" means an organization that oversees, governs, 62.19 and facilitates the exchange of health-related information among organizations according 62.20 to nationally recognized standards. 62.21 (i) "HITECH Act" means the Health Information Technology for Economic and 62.22 Clinical Health Act as defined in section 62J.495. 62.23 (j) "Major participating entity" means: 62.24 (1) a participating entity that receives compensation for services that is greater 62.25 than 30 percent of the health information organization's gross annual revenues from the 62.26 health information exchange service provider; 62.27 (2) a participating entity providing administrative, financial, or management services 62.28 to the health information organization, if the total payment for all services provided by the 62.29 participating entity exceeds three percent of the gross revenue of the health information 62.30 organization; and 62.31 (3) a participating entity that nominates or appoints 30 percent or more of the board 62.32 of directors of the health information organization. 62.33 (k) "Meaningful use" means use of certified electronic health record technology that 62.34 includes e-prescribing, and is connected in a manner that provides for the electronic 62.35 exchange of health information and used for the submission of clinical quality measures 62.36 Article 5 Sec. 3. 62 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] as established by the Center for Medicare and Medicaid Services and the Minnesota 63.1 Department of Human Services pursuant to sections 4101, 4102, and 4201 of the HITECH 63.2 Act. 63.3 (l) "Meaningful use transaction" means an electronic transaction that a health care 63.4 provider must exchange to receive Medicare or Medicaid incentives or avoid Medicare 63.5 penalties pursuant to sections 4101, 4102, and 4201 of the HITECH Act. 63.6 (m) "Participating entity" means any of the following persons, health care providers, 63.7 companies, or other organizations with which a health information organization or health 63.8 data intermediary has contracts or other agreements for the provision of health information 63.9 exchange service providers: 63.10 (1) a health care facility licensed under sections 144.50 to 144.56, a nursing home 63.11 licensed under sections 144A.02 to 144A.10, and any other health care facility otherwise 63.12 licensed under the laws of this state or registered with the commissioner; 63.13 (2) a health care provider, and any other health care professional otherwise licensed 63.14 under the laws of this state or registered with the commissioner; 63.15 (3) a group, professional corporation, or other organization that provides the 63.16 services of individuals or entities identified in clause (2), including but not limited to a 63.17 medical clinic, a medical group, a home health care agency, an urgent care center, and 63.18 an emergent care center; 63.19 (4) a health plan as defined in section 62A.011, subdivision 3; and 63.20 (5) a state agency as defined in section 13.02, subdivision 17. 63.21 (n) "Reciprocal agreement" means an arrangement in which two or more health 63.22 information exchange service providers agree to share in-kind services and resources to 63.23 allow for the pass-through of meaningful use transactions. 63.24 (o) "State-certified health data intermediary" means a health data intermediary that: 63.25 (1) provides a subset of the meaningful use transaction capabilities necessary for 63.26 hospitals and providers to achieve meaningful use of electronic health records; 63.27 (2) is not exclusively engaged in the exchange of meaningful use transactions 63.28 covered by section 62J.536; and 63.29 (3) has been issued a certificate of authority to operate in Minnesota. 63.30 (p) "State-certified health information organization" means a nonprofit health 63.31 information organization that provides transaction capabilities necessary to fully support 63.32 clinical transactions required for meaningful use of electronic health records that has been 63.33 issued a certificate of authority to operate in Minnesota. 63.34 Subd. 2. Health information exchange oversight. (a) The commissioner shall 63.35 establish a Health Information Exchange Oversight Board. The board shall be charged 63.36 Article 5 Sec. 3. 63 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] with advising the commissioner on regulatory action necessary to protect the public 64.1 interest on matters pertaining to health information exchange. The board shall: 64.2 (1) review and recommend applications from health data intermediaries and health 64.3 information organizations for certificates of authority to operate in Minnesota; 64.4 (2) work in consultation with the commissioner to provide ongoing monitoring to 64.5 ensure compliance with criteria established under sections 62J.498 to 62J.4982; 64.6 (3) assist the commissioner's response to public complaints related to health 64.7 information exchange services; 64.8 (4) make recommendations to the commissioner on enforcement actions including 64.9 the imposition of fines, suspension, or revocation of certificates of authority as outlined 64.10 in section 62J.4982; 64.11 (5) provide a biannual report to the commissioner on the status of health information 64.12 exchange services that includes but is not limited to: 64.13 (i) recommendations on actions necessary to ensure that health information exchange 64.14 services are adequate to meet the needs of Minnesota citizens and providers statewide; 64.15 (ii) recommendations on enforcement actions to ensure that health information 64.16 exchange service providers act in the public interest without causing disruption in health 64.17 information exchange services; 64.18 (iii) recommendations on updates to criteria for obtaining certificates of authority 64.19 under this section; and 64.20 (iv) recommendations on standard operating procedures for health information 64.21 exchange, including but not limited to the management of consumer preferences; 64.22 (6) other duties as assigned by the commissioner. 64.23 (b) The Health Information Exchange Oversight Board shall consist of seven 64.24 members, including: 64.25 (1) two public members who do not have a material financial interest in health 64.26 information exchange services; and 64.27 (2) five health care stakeholders who: 64.28 (i) are broadly representative of the Minnesota health care community; 64.29 (ii) reflect the geography of the state; and 64.30 (iii) have at least three years of practical experience in the use of electronic health 64.31 records or health information exchange services immediately preceding appointment. 64.32 (c) Members of the Health Information Exchange Oversight Board shall not be 64.33 employed by the Department of Health, but the board shall be staffed by an employee 64.34 of the department who shall serve as an ex officio, nonvoting member of the board. 64.35 The board shall meet at least quarterly. The commissioner may require more frequent 64.36 Article 5 Sec. 3. 64 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] board meetings as needed. The compensation, terms, removal of members, and filling of 65.1 vacancies on the board are governed by section 15.0575. 65.2 (d) The Health Information Exchange Oversight Board shall not be subject to 65.3 chapter 13D when the board is considering contracts as described in section 62J.4981, 65.4 subdivision 4, paragraph (a), clause (5). 65.5 (e) When the Health Information Exchange Oversight Board is actively considering 65.6 a suspension or revocation of a certificate of authority as described in section 62J.4982, 65.7 subdivision 3, all investigatory data that are collected, created, or maintained related to the 65.8 suspension or revocation are classified as confidential data on individuals and as protected 65.9 nonpublic data in the case of data not on individuals. 65.10 (f) After the commissioner makes a final determination regarding a suspension or 65.11 revocation of a certificate of authority, all Health Information Exchange Oversight Board 65.12 minutes, orders for hearing, findings of fact, conclusions of law, and the specification of 65.13 the final disciplinary action, are classified as public data. 65.14 (g) The Health Information Exchange Oversight Board may make any data classified 65.15 as protected nonpublic or confidential under this section accessible to an appropriate 65.16 person or agency if the commissioner determines that failure to make the data accessible is 65.17 likely to create a clear and present danger to public health or safety. 65.18 Sec. 4. [62J.4981] CERTIFICATE OF AUTHORITY TO PROVIDE HEALTH 65.19 INFORMATION EXCHANGE SERVICES. 65.20 Subdivision 1. Authority to require organizations to apply. The commissioner 65.21 shall require an entity providing health information exchange services to apply for a 65.22 certificate of authority under this section. An applicant may continue to operate until 65.23 the commissioner acts on the application. If the application is denied, the applicant is 65.24 considered a health information organization whose certificate of authority has been 65.25 revoked under section 62J.4982, subdivision 2, paragraph (d). 65.26 Subd. 2. Certificate of authority for health data intermediaries. (a) A health 65.27 data intermediary that provides health information exchange services for the transmission 65.28 of one or more clinical transactions necessary for hospitals, providers, or eligible 65.29 professionals to achieve meaningful use must be registered with the state and comply with 65.30 requirements established in this section. 65.31 (b) Notwithstanding any law to the contrary, any corporation organized to do so 65.32 may apply to the commissioner for a certificate of authority to establish and operate as 65.33 a health data intermediary in compliance with this section. No person shall establish or 65.34 operate a health data intermediary in this state, nor sell or offer to sell, or solicit offers 65.35 Article 5 Sec. 4. 65 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] to purchase or receive advance or periodic consideration in conjunction with a health 66.1 data intermediary contract unless the organization has a certificate of authority or has an 66.2 application under active consideration under this section. 66.3 (c) In issuing the certificate of authority, the commissioner shall determine whether 66.4 the applicant for the certificate of authority has demonstrated that the applicant meets 66.5 the following minimum criteria: 66.6 (1) interoperate with at least one state-certified health information organization; 66.7 (2) provide an option for Minnesota entities to connect to their services through at 66.8 least one state-certified health information organization; 66.9 (3) have a record locator service as defined in section 144.291, subdivision 2, 66.10 paragraph (i), that is compliant with the requirements of section 144.293, subdivision 8, 66.11 when conducting meaningful use transactions; and 66.12 (4) hold reciprocal agreements with at least one state-certified health information 66.13 organization to enable access to record locator services to find patient data, and for the 66.14 transmission and receipt of meaningful use transactions consistent with the format and 66.15 content required by national standards established by Centers for Medicare and Medicaid 66.16 Services. Reciprocal agreements must meet the requirements established in subdivision 5. 66.17 Subd. 3. Certificate of authority for health information organizations. (a) 66.18 A health information organization that provides all electronic transaction capabilities 66.19 necessary to support clinical transactions necessary for meaningful use of electronic health 66.20 records must obtain a certificate of authority from the commissioner and demonstrate 66.21 compliance with the criteria in paragraph (c). 66.22 (b) Notwithstanding any law to the contrary, a nonprofit corporation organized to do 66.23 so may apply for a certificate of authority to establish and operate a health information 66.24 organization under this section. No person shall establish or operate a health information 66.25 organization in this state, nor sell or offer to sell, or solicit offers to purchase or receive 66.26 advance or periodic consideration in conjunction with a health information organization 66.27 or health information contract unless the organization has a certificate of authority under 66.28 this section. 66.29 (c) In issuing the certificate of authority, the commissioner shall determine whether 66.30 the applicant for the certificate of authority has demonstrated that the applicant meets 66.31 the following minimum criteria: 66.32 (1) the entity is a legally established, nonprofit organization; 66.33 (2) appropriate insurance, including liability insurance, for the operation of the 66.34 health information organization is in place and sufficient to protect the interest of the 66.35 public and participating entities; 66.36 Article 5 Sec. 4. 66 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (3) strategic and operational plans clearly address how the organization will expand 67.1 technical capacity of the health information organization to support providers in achieving 67.2 meaningful use of electronic health records over time; 67.3 (4) the entity addresses the parameters to be used with participating entities and 67.4 other health information organizations for meaningful use transactions, compliance with 67.5 Minnesota law, and interstate health information exchange in trust agreements; 67.6 (5) the entity's board of directors is comprised of members that broadly represent the 67.7 health information organization's participating entities and consumers; 67.8 (6) the entity maintains a professional staff responsible to the board of directors with 67.9 the capacity to ensure accountability to the organization's mission; 67.10 (7) the organization is compliant with criteria established under the Health 67.11 Information Exchange Accreditation Program of the Electronic Healthcare Network 67.12 Accreditation Commission (EHNAC) or equivalent criteria established by the 67.13 commissioner; 67.14 (8) the entity maintains a record locator service as defined in section 144.291, 67.15 subdivision 2, paragraph (i), that is compliant with the requirements of section 144.293, 67.16 subdivision 8, when conducting meaningful use transactions; 67.17 (9) the organization demonstrates interoperability with all other state-certified health 67.18 information organizations using nationally recognized standards; 67.19 (10) the organization demonstrates compliance with all privacy and security 67.20 requirements required by state and federal law; and 67.21 (11) the organization uses financial policies and procedures consistent with generally 67.22 accepted accounting principles and has an independent audit of the organization's 67.23 financials on an annual basis. 