1.1A bill for an act
1.2relating to state government; making supplemental appropriations for higher
1.3education, economic development, transportation, public safety, corrections,
1.4state government, health and human services, and early childhood, kindergarten
1.5through grade 12, and adult education; modifying certain statutory provisions
1.6and laws; providing for certain programs; regulating the carrying of pistols in the
1.7capitol area; making forecast adjustments; setting and modifying fees; providing
1.8for rate increases; regulating certain accounts; providing for conformity with
1.9federal law; authorizing the issuance of state bonds; appropriating money;
1.10amending Minnesota Statutes 2012, sections 13.46, subdivision 4; 122A.415,
1.11subdivision 1; 123A.05, subdivision 2; 124D.09, subdivision 13; 124D.111, by
1.12adding a subdivision; 124D.522; 124D.531, subdivision 3; 125A.76, subdivision
1.132; 126C.10, subdivisions 25, 26; 165.15, subdivision 2; 171.02, subdivision 3;
1.14171.06, subdivision 2; 174.02, by adding a subdivision; 245C.03, by adding a
1.15subdivision; 245C.04, by adding a subdivision; 245C.05, subdivision 5; 245C.10,
1.16by adding a subdivision; 245C.33, subdivisions 1, 4; 252.451, subdivision
1.172; 254B.12; 256.01, by adding a subdivision; 256.9685, subdivisions 1, 1a;
1.18256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 2c, 3a, 3b, 6a, 9, 10,
1.1914, 17, 30, by adding subdivisions; 256B.0625, subdivision 30; 256B.199;
1.20256B.5012, by adding a subdivision; 256I.05, subdivision 2; 257.85, subdivision
1.2111; 260C.212, subdivision 1; 260C.515, subdivision 4; 260C.611; 268.057,
1.22subdivision 5; 268.18, subdivision 2b; 473.39, by adding a subdivision; 609.66,
1.23subdivision 1g; Minnesota Statutes 2013 Supplement, sections 124D.11,
1.24subdivision 1; 124D.111, subdivision 1; 124D.531, subdivision 1; 124D.862,
1.25subdivisions 1, 2; 125A.11, subdivision 1; 125A.76, subdivisions 1, 2a, 2b, 2c;
1.26125A.79, subdivisions 1, 5, 8; 126C.05, subdivision 15; 126C.10, subdivisions
1.272a, 24, 31; 126C.17, subdivisions 6, 7b, 9, 9a; 126C.44; 127A.47, subdivision 7;
1.28174.12, subdivision 2; 245.8251; 245A.042, subdivision 3; 245C.08, subdivision
1.291; 245D.02, subdivisions 3, 4b, 8b, 11, 15b, 29, 34, 34a, by adding a subdivision;
1.30245D.03, subdivisions 1, 2, 3, by adding a subdivision; 245D.04, subdivision
1.313; 245D.05, subdivisions 1, 1a, 1b, 2, 4, 5; 245D.051; 245D.06, subdivisions 2,
1.324, 6, 7, 8; 245D.071, subdivisions 3, 4, 5; 245D.081, subdivision 2; 245D.09,
1.33subdivisions 3, 4a; 245D.091, subdivisions 2, 3, 4; 245D.10, subdivision 3;
1.34245D.11, subdivision 2; 256B.04, subdivision 21; 256B.055, subdivision 1;
1.35256B.439, subdivisions 1, 7; 256B.4912, subdivision 1; 256B.85, subdivisions
1.362, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 23, 24, by adding subdivisions;
1.37256N.02, by adding a subdivision; 256N.21, subdivision 2, by adding a
1.38subdivision; 256N.22, subdivisions 1, 2, 4, 6; 256N.23, subdivisions 1, 4;
1.39256N.24, subdivisions 9, 10; 256N.25, subdivisions 2, 3; 256N.26, subdivision 1;
2.1256N.27, subdivision 4; Laws 2009, chapter 83, article 1, section 10, subdivision
2.27; Laws 2010, chapter 189, section 15, subdivision 12; Laws 2012, chapter
2.3287, article 2, section 1; Laws 2012, First Special Session chapter 1, article 1,
2.4section 28; Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter
2.585, article 1, section 3, subdivision 2; Laws 2013, chapter 99, article 1, section
2.64, subdivision 3; article 3, section 3; Laws 2013, chapter 108, article 7, section
2.749; article 14, sections 2, subdivisions 5, 6; 3, subdivisions 1, 4; 12; Laws
2.82013, chapter 116, article 1, section 58, subdivisions 2, 3, 4, 5, 6, 7, 11; article
2.93, section 37, subdivisions 3, 4, 5, 6, 8, 20; article 4, section 9, subdivision 2;
2.10article 5, section 31, subdivisions 2, 3, 4; article 6, section 12, subdivisions 2,
2.113, 4, 6; article 7, section 21, subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5,
2.12subdivisions 2, 3, 4, 10, 11, 14; article 9, section 2; Laws 2013, chapter 117,
2.13article 1, sections 3, subdivisions 2, 3, 6; 4; proposing coding for new law in
2.14Minnesota Statutes, chapters 144A; 171; repealing Minnesota Statutes 2012,
2.15sections 245.825, subdivisions 1, 1b; 256.969, subdivisions 8b, 9a, 9b, 11, 13,
2.1620, 21, 22, 25, 26, 27, 28; 256.9695, subdivisions 3, 4; Minnesota Statutes 2013
2.17Supplement, sections 245D.02, subdivisions 2b, 2c, 3b, 5a, 8a, 15a, 15b, 23b, 28,
2.1829, 34a; 245D.06, subdivisions 5, 6, 7, 8; 245D.061, subdivisions 1, 2, 3, 4, 5, 6,
2.197, 8, 9; 256N.26, subdivision 7; Minnesota Rules, parts 4830.7500, subpart 2a;
2.209525.2700; 9525.2810.
2.21BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.22ARTICLE 1
2.23HIGHER EDUCATION

2.24
 Section 1. APPROPRIATIONS.
2.25The sums shown in the columns marked "Appropriations" are added to the
2.26appropriations in Laws 2013, chapter 99, article 1, unless otherwise specified, to the
2.27agencies and for the purposes specified in this article. The appropriations are from the
2.28general fund, or another named fund, and are available for the fiscal year indicated for
2.29each purpose. The figure "2015" used in this article mean that the appropriation listed
2.30under them are available for the fiscal year ending June 30, 2015.
2.31
 APPROPRIATIONS
2.32
 Available for the Year
2.33
 Ending June 30
2.34
 2014
 2015

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

3.1
3.2
 Sec. 3. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
3.3
 Subdivision 1.Total Appropriation
 $
 5,000,000
3.4
 Subd. 2.Operations and Maintenance
 5,000,000
3.5This appropriation is for fiscal year 2015
3.6only and is intended to be used to address
3.7immediate and critical financial challenges
3.8in order to preserve academic programs and
3.9student service levels. The Board of Regents
3.10is requested to allocate this appropriation to
3.11meet financial challenges at the University of
3.12Minnesota-Duluth campus.