67.24 (d) Health information organizations that have obtained a certificate of authority 67.25 must: 67.26 (1) meet the requirements established for connecting to the Nationwide Health 67.27 Information Network (NHIN) within the federally mandated timeline or within a time 67.28 frame established by the commissioner and published in the State Register. If the state 67.29 timeline for implementation varies from the federal timeline, the State Register notice 67.30 shall include an explanation for the variation; 67.31 (2) annually submit strategic and operational plans for review by the Health 67.32 Information Exchange Oversight Board that address: 67.33 (i) increasing adoption rates to include a sufficient number of participating entities to 67.34 achieve financial sustainability; and 67.35 Article 5 Sec. 4. 67 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (ii) progress in achieving objectives included in previously submitted strategic 68.1 and operational plans across the following domains: business and technical operations, 68.2 technical infrastructure, legal and policy issues, finance, and organizational governance; 68.3 (3) develop and maintain a business plan that addresses: 68.4 (i) plans for ensuring the necessary capacity to support meaningful use transactions; 68.5 (ii) approach for attaining financial sustainability, including public and private 68.6 financing strategies, and rate structures; 68.7 (iii) rates of adoption, utilization, and transaction volume, and mechanisms to 68.8 support health information exchange; and 68.9 (iv) an explanation of methods employed to address the needs of community clinics, 68.10 critical access hospitals, and free clinics in accessing health information exchange services; 68.11 (4) annually submit a rate plan outlining fee structures for health information 68.12 exchange services for approval by the commissioner. The commissioner shall approve the 68.13 rate plan if it: 68.14 (i) distributes costs equitably among users of health information services; 68.15 (ii) provides predictable costs for participating entities; 68.16 (iii) covers all costs associated with conducting the full range of meaningful use 68.17 clinical transactions, including access to health information retrieved through other 68.18 state-certified health information exchange service providers; and 68.19 (iv) provides for a predictable revenue stream for the health information organization 68.20 and generates sufficient resources to maintain operating costs and develop technical 68.21 infrastructure necessary to serve the public interest; 68.22 (5) enter into reciprocal agreements with all other state-certified health information 68.23 organizations to enable access to record locator services to find patient data, and 68.24 transmission and receipt of meaningful use transactions consistent with the format and 68.25 content required by national standards established by Centers for Medicare and Medicaid 68.26 Services. Reciprocal agreements must meet the requirements in subdivision 5; and 68.27 (6) comply with additional requirements for the certification or recertification 68.28 of health information organizations that may be established by the commissioner, in 68.29 consultation with the Health Information Exchange Oversight Board. 68.30 Subd. 4. Application for certificate of authority for health information exchange 68.31 service providers. (a) Each application for a certificate of authority shall be in a form 68.32 prescribed by the commissioner and verified by an officer or authorized representative of 68.33 the applicant. Each application shall include the following: 68.34 Article 5 Sec. 4. 68 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (1) a copy of the basic organizational document, if any, of the applicant and of 69.1 each major participating entity, such as the articles of incorporation, or other applicable 69.2 documents, and all amendments to it; 69.3 (2) a list of the names, addresses, and official positions of the following: 69.4 (i) all members of the board of directors, and the principal officers and, if applicable, 69.5 shareholders of the applicant organization; and 69.6 (ii) all members of the board of directors, and the principal officers of each major 69.7 participating entity and, if applicable, each shareholder beneficially owning more than ten 69.8 percent of any voting stock of the major participating entity; 69.9 (3) the name and address of each participating entity and the agreed-upon duration 69.10 of each contract or agreement if applicable; 69.11 (4) a copy of each standard agreement or contract intended to bind the participating 69.12 entities and the health information organization. Contractual provisions shall be consistent 69.13 with the purposes of this section, in regard to the services to be performed under the 69.14 standard agreement or contract, the manner in which payment for services is determined, 69.15 the nature and extent of responsibilities to be retained by the health information 69.16 organization, and contractual termination provisions; 69.17 (5) a copy of each contract intended to bind major participating entities and the 69.18 health information organization. The Health Information Exchange Oversight Board 69.19 shall consider contract information provided under this section in a closed session as 69.20 provided for in section 62J.498, subdivision 2, paragraph (c). Contract information filed 69.21 with the commissioner under this section shall be nonpublic as defined in section 13.02, 69.22 subdivision 9; 69.23 (6) a statement generally describing the health information organization, its health 69.24 information exchange contracts, facilities, and personnel, including a statement describing 69.25 the manner in which the applicant proposes to provide participants with comprehensive 69.26 health information exchange services; 69.27 (7) financial statements showing the applicant's assets, liabilities, and sources 69.28 of financial support, including a copy of the applicant's most recent certified financial 69.29 statement; 69.30 (8) strategic and operational plans that specifically address how the organization 69.31 will expand technical capacity of the health information organization to support providers 69.32 in achieving meaningful use of electronic health records over time, a description of 69.33 the proposed method of marketing the services, a schedule of proposed charges, and a 69.34 financial plan that includes a three-year projection of the expenses and income and other 69.35 sources of future capital; 69.36 Article 5 Sec. 4. 69 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (9) a statement reasonably describing the geographic area or areas to be served and 70.1 the type or types of participants to be served; 70.2 (10) a description of the complaint procedures to be used as required under this 70.3 section; 70.4 (11) a description of the mechanism by which participating entities will have an 70.5 opportunity to participate in matters of policy and operation; 70.6 (12) a copy of any pertinent agreements between the health information organization 70.7 and insurers, including liability insurers, demonstrating coverage is in place; 70.8 (13) a copy of the conflict of interest policy that applies to all members of the board 70.9 of directors and the principal officers of the health information organization; and 70.10 (14) other information as the commissioner may reasonably require to be provided. 70.11 (b) Thirty days after the receipt of the application for a certificate of authority, 70.12 the commissioner shall determine whether or not the application submitted meets the 70.13 requirements for completion in paragraph (a), and notify the applicant of any further 70.14 information required for the application to be processed. 70.15 (c) Ninety days after the receipt of a complete application for a certificate of 70.16 authority, the commissioner shall issue a certificate of authority to the applicant if the 70.17 commissioner determines that the applicant meets the minimum criteria requirements 70.18 of subdivision 2 for health data intermediaries or subdivision 3 for health information 70.19 organizations. If the commissioner determines that the applicant is not qualified, the 70.20 commissioner shall notify the applicant and specify the reasons for disqualification. 70.21 (d) Upon being granted a certificate of authority to operate as a health information 70.22 organization, the organization must operate in compliance with the provisions of this 70.23 section. Noncompliance may result in the imposition of a fine or the suspension or 70.24 revocation of the certificate of authority according to section 62J.4982. 70.25 Subd. 5. Reciprocal agreements between health information exchange entities. 70.26 (a) Reciprocal agreements between two health information organizations or between a 70.27 health information organization and a health data intermediary must include a fair and 70.28 equitable model for charges between the entities that: 70.29 (1) does not impede the secure transmission of transactions necessary to achieve 70.30 meaningful use; 70.31 (2) does not charge a fee for the exchange of meaningful use transactions transmitted 70.32 according to nationally recognized standards where no additional value-added service 70.33 is rendered to the sending or receiving health information organization or health data 70.34 intermediary either directly or on behalf of the client; 70.35 Article 5 Sec. 4. 70 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (3) is consistent with fair market value and proportionately reflects the value-added 71.1 services accessed as a result of the agreement; and 71.2 (4) prevents health care stakeholders from being charged multiple times for the 71.3 same service. 71.4 (b) Reciprocal agreements are subject to review and approval by the Health 71.5 Information Exchange Oversight Board. 71.6 (c) Nothing in this section precludes a state-certified health information organization 71.7 or state-certified health data intermediary from entering into contractual agreements for 71.8 the provision of value-added services beyond meaningful use. 71.9 Sec. 5. [62J.4982] ENFORCEMENT AUTHORITY; COMPLIANCE. 71.10 Subdivision 1. Penalties and enforcement. (a) The commissioner may, for any 71.11 violation of statute or rule applicable to a health information exchange service provider, 71.12 levy an administrative penalty in an amount up to $25,000 for each violation. In 71.13 determining the level of an administrative penalty, the commissioner shall consider the 71.14 following factors: 71.15 (1) the number of participating entities affected by the violation; 71.16 (2) the effect of the violation on participating entities' access to health information 71.17 exchange services; 71.18 (3) if only one participating entity is affected, the effect of the violation on the 71.19 patients of that entity; 71.20 (4) whether the violation is an isolated incident or part of a pattern of violations; 71.21 (5) the economic benefits derived by the health information organization or a health 71.22 data intermediary by virtue of the violation; 71.23 (6) whether the violation hindered or facilitated an individual's ability to obtain 71.24 health care; 71.25 (7) whether the violation was intentional; 71.26 (8) whether the violation was beyond the direct control of the health information 71.27 exchange service provider; 71.28 (9) any history of prior compliance with the provisions of this section, including 71.29 violations; 71.30 (10) whether and to what extent the health information exchange service provider 71.31 attempted to correct previous violations; 71.32 (11) how the health information exchange service provider responded to technical 71.33 assistance from the commissioner provided in the context of a compliance effort; and 71.34 Article 5 Sec. 5. 71 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (12) the financial condition of the health information exchange service provider 72.1 including, but not limited to, whether the health information exchange service provider 72.2 had financial difficulties that affected its ability to comply or whether the imposition of an 72.3 administrative monetary penalty would jeopardize the ability of the health information 72.4 exchange service provider to continue to deliver health information exchange services. 72.5 Reasonable notice in writing to the health information exchange service provider 72.6 shall be given of the intent to levy the penalty and the reasons for them. A health 72.7 information exchange service provider may have 15 days within which to contest whether 72.8 the finding of facts constitute a violation of sections 62J.4981 and 62J.4982, according to 72.9 the contested case and judicial review provisions of sections 14.57 to 14.69. 72.10 (b) If the commissioner has reason to believe that a violation of section 62J.4981 or 72.11 62J.4982 has occurred or is likely, the commissioner may confer with the persons involved 72.12 before commencing action under subdivision 2. The commissioner may notify the health 72.13 information exchange service provider and the representatives, or other persons who 72.14 appear to be involved in the suspected violation, to arrange a voluntary conference with 72.15 the alleged violators or their authorized representatives. The purpose of the conference is 72.16 to attempt to learn the facts about the suspected violation and, if it appears that a violation 72.17 has occurred or is threatened, to find a way to correct or prevent it. The conference is 72.18 not governed by any formal procedural requirements, and may be conducted as the 72.19 commissioner considers appropriate. 72.20 (c) The commissioner may issue an order directing a health information exchange 72.21 service provider or a representative of a health information exchange service provider to 72.22 cease and desist from engaging in any act or practice in violation of sections 62J.4981 72.23 and 62J.4982. 72.24 (d) Within 20 days after service of the order to cease and desist, a health information 72.25 exchange service provider may contest whether the finding of facts constitutes a violation 72.26 of sections 62J.4981 and 62J.4982 according to the contested case and judicial review 72.27 provisions of sections 14.57 to 14.69. 72.28 (e) In the event of noncompliance with a cease and desist order issued under this 72.29 subdivision, the commissioner may institute a proceeding to obtain injunctive relief or 72.30 other appropriate relief in Ramsey County District Court. 72.31 Subd. 2. Suspension or revocation of certificates of authority. (a) The 72.32 commissioner may suspend or revoke a certificate of authority issued to a health 72.33 data intermediary or health information organization under section 62J.4981 if the 72.34 commissioner finds that: 72.35 Article 5 Sec. 5. 72 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (1) the health information exchange service provider is operating significantly 73.1 in contravention of its basic organizational document, or in a manner contrary to that 73.2 described in and reasonably inferred from any other information submitted under section 73.3 62J.4981, unless amendments to the submissions have been filed with and approved by 73.4 the commissioner; 73.5 (2) the health information exchange service provider is unable to fulfill its 73.6 obligations to furnish comprehensive health information exchange services as required 73.7 under its health information exchange contract; 73.8 (3) the health information exchange service provider is no longer financially solvent 73.9 or may not reasonably be expected to meet its obligations to participating entities; 73.10 (4) the health information exchange service provider has failed to implement a 73.11 mechanism affording the participating entities an opportunity to participate in matters 73.12 of policy and operation; 73.13 (5) the health information exchange service provider has failed to implement the 73.14 complaint system in a manner designed to reasonably resolve valid complaints; 73.15 (6) the health information exchange service provider, or any person acting with its 73.16 sanction, has advertised or merchandised its services in an untrue, misleading, deceptive, 73.17 or unfair manner; 73.18 (7) the continued operation of the health information exchange service provider 73.19 would be hazardous to its participating entities or the patients served by the participating 73.20 entities; or 73.21 (8) the health information exchange service provider has otherwise failed to 73.22 substantially comply with section 62J.4981 or with any other statute or administrative rule 73.23 applicable to health information organizations, or has submitted false information in any 73.24 report required under sections 62J.498 to 62J.4982. 73.25 (b) A certificate of authority shall be suspended or revoked only after meeting the 73.26 requirements of subdivision 3. 73.27 (c) If the certificate of authority of a health information exchange service provider is 73.28 suspended, the health information exchange service provider shall not, during the period 73.29 of suspension, enroll any additional participating entities, and shall not engage in any 73.30 advertising or solicitation. 73.31 (d) If the certificate of authority of a health information exchange service provider is 73.32 revoked, the organization shall proceed, immediately following the effective date of the 73.33 order of revocation, to wind up its affairs, and shall conduct no further business except as 73.34 necessary to the orderly conclusion of the affairs of the organization. The organization 73.35 shall engage in no further advertising or solicitation. The commissioner may, by written 73.36 Article 5 Sec. 5. 73 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] order, permit further operation of the organization as the commissioner finds to be in the 74.1 best interest of participating entities, to the end that participating entities will be given the 74.2 greatest practical opportunity to access continuing health information exchange services. 74.3 Subd. 3. Denial, suspension, and revocation; administrative procedures. (a) 74.4 When the commissioner has cause to believe that grounds for the denial, suspension, 74.5 or revocation of a certificate of authority exists, the commissioner shall notify the 74.6 health information exchange service provider in writing stating the grounds for denial, 74.7 suspension, or revocation and setting a time within 20 days for a hearing on the matter. 74.8 (b) After a hearing before the Health Information Exchange Oversight Board, or 74.9 upon the failure of the health information exchange service provider to appear at the 74.10 hearing, the commissioner shall consider the recommendations of the Health Information 74.11 Exchange Oversight Board and take action as deemed necessary and shall issue written 74.12 findings that shall be mailed to the health information exchange service provider. 74.13 (c) If suspension or revocation is proposed according to this section, the 74.14 commissioner must deliver, or send by certified mail with return receipt requested, to the 74.15 health information exchange service provider written notice of the commissioner's intent 74.16 to impose a penalty. This notice of proposed determination must include: 74.17 (1) a reference to the statutory basis for the penalty; 74.18 (2) a description of the findings of fact regarding the violations with respect to 74.19 which the penalty is proposed; 74.20 (3) the amount of the proposed penalty; 74.21 (4) any circumstances described in subdivision 1, paragraph (a), that were considered 74.22 in determining the amount of the proposed penalty; 74.23 (5) instructions for responding to the notice, including a statement of the health 74.24 information exchange service provider's right to a contested case proceeding and a 74.25 statement that failure to request a contested case proceeding within 30 calendar days 74.26 permits the imposition of the proposed penalty; and 74.27 (6) the address to which the contested case proceeding request must be sent. 74.28 Subd. 4. Coordination. (a) The commissioner shall, to the extent possible, seek 74.29 the advice of the Minnesota e-Health Advisory Committee, in the review and update of 74.30 criteria for the certification and recertification of health information exchange service 74.31 providers when implementing sections 62J.498 to 62J.4982. 74.32 (b) By January 1, 2011, the commissioner shall report to the governor and the 74.33 legislature on the status of health information exchange in Minnesota, and provide 74.34 recommendations on further action necessary to facilitate the secure electronic movement 74.35 Article 5 Sec. 5. 74 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] of health information among health providers that will enable Minnesota providers and 75.1 hospitals to meet meaningful use exchange requirements. 75.2 Subd. 5. Expedited rulemaking. The commissioner may use the expedited 75.3 rulemaking process under section 14.389 to carry out the duties of sections 62J.498 to 75.4 62J.4982. The commissioner shall be exempt from section 14.125 for purposes of this 75.5 section. 75.6 Subd. 6. Fees and monetary penalties. (a) Every health information exchange 75.7 service provider subject to sections 62J.4981 and 62J.4982 shall be assessed fees as 75.8 follows: 75.9 (1) filing an application for certificate of authority to operate as a health information 75.10 organization, $15,000; 75.11 (2) filing an application for certificate of authority to operate as a health data 75.12 intermediary, $10,000; 75.13 (3) annual health information organization certificate fee, $20,000; 75.14 (4) annual health data intermediary certificate fee, $10,000; and 75.15 (5) fees for other filings, as specified by rule. 75.16 (b) Administrative monetary penalties imposed under this subdivision shall be 75.17 deposited into a revolving fund and are appropriated to the commissioner for the purposes 75.18 of sections 62J.498 to 62J.4982. 75.19 ARTICLE 6 75.20 HEALTH AND HUMAN SERVICES APPROPRIATIONS 75.21 Section 1. SUMMARY OF APPROPRIATIONS. 75.22 The amounts shown in this section summarize direct appropriations, by fund, made 75.23 in this article. 75.24 2010 2011 Total 75.25 General $ (15,895,000) $ (142,886,000) $ (158,781,000) 75.26 State Government Special 75.27 Revenue 75.28 (1,609,000) (1,040,000) (2,649,000) Health Care Access (1,525,000) (156,840,000) (158,365,000) 75.29 Federal TANF -0- 28,000 28,000 75.30 Total $ (19,029,000) $ (272,766,000) $ (291,795,000) 75.31 Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS. 75.32 The sums shown in the columns marked "Appropriations" are added to or, if shown 75.33 in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13, 75.34 as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes 75.35 Article 6 Sec. 2. 75 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] specified in this article. The appropriations are from the general fund and are available 76.1 for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in 76.2 this article mean that the addition to or subtraction from the appropriation listed under 76.3 them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. 76.4 Supplemental appropriations and reductions to appropriations for the fiscal year ending 76.5 June 30, 2010, are effective the day following final enactment unless a different effective 76.6 date is explicit. 76.7 APPROPRIATIONS 76.8 Available for the Year 76.9 Ending June 30 76.10 2010 2011 76.11 Sec. 3. COMMISSIONER OF HUMAN 76.12 SERVICES 76.13 Subdivision 1. Total Appropriation (14,921,000) (259,768,000) 76.14 Appropriations by Fund 76.15 2010 2011 76.16 General (13,819,000) (142,253,000) 76.17 State Government 76.18 Special Revenue 76.19 (8,000) (16,000) Health Care Access (1,094,000) (145,499,000) 76.20 Federal TANF -0- 28,000,000 76.21 Working Family Credit Expenditures 76.22 to be Claimed for TANF/MOE. The 76.23 commissioner may count the following 76.24 amounts of working family credit 76.25 expenditures as TANF/MOE: 76.26 (1) fiscal year 2011, .......; 76.27 (2) fiscal year 2012, .......; and 76.28 (3) fiscal year 2013, .......; 76.29 Notwithstanding any provision to the 76.30 contrary, this rider expires June 30, 2013. 76.31 TANF Financing and Maintenance of 76.32 Effort. The commissioner of human 76.33 services, with the approval of the 76.34 commissioner of management and budget, 76.35 and after notification of the chairs of the 76.36 Article 6 Sec. 3. 76 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] relevant senate budget division and house of 77.1 representatives finance division, may adjust 77.2 the amount of TANF transfers between the 77.3 MFIP transition year child care assistance 77.4 program and MFIP grant programs within the 77.5 fiscal year, and within the current biennium 77.6 and the biennium ending June 30, 2013, 77.7 to ensure that state and federal match and 77.8 maintenance of effort requirements are 77.9 met. These transfers and amounts shall be 77.10 reported to the chairs of the senate and house 77.11 of representatives Finance Committees, the 77.12 senate Health and Human Services Budget 77.13 Division, the house of representatives Health 77.14 Care and Human Services Finance Division, 77.15 and Early Childhood Finance and Policy 77.16 Division by December 1 of each fiscal 77.17 year. Notwithstanding any provision to the 77.18 contrary, this provision expires June 30, 77.19 2013. 77.20 Special Revenue Fund Transfers. 77.21 (1) Notwithstanding any law to the contrary, 77.22 the commissioner shall transfer $1,023,000 77.23 of the special revenue fund account balances 77.24 to the general fund by June 30, 2010. 77.25 (2) The commissioner shall transfer $905,000 77.26 of the special revenue fund earnings in fiscal 77.27 years 2012 and 2013 to the general fund by 77.28 June 30, 2013. Notwithstanding any contrary 77.29 provision, this provision shall not expire. 77.30 (3) The actual transfers made under this rider 77.31 must be separately identified and reported as 77.32 part of the quarterly reporting of transfers 77.33 to the chairs of the relevant senate budget 77.34 Article 6 Sec. 3. 77 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] division and house of representatives finance 78.1 division. 78.2 The appropriation reductions for each 78.3 purpose are shown in the following 78.4 subdivisions. 78.5 Subd. 2. Agency Management; Financial 78.6 Operations 78.7 (8,000) (16,000) This appropriation reduction is from the state 78.8 government special revenue fund. 78.9 Subd. 3. Revenue and Pass-Through Revenue 78.10 Expenditures 78.11 172,000 49,580,000 TANF Funding for the Working Family 78.12 Tax Credit. In addition to the amounts 78.13 specified in Minnesota Statutes, section 78.14 290.0671, subdivision 6, $172,000 of TANF 78.15 funds in fiscal year 2010 and $49,580,000 78.16 of TANF funds in fiscal year 2011 are 78.17 appropriated to the commissioner of 78.18 human services to reimburse the cost of 78.19 the working family tax credit for eligible 78.20 families. Beginning January 1, 2011, the 78.21 commissioner shall reimburse the general 78.22 fund on a monthly basis according to a 78.23 schedule based on the pattern of working 78.24 family credit expenditures through June 20, 78.25 2011. 78.26 TANF Transfer to Federal Child Care 78.27 and Development Fund. The following 78.28 additional TANF fund amounts are 78.29 appropriated to the commissioner for the 78.30 purposes of MFIP and transition year child 78.31 care under Minnesota Statutes, section 78.32 119B.05: 78.33 (1) fiscal year 2012, $5,000,000; and 78.34 (2) fiscal year 2013, $5,000,000. 78.35 Article 6 Sec. 3. 78 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] The commissioner shall authorize the 79.1 transfer of sufficient TANF funds to the 79.2 federal child care and development fund to 79.3 meet this appropriation and shall ensure that 79.4 all transferred funds are expended according 79.5 to federal child care and development fund 79.6 regulations. 79.7 Subd. 4. Children and Economic Assistance 79.8 Grants 79.9 (a) MFIP and Diversionary Work Program 79.10 Grants 79.11 -0- (21,348,000) This appropriation reduction is from the 79.12 federal TANF fund. 79.13 (b) Support Services Grants -0- -0- 79.14 (c) MFIP Child Care Assistance Grants -0- (814,000) 79.15 (d) Basic Sliding Fee Child Care Assistance 79.16 Grants 79.17 (5,000,000) (5,876,000) Basic Sliding Fee Allocation. For calendar 79.18 year 2011, a county may terminate child 79.19 care assistance for families already receiving 79.20 assistance if the county basic sliding fee 79.21 allocation is reduced below the county's 79.22 allocation for calendar year 2010 by an 79.23 amount that the county demonstrates cannot 79.24 be absorbed without terminating assistance. 