3.13    Sec. 4. Laws 2013, chapter 99, article 1, section 4, subdivision 3, is amended to read:
3.14
 Subd. 3.Operations and Maintenance
 550,726,000
 567,954,000
3.15This appropriation includes $25,500,000 in
3.16fiscal year 2014 and $52,500,000 in fiscal
3.17year 2015 for student tuition relief. The
3.18Board of Trustees may not set the tuition
3.19rate in any undergraduate degree-granting
3.20program for the 2013-2014 and 2014-2015
3.21academic years at a rate greater than the
3.222012-2013 academic year rate. The student
3.23tuition relief may not be offset by increases
3.24in mandatory fees, charges, or other
3.25assessments to the student.
3.26To the extent that appropriations under
3.27this subdivision are insufficient to meet
3.28obligations contained in a labor or program
3.29 contract, the Board of Trustees shall fund
3.30those obligations through reductions in costs
3.31associated with central administration of
3.32the system and executive administration of
3.33individual campuses, or through reallocation
4.1of nonstate funds received by the system.
4.2In the event layoffs are necessary to meet
4.3these obligations, Minnesota State Colleges
4.4and Universities will reduce personnel in
4.5accordance with Minnesota Statutes, section
4.643A.046.
4.7These outstanding obligations may not be
4.8funded through reduction in any program or
4.9service that directly impacts students or that
4.10is newly-authorized by the legislature for the
4.112014-2015 biennium, or through increased
4.12fees or costs directly assessed to students.
4.13$17,000,000 in fiscal year 2014 is for
4.14retention of talented faculty and staff. No
4.15later than April 1, 2014, the Board of Trustees
4.16must report to the legislative committees with
4.17jurisdiction over higher education finance
4.18and policy on the expenditure of these funds.
4.19 The report must include:
4.20(1) the aggregate number of positions retained
4.21systemwide, and by individual campus;
4.22(2) the criteria used to determine whether a
4.23position qualified for retention funds from
4.24this appropriation;
4.25(3) the allocation of this appropriation
4.26among employment categories including,
4.27but not limited to, central administrative
4.28staff, executive administration on individual
4.29campuses, directors or chairs of individual
4.30programs and departments, faculty, academic
4.31support and student services staff, auxiliary
4.32services, and other employment categories as
4.33appropriate, and the average compensation
4.34increase for positions within each category;
5.1(4) an itemized accounting of this
5.2appropriation's allocation by individual
5.3employment position, including each
5.4position's job title, the full compensation
5.5and benefit structure for that position before
5.6and after this appropriation is allocated,
5.7the percent increase in compensation and
5.8benefits for that position as a result of
5.9this appropriation, and data comparing the
5.10compensation and benefit structure offered
5.11with similar positions at peer institutions; and
5.12(5) the number of talented faculty and staff
5.13positions targeted for retention that were not
5.14able to be retained, and the reasons those
5.15positions were not retained.
5.16$18,000 each year is for transfer to the Cook
5.17County Higher Education Board to provide
5.18educational programming and academic
5.19support services to remote regions in
5.20northeastern Minnesota. This appropriation
5.21is in addition to the $102,000 per fiscal year
5.22this project currently receives. The project
5.23shall continue to provide information to the
5.24Board of Trustees on the number of students
5.25served, credit hours delivered, and services
5.26provided to students. The base appropriation
5.27under this paragraph is $120,000 each year.
5.28$7,278,000 in fiscal year 2015 is for a
5.29leveraged equipment program. For the
5.30purpose of this section, "equipment" means
5.31equipment for instructional purposes for
5.32programs that the board determines would
5.33produce graduates with skills for which there
5.34is a high employer need within the state. An
5.35equipment acquisition may be made under
6.1this appropriation only if matched by cash or
6.2in-kind contributions from nonstate sources.
6.3No later than January 15, 2015, the Board
6.4of Trustees shall submit a report to the
6.5legislative committees with oversight over
6.6higher education finance and policy on the
6.7expenditure of these funds to date. The
6.8reports must also list each donor, and the
6.9amount contributed by the donor, or in the
6.10case of an in-kind contribution, the nature
6.11and value of the contribution, received to
6.12date for purposes of the required match.
6.13$50,000 in fiscal year 2014 is to convene
6.14a mental health issues summit. This is a
6.15onetime appropriation.
6.16Five percent of the fiscal year 2015
6.17appropriation in this subdivision is available
6.18in fiscal year 2015 when the Board of
6.19Trustees of the Minnesota State Colleges and
6.20Universities (MnSCU) demonstrates to the
6.21commissioner of management and budget
6.22that the board has met at least three of the
6.23following five performance goals:
6.24(1) increase by at least four percent in
6.25fiscal year 2013, compared to fiscal year
6.262010, graduates or degrees, diplomas, and
6.27certificates conferred;
6.28(2) increase by at least one percent the fall
6.292013 persistence and completion rate for fall
6.302012 entering students compared to the fall
6.312010 rate for fall 2009 entering students;
6.32(3) increase by at least four percent the fiscal
6.33year 2013 related employment rate for 2012
6.34graduates compared to the 2011 rate for 2010
6.35graduates;
7.1(4) by 2014, MnSCU must collect data on
7.2the number of Open Educational Resources
7.3(OER) tools and services offered and
7.4formulate a plan to actualize a one percent
7.5reduction in expenses directly related to the
7.6cost of instruction incurred by students; and
7.7(5) reallocate $22,000,000 that became
7.8available through expense realignment in
7.9fiscal year 2014.
7.10"Open Educational Resources" includes,
7.11but is not limited to, textbooks, study
7.12guides, worksheets, journals, video, audio
7.13recordings, massive open online courses, or
7.14other innovative course configuration.
7.15"Cost of instruction" means average tuition,
7.16average fees, average cost to student for
7.17textbooks and related course material.
7.18By August 1, 2013, the Board of Trustees
7.19and the Minnesota Office of Higher
7.20Education must agree on specific numerical
7.21indicators and definitions for each of the five
7.22goals that will be used to demonstrate the
7.23Minnesota State Colleges and Universities'
7.24attainment of each goal. On or before April
7.251, 2014, the Board of Trustees must report
7.26to the legislative committees with primary
7.27jurisdiction over higher education finance and
7.28policy the progress of the Minnesota State
7.29Colleges and Universities toward attaining
7.30the goals. The appropriation base for the
7.31next biennium shall include appropriations
7.32not made available under this subdivision for
7.33failure to meet performance goals.