79.25 The county must consult with and obtain 79.26 approval from the commissioner before 79.27 terminating assistance to families under this 79.28 provision. If approved, the county must 79.29 follow procedures outlined in Minnesota 79.30 Rules, part 3400.0183, subpart 1, item B. 79.31 Base Adjustment. The general fund base is 79.32 decreased by $3,302,000 in fiscal year 2012 79.33 and decreased by $3,553,000 in fiscal year 79.34 2013. 79.35 Article 6 Sec. 3. 79 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (e) Child Support Enforcement Grants -0- (300,000) 80.1 Minnesota Healthy Marriage and 80.2 Responsible Fatherhood Initiative Fee. 80.3 Notwithstanding Minnesota Statutes, section 80.4 517.08, the balance and the fee revenue 80.5 available to the commissioner of human 80.6 services for the healthy marriage and 80.7 responsible fatherhood initiative in the state 80.8 government special revenue fund must be 80.9 transferred to and deposited into the general 80.10 fund by June 30 of each fiscal year. 80.11 (f) General Assistance Grants -0- (21,294,000) 80.12 (g) Minnesota Supplemental Aid Grants -0- (452,000) 80.13 (h) Group Residential Housing Grants -0- (882,000) 80.14 (i) Children's Mental Health Grants (200,000) (1,410,000) 80.15 (j) Other Children and Economic Assistance 80.16 Grants 80.17 -0- 5,592,000 Short-Term Aid Grants to Counties. Of 80.18 the general fund appropriation, $6,000,000 in 80.19 fiscal year 2011 is for short-term aid grants 80.20 under Minnesota Statutes, section 256D.441. 80.21 The base for this program is $11,000,000 in 80.22 fiscal year 2012 and $11,000,000 in fiscal 80.23 year 2013. 80.24 Subd. 5. Children and Economic Assistance 80.25 Management 80.26 (a) Children and Economic Assistance 80.27 Administration 80.28 (172,000) (232,000) This appropriation reduction is from the 80.29 federal TANF fund. 80.30 (b) Children and Economic Assistance 80.31 Operations 80.32 (1,408,000) (1,491,000) Suspension of Food Support Retailer Fees. 80.33 Under the legislative approval requirement 80.34 Article 6 Sec. 3. 80 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] in Laws 1998, chapter 407, article 6, section 81.1 116, the commissioner may eliminate 81.2 the transaction payment to retailers for 81.3 electronic benefits transfer (EBT) costs. 81.4 By January 15, 2011, the commissioner 81.5 shall make a report and recommendation 81.6 to the house of representatives and senate 81.7 finance committees with jurisdiction over the 81.8 supplemental nutrition assistance program on 81.9 whether to reinstitute the fee effective July 1, 81.10 2011. The report must include information 81.11 on EBT usage trends and retailer fee costs. 81.12 Subd. 6. Basic Health Care Grants 81.13 (a) MinnesotaCare Grants -0- (140,979,000) 81.14 This appropriation reduction is from the 81.15 health care access fund. 81.16 (b) Medical Assistance Basic Health Care 81.17 Grants - Families and Children 81.18 -0- (27,635,000) Medical Education Research Costs 81.19 (MERC). In fiscal year 2011, the 81.20 commissioner shall reduce the amount 81.21 transferred to the medical education research 81.22 fund under Minnesota Statutes, section 81.23 256B.69, subdivision 5c, paragraph (a), by 81.24 $18,802,463, so as to provide no amount 81.25 for general distribution under Minnesota 81.26 Statutes, section 62J.692, subdivision 7, 81.27 clause (5). This is a onetime reduction. 81.28 (c) Medical Assistance Basic Health Care 81.29 Grants - Elderly and Disabled 81.30 -0- (16,221,000) (d) Other Health Care Grants 81.31 Minnesota COBRA Premium Subsidy. 81.32 Unexpended funds appropriated in fiscal year 81.33 2010 for COBRA grants under Laws 2009, 81.34 chapter 79, article 5, section 78, do not cancel 81.35 Article 6 Sec. 3. 81 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] and are available to the commissioner for 82.1 fiscal year 2011 COBRA grant expenditures. 82.2 Subd. 7. Health Care Management 82.3 (a) Health Care Administration (2,998,000) (5,320,000) 82.4 Minnesota Senior Health Options 82.5 Reimbursement. Effective July 1, 2011, 82.6 federal administrative reimbursement 82.7 resulting from the Minnesota senior 82.8 health options project is appropriated 82.9 to the commissioner for this activity. 82.10 Notwithstanding any contrary provision, this 82.11 provision expires June 30, 2013. 82.12 Utilization Review. Effective July 1, 82.13 2011, federal administrative reimbursement 82.14 resulting from prior authorization and 82.15 inpatient admission certification by a 82.16 professional review organization shall be 82.17 dedicated to, and is appropriated to, the 82.18 commissioner for these activities. A portion 82.19 of these funds must be used for activities to 82.20 decrease unnecessary pharmaceutical costs 82.21 in medical assistance. Notwithstanding any 82.22 contrary provision, this provision expires 82.23 June 30, 2013. 82.24 (b) Health Care Operations 82.25 Appropriations by Fund 82.26 General -0- 2,000 82.27 Health Care Access (1,094,000) (4,520,000) 82.28 Base Adjustment. The health care access 82.29 fund base for health care operations is 82.30 reduced by $1,451,000 in fiscal year 2012 82.31 and $1,581,000 in fiscal year 2013. 82.32 Subd. 8. Continuing Care Grants 82.33 (a) Aging and Adult Services Grants -0- (272,000) 82.34 Article 6 Sec. 3. 82 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Base Adjustment. The general fund base for 83.1 aging and adult services grants is reduced by 83.2 $268,000 in fiscal year 2012 and $291,000 in 83.3 fiscal year 2013. 83.4 (b) Alternative Care Grants -0- (701,000) 83.5 Base Adjustment. The base for alternative 83.6 care grants is reduced by $164,000 in fiscal 83.7 year 2012 and $255,000 in fiscal year 2013. 83.8 (c) Medical Assistance Long-Term Care 83.9 Facilities Grants 83.10 -0- (9,911,000) (d) Medical Assistance Long-Term Care 83.11 Waivers and Home Care Grants 83.12 -0- (23,636,000) Manage Growth in Traumatic Brain 83.13 Injury and Community Alternatives for 83.14 Disabled Individuals Waivers. During 83.15 the fiscal year beginning July 1, 2010, the 83.16 commissioner shall allocate money for home 83.17 and community-based waiver programs 83.18 under Minnesota Statutes, section 256B.49, 83.19 to ensure a reduction in state spending that is 83.20 equivalent to limiting the caseload growth 83.21 of the TBI waiver to six allocations per 83.22 month and the CADI waiver to 60 allocations 83.23 per month. The limits do not apply: (1) 83.24 when there is an approved plan for nursing 83.25 facility bed closures for individuals under 83.26 age 65 who require relocation due to the 83.27 bed closure; (2) to fiscal year 2009 waiver 83.28 allocations delayed due to unallotment; or (3) 83.29 to transfers authorized by the commissioner 83.30 from the personal care assistance program 83.31 of individuals having a home care rating of 83.32 CS, MT, or HL. Priorities for the allocation 83.33 of funds must be for individuals anticipated 83.34 to be discharged from institutional settings or 83.35 Article 6 Sec. 3. 83 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] who are at imminent risk of a placement in 84.1 an institutional setting. 84.2 Manage Growth in the Developmental 84.3 Disability (DD) Waiver. The commissioner 84.4 shall manage the growth in the DD waiver 84.5 by limiting the allocations included in the 84.6 November 2010 forecast to six additional 84.7 diversion allocations each month for the 84.8 calendar year that begins on January 1, 84.9 2011. Additional allocations must be 84.10 made available for transfers authorized by 84.11 the commissioner from the personal care 84.12 assistance program of individuals having a 84.13 home care rating of CS, MT, or HL. This 84.14 provision is effective through December 31, 84.15 2011. 84.16 (e) Adult Mental Health Grants (3,700,000) (200,000) 84.17 Compulsive Gambling Special Revenue 84.18 Account. $149,000 for fiscal year 2010 84.19 and $27,000 for fiscal year 2011 from 84.20 the compulsive gambling special revenue 84.21 account established under Minnesota 84.22 Statutes, section 245.982, must be transferred 84.23 and deposited into the general fund by June 84.24 30 of each respective fiscal year. 84.25 Compulsive Gambling Lottery Prize Fund 84.26 Appropriation. Of the lottery prize fund 84.27 appropriation for compulsive gambling, 84.28 $48,000 for fiscal year 2010 and $47,000 84.29 for fiscal year 2011 must be transferred and 84.30 deposited into the general fund by June 30 of 84.31 each respective fiscal year. 84.32 (f) Deaf and Hard-of-Hearing Grants -0- (37,000) 84.33 Base Adjustment. The general fund base for 84.34 deaf and hard-of-hearing grants is reduced 84.35 Article 6 Sec. 3. 84 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] by $12,000 in fiscal year 2012 and $9,000 in 85.1 fiscal year 2013. 85.2 (g) Chemical Dependency Entitlement Grants -0- (5,300,000) 85.3 Consolidated Chemical Dependency 85.4 Treatment Fund Balance. $4,800,000 85.5 must be transferred from the consolidated 85.6 chemical dependency treatment fund and 85.7 deposited into the general fund by June 30, 85.8 2010. 85.9 (h) Chemical Dependency Nonentitlement 85.10 Grants 85.11 (389,000) -0- (i) Other Continuing Care Grants -0- (2,646,000) 85.12 HIV Grants. The general fund appropriation 85.13 for the HIV drug and insurance grant 85.14 program shall be reduced by $2,037,000 in 85.15 fiscal year 2011 and increased by $2,037,000 85.16 in fiscal year 2013. These adjustments are 85.17 onetime and must not be applied to the base. 85.18 Notwithstanding any contrary provision, this 85.19 provision expires June 30, 2013. 85.20 Base Adjustment. The general fund base is 85.21 increased by $1,819,000 in fiscal year 2012 85.22 and is increased by $3,813,000 in fiscal year 85.23 2013. 85.24 Subd. 9. Continuing Care Management -0- 341,000 85.25 Provider Rate Reduction Evaluation. 85.26 $341,000 is appropriated to the commissioner 85.27 in fiscal year 2011 to monitor and report on 85.28 changes in recipient access to continuing care 85.29 services funded under Minnesota's Medicaid 85.30 program resulting from rate reductions. The 85.31 commissioner shall provide preliminary 85.32 results of the monitoring to the house of 85.33 representatives and senate committees and 85.34 Article 6 Sec. 3. 85 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] divisions with jurisdiction over continuing 86.1 care by February 15, 2011, and shall report 86.2 updated results by December 31, 2012. 86.3 Base Adjustment. The general fund base 86.4 for continuing care management is decreased 86.5 by $79,000 in fiscal year 2012 and $79,000 86.6 in fiscal year 2013. 86.7 Compulsive Gambling Special Revenue 86.8 Administration. $6,000 for fiscal year 86.9 2010 and $4,000 for fiscal year 2011 must 86.10 be transferred from the lottery prize fund 86.11 appropriation for compulsive gambling 86.12 administration to the general fund by June 30 86.13 of each respective fiscal year. 86.14 Subd. 10. State-Operated Services 86.15 Obsolete Laundry Depreciation Account. 86.16 $669,000, or the balance, whichever is 86.17 greater, must be transferred from the 86.18 state-operated services laundry depreciation 86.19 account in the special revenue fund and 86.20 deposited into the general fund by June 30, 86.21 2010. 86.22 Adult Mental Health Services 48,000 (2,210,000) 86.23 Subd. 11. Contingent Appropriations 86.24 Reductions. 86.25 Upon enactment of the extension of 86.26 the enhanced federal medical assistance 86.27 percentage (FMAP) under Public Law 111-5 86.28 to June 30, 2011, that is contained in the 86.29 president's budget for federal fiscal year 2011 86.30 or contained in House Resolution 2847, the 86.31 federal "Jobs for Main Street Act, 2010," or 86.32 subsequent federal legislation, the reductions 86.33 identified in each clause shall be made to 86.34 the specified general fund appropriations 86.35 Article 6 Sec. 3. 86 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] for fiscal year 2011. These contingent 87.1 reductions, if implemented, are in addition 87.2 to the reductions specified in subdivision 6, 87.3 paragraphs (a), (b), and (c), and subdivision 87.4 8, paragraphs (c) and (d), respectively. 87.5 (1) MinnesotaCare Grants -0- (9,200,000) 87.6 (2) Medical Assistance Basic Health Care Grants 87.7 - Families and Children 87.8 -0- (109,662,500) (3) Medical Assistance Basic Health Care Grants 87.9 - Elderly and Disabled 87.10 -0- (110,437,500) (4) Medical Assistance Long-Term Care Facilities 87.11 Grants 87.12 -0- (51,925,000) (5) Medical Assistance Long-Term Care Waivers 87.13 and Home Care Grants 87.14 -0- (115,475,000) Sec. 4. COMMISSIONER OF HEALTH 87.15 APPROPRIATIONS 87.16 Available for the Year 87.17 Ending June 30 87.18 2010 2011 87.19 Subdivision 1. Total Appropriation $ (4,123,000) $ (12,349,000) 87.20 Appropriations by Fund 87.21 2010 2011 87.22 General (2,392,000) (426,000) 87.23 State Government 87.24 Special Revenue 87.25 (1,300,000) (582,000) Health Care Access (431,000) (11,341,000) 87.26 Subd. 2. Community and Family Health 87.27 Appropriations by Fund 87.28 2010 2011 87.29 General (221,000) (121,000) 87.30 Health Care Access (45,000) (10,040,000) 87.31 Statewide Health Improvement Program. 87.32 Of the health care access fund reductions, 87.33 $10,000,000 in fiscal year 2011 is 87.34 for reductions to the statewide health 87.35 Article 6 Sec. 4. 87 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] improvement program. This reduction is 88.1 onetime. 88.2 Base Level Adjustment. The general fund 88.3 base is reduced by $33,000 in fiscal year 88.4 2012 and by $33,000 in fiscal year 2013. 88.5 Subd. 3. Policy, Quality and Compliance 88.6 Appropriations by Fund 88.7 2010 2011 88.8 General (1,797,000) -0- 88.9 State Government 88.10 Special Revenue 88.11 (600,000) (232,000) Health Care Access (386,000) (1,301,000) 88.12 Health Care Reform. Funds appropriated 88.13 in Laws 2008, chapter 358, article 5, section 88.14 4, subdivision 3, for health reform activities 88.15 to implement Laws 2008, chapter 358, 88.16 article 4, are available until expended. 88.17 Notwithstanding any contrary provision in 88.18 this article, this provision shall not expire. 88.19 Rural Hospital Capital Improvement 88.20 Grants. Of the general fund reductions in 88.21 fiscal year 2010, $1,755,000 is for the rural 88.22 hospital capital improvement grant program. 88.23 Federally Qualified Health Centers. Of 88.24 the health care access fund reductions, 88.25 $1,000,000 in fiscal year 2011 is for the 88.26 reduction of grants to federally qualified 88.27 health centers. This is a onetime reduction. 88.28 Donated Dental Program Grants. Of the 88.29 health care access fund reduction, $63,000 88.30 in fiscal year 2011 is for the elimination of 88.31 grant funding to the donated dental service 88.32 program. 88.33 Health Information Exchange Oversight. 88.34 Of the state government special revenue fund 88.35 Article 6 Sec. 4. 88 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] appropriations, $140,000 in fiscal year 2011 89.1 is for administrative support of the Health 89.2 Information Exchange Oversight Board 89.3 established in Minnesota Statutes, section 89.4 62J.498, subdivision 2. 89.5 Base Level Adjustment. The general fund 89.6 base is decreased by $133,000 in fiscal year 89.7 2012 and $133,000 in fiscal year 2013. The 89.8 health care access fund base is increased by 89.9 $959,000 in fiscal year 2012 and $1,079,000 89.10 in fiscal year 2013. The state government 89.11 special revenue fund base is increased by 89.12 $367,000 in fiscal year 2012 and $362,000 in 89.13 fiscal year 2013. 89.14 Subd. 4. Health Protection 89.15 Appropriations by Fund 89.16 2010 2011 89.17 General (374,000) (205,000) 89.18 State Government 89.19 Special Revenue 89.20 (700,000) (350,000) Lead Base Grant Program. Of the general 89.21 fund reduction, $25,000 in fiscal year 2010 89.22 and fiscal year 2011 is for the elimination 89.23 of state funding for the temporary lead-safe 89.24 housing base grant program. 89.25 Base Adjustment. The general fund base is 89.26 decreased by $100,000 in fiscal year 2012 89.27 and $100,000 in fiscal year 2013. The state 89.28 government special revenue fund is increased 89.29 by $350,000 in fiscal year 2012 and $350,000 89.30 in fiscal year 2013. 89.31 Subd. 5. Administrative Support Services -0- (100,000) 89.32 Sec. 5. HEALTH-RELATED BOARDS 89.33 Subdivision 1. Total Appropriation $ (290,000) $ (421,000) 89.34 Article 6 Sec. 5. 89 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] The appropriations and reductions in this 90.1 section are from the state government special 90.2 revenue fund. 90.3 In fiscal year 2010, $301,000 shall be 90.4 transferred from the state government special 90.5 revenue fund to the general fund. In fiscal 90.6 year 2011, $441,000 shall be transferred from 90.7 the state government special revenue fund 90.8 to the general fund. These transfers are in 90.9 addition to those made in Laws 2009, chapter 90.10 79, article 13, section 5, as amended by Laws 90.11 2009, chapter 173, article 2, section 3. 90.12 The reductions and transfers in this section 90.13 are onetime in the fiscal year 2010-2011 90.14 biennium. 90.15 The appropriations and reductions for 90.16 each purpose are shown in the following 90.17 subdivisions. 90.18 Subd. 2. Board of Chiropractic Examiners (9,000) (14,000) 90.19 Subd. 3. Board of Dentistry (21,000) (31,000) 90.20 Subd. 4. Board of Dietetic and Nutrition 90.21 Practice 90.22 (2,000) (3,000) Subd. 5. Board of Marriage and Family 90.23 Therapy 90.24 (2,000) (4,000) Subd. 6. Board of Medical Practice (73,000) (112,000) 90.25 Subd. 7. Board of Nursing (62,000) (100,000) 90.26 Subd. 8. Board of Nursing Home 90.27 Administrators 90.28 (36,000) (31,000) (a) Administrative Services 90.29 Unit-Operating Costs 90.30 (11,000) (16,000) (b) Administrative Services 90.31 Unit-Retirement Costs 90.32 (5,000) -0- Article 6 Sec. 5. 90 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (c) Administrative Services 91.1 Unit-Volunteer Health Care 91.2 Provider Program 91.3 (1,000) (3,000) (d) Administrative Services 91.4 Unit-Contested Cases and 91.5 Other Legal Proceedings 91.6 (15,000) (6,000) Subd. 9. Board of Optometry (2,000) (3,000) 91.7 Subd. 10. Board of Pharmacy (28,000) (42,000) 91.8 Subd. 11. Board of Physical Therapy (6,000) (9,000) 91.9 Subd. 12. Board of Podiatry (1,000) (2,000) 91.10 Subd. 13. Board of Psychology (16,000) (24,000) 91.11 Subd. 14. Board of Social Work (18,000) (28,000) 91.12 Subd. 15. Board of Veterinary Medicine (4,000) (6,000) 91.13 Subd. 16. Board of Behavioral Health and 91.14 Therapy 91.15 (8,000) (12,000) Sec. 6. EMERGENCY MEDICAL SERVICES 91.16 BOARD 91.17 432,000 (154,000) Appropriations by Fund 91.18 2010 2011 91.19 General 445,000 (133,000) 91.20 State Government 91.21 Special Revenue 91.22 (13,000) (21,000) (a) Longevity Award and Incentive Program (19,000) (19,000) 91.23 (b) Health Professional Services Program (13,000) (21,000) 91.24 This reduction is from the state government 91.25 special revenue fund and is onetime in the 91.26 2010-2011 biennium. 91.27 $10,000 in fiscal year 2010 and $24,000 91.28 in fiscal year 2011 shall be transferred to 91.29 the general fund from the portion of the 91.30 emergency medical services relief account 91.31 in the special revenue fund otherwise 91.32 designated for distribution by the Emergency 91.33 Medical Services Board under Minnesota 91.34 Statutes, section 169.686, subdivision 3. 91.35 Article 6 Sec. 6. 91 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] These transfers are onetime in the 2010-2011 92.1 biennium. 92.2 Sec. 7. COUNCIL ON DISABILITY $ (10,000) $ (16,000) 92.3 Sec. 8. OMBUDSMAN FOR MENTAL 92.4 HEALTH AND DEVELOPMENTAL 92.5 DISABILITIES 92.6 $ (31,000) $ (50,000) Sec. 9. OMBUDSPERSON FOR FAMILIES $ (4,000) $ (8,000) 92.7 Sec. 10. Minnesota Statutes 2008, section 214.40, subdivision 7, is amended to read: 92.8 Subd. 7. Medical professional liability insurance. (a) Within the limit of funds 92.9 appropriated for this program, the administrative services unit must purchase medical 92.10 professional liability insurance, if available, for a health care provider who is registered in 92.11 accordance with subdivision 4 and who is not otherwise covered by a medical professional 92.12 liability insurance policy or self-insured plan either personally or through another facility 92.13 or employer. The administrative services unit is authorized to prorate payments or 92.14 otherwise limit the number of participants in the program if the costs of the insurance for 92.15 eligible providers exceed the funds appropriated for the program. 92.16 (b) Coverage purchased under this subdivision must be limited to the provision of 92.17 health care services performed by the provider for which the provider does not receive 92.18 direct monetary compensation. 92.19 EFFECTIVE DATE. This section is effective the day following final enactment. 92.20 Sec. 11. Minnesota Statutes 2009 Supplement, section 252.025, subdivision 7, is 92.21 amended to read: 92.22 Subd. 7. Minnesota extended treatment options. The commissioner shall develop 92.23 by July 1, 1997, the Minnesota extended treatment options to serve Minnesotans who 92.24 have developmental disabilities and exhibit severe behaviors which present a risk to 92.25 public safety. This program is statewide and must provide specialized residential services 92.26 in Cambridge and an array of community-based services with sufficient levels of care 92.27 and a sufficient number of specialists to ensure that individuals referred to the program 92.28 receive the appropriate care. The individuals working in the community-based services 92.29 under this section are state employees supervised by the commissioner of human services. 92.30 No layoffs shall occur as a result of restructuring under this section. 92.31 EFFECTIVE DATE. This section is effective the day following final enactment. 92.32 Article 6 Sec. 11. 92 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Sec. 12. Laws 2009, chapter 79, article 3, section 18, is amended to read: 93.1 Sec. 18. REQUIRING THE DEVELOPMENT OF COMMUNITY-BASED 93.2 MENTAL HEALTH SERVICES FOR PATIENTS COMMITTED TO THE 93.3 ANOKA-METRO REGIONAL TREATMENT CENTER. 93.4 In consultation with community partners, the commissioner of human services 93.5 shall develop an array of community-based services to transform the current services 93.6 now provided to patients at the Anoka-Metro Regional Treatment Center. The 93.7 community-based services may be provided in facilities with 16 or fewer beds, and must 93.8 provide the appropriate level of care for the patients being admitted to the facilities. 93.9 The planning for this transition must be completed by October 1, 2009, with an initial 93.10 report to the committee chairs of health and human services by November 30, 2009, and 93.11 a semiannual report on progress until the transition is completed. The commissioner of 93.12 human services shall solicit interest from stakeholders and potential community partners. 93.13 The individuals working in the community-based services facilities under this section are 93.14 state employees supervised by the commissioner of human services. No layoffs shall 93.15 occur as a result of restructuring under this section. 93.16 EFFECTIVE DATE. This section is effective the day following final enactment. 93.17 Sec. 13. Laws 2009, chapter 79, article 13, section 3, subdivision 1, as amended by 93.18 Laws 2009, chapter 173, article 2, section 1, subdivision 1, is amended to read: 93.19 Subdivision 1. Total Appropriation $ 5,225,451,000 $ 6,002,864,000 93.20 Appropriations by Fund 93.21 2010 2011 93.22 General 4,375,689,000 5,209,765,000 93.23 State Government 93.24 Special Revenue 93.25 565,000 565,000 Health Care Access 450,662,000 527,411,000 93.26 Federal TANF 286,770,000 263,458,000 93.27 Lottery Prize 1,665,000 1,665,000 93.28 Federal Fund 110,000,000 0 93.29 Receipts for Systems Projects. 93.30 Appropriations and federal receipts for 93.31 information systems projects for MAXIS, 93.32 PRISM, MMIS, and SSIS must be deposited 93.33 in the state system account authorized in 93.34 Minnesota Statutes, section 256.014. Money 93.35 Article 6 Sec. 13. 93 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] appropriated for computer projects approved 94.1 by the Minnesota Office of Enterprise 94.2 Technology, funded by the legislature, and 94.3 approved by the commissioner of finance, 94.4 may be transferred from one project to 94.5 another and from development to operations 94.6 as the commissioner of human services 94.7 considers necessary, except that any transfers 94.8 to one project that exceed $1,000,000 or 94.9 multiple transfers to one project that exceed 94.10 $1,000,000 in total require the express 94.11 approval of the legislature. The preceding 94.12 requirement for legislative approval does not 94.13 apply to transfers made to establish a project's 94.14 initial operating budget each year; instead, 94.15 the requirements of section 11, subdivision 94.16 2, of this article apply to those transfers. Any 94.17 unexpended balance in the appropriation 94.18 for these projects does not cancel but is 94.19 available for ongoing development and 94.20 operations. Any computer project with a 94.21 total cost exceeding $1,000,000, including, 94.22 but not limited to, a replacement for the 94.23 proposed HealthMatch system, shall not be 94.24 commenced without the express approval of 94.25 the legislature. 94.26 HealthMatch Systems Project. In fiscal 94.27 year 2010, $3,054,000 shall be transferred 94.28 from the HealthMatch account in the state 94.29 systems account in the special revenue fund 94.30 to the general fund. 94.31 Nonfederal Share Transfers. The 94.32 nonfederal share of activities for which 94.33 federal administrative reimbursement is 94.34 appropriated to the commissioner may be 94.35 transferred to the special revenue fund. 94.36 Article 6 Sec. 13. 94 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] TANF Maintenance of Effort. 95.1 (a) In order to meet the basic maintenance 95.2 of effort (MOE) requirements of the TANF 95.3 block grant specified under Code of Federal 95.4 Regulations, title 45, section 263.1, the 95.5 commissioner may only report nonfederal 95.6 money expended for allowable activities 95.7 listed in the following clauses as TANF/MOE 95.8 expenditures: 95.9 (1) MFIP cash, diversionary work program, 95.10 and food assistance benefits under Minnesota 95.11 Statutes, chapter 256J; 95.12 (2) the child care assistance programs 95.13 under Minnesota Statutes, sections 119B.03 95.14 and 119B.05, and county child care 95.15 administrative costs under Minnesota 95.16 Statutes, section 119B.15; 95.17 (3) state and county MFIP administrative 95.18 costs under Minnesota Statutes, chapters 95.19 256J and 256K; 95.20 (4) state, county, and tribal MFIP 95.21 employment services under Minnesota 95.22 Statutes, chapters 256J and 256K; 95.23 (5) expenditures made on behalf of 95.24 noncitizen MFIP recipients who qualify 95.25 for the medical assistance without federal 95.26 financial participation program under 95.27 Minnesota Statutes, section 256B.06, 95.28 subdivision 4, paragraphs (d), (e), and (j); 95.29 and 95.30 (6) qualifying working family credit 95.31 expenditures under Minnesota Statutes, 95.32 section 290.0671.; and 95.33 Article 6 Sec. 13. 95 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (7) qualifying Minnesota education credit 96.1 expenditures under Minnesota Statutes, 96.2 section 290.0674. 96.3 (b) The commissioner shall ensure that 96.4 sufficient qualified nonfederal expenditures 96.5 are made each year to meet the state's 96.6 TANF/MOE requirements. For the activities 96.7 listed in paragraph (a), clauses (2) to 96.8 (6), the commissioner may only report 96.9 expenditures that are excluded from the 96.10 definition of assistance under Code of 96.11 Federal Regulations, title 45, section 260.31. 96.12 (c) For fiscal years beginning with state 96.13 fiscal year 2003, the commissioner shall 96.14 ensure that the maintenance of effort used 96.15 by the commissioner of finance for the 96.16 February and November forecasts required 96.17 under Minnesota Statutes, section 16A.103, 96.18 contains expenditures under paragraph (a), 96.19 clause (1), equal to at least 16 percent of 96.20 the total required under Code of Federal 96.21 Regulations, title 45, section 263.1. 96.22 (d) For the federal fiscal years beginning on 96.23 or after October 1, 2007, the commissioner 96.24 may not claim an amount of TANF/MOE in 96.25 excess of the 75 percent standard in Code 96.26 of Federal Regulations, title 45, section 96.27 263.1(a)(2), except: 96.28 (1) to the extent necessary to meet the 80 96.29 percent standard under Code of Federal 96.30 Regulations, title 45, section 263.1(a)(1), 96.31 if it is determined by the commissioner 96.32 that the state will not meet the TANF work 96.33 participation target rate for the current year; 96.34 Article 6 Sec. 13. 96 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (2) to provide any additional amounts 97.1 under Code of Federal Regulations, title 45, 97.2 section 264.5, that relate to replacement of 97.3 TANF funds due to the operation of TANF 97.4 penalties; and 97.5 (3) to provide any additional amounts that 97.6 may contribute to avoiding or reducing 97.7 TANF work participation penalties through 97.8 the operation of the excess MOE provisions 97.9 of Code of Federal Regulations, title 45, 97.10 section 261.43 (a)(2). 