7.34    Sec. 5. Laws 2013, chapter 99, article 3, section 3, is amended to read:
8.1    Sec. 3. STATE GRANT TUITION CAPS; LIVING AND MISCELLANEOUS
8.2EXPENSE ALLOWANCE.
8.3(a) For the purposes of the state grant program under Minnesota Statutes, section
8.4136A.121 , for the biennium ending June 30, 2015, the tuition maximum is $13,000
8.5each fiscal year of the biennium for fiscal year 2014 and $13,620 for fiscal year 2015
8.6 for students in four-year programs, and $5,808 in each fiscal year of the biennium for
8.7students in two-year programs.
8.8(b) The living and miscellaneous expense allowance for the state grant program under
8.9Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2015, is set at
8.10$7,900 for each fiscal year of the biennium fiscal year 2014 and $8,300 for fiscal year 2015.

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

8.13ARTICLE 2
8.14TRANSPORTATION POLICY AND FUNDING

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

8.33    Sec. 2. Minnesota Statutes 2012, section 171.02, subdivision 3, is amended to read:
9.1    Subd. 3. Motorized bicycle. (a) A motorized bicycle may not be operated on any
9.2public roadway by any person who does not possess a valid driver's license, unless the
9.3person has obtained a motorized bicycle operator's permit or motorized bicycle instruction
9.4permit from the commissioner of public safety. The operator's permit may be issued to
9.5any person who has attained the age of 15 years and who has passed the examination
9.6prescribed by the commissioner. The instruction permit may be issued to any person who
9.7has attained the age of 15 years and who has successfully completed an approved safety
9.8course and passed the written portion of the examination prescribed by the commissioner.
9.9    (b) This course must consist of, but is not limited to, a basic understanding of:
9.10    (1) motorized bicycles and their limitations;
9.11    (2) motorized bicycle laws and rules;
9.12    (3) safe operating practices and basic operating techniques;
9.13    (4) helmets and protective clothing;
9.14    (5) motorized bicycle traffic strategies; and
9.15    (6) effects of alcohol and drugs on motorized bicycle operators.
9.16    (c) The commissioner may adopt rules prescribing the content of the safety course,
9.17examination, and the information to be contained on the permits. A person operating a
9.18motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed
9.19by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel
9.20instruction permit.
9.21    (d) The fees for motorized bicycle operator's permits are as follows:
9.22
 (1)
 Examination and operator's permit, valid for one year
 $
 6.75
9.23
 (2)
 Duplicate
 $
 3.75
9.24
9.25
 (3) (1)
 Renewal Motorized bicycle operator's permit before age 21
and valid until age 21
 $
 9.75
9.26
 (4) (2)
 Renewal permit age 21 or older and valid for four years
 $
 15.75
9.27
 (5) (3)
 Duplicate of any renewal permit
 $
 5.25
9.28
 (6) (4)
 Written examination and instruction permit, valid for 30 days
 $
 6.75

9.29    Sec. 3. Minnesota Statutes 2012, section 171.06, subdivision 2, is amended to read:
9.30    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are
9.31as follows:
9.32
 Classified Driver's License
 D-$17.25
 C-$21.25
 B-$28.25
 A-$36.25
9.33
 Classified Under-21 D.L.
 D-$17.25
 C-$21.25
 B-$28.25
 A-$16.25
9.34
 Enhanced Driver's License
 D-$32.25
 C-$36.25
 B-$43.25
 A-$51.25
9.35
 Instruction Permit
 $5.25
9.36
9.37
 Enhanced Instruction
Permit
 $20.25
10.1
10.2
 Commercial Learner's
Permit
 $2.50
10.3
 Provisional License
 $8.25
10.4
10.5
 Enhanced Provisional
License
 $23.25
10.6
10.7
10.8
 Duplicate License or
duplicate identification
card
 $6.75
10.9
10.10
10.11
10.12
 Enhanced Duplicate
License or enhanced
duplicate identification
card
 $21.75
10.13
10.14
10.15
10.16
10.17
10.18
10.19
 Minnesota identification
card or Under-21
Minnesota identification
card, other than duplicate,
except as otherwise
provided in section 171.07,
subdivisions 3 and 3a
 $11.25
10.20
10.21
 Enhanced Minnesota
identification card
 $26.25
10.22In addition to each fee required in this paragraph, the commissioner shall collect a
10.23surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30,
10.242016. Surcharges collected under this paragraph must be credited to the driver and vehicle
10.25services technology account in the special revenue fund under section 299A.705.
10.26    (b) Notwithstanding paragraph (a), an individual who holds a provisional license and
10.27has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
10.28169A.35 , or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
10.29violations, and (3) convictions for moving violations that are not crash related, shall have a
10.30$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
10.31has the meaning given it in section 171.04, subdivision 1.
10.32    (c) In addition to the driver's license fee required under paragraph (a), the
10.33commissioner shall collect an additional $4 processing fee from each new applicant
10.34or individual renewing a license with a school bus endorsement to cover the costs for
10.35processing an applicant's initial and biennial physical examination certificate. The
10.36department shall not charge these applicants any other fee to receive or renew the
10.37endorsement.
10.38(d) In addition to the fee required under paragraph (a), a driver's license agent may
10.39charge and retain a filing fee as provided under section 171.061, subdivision 4.
10.40(e) In addition to the fee required under paragraph (a), the commissioner shall
10.41charge a filing fee at the same amount as a driver's license agent under section 171.061,
11.1subdivision 4. Revenue collected under this paragraph must be deposited in the driver
11.2services operating account.
11.3(f) An application for a Minnesota identification card, instruction permit, provisional
11.4license, or driver's license, including an application for renewal, must contain a provision
11.5that allows the applicant to add to the fee under paragraph (a), a $2 donation for the
11.6purposes of public information and education on anatomical gifts under section 171.075.

11.7    Sec. 4. [171.161] COMMERCIAL DRIVER'S LICENSE; FEDERAL
11.8CONFORMITY.
11.9    Subdivision 1. Conformity with federal law. The commissioner of public safety
11.10shall ensure the programs and policies related to commercial drivers' licensure and the
11.11operation of commercial motor vehicles in Minnesota conform with the requirements of
11.12Code of Federal Regulations, title 49, part 383.
11.13    Subd. 2. Conflicts. To the extent a requirement of sections 171.162 to 171.169, or
11.14any other state or local law, conflicts with a provision of Code of Federal Regulations, title
11.1549, part 383, the federal provision prevails.