97.11 For the purposes of clauses (1) to (3), 97.12 the commissioner may supplement the 97.13 MOE claim with working family credit 97.14 expenditures to the extent such expenditures 97.15 or other qualified expenditures are otherwise 97.16 available after considering the expenditures 97.17 allowed in this section. 97.18 (e) Minnesota Statutes, section 256.011, 97.19 subdivision 3, which requires that federal 97.20 grants or aids secured or obtained under that 97.21 subdivision be used to reduce any direct 97.22 appropriations provided by law, do not apply 97.23 if the grants or aids are federal TANF funds. 97.24 (f) Notwithstanding any contrary provision 97.25 in this article, this provision expires June 30, 97.26 2013. 97.27 Working Family Credit Expenditures as 97.28 TANF/MOE. The commissioner may claim 97.29 as TANF/MOE up to $6,707,000 per year of 97.30 working family credit expenditures for fiscal 97.31 year 2010 through fiscal year 2011. 97.32 Working Family Credit Expenditures 97.33 to be Claimed for TANF/MOE. The 97.34 commissioner may count the following 97.35 Article 6 Sec. 13. 97 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] amounts of working family credit expenditure 98.1 as TANF/MOE: 98.2 (1) fiscal year 2010, $50,973,000 98.3 $50,897,000; 98.4 (2) fiscal year 2011, $53,793,000 98.5 $54,243,000; 98.6 (3) fiscal year 2012, $23,516,000 98.7 $23,345,000; and 98.8 (4) fiscal year 2013, $16,808,000 98.9 $16,585,000. 98.10 Notwithstanding any contrary provision in 98.11 this article, this rider expires June 30, 2013. 98.12 Food Stamps Employment and Training. 98.13 (a) The commissioner shall apply for and 98.14 claim the maximum allowable federal 98.15 matching funds under United States Code, 98.16 title 7, section 2025, paragraph (h), for 98.17 state expenditures made on behalf of family 98.18 stabilization services participants voluntarily 98.19 engaged in food stamp employment and 98.20 training activities, where appropriate. 98.21 (b) Notwithstanding Minnesota Statutes, 98.22 sections 256D.051, subdivisions 1a, 6b, 98.23 and 6c, and 256J.626, federal food stamps 98.24 employment and training funds received 98.25 as reimbursement of MFIP consolidated 98.26 fund grant expenditures for diversionary 98.27 work program participants and child 98.28 care assistance program expenditures for 98.29 two-parent families must be deposited in the 98.30 general fund. The amount of funds must be 98.31 limited to $3,350,000 in fiscal year 2010 98.32 and $4,440,000 in fiscal years 2011 through 98.33 Article 6 Sec. 13. 98 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] 2013, contingent on approval by the federal 99.1 Food and Nutrition Service. 99.2 (c) Consistent with the receipt of these federal 99.3 funds, the commissioner may adjust the 99.4 level of working family credit expenditures 99.5 claimed as TANF maintenance of effort. 99.6 Notwithstanding any contrary provision in 99.7 this article, this rider expires June 30, 2013. 99.8 ARRA Food Support Administration. 99.9 The funds available for food support 99.10 administration under the American Recovery 99.11 and Reinvestment Act (ARRA) of 2009 99.12 are appropriated to the commissioner 99.13 to pay actual costs of implementing the 99.14 food support benefit increases, increased 99.15 eligibility determinations, and outreach. Of 99.16 these funds, 20 percent shall be allocated 99.17 to the commissioner and 80 percent shall 99.18 be allocated to counties. The commissioner 99.19 shall allocate the county portion based on 99.20 caseload. Reimbursement shall be based on 99.21 actual costs reported by counties through 99.22 existing processes. Tribal reimbursement 99.23 must be made from the state portion based 99.24 on a caseload factor equivalent to that of a 99.25 county. 99.26 ARRA Food Support Benefit Increases. 99.27 The funds provided for food support benefit 99.28 increases under the Supplemental Nutrition 99.29 Assistance Program provisions of the 99.30 American Recovery and Reinvestment Act 99.31 (ARRA) of 2009 must be used for benefit 99.32 increases beginning July 1, 2009. 99.33 Emergency Fund for the TANF Program. 99.34 TANF Emergency Contingency funds 99.35 Article 6 Sec. 13. 99 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] available under the American Recovery 100.1 and Reinvestment Act of 2009 (Public Law 100.2 111-5) are appropriated to the commissioner. 100.3 The commissioner must request TANF 100.4 Emergency Contingency funds from the 100.5 Secretary of the Department of Health 100.6 and Human Services to the extent the 100.7 commissioner meets or expects to meet the 100.8 requirements of section 403(c) of the Social 100.9 Security Act. The commissioner must seek 100.10 to maximize such grants. The funds received 100.11 must be used as appropriated. Each county 100.12 must maintain the county's current level of 100.13 emergency assistance funding under the 100.14 MFIP consolidated fund and use the funds 100.15 under this paragraph to supplement existing 100.16 emergency assistance funding levels. 100.17 Sec. 14. Laws 2009, chapter 79, article 13, section 3, subdivision 3, as amended by 100.18 Laws 2009, chapter 173, article 2, section 1, subdivision 3, is amended to read: 100.19 Subd. 3. Revenue and Pass-Through Revenue 100.20 Expenditures 100.21 68,337,000 70,505,000 This appropriation is from the federal TANF 100.22 fund. 100.23 TANF Transfer to Federal Child Care 100.24 and Development Fund. The following 100.25 TANF fund amounts are appropriated to the 100.26 commissioner for the purposes of MFIP and 100.27 transition year child care under Minnesota 100.28 Statutes, section 119B.05: 100.29 (1) fiscal year 2010, $6,531,000 $862,000; 100.30 (2) fiscal year 2011, $10,241,000 $978,000; 100.31 (3) fiscal year 2012, $10,826,000 $0; and 100.32 (4) fiscal year 2013, $4,046,000 $0. 100.33 Article 6 Sec. 14. 100 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] The commissioner shall authorize the 101.1 transfer of sufficient TANF funds to the 101.2 federal child care and development fund to 101.3 meet this appropriation and shall ensure that 101.4 all transferred funds are expended according 101.5 to federal child care and development fund 101.6 regulations. 101.7 Sec. 15. Laws 2009, chapter 79, article 13, section 3, subdivision 4, as amended by 101.8 Laws 2009, chapter 173, article 2, section 1, subdivision 4, is amended to read: 101.9 Subd. 4. Children and Economic Assistance 101.10 Grants 101.11 The amounts that may be spent from this 101.12 appropriation for each purpose are as follows: 101.13 (a) MFIP/DWP Grants 101.14 Appropriations by Fund 101.15 General 63,205,000 89,033,000 101.16 Federal TANF 100,818,000 84,538,000 101.17 (b) Support Services Grants 101.18 Appropriations by Fund 101.19 General 8,715,000 12,498,000 101.20 Federal TANF 116,557,000 107,457,000 101.21 MFIP Consolidated Fund. The MFIP 101.22 consolidated fund TANF appropriation is 101.23 reduced by $1,854,000 in fiscal year 2010 101.24 and fiscal year 2011. 101.25 Notwithstanding Minnesota Statutes, section 101.26 256J.626, subdivision 8, paragraph (b), the 101.27 commissioner shall reduce proportionately 101.28 the reimbursement to counties for 101.29 administrative expenses. 101.30 Subsidized Employment Funding Through 101.31 ARRA. The commissioner is authorized to 101.32 apply for TANF emergency fund grants for 101.33 subsidized employment activities. Growth 101.34 Article 6 Sec. 15. 101 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] in expenditures for subsidized employment 102.1 within the supported work program and the 102.2 MFIP consolidated fund over the amount 102.3 expended in the calendar quarters in the 102.4 TANF emergency fund base year shall be 102.5 used to leverage the TANF emergency fund 102.6 grants for subsidized employment and to 102.7 fund supported work. The commissioner 102.8 shall develop procedures to maximize 102.9 reimbursement of these expenditures over the 102.10 TANF emergency fund base year quarters, 102.11 and may contract directly with employers 102.12 and providers to maximize these TANF 102.13 emergency fund grants. 102.14 Supported Work. Of the TANF 102.15 appropriation, $4,700,000 in fiscal year 2010 102.16 and $4,700,000 in fiscal year 2011 are to the 102.17 commissioner for supported work for MFIP 102.18 recipients and is available until expended. 102.19 Supported work includes paid transitional 102.20 work experience and a continuum of 102.21 employment assistance, including outreach 102.22 and recruitment, program orientation 102.23 and intake, testing and assessment, job 102.24 development and marketing, preworksite 102.25 training, supported worksite experience, 102.26 job coaching, and postplacement follow-up, 102.27 in addition to extensive case management 102.28 and referral services. This is a onetime 102.29 appropriation. 102.30 Base Adjustment. The general fund base 102.31 is reduced by $3,783,000 in each of fiscal 102.32 years 2012 and 2013. The TANF fund base 102.33 is increased by $5,004,000 in each of fiscal 102.34 years 2012 and 2013. 102.35 Article 6 Sec. 15. 102 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Integrated Services Program Funding. 103.1 The TANF appropriation for integrated 103.2 services program funding is $1,250,000 in 103.3 fiscal year 2010 and $0 in fiscal year 2011 103.4 and the base for fiscal years 2012 and 2013 103.5 is $0. 103.6 TANF Emergency Fund; Nonrecurrent 103.7 Short-Term Benefits. (1) TANF emergency 103.8 contingency fund grants received due to 103.9 increases in expenditures for nonrecurrent 103.10 short-term benefits must be used to offset the 103.11 increase in these expenditures for counties 103.12 under the MFIP consolidated fund, under 103.13 Minnesota Statutes, section 256J.626, 103.14 and the diversionary work program. The 103.15 commissioner shall develop procedures 103.16 to maximize reimbursement of these 103.17 expenditures over the TANF emergency fund 103.18 base year quarters. Growth in expenditures 103.19 for the diversionary work program over the 103.20 amount expended in the calendar quarters in 103.21 the TANF emergency fund base year shall be 103.22 used to leverage these funds. 103.23 (2) To the extent that the commissioner 103.24 can claim eligible tax credit growth as 103.25 nonrecurrent short-term benefits, the 103.26 commissioner shall use those funds to 103.27 leverage the increased expenditures in clause 103.28 (1). 103.29 (3) TANF emergency funds for nonrecurrent 103.30 short-term benefits received in excess of the 103.31 amounts necessary for clauses (1) and (2) 103.32 shall be used to reimburse the general fund 103.33 for the costs of eligible tax credits in fiscal 103.34 Article 6 Sec. 15. 103 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] year 2011. The amount of such funds shall 104.1 not exceed $28,000,000. 104.2 (c) MFIP Child Care Assistance Grants 61,171,000 65,214,000 104.3 Acceleration of ARRA Child Care and 104.4 Development Fund Expenditure. The 104.5 commissioner must liquidate all child care 104.6 and development money available under 104.7 the American Recovery and Reinvestment 104.8 Act (ARRA) of 2009, Public Law 111-5, 104.9 by September 30, 2010. In order to expend 104.10 those funds by September 30, 2010, the 104.11 commissioner may redesignate and expend 104.12 the ARRA child care and development funds 104.13 appropriated in fiscal year 2011 for purposes 104.14 under this section for related purposes that 104.15 will allow liquidation by September 30, 104.16 2010. Child care and development funds 104.17 otherwise available to the commissioner 104.18 for those related purposes shall be used to 104.19 fund the purposes from which the ARRA 104.20 child care and development funds had been 104.21 redesignated. 104.22 School Readiness Service Agreements. 104.23 $400,000 in fiscal year 2010 and $400,000 104.24 in fiscal year 2011 are from the federal 104.25 TANF fund to the commissioner of human 104.26 services consistent with federal regulations 104.27 for the purpose of school readiness service 104.28 agreements under Minnesota Statutes, 104.29 section 119B.231. This is a onetime 104.30 appropriation. Any unexpended balance the 104.31 first year is available in the second year. 104.32 (d) Basic Sliding Fee Child Care Assistance 104.33 Grants 104.34 40,100,000 45,092,000 Article 6 Sec. 15. 104 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] School Readiness Service Agreements. 105.1 $257,000 in fiscal year 2010 and $257,000 105.2 in fiscal year 2011 are from the general 105.3 fund for the purpose of school readiness 105.4 service agreements under Minnesota 105.5 Statutes, section 119B.231. This is a onetime 105.6 appropriation. Any unexpended balance the 105.7 first year is available in the second year. 105.8 Child Care Development Fund 105.9 Unexpended Balance. In addition to 105.10 the amount provided in this section, the 105.11 commissioner shall expend $5,244,000 in 105.12 fiscal year 2010 from the federal child care 105.13 development fund unexpended balance 105.14 for basic sliding fee child care under 105.15 Minnesota Statutes, section 119B.03. The 105.16 commissioner shall ensure that all child 105.17 care and development funds are expended 105.18 according to the federal child care and 105.19 development fund regulations. 105.20 Basic Sliding Fee. $4,000,000 in fiscal year 105.21 2010 and $4,000,000 in fiscal year 2011 are 105.22 from the federal child care development 105.23 funds received from the American Recovery 105.24 and Reinvestment Act of 2009, Public 105.25 Law 111-5, to the commissioner of human 105.26 services consistent with federal regulations 105.27 for the purpose of basic sliding fee child care 105.28 assistance under Minnesota Statutes, section 105.29 119B.03. This is a onetime appropriation. 105.30 Any unexpended balance the first year is 105.31 available in the second year. 105.32 Basic Sliding Fee Allocation for Calendar 105.33 Year 2010. Notwithstanding Minnesota 105.34 Statutes, section 119B.03, subdivision 6, 105.35 Article 6 Sec. 15. 105 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] in calendar year 2010, basic sliding fee 106.1 funds shall be distributed according to 106.2 this provision. Funds shall be allocated 106.3 first in amounts equal to each county's 106.4 guaranteed floor, according to Minnesota 106.5 Statutes, section 119B.03, subdivision 8, 106.6 with any remaining available funds allocated 106.7 according to the following formula: 106.8 (a) Up to one-fourth of the funds shall be 106.9 allocated in proportion to the number of 106.10 families participating in the transition year 106.11 child care program as reported during and 106.12 averaged over the most recent six months 106.13 completed at the time of the notice of 106.14 allocation. Funds in excess of the amount 106.15 necessary to serve all families in this category 106.16 shall be allocated according to paragraph (d). 106.17 (b) Up to three-fourths of the funds shall 106.18 be allocated in proportion to the average 106.19 of each county's most recent six months of 106.20 reported waiting list as defined in Minnesota 106.21 Statutes, section 119B.03, subdivision 2, and 106.22 the reinstatement list of those families whose 106.23 assistance was terminated with the approval 106.24 of the commissioner under Minnesota Rules, 106.25 part 3400.0183, subpart 1. Funds in excess 106.26 of the amount necessary to serve all families 106.27 in this category shall be allocated according 106.28 to paragraph (d). 106.29 (c) The amount necessary to serve all families 106.30 in paragraphs (a) and (b) shall be calculated 106.31 based on the basic sliding fee average cost of 106.32 care per family in the county with the highest 106.33 cost in the most recently completed calendar 106.34 year. 106.35 Article 6 Sec. 15. 106 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] (d) Funds in excess of the amount necessary 107.1 to serve all families in paragraphs (a) and 107.2 (b) shall be allocated in proportion to each 107.3 county's total expenditures for the basic 107.4 sliding fee child care program reported 107.5 during the most recent fiscal year completed 107.6 at the time of the notice of allocation. To 107.7 the extent that funds are available, and 107.8 notwithstanding Minnesota Statutes, section 107.9 119B.03, subdivision 8, for the period 107.10 January 1, 2011, to December 31, 2011, each 107.11 county's guaranteed floor must be equal to its 107.12 original calendar year 2010 allocation. 107.13 Base Adjustment. The general fund base is 107.14 decreased by $257,000 in each of fiscal years 107.15 2012 and 2013. 107.16 (e) Child Care Development Grants 1,487,000 1,487,000 107.17 Family, friends, and neighbor grants. 107.18 $375,000 in fiscal year 2010 and $375,000 107.19 in fiscal year 2011 are from the child 107.20 care development fund required targeted 107.21 quality funds for quality expansion and 107.22 infant/toddler from the American Recovery 107.23 and Reinvestment Act of 2009, Public 107.24 Law 111-5, to the commissioner of human 107.25 services for family, friends, and neighbor 107.26 grants under Minnesota Statutes, section 107.27 119B.232. This appropriation may be used 107.28 on programs receiving family, friends, and 107.29 neighbor grant funds as of June 30, 2009, 107.30 or on new programs or projects. This is a 107.31 onetime appropriation. Any unexpended 107.32 balance the first year is available in the 107.33 second year. 107.34 Article 6 Sec. 15. 107 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Voluntary quality rating system training, 108.1 coaching, consultation, and supports. 108.2 $633,000 in fiscal year 2010 and $633,000 108.3 in fiscal year 2011 are from the federal child 108.4 care development fund required targeted 108.5 quality funds for quality expansion and 108.6 infant/toddler from the American Recovery 108.7 and Reinvestment Act of 2009, Public 108.8 Law 111-5, to the commissioner of human 108.9 services consistent with federal regulations 108.10 for the purpose of providing grants to provide 108.11 statewide child-care provider training, 108.12 coaching, consultation, and supports to 108.13 prepare for the voluntary Minnesota quality 108.14 rating system rating tool. This is a onetime 108.15 appropriation. Any unexpended balance the 108.16 first year is available in the second year. 108.17 Voluntary quality rating system. $184,000 108.18 in fiscal year 2010 and $1,200,000 in fiscal 108.19 year 2011 are from the federal child care 108.20 development fund required targeted funds for 108.21 quality expansion and infant/toddler from the 108.22 American Recovery and Reinvestment Act of 108.23 2009, Public Law 111-5, to the commissioner 108.24 of human services consistent with federal 108.25 regulations for the purpose of implementing 108.26 the voluntary Parent Aware quality star 108.27 rating system pilot in coordination with the 108.28 Minnesota Early Learning Foundation. The 108.29 appropriation for the first year is to complete 108.30 and promote the voluntary Parent Aware 108.31 quality rating system pilot program through 108.32 June 30, 2010, and the appropriation for 108.33 the second year is to continue the voluntary 108.34 Minnesota quality rating system pilot 108.35 through June 30, 2011. This is a onetime 108.36 Article 6 Sec. 15. 108 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] appropriation. Any unexpended balance the 109.1 first year is available in the second year. 109.2 (f) Child Support Enforcement Grants 3,705,000 3,705,000 109.3 (g) Children's Services Grants 109.4 Appropriations by Fund 109.5 General 48,333,000 50,498,000 109.6 Federal TANF 340,000 240,000 109.7 Base Adjustment. The general fund base is 109.8 decreased by $5,371,000 in fiscal year 2012 109.9 and decreased $5,371,000 in fiscal year 2013. 109.10 Privatized Adoption Grants. Federal 109.11 reimbursement for privatized adoption grant 109.12 and foster care recruitment grant expenditures 109.13 is appropriated to the commissioner for 109.14 adoption grants and foster care and adoption 109.15 administrative purposes. 109.16 Adoption Assistance Incentive Grants. 109.17 Federal funds available during fiscal year 109.18 2010 and fiscal year 2011 for the adoption 109.19 incentive grants are appropriated to the 109.20 commissioner for postadoption services 109.21 including parent support groups. 109.22 Adoption Assistance and Relative Custody 109.23 Assistance. The commissioner may transfer 109.24 unencumbered appropriation balances for 109.25 adoption assistance and relative custody 109.26 assistance between fiscal years and between 109.27 programs. 109.28 (h) Children and Community Services Grants 67,663,000 67,542,000 109.29 Targeted Case Management Temporary 109.30 Funding Adjustment. The commissioner 109.31 shall recover from each county and tribe 109.32 receiving a targeted case management 109.33 temporary funding payment in fiscal year 109.34 Article 6 Sec. 15. 109 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] 2008 an amount equal to that payment. The 110.1 commissioner shall recover one-half of the 110.2 funds by February 1, 2010, and the remainder 110.3 by February 1, 2011. At the commissioner's 110.4 discretion and at the request of a county 110.5 or tribe, the commissioner may revise 110.6 the payment schedule, but full payment 110.7 must not be delayed beyond May 1, 2011. 110.8 The commissioner may use the recovery 110.9 procedure under Minnesota Statutes, section 110.10 256.017, to recover the funds. Recovered 110.11 funds must be deposited into the general 110.12 fund. 110.13 (i) General Assistance Grants 48,215,000 48,608,000 110.14 General Assistance Standard. The 110.15 commissioner shall set the monthly standard 110.16 of assistance for general assistance units 110.17 consisting of an adult recipient who is 110.18 childless and unmarried or living apart 110.19 from parents or a legal guardian at $203. 110.20 The commissioner may reduce this amount 110.21 according to Laws 1997, chapter 85, article 110.22 3, section 54. 110.23 Emergency General Assistance. The 110.24 amount appropriated for emergency general 110.25 assistance funds is limited to no more 110.26 than $7,889,812 in fiscal year 2010 and 110.27 $7,889,812 in fiscal year 2011. Funds 110.28 to counties must be allocated by the 110.29 commissioner using the allocation method 110.30 specified in Minnesota Statutes, section 110.31 256D.06. 110.32 (j) Minnesota Supplemental Aid Grants 33,930,000 35,191,000 110.33 Emergency Minnesota Supplemental 110.34 Aid Funds. The amount appropriated for 110.35 Article 6 Sec. 15. 110 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] emergency Minnesota supplemental aid 111.1 funds is limited to no more than $1,100,000 111.2 in fiscal year 2010 and $1,100,000 in fiscal 111.3 year 2011. Funds to counties must be 111.4 allocated by the commissioner using the 111.5 allocation method specified in Minnesota 111.6 Statutes, section 256D.46. 111.7 (k) Group Residential Housing Grants 111,778,000 114,034,000 111.8 Group Residential Housing Costs 111.9 Refinanced. (a) Effective July 1, 2011, the 111.10 commissioner shall increase the home and 111.11 community-based service rates and county 111.12 allocations provided to programs for persons 111.13 with disabilities established under section 111.14 1915(c) of the Social Security Act to the 111.15 extent that these programs will be paying 111.16 for the costs above the rate established 111.17 in Minnesota Statutes, section 256I.05, 111.18 subdivision 1. 111.19 (b) For persons receiving services under 111.20 Minnesota Statutes, section 245A.02, who 111.21 reside in licensed adult foster care beds 111.22 for which a difficulty of care payment 111.23 was being made under Minnesota Statutes, 111.24 section 256I.05, subdivision 1c, paragraph 111.25 (b), counties may request an exception to 111.26 the individual's service authorization not to 111.27 exceed the difference between the client's 111.28 monthly service expenditures plus the 111.29 amount of the difficulty of care payment. 111.30 (l) Children's Mental Health Grants 16,885,000 16,882,000 111.31 Funding Usage. Up to 75 percent of a fiscal 111.32 year's appropriation for children's mental 111.33 health grants may be used to fund allocations 111.34 Article 6 Sec. 15. 111 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] in that portion of the fiscal year ending 112.1 December 31. 112.2 (m) Other Children and Economic Assistance 112.3 Grants 112.4 16,047,000 15,339,000 Fraud Prevention Grants. Of this 112.5 appropriation, $228,000 in fiscal year 2010 112.6 and $228,000 $379,000 in fiscal year 2011 112.7 is to the commissioner for fraud prevention 112.8 grants to counties. 112.9 Homeless and Runaway Youth. $218,000 112.10 in fiscal year 2010 is for the Runaway 112.11 and Homeless Youth Act under Minnesota 112.12 Statutes, section 256K.45. Funds shall be 112.13 spent in each area of the continuum of care 112.14 to ensure that programs are meeting the 112.15 greatest need. Any unexpended balance in 112.16 the first year is available in the second year. 112.17 Beginning July 1, 2011, the base is increased 112.18 by $119,000 each year. 112.19 ARRA Homeless Youth Funds. To the 112.20 extent permitted under federal law, the 112.21 commissioner shall designate $2,500,000 112.22 of the Homeless Prevention and Rapid 112.23 Re-Housing Program funds provided under 112.24 the American Recovery and Reinvestment 112.25 Act of 2009, Public Law 111-5, for agencies 112.26 providing homelessness prevention and rapid 112.27 rehousing services to youth. 112.28 Supportive Housing Services. $1,500,000 112.29 each year is for supportive services under 112.30 Minnesota Statutes, section 256K.26. This is 112.31 a onetime appropriation. 112.32 Community Action Grants. Community 112.33 action grants are reduced one time by 112.34 $1,794,000 each year. This reduction is due 112.35 Article 6 Sec. 15. 112 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] to the availability of federal funds under the 113.1 American Recovery and Reinvestment Act. 113.2 Base Adjustment. The general fund base 113.3 is increased by $773,000 $903,000 in fiscal 113.4 year 2012 and $773,000 $413,000 in fiscal 113.5 year 2013. 113.6 Federal ARRA Funds for Existing 113.7 Programs. (a) (1) Federal funds received by 113.8 the commissioner for the emergency food 113.9 and shelter program from the American 113.10 Recovery and Reinvestment Act of 2009, 113.11 Public Law 111-5, but not previously 113.12 approved by the legislature are appropriated 113.13 to the commissioner for the purposes of the 113.14 grant program. 113.15 (b) (2) Federal funds received by the 113.16 commissioner for the emergency shelter 113.17 grant program including the Homelessness 113.18 Prevention and Rapid Re-Housing 113.19 Program from the American Recovery and 113.20 Reinvestment Act of 2009, Public Law 113.21 111-5, are appropriated to the commissioner 113.22 for the purposes of the grant programs. 113.23 (c) (3) Federal funds received by the 113.24 commissioner for the emergency food 113.25 assistance program from the American 113.26 Recovery and Reinvestment Act of 2009, 113.27 Public Law 111-5, are appropriated to the 113.28 commissioner for the purposes of the grant 113.29 program. 113.30 (d) (4) Federal funds received by the 113.31 commissioner for senior congregate meals 113.32 and senior home-delivered meals from the 113.33 American Recovery and Reinvestment Act 113.34 of 2009, Public Law 111-5, are appropriated 113.35 Article 6 Sec. 15. 113 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] to the commissioner for the Minnesota Board 114.1 on Aging, for purposes of the grant programs. 114.2 (e) (5) Federal funds received by the 114.3 commissioner for the community services 114.4 block grant program from the American 114.5 Recovery and Reinvestment Act of 2009, 114.6 Public Law 111-5, are appropriated to the 114.7 commissioner for the purposes of the grant 114.8 program. 114.9 Long-Term Homeless Supportive 114.10 Service Fund Appropriation. To the 114.11 extent permitted under federal law, the 114.12 commissioner shall designate $3,000,000 114.13 of the Homelessness Prevention and Rapid 114.14 Re-Housing Program funds provided under 114.15 the American Recovery and Reinvestment 114.16 Act of 2009, Public Law, 111-5, to the 114.17 long-term homeless service fund under 114.18 Minnesota Statutes, section 256K.26. This 114.19 appropriation shall become available by July 114.20 1, 2009. This paragraph is effective the day 114.21 following final enactment. 114.22 Sec. 16. Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by 114.23 Laws 2009, chapter 173, article 2, section 1, subdivision 8, is amended to read: 114.24 Subd. 8. Continuing Care Grants 114.25 The amounts that may be spent from the 114.26 appropriation for each purpose are as follows: 114.27 (a) Aging and Adult Services Grants 13,499,000 15,805,000 114.28 Base Adjustment. The general fund base is 114.29 increased by $5,751,000 in fiscal year 2012 114.30 and $6,705,000 in fiscal year 2013. 114.31 Information and Assistance 114.32 Reimbursement. Federal administrative 114.33 Article 6 Sec. 16. 