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

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

12.4    Sec. 7. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
12.5to read:
12.6    Subd. 1t. Obligations. In addition to other authority in this section, the council may
12.7issue certificates of indebtedness, bonds, or other obligations under this section in an
12.8amount not exceeding $75,300,000 for capital expenditures as prescribed in the council's
12.9transit capital improvement program and for related costs, including the costs of issuance
12.10and sale of the obligations. Of this authorization, after July 1, 2014, the council may
12.11issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding
12.12$37,000,000 and after July 1, 2015, the council may issue certificates of indebtedness,
12.13bonds, or other obligations in an additional amount not exceeding $38,300,000.
12.14EFFECTIVE DATE; APPLICATION.This section is effective the day following
12.15final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
12.16Scott, and Washington.

12.17    Sec. 8. Minnesota Statutes 2012, section 609.66, subdivision 1g, is amended to read:
12.18    Subd. 1g. Felony; possession in courthouse or certain state buildings. (a)
12.19A person who commits either of the following acts is guilty of a felony and may be
12.20sentenced to imprisonment for not more than five years or to payment of a fine of not
12.21more than $10,000, or both:
12.22(1) possesses a dangerous weapon, ammunition, or explosives within any courthouse
12.23complex; or
12.24(2) possesses a dangerous weapon, ammunition, or explosives in any state building
12.25within the Capitol Area described in chapter 15B, other than the National Guard Armory.
12.26(b) Unless a person is otherwise prohibited or restricted by other law to possess a
12.27dangerous weapon, this subdivision does not apply to:
12.28(1) licensed peace officers or military personnel who are performing official duties;
12.29(2) persons who carry pistols according to the terms of a permit issued under section
12.30624.714 and who so notify the sheriff or the commissioner of public safety, as appropriate
12.31 prior to entering a courthouse complex;
12.32(3) persons who possess dangerous weapons for the purpose of display as
12.33demonstrative evidence during testimony at a trial or hearing or exhibition in compliance
13.1with advance notice and safety guidelines set by the sheriff or the commissioner of public
13.2safety; or
13.3(4) persons who possess dangerous weapons in a courthouse complex with the
13.4express consent of the county sheriff or who possess dangerous weapons in a state building
13.5with the express consent of the commissioner of public safety; or
13.6(5) persons who enter a state building in the Capitol Area carrying pistols according
13.7to the terms of a permit issued under section 624.714 and the requirements in paragraph (c).
13.8(c) Prior to entering a state building in the Capitol Area, a person under paragraph
13.9(b), clause (5), shall provide written notice by United States mail or electronic mail to the
13.10commissioner of public safety of the person's intent to carry a pistol in the building. The
13.11notice must include the person's name, date of birth, expiration date of the permit to
13.12carry, and mailing address for notifications sent by United States mail or e-mail address
13.13for notifications sent by electronic mail. The commissioner shall confirm receipt of the
13.14notification by United States mail or e-mail. Within 30 days of the renewal date of a
13.15person's permit to carry, the person shall renotify the commissioner of the person's intent
13.16to carry a pistol under paragraph (b), clause (5). A person carrying a pistol in a state
13.17building in the Capitol Area shall display the permit to carry card and a government-issued
13.18identification document upon request by a licensed peace officer.

13.19    Sec. 9. Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:
13.20
13.21
 Subd. 12.Rochester Maintenance Facility
 26,430,000
24,937,000
13.22This appropriation is from the bond proceeds
13.23account in the trunk highway fund.
13.24To prepare a site for and design, construct,
13.25furnish, and equip a new maintenance facility
13.26in Rochester.
13.27EFFECTIVE DATE.This section is effective the day following final enactment.

13.28    Sec. 10. Laws 2012, chapter 287, article 2, section 1, is amended to read:
13.29    Section 1. ROCHESTER MAINTENANCE FACILITY.
13.30$16,100,000 $17,593,000 is appropriated to the commissioner of transportation
13.31to design, construct, furnish, and equip the maintenance facility in Rochester and
13.32corresponding remodeling of the existing district headquarters building. This appropriation
13.33is from the bond proceeds account in the trunk highway fund.
14.1EFFECTIVE DATE.This section is effective the day following final enactment.

14.2    Sec. 11. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended to
14.3read:
14.4    Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND
14.5SALE AUTHORIZATIONS REDUCED.
14.6(a) The remaining balance of the appropriation in Laws 2010, Second Special
14.7Session chapter 1, article 1, section 7, for the economic development and housing
14.8challenge program, estimated to be $450,000, is transferred to the general fund.
14.9(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
14.10section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section
14.1112A.07 , is reduced by $1,358,000.
14.12(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
14.13section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota
14.14Statutes, section 12A.06, is reduced by $30,000.
14.15(d) The appropriation in Laws 2010, Second Special Session chapter 1, article
14.161, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota
14.17Statutes, section 12A.06, is reduced by $392,000.
14.18(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
14.19section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota
14.20Statutes, section 12A.06, is reduced by $2,000.
14.21(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
14.22section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes,
14.23section 12A.06, is reduced by $5,000.
14.24(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2,
14.25section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes,
14.26section 12A.06, is reduced by $271,000.
14.27(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
14.28section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08,
14.29is reduced by $103,000.
14.30(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session
14.31chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk
14.32highways and trunk highway bridges is canceled. The bond sale authorization in Laws
14.332007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced
14.34by $1,428,000 $534,000.
15.1(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2,
15.2article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for
15.3grants to local governments for capital costs related to rehabilitation and replacement of
15.4local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes,
15.5section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special
15.6Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.
15.7(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1,
15.8article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement
15.9pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond
15.10sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17,
15.11subdivision 2, is reduced by $2,133,000.
15.12(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
15.13section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant
15.14to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.

15.15    Sec. 12. Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:
15.16
 Subd. 2.Multimodal Systems
15.17(a) Aeronautics
15.18
15.19
 (1) Airport Development and Assistance
 13,648,000
14,648,000
 13,648,000
16,648,000
15.20This appropriation is from the state
15.21airports fund and must be spent according
15.22to Minnesota Statutes, section 360.305,
15.23subdivision 4 .
15.24The base appropriation for fiscal years 2016
15.25and 2017 is $14,298,000 for each year.
15.26Notwithstanding Minnesota Statutes, section
15.2716A.28, subdivision 6 , this appropriation is
15.28available for five years after appropriation.
15.29If the appropriation for either year is
15.30insufficient, the appropriation for the other
15.31year is available for it.
15.32For the current biennium, the commissioner
15.33of transportation may establish different
15.34local contribution rates for airport projects
16.1than those established in Minnesota Statutes,
16.2section 360.305, subdivision 4.
16.3
 (2) Aviation Support and Services
 6,386,000
 6,386,000
16.4
 Appropriations by Fund
16.5
 Airports
 5,286,000
 5,286,000
16.6
 Trunk Highway
 1,100,000
 1,100,000
16.7$65,000 in each year is from the state airports
16.8fund for the Civil Air Patrol.
16.9
 (b) Transit
 17,226,000
 17,245,000
16.10
 Appropriations by Fund
16.11
 General
 16,451,000
 16,470,000
16.12
 Trunk Highway
 775,000
 775,000
16.13$100,000 in each year is from the general
16.14fund for the administrative expenses of the
16.15Minnesota Council on Transportation Access
16.16under Minnesota Statutes, section 174.285.
16.17$78,000 in each year is from the general
16.18fund for grants to greater Minnesota transit
16.19providers as reimbursement for the costs of
16.20providing fixed route public transit rides free
16.21of charge under Minnesota Statutes, section
16.22174.24, subdivision 7 , for veterans certified
16.23as disabled.
16.24
 (c) Passenger Rail
 500,000
 500,000
16.25This appropriation is from the general
16.26fund for passenger rail system planning,
16.27alternatives analysis, environmental analysis,
16.28design, and preliminary engineering under
16.29Minnesota Statutes, sections 174.632 to
16.30174.636 .
16.31
 (d) Freight
 5,653,000
 5,153,000
16.32
 Appropriations by Fund
16.33
 General
 756,000
 256,000
16.34
 Trunk Highway
 4,897,000
 4,897,000
17.1$500,000 in the first year is from the general
17.2fund to pay for the department's share of costs
17.3associated with the cleanup of contaminated
17.4state rail bank property. This appropriation is
17.5available until expended.
17.6
 (e) Safe Routes to School
 250,000
 250,000
17.7This appropriation is from the general fund
17.8for non-infrastructure activities in the safe
17.9routes to school program under Minnesota
17.10Statutes, section 174.40, subdivision 7a.

17.11    Sec. 13. Laws 2013, chapter 117, article 1, section 3, subdivision 3, is amended to read:
17.12
 Subd. 3.State Roads
17.13
17.14
 (a) Operations and Maintenance
 262,395,000
267,395,000
 262,395,000
280,395,000
17.15
17.16
 (b) Program Planning and Delivery
 206,795,000
 206,720,000
209,720,000
17.17
 Appropriations by Fund
17.18
 2014
 2015
17.19
 H.U.T.D.
 75,000
 0
17.20
 Trunk Highway
 206,720,000
 206,720,000
17.21$250,000 in each year is for the department's
17.22administrative costs for creation and
17.23operation of the Joint Program Office for
17.24Economic Development and Alternative
17.25Finance, including costs of hiring a
17.26consultant and preparing required reports.
17.27$130,000 in each year is available for
17.28administrative costs of the targeted group
17.29business program.
17.30$266,000 in each year is available for grants
17.31to metropolitan planning organizations
17.32outside the seven-county metropolitan area.
17.33$75,000 in each year is available for a
17.34transportation research contingent account
18.1to finance research projects that are
18.2reimbursable from the federal government or
18.3from other sources. If the appropriation for
18.4either year is insufficient, the appropriation
18.5for the other year is available for it.
18.6$900,000 in each year is available for
18.7grants for transportation studies outside
18.8the metropolitan area to identify critical
18.9concerns, problems, and issues. These
18.10grants are available: (1) to regional
18.11development commissions; (2) in regions
18.12where no regional development commission
18.13is functioning, to joint powers boards
18.14established under agreement of two or
18.15more political subdivisions in the region to
18.16exercise the planning functions of a regional
18.17development commission; and (3) in regions
18.18where no regional development commission
18.19or joint powers board is functioning, to the
18.20department's district office for that region.
18.21$75,000 in the first year is from the highway
18.22user tax distribution fund to the commissioner
18.23for a grant to the Humphrey School of Public
18.24Affairs at the University of Minnesota for
18.25WorkPlace Telework program congestion
18.26relief efforts consisting of maintenance of
18.27Web site tools and content. This is a onetime
18.28appropriation and is available in the second
18.29year.
18.30
 (c) State Road Construction Activity
18.31
18.32
 (1) Economic Recovery Funds - Federal
Highway Aid
 1,000,000
 1,000,000
18.33This appropriation is to complete projects
18.34using funds made available to the
18.35commissioner of transportation under
19.1title XII of the American Recovery and
19.2Reinvestment Act of 2009, Public Law
19.3111-5, and implemented under Minnesota
19.4Statutes, section 161.36, subdivision 7. The
19.5base appropriation is $1,000,000 in fiscal
19.6year 2016 and $0 in fiscal year 2017.
19.7
19.8
 (2) State Road Construction
 909,400,000
923,400,000
 815,600,000
19.9It is estimated that these appropriations will
19.10be funded as follows:
19.11
 Appropriations by Fund
19.12
19.13
 Federal Highway
Aid
 489,200,000
 482,200,000
19.14
19.15
 Highway User Taxes
 420,200,000
434,200,000
 333,400,000
19.16The commissioner of transportation shall
19.17notify the chairs and ranking minority
19.18members of the legislative committees with
19.19jurisdiction over transportation finance of
19.20any significant events that should cause these
19.21estimates to change.
19.22This appropriation is for the actual
19.23construction, reconstruction, and
19.24improvement of trunk highways, including
19.25design-build contracts and consultant usage
19.26to support these activities. This includes the
19.27cost of actual payment to landowners for
19.28lands acquired for highway rights-of-way,
19.29payment to lessees, interest subsidies, and
19.30relocation expenses.
19.31The base appropriation for state road
19.32construction for fiscal years 2016 and 2017
19.33is $645,000,000 in each year.
19.34$10,000,000 in each year is for the
19.35transportation economic development
20.1program under Minnesota Statutes, section
20.2174.12 .
20.3The commissioner may expend up to one-half
20.4of one percent of the federal appropriations
20.5under this clause as grants to opportunity
20.6industrialization centers and other nonprofit
20.7job training centers for job training programs
20.8related to highway construction.
20.9The commissioner may transfer up to
20.10$15,000,000 each year to the transportation
20.11revolving loan fund.
20.12The commissioner may receive money
20.13covering other shares of the cost of
20.14partnership projects. These receipts are
20.15appropriated to the commissioner for these
20.16projects.
20.17Of this appropriation, $14,000,000 in the first
20.18year is for the specific improvements to "Old
20.19Highway 14" described in the settlement
20.20agreement and release executed January
20.217, 2014, between the state and Steele and
20.22Waseca Counties.
20.23
 (d) Highway Debt Service
 158,417,000
 189,821,000
20.24$148,917,000 in the first year and
20.25$180,321,000 in the second year are for
20.26transfer to the state bond fund. If an
20.27appropriation is insufficient to make all
20.28transfers required in the year for which it is
20.29made, the commissioner of management and
20.30budget shall notify the senate Committee
20.31on Finance and the house of representatives
20.32Committee on Ways and Means of the
20.33amount of the deficiency and shall then
20.34transfer that amount under the statutory open
21.1appropriation. Any excess appropriation
21.2cancels to the trunk highway fund.
21.3
 (e) Electronic Communications
 5,171,000
 5,171,000
21.4
 Appropriations by Fund
21.5
 General
 3,000
 3,000
21.6
 Trunk Highway
 5,168,000
 5,168,000
21.7The general fund appropriation is to equip
21.8and operate the Roosevelt signal tower for
21.9Lake of the Woods weather broadcasting.