114 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] reimbursement obtained from information 115.1 and assistance services provided by the 115.2 Senior LinkAge or Disability Linkage lines 115.3 to people who are identified as eligible for 115.4 medical assistance shall be appropriated to 115.5 the commissioner for this activity. 115.6 Community Service Development Grant 115.7 Reduction. Funding for community service 115.8 development grants must be reduced by 115.9 $260,000 for fiscal year 2010; $284,000 in 115.10 fiscal year 2011; $43,000 in fiscal year 2012; 115.11 and $43,000 in fiscal year 2013. Base level 115.12 funding shall be restored in fiscal year 2014. 115.13 Community Service Development Grant 115.14 Community Initiative. Funding for 115.15 community service development grants shall 115.16 be used to offset the cost of aging support 115.17 grants. Base level funding shall be restored 115.18 in fiscal year 2014. 115.19 Senior Nutrition Use of Federal Funds. 115.20 For fiscal year 2010, general fund grants 115.21 for home-delivered meals and congregate 115.22 dining shall be reduced by $500,000. The 115.23 commissioner must replace these general 115.24 fund reductions with equal amounts from 115.25 federal funding for senior nutrition from the 115.26 American Recovery and Reinvestment Act 115.27 of 2009. 115.28 (b) Alternative Care Grants 50,234,000 48,576,000 115.29 Base Adjustment. The general fund base is 115.30 decreased by $3,598,000 in fiscal year 2012 115.31 and $3,470,000 in fiscal year 2013. 115.32 Alternative Care Transfer. Any money 115.33 allocated to the alternative care program that 115.34 is not spent for the purposes indicated does 115.35 Article 6 Sec. 16. 115 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] not cancel but must be transferred to the 116.1 medical assistance account. 116.2 (c) Medical Assistance Grants; Long-Term 116.3 Care Facilities. 116.4 367,444,000 419,749,000 (d) Medical Assistance Long-Term Care 116.5 Waivers and Home Care Grants 116.6 853,567,000 1,039,517,000 Manage Growth in TBI and CADI 116.7 Waivers. During the fiscal years beginning 116.8 on July 1, 2009, and July 1, 2010, the 116.9 commissioner shall allocate money for home 116.10 and community-based waiver programs 116.11 under Minnesota Statutes, section 256B.49, 116.12 to ensure a reduction in state spending that is 116.13 equivalent to limiting the caseload growth of 116.14 the TBI waiver to 12.5 allocations per month 116.15 each year of the biennium and the CADI 116.16 waiver to 95 allocations per month each year 116.17 of the biennium. Limits do not apply: (1) 116.18 when there is an approved plan for nursing 116.19 facility bed closures for individuals under 116.20 age 65 who require relocation due to the 116.21 bed closure; (2) to fiscal year 2009 waiver 116.22 allocations delayed due to unallotment; or (3) 116.23 to transfers authorized by the commissioner 116.24 from the personal care assistance program 116.25 of individuals having a home care rating 116.26 of "CS," "MT," or "HL." Priorities for the 116.27 allocation of funds must be for individuals 116.28 anticipated to be discharged from institutional 116.29 settings or who are at imminent risk of a 116.30 placement in an institutional setting. 116.31 Manage Growth in DD Waiver. The 116.32 commissioner shall manage the growth in 116.33 the DD waiver by limiting the allocations 116.34 included in the February 2009 forecast to 15 116.35 additional diversion allocations each month 116.36 Article 6 Sec. 16. 116 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] for the calendar years that begin on January 117.1 1, 2010, and January 1, 2011. Additional 117.2 allocations must be made available for 117.3 transfers authorized by the commissioner 117.4 from the personal care program of individuals 117.5 having a home care rating of "CS," "MT," 117.6 or "HL." 117.7 Adjustment to Lead Agency Waiver 117.8 Allocations. Prior to the availability of the 117.9 alternative license defined in Minnesota 117.10 Statutes, section 245A.11, subdivision 8, 117.11 the commissioner shall reduce lead agency 117.12 waiver allocations for the purposes of 117.13 implementing a moratorium on corporate 117.14 foster care. 117.15 Alternatives to Personal Care Assistance 117.16 Services. Base level funding of $3,237,000 117.17 in fiscal year 2012 and $4,856,000 in 117.18 fiscal year 2013 is to implement alternative 117.19 services to personal care assistance services 117.20 for persons with mental health and other 117.21 behavioral challenges who can benefit 117.22 from other services that more appropriately 117.23 meet their needs and assist them in living 117.24 independently in the community. These 117.25 services may include, but not be limited to, a 117.26 1915(i) state plan option. 117.27 (e) Mental Health Grants 117.28 Appropriations by Fund 117.29 General 77,739,000 77,739,000 117.30 Health Care Access 750,000 750,000 117.31 Lottery Prize 1,508,000 1,508,000 117.32 Funding Usage. Up to 75 percent of a fiscal 117.33 year's appropriation for adult mental health 117.34 grants may be used to fund allocations in that 117.35 Article 6 Sec. 16. 117 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] portion of the fiscal year ending December 118.1 31. 118.2 (f) Deaf and Hard-of-Hearing Grants 1,930,000 1,917,000 118.3 (g) Chemical Dependency Entitlement Grants 111,303,000 122,822,000 118.4 Payments for Substance Abuse Treatment. 118.5 For services provided during fiscal years 118.6 2010 and 2011, county-negotiated rates 118.7 and provider claims to the consolidated 118.8 chemical dependency fund must not exceed 118.9 the lesser of: (1) rates charged for these 118.10 services on January 1, 2009; or (2) 160 118.11 percent of the average rate on January 1, 118.12 2009, for each group of vendors with similar 118.13 attributes. For services provided in fiscal 118.14 years 2012 and 2013, the statewide average 118.15 rates aggregate payment under the new 118.16 rate methodology to be developed under 118.17 Minnesota Statutes, section 254B.12, must 118.18 not exceed the average rates charged for 118.19 these services on January 1, 2009, plus a 118.20 state share increase of $3,787,000 for fiscal 118.21 year 2012 and $5,023,000 for fiscal year 118.22 2013 projected aggregate payment under 118.23 the rates in effect for fiscal year 2010 minus 118.24 1.25 percent. Notwithstanding any provision 118.25 to the contrary in this article, this provision 118.26 expires on June 30, 2013. 118.27 Chemical Dependency Special Revenue 118.28 Account. For fiscal year 2010, $750,000 118.29 must be transferred from the consolidated 118.30 chemical dependency treatment fund 118.31 administrative account and deposited into the 118.32 general fund. 118.33 County CD Share of MA Costs for 118.34 ARRA Compliance. Notwithstanding the 118.35 Article 6 Sec. 16. 118 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] provisions of Minnesota Statutes, chapter 119.1 254B, for chemical dependency services 119.2 provided during the period October 1, 2008, 119.3 to December 31, 2010, and reimbursed by 119.4 medical assistance at the enhanced federal 119.5 matching rate provided under the American 119.6 Recovery and Reinvestment Act of 2009, the 119.7 county share is 30 percent of the nonfederal 119.8 share. This provision is effective the day 119.9 following final enactment. 119.10 (h) Chemical Dependency Nonentitlement 119.11 Grants 119.12 1,729,000 1,729,000 (i) Other Continuing Care Grants 19,201,000 17,528,000 119.13 Base Adjustment. The general fund base is 119.14 increased by $2,639,000 in fiscal year 2012 119.15 and increased by $3,854,000 in fiscal year 119.16 2013. 119.17 Technology Grants. $650,000 in fiscal 119.18 year 2010 and $1,000,000 in fiscal year 119.19 2011 are for technology grants, case 119.20 consultation, evaluation, and consumer 119.21 information grants related to developing and 119.22 supporting alternatives to shift-staff foster 119.23 care residential service models. 119.24 Other Continuing Care Grants; HIV 119.25 Grants. Money appropriated for the HIV 119.26 drug and insurance grant program in fiscal 119.27 year 2010 may be used in either year of the 119.28 biennium. 119.29 Quality Assurance Commission. Effective 119.30 July 1, 2009, state funding for the quality 119.31 assurance commission under Minnesota 119.32 Statutes, section 256B.0951, is canceled. 119.33 Article 6 Sec. 16. 119 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] Sec. 17. Laws 2009, chapter 79, article 13, section 5, subdivision 8, as amended by 120.1 Laws 2009, chapter 173, article 2, section 3, subdivision 8, is amended to read: 120.2 Subd. 8. Board of Nursing Home 120.3 Administrators 120.4 1,211,000 1,023,000 Administrative Services Unit - Operating 120.5 Costs. Of this appropriation, $524,000 120.6 in fiscal year 2010 and $526,000 in 120.7 fiscal year 2011 are for operating costs 120.8 of the administrative services unit. The 120.9 administrative services unit may receive 120.10 and expend reimbursements for services 120.11 performed by other agencies. 120.12 Administrative Services Unit - Retirement 120.13 Costs. Of this appropriation in fiscal year 120.14 2010, $201,000 is for onetime retirement 120.15 costs in the health-related boards. This 120.16 funding may be transferred to the health 120.17 boards incurring those costs for their 120.18 payment. These funds are available either 120.19 year of the biennium. 120.20 Administrative Services Unit - Volunteer 120.21 Health Care Provider Program. Of this 120.22 appropriation, $79,000 in fiscal year 2010 120.23 and $89,000 in fiscal year 2011 are to pay 120.24 for medical professional liability coverage 120.25 required under Minnesota Statutes, section 120.26 214.40. 120.27 Administrative Services Unit - Contested 120.28 Cases and Other Legal Proceedings. Of 120.29 this appropriation, $200,000 in fiscal year 120.30 2010 and $200,000 in fiscal year 2011 are 120.31 for costs of contested case hearings and other 120.32 unanticipated costs of legal proceedings 120.33 involving health-related boards funded 120.34 under this section and for unforeseen 120.35 Article 6 Sec. 17. 120 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] expenditures of an urgent nature. Upon 121.1 certification of a health-related board to the 121.2 administrative services unit that the costs 121.3 will be incurred and that there is insufficient 121.4 money available to pay for the costs out of 121.5 money currently available to that board, the 121.6 administrative services unit is authorized 121.7 to transfer money from this appropriation 121.8 to the board for payment of those costs 121.9 with the approval of the commissioner of 121.10 finance. This appropriation does not cancel. 121.11 Any unencumbered and unspent balances 121.12 remain available for these expenditures in 121.13 subsequent fiscal years. The boards receiving 121.14 funds under this section shall include these 121.15 amounts when setting fees to cover their 121.16 costs. 121.17 Sec. 18. LOCAL SHARE PAYMENT MODIFICATION REQUIRED FOR 121.18 EXTENSION OF ENHANCED FMAP. 121.19 Upon federal enactment of an extension of the enhanced federal medical assistance 121.20 percentage (FMAP) originally provided under Public Law 111-5 to June 30, 2011, 121.21 effective from January 1, 2011, through June 30, 2011, the state shall reduce Hennepin 121.22 County's monthly contribution to the nonfederal share of medical assistance costs to the 121.23 percentage required on September 1, 2008, to meet federal requirements for enhanced 121.24 federal medical assistance percentage (FMAP) originally provided under Public Law 121.25 111-5. Upon enactment of this extension of the enhanced FMAP, notwithstanding the 121.26 requirements of Minnesota Statutes 2008, section 256B.19, subdivision 1c, paragraph (d), 121.27 for the period beginning January 1, 2011, through June 30, 2011, Hennepin County's 121.28 monthly payment under that provision is reduced to $434,688. 121.29 EFFECTIVE DATE. This section is effective upon federal enactment of an 121.30 extension of enhanced FMAP from January 1, 2011, through June 30, 2011. 121.31 Sec. 19. CAPITATION PAYMENTS. 121.32 Upon federal enactment of an extension of the enhanced federal medical assistance 121.33 percentage (FMAP) originally provided under Public Law 111-5 to June 30, 2011, 121.34 Article 6 Sec. 19. 121 S.F. No. 3280, as introduced - 86th Legislative Session (2009-2010) [10-6042] effective from January 1, 2011, through June 30, 2011, the commissioner of human 122.1 services shall increase capitation payments made to the Metropolitan Health Plan under 122.2 Minnesota Statutes, section 256B.19, subdivision 1c, paragraph (c), by $6,800,000. The 122.3 increased amount includes federal matching funds. 122.4 EFFECTIVE DATE. This section is effective upon federal enactment of an 122.5 extension of enhanced FMAP from January 1, 2011, through June 30, 2011. 122.6 Sec. 20. COUNTY CHEMICAL DEPENDENCY SHARE OF MEDICAL 122.7 ASSISTANCE COSTS REQUIRED FOR EXTENSION OF ENHANCED FMAP. 122.8 Upon federal enactment of an extension of the enhanced federal medical assistance 122.9 percentage (FMAP) originally provided under Public Law 111-5 to June 30, 2011, 122.10 and notwithstanding the provisions of Minnesota Statutes, chapter 254B, for chemical 122.11 dependency services provided during the period January 1, 2011, through June 20, 2011, 122.12 and reimbursed by medical assistance at the enhanced FMAP rate, the county share is 30 122.13 percent of the nonfederal share. 122.14 EFFECTIVE DATE. This section is effective upon federal enactment of an 122.15 extension of enhanced FMAP from January 1, 2011, through June 30, 2011. 122.16 Sec. 21. EXPIRATION OF UNCODIFIED LANGUAGE. 122.17 All uncodified language contained in this article expires on June 30, 2011, unless a 122.18 different expiration date is explicit. 122.19 Sec. 22. EFFECTIVE DATE. 122.20 The provisions in this article are effective July 1, 2010, unless a different effective 122.21 date is explicit. 122.22 Article 6 Sec. 22. 122 APPENDIX Article locations in 10-6042 ARTICLE 1 HEALTH CARE SERVICES ................................................................ Page.Ln 2.7 ARTICLE 2 CONTINUING CARE........................................................................... Page.Ln 21.8 ARTICLE 3 CHILDREN AND FAMILY SERVICES .............................................. Page.Ln 29.9 ARTICLE 4 DEPARTMENT OF HEALTH .............................................................. Page.Ln 50.20 ARTICLE 5 E-HEALTH TECHNOLOGY................................................................ Page.Ln 60.9 ARTICLE 6 HEALTH AND HUMAN SERVICES APPROPRIATIONS ................ Page.Ln 75.20 1