21.10    Sec. 14. Laws 2013, chapter 117, article 1, section 3, subdivision 6, is amended to read:
21.11
 Subd. 6.Transfers
21.12(a) With the approval of the commissioner of
21.13management and budget, the commissioner
21.14of transportation may transfer unencumbered
21.15balances among the appropriations from the
21.16trunk highway fund and the state airports
21.17fund made in this section. No transfer
21.18may be made from the appropriations for
21.19state road construction or for debt service.
21.20Transfers under this paragraph may not be
21.21made between funds. Transfers under this
21.22paragraph must be reported immediately to
21.23the chairs and ranking minority members of
21.24the legislative committees with jurisdiction
21.25over transportation finance.
21.26(b) The commissioner shall transfer from
21.27the flexible highway account in the county
21.28state-aid highway fund: (1) $5,700,000 in the
21.29first year and $21,000,000 in the second year
21.30to the trunk highway fund; (2) $13,000,000
21.31in the first year to the municipal turnback
21.32account in the municipal state-aid street fund;
21.33(3) $10,000,000 in the second year to the
21.34municipal turnback account in the municipal
22.1state-aid street fund; and (4) the remainder
22.2in each year to the county turnback account
22.3in the county state-aid highway fund. The
22.4funds transferred are for highway turnback
22.5purposes as provided under Minnesota
22.6Statutes, section 161.081, subdivision 3.

22.7    Sec. 15. Laws 2013, chapter 117, article 1, section 4, is amended to read:
22.8
22.9
 Sec. 4. METROPOLITAN COUNCIL
 $
 107,889,000
 $
 76,970,000
76,910,000
22.10This appropriation is from the general fund
22.11for transit system operations under Minnesota
22.12Statutes, sections 473.371 to 473.449.
22.13The base appropriation for fiscal years 2016
22.14and 2017 is $76,686,000 $76,626,000 in
22.15each year.
22.16$37,000,000 in the first year is for the
22.17Southwest Corridor light rail transit line
22.18from the Hiawatha light rail transit line in
22.19downtown Minneapolis to Eden Prairie, to be
22.20used for environmental studies, preliminary
22.21engineering, acquisition of real property, or
22.22interests in real property, and design. This
22.23is a onetime appropriation and is available
22.24until expended.

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

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

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

23.13ARTICLE 3
23.14PUBLIC SAFETY AND CORRECTIONS

23.15
 Section 1. SUMMARY OF APPROPRIATIONS.
23.16The amounts shown in this section summarize direct appropriations, by fund, made
23.17in this article.
23.18
 2014
 2015
 Total
23.19
 General
 $
 -0-
 $
 30,149,000
 $
 30,149,000
23.20
23.21
 State Government Special
Revenue
 5,059,000
 6,865,000
 11,924,000
23.22
 Total
 $
 5,059,000
 $
 37,014,000
 $
 42,073,000

23.23
 Sec. 2. APPROPRIATIONS.
23.24The sums shown in the columns marked "Appropriations" are added to the
23.25appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes
23.26specified in this article. The appropriations are from the general fund, or another named
23.27fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
23.28and "2015" used in this article mean that the addition to the appropriation listed under
23.29them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
23.30Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
23.31day following final enactment.
24.1
 APPROPRIATIONS
24.2
 Available for the Year
24.3
 Ending June 30
24.4
 2014
 2015

24.5
 Sec. 3. DEPARTMENT OF PUBLIC SAFETY
24.6
 Subdivision 1.Total Appropriation
 $
 5,059,000
 $
 6,925,000
24.7
 Appropriations by Fund
24.8
 General
 -0-
 60,000
24.9
24.10
 State Government
Special Revenue
 5,059,000
 6,865,000
24.11The amounts that may be spent for each
24.12purpose are specified in the following
24.13subdivisions.
24.14
 Subd. 2.Fire Marshal
 -0-
 60,000
24.15$60,000 in 2015 is from the general fund
24.16for light rail safety oversight. The base
24.17appropriation for fiscal years 2016 and 2017
24.18is $60,000 each year.
24.19
 Subd. 3.Emergency Communication Networks
 5,059,000
 6,865,000
24.20This appropriation is from the state
24.21government special revenue fund for 911
24.22emergency telecommunications services.

24.23
 Sec. 4. CORRECTIONS
24.24
 Subdivision 1.Total Appropriation
 $
 -0-
 $
 30,089,000
24.25The amounts that may be spent for each
24.26purpose are specified in the following
24.27subdivisions.
24.28
 Subd. 2.Correctional Institutions
 -0-
 27,289,000
24.29This includes a onetime appropriation of
24.30$11,089,000.
24.31
 Subd. 3.Community Services
 -0-
 1,900,000
24.32
 Subd. 4.Operations Support
 -0-
 900,000

25.1    Sec. 5. Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to read:
25.2
 Subd. 7.Emergency Communication Networks
 66,470,000
 70,233,000
25.3This appropriation is from the state
25.4government special revenue fund for 911
25.5emergency telecommunications services.
25.6(a) Public Safety Answering Points.
25.7$13,664,000 each year is to be distributed
25.8as provided in Minnesota Statutes, section
25.9403.113, subdivision 2 .
25.10(b) Medical Resource Communication
25.11Centers. $683,000 each year is for grants
25.12to the Minnesota Emergency Medical
25.13Services Regulatory Board for the Metro
25.14East and Metro West Medical Resource
25.15Communication Centers that were in
25.16operation before January 1, 2000.
25.17(c) ARMER Debt Service. $17,557,000 the
25.18first year and $23,261,000 the second year
25.19are to the commissioner of finance to pay
25.20debt service on revenue bonds issued under
25.21Minnesota Statutes, section 403.275.
25.22Any portion of this appropriation not needed
25.23to pay debt service in a fiscal year may be
25.24used by the commissioner of public safety to
25.25pay cash for any of the capital improvements
25.26for which bond proceeds were appropriated
25.27by Laws 2005, chapter 136, article 1, section
25.289, subdivision 8, or Laws 2007, chapter 54,
25.29article 1, section 10, subdivision 8.
25.30(d) Metropolitan Council Debt Service.
25.31$1,410,000 each year is to the commissioner
25.32of finance for payment to the Metropolitan
25.33Council for debt service on bonds issued
25.34under Minnesota Statutes, section 403.27.
26.1(e) ARMER State Backbone Operating
26.2Costs. $5,060,000 each year is to the
26.3commissioner of transportation for costs
26.4of maintaining and operating the statewide
26.5radio system backbone.
26.6(f) ARMER Improvements. $1,000,000
26.7each year is for the Statewide Radio Board for
26.8costs of design, construction, maintenance
26.9of, and improvements to those elements
26.10of the statewide public safety radio and
26.11communication system that support mutual
26.12aid communications and emergency medical
26.13services or provide enhancement of public
26.14safety communication interoperability.
26.15(g) Next Generation 911. $3,431,000 the
26.16first year and $6,490,000 the second year
26.17are to replace the current system with the
26.18Next Generation Internet Protocol (IP) based
26.19network. This appropriation is available until
26.20expended. The base level of funding for
26.21fiscal year 2012 shall be $2,965,000.
26.22(h) Grants to Local Government.
26.23$5,000,000 the first year is for grants to
26.24local units of government to assist with
26.25the transition to the ARMER system. This
26.26appropriation is available until June 30, 2012.

26.27ARTICLE 4
26.28ECONOMIC DEVELOPMENT APPROPRIATIONS

26.29
 Section 1. APPROPRIATIONS.
26.30The sums shown in the columns marked "Appropriations" are added to or, if shown
26.31in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 1,
26.32unless otherwise specified, to the agencies and for the purposes specified in this article.
26.33The appropriations are from the general fund, or another named fund, and are available for
26.34the fiscal year indicated for each purpose. The figure "2015" used in this article means
27.1that the addition to the appropriation listed under it is available for the fiscal year ending
27.2June 30, 2015.
27.3
 APPROPRIATIONS
27.4
 Available for the Year
27.5
 Ending June 30
27.6
 2015

27.7
27.8
 Sec. 2. EMPLOYMENT AND ECONOMIC
DEVELOPMENT
27.9
 General Support Services
 $
 500,000
27.10$500,000 in fiscal year 2015 is for
27.11establishing and operating the interagency
27.12Olmstead Implementation Office. The base
27.13for this purpose is $2,000,000 in each of
27.14fiscal years 2016 and 2017.

27.15    Sec. 3. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:
27.16
27.17
 Subd. 2.Business and Community
Development
 53,642,000
 45,407,000
27.18
 Appropriations by Fund
27.19
 General
 52,942,000
 44,707,000
27.20
 Remediation
 700,000
 700,000
27.21(a)(1) $15,000,000 each year is for the
27.22Minnesota investment fund under Minnesota
27.23Statutes, section 116J.8731. Of this amount,
27.24the commissioner of employment and
27.25economic development may use up to three
27.26percent for administrative expenses. This
27.27appropriation is available until spent.
27.28(2) Of the amount available under clause
27.29(1), up to $3,000,000 in fiscal year 2014
27.30is for a loan to facilitate initial investment
27.31in the purchase and operation of a
27.32biopharmaceutical manufacturing facility.
27.33This loan is not subject to the loan limitations
27.34under Minnesota Statutes, section 116J.8731,
28.1and shall be forgiven by the commissioner
28.2of employment and economic development
28.3upon verification of meeting performance
28.4goals. Purchases related to and for the
28.5purposes of this loan award must be made
28.6between January 1, 2013, and June 30, 2015.
28.7The amount under this clause is available
28.8until expended.
28.9(3) Of the amount available under clause (1),
28.10up to $2,000,000 is available for subsequent
28.11investment in the biopharmaceutical facility
28.12project in clause (2). The amount under this
28.13clause is available until expended. Loan
28.14thresholds under clause (2) must be achieved
28.15and maintained to receive funding. Loans
28.16are not subject to the loan limitations under
28.17Minnesota Statutes, section 116J.8731, and
28.18shall be forgiven by the commissioner of
28.19employment and economic development
28.20upon verification of meeting performance
28.21goals. Purchases related to and for the
28.22purposes of loan awards must be made during
28.23the biennium the loan was received.
28.24(4) Notwithstanding any law to the contrary,
28.25the biopharmaceutical manufacturing facility
28.26in this paragraph shall be deemed eligible
28.27for the Minnesota job creation fund under
28.28Minnesota Statutes, section 116J.8748,
28.29by having at least $25,000,000 in capital
28.30investment and 190 retained employees.
28.31(5) For purposes of clauses (1) to (4),
28.32"biopharmaceutical" and "biologics" are
28.33interchangeable and mean medical drugs
28.34or medicinal preparations produced using
28.35technology that uses biological systems,
29.1living organisms, or derivatives of living
29.2organisms, to make or modify products or
29.3processes for specific use. The medical drugs
29.4or medicinal preparations include but are not
29.5limited to proteins, antibodies, nucleic acids,
29.6and vaccines.
29.7(b) $12,000,000 each year is for the
29.8Minnesota job creation fund under Minnesota
29.9Statutes, section 116J.8748. Of this amount,
29.10the commissioner of employment and
29.11economic development may use up to three
29.12percent for administrative expenses. This
29.13appropriation is available until spent. The
29.14base funding for this program shall be
29.15$12,500,000 each year in the fiscal year
29.162016-2017 biennium.
29.17(c) $1,272,000 each year is from the
29.18general fund for contaminated site cleanup
29.19and development grants under Minnesota
29.20Statutes, sections 116J.551 to 116J.558. This
29.21appropriation is available until expended.
29.22(d) $700,000 each year is from the
29.23remediation fund for contaminated site
29.24cleanup and development grants under
29.25Minnesota Statutes, sections 116J.551 to
29.26116J.558 . This appropriation is available
29.27until expended.
29.28(e) $1,425,000 the first year and $1,425,000
29.29the second year are from the general fund for
29.30the business development competitive grant
29.31program. Of this amount, up to five percent
29.32is for administration and monitoring of the
29.33business development competitive grant
29.34program. All grant awards shall be for two
30.1consecutive years. Grants shall be awarded
30.2in the first year.
30.3(f) $4,195,000 each year is from the general
30.4fund for the Minnesota job skills partnership
30.5program under Minnesota Statutes, sections
30.6116L.01 to 116L.17. If the appropriation for
30.7either year is insufficient, the appropriation
30.8for the other year is available. This
30.9appropriation is available until spent.
30.10(g) $6,000,000 the first year is from the
30.11general fund for the redevelopment program
30.12under Minnesota Statutes, section 116J.571.
30.13This is a onetime appropriation and is
30.14available until spent.
30.15(h) $12,000 each year is from the general
30.16fund for a grant to the Upper Minnesota Film
30.17Office.
30.18(i) $325,000 each year is from the general
30.19fund for the Minnesota Film and TV Board.
30.20The appropriation in each year is available
30.21only upon receipt by the board of $1 in
30.22matching contributions of money or in-kind
30.23contributions from nonstate sources for every
30.24$3 provided by this appropriation, except that
30.25each year up to $50,000 is available on July
30.261 even if the required matching contribution
30.27has not been received by that date.
30.28(j) $100,000 each year is for a grant to the
30.29Northern Lights International Music Festival.
30.30(k) $5,000,000 each year is from the general
30.31fund for a grant to the Minnesota Film
30.32and TV Board for the film production jobs
30.33program under Minnesota Statutes, section
30.34116U.26 . This appropriation is available
30.35until expended. The base funding for this
31.1program shall be $1,500,000 each year in the
31.2fiscal year 2016-2017 biennium.
31.3(l) $375,000 each year is from the general
31.4fund for a grant to Enterprise Minnesota, Inc.,
31.5for the small business growth acceleration
31.6program under Minnesota Statutes, section
31.7116O.115 . This is a onetime appropriation.
31.8(m) $160,000 each year is from the general
31.9fund for a grant to develop and implement
31.10a southern and southwestern Minnesota
31.11initiative foundation collaborative pilot
31.12project. Funds available under this paragraph
31.13must be used to support and develop
31.14entrepreneurs in diverse populations in
31.15southern and southwestern Minnesota. This
31.16is a onetime appropriation and is available
31.17until expended.
31.18(n) $100,000 each year is from the general
31.19fund for the Center for Rural Policy
31.20and Development. This is a onetime
31.21appropriation.
31.22(o) $250,000 each year is from the general
31.23fund for the Broadband Development Office.
31.24(p) $250,000 the first year is from the
31.25general fund for a onetime grant to the St.
31.26Paul Planning and Economic Development
31.27Department for neighborhood stabilization
31.28use in NSP3.
31.29(q) $1,235,000 the first year is from the
31.30general fund for a onetime grant to a city
31.31of the second class that is designated as an
31.32economically depressed area by the United
31.33States Department of Commerce. The
31.34appropriation is for economic development,
31.35redevelopment, and job creation programs
32.1and projects. This appropriation is available
32.2until expended.
32.3(r) $875,000 each year is from the general
32.4fund for the Host Community Economic
32.5Development Program established in
32.6Minnesota Statutes, section 116J.548.
32.7(s) $750,000 the first year is from the general
32.8fund for a onetime grant to the city of Morris
32.9for loans or grants to agricultural processing
32.10facilities for energy efficiency improvements.
32.11Funds available under this section shall be
32.12used to increase conservation and promote
32.13energy efficiency through retrofitting existing
32.14systems and installing new systems to
32.15recover waste heat from industrial processes
32.16and reuse energy. This appropriation is not
32.17available until the commissioner determines
32.18that at least $1,250,000 is committed to
32.19the project from nonpublic sources. This
32.20appropriation is available until expended.
32.21EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

32.22ARTICLE 5
32.23UNEMPLOYMENT INSURANCE INTEREST RATES

32.24    Section 1. Minnesota Statutes 2012, section 268.057, subdivision 5, is amended to read:
32.25    Subd. 5. Interest on amounts past due. If any amounts due from an employer
32.26under this chapter or section 116L.20, except late fees under section 268.044, are not
32.27received on the date due the unpaid balance bears interest at the rate of one and one-half
32.28 percent per month or any part thereof of a month. Interest collected under this subdivision
32.29is credited to the contingent account.
32.30EFFECTIVE DATE.This section applies to all interest assessed after July 1, 2015.

32.31    Sec. 2. Minnesota Statutes 2012, section 268.18, subdivision 2b, is amended to read:
33.1    Subd. 2b. Interest. (a) On any unemployment benefits fraudulently obtained,
33.2and any penalty amounts assessed under subdivision 2, the commissioner must assess
33.3interest at the rate of 1-1/2 one percent per month on any amount that remains unpaid
33.4beginning 30 calendar days after the date of the determination of overpayment by fraud. A
33.5determination of overpayment by fraud must state that interest will be assessed. Interest is
33.6assessed in the same manner as on employer debt under section 268.057, subdivision 5.
33.7    (b) If the determination did not state that interest will be assessed, interest is assessed
33.8beginning 30 calendar days after notification, by mail or electronic transmission, to the
33.9applicant that interest is now assessed.
33.10    (c) Interest payments collected under this section subdivision are credited to the
33.11trust fund.
33.12EFFECTIVE DATE.This section applies to interest assessed after July 1, 2015.

33.13ARTICLE 6
33.14STATE GOVERNMENT APPROPRIATIONS

33.15
 Section 1. STATE GOVERNMENT APPROPRIATIONS.
33.16The sums shown in the columns marked "Appropriations" are added to the
33.17appropriations in Laws 2013, chapter 142, article 1, section 16, to the agencies and for
33.18the purposes specified in this article. The appropriations are from the general fund, or
33.19another named fund, and are available for the fiscal years indicated for each purpose. The
33.20figures "2014" and "2015" used in this article mean that the addition to the appropriation
33.21listed under them is available for the fiscal year ending June 30, 2014, or June 30, 2015,
33.22respectively. Supplemental appropriations for the fiscal year ending June 30, 2014, are
33.23effective the day following final enactment.
33.24
 APPROPRIATIONS
33.25
 Available for the Year
33.26
 Ending June 30
33.27
 2014
 2015

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

34.1ARTICLE 7
34.2GENERAL EDUCATION

34.3    Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
34.4    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
34.5or alternative learning program must reserve revenue in an amount equal to the sum of
34.6(1) at least between 90 and 100 percent of the district average general education revenue
34.7per adjusted pupil unit minus an amount equal to the product of the formula allowance
34.8according to section 126C.10, subdivision 2, times .0485 .0466, calculated without
34.9basic skills revenue and transportation sparsity revenue, times the number of pupil units
34.10attending an area learning center or alternative learning program under this section, plus
34.11(2) the amount of basic skills revenue generated by pupils attending the area learning
34.12center or alternative learning program. The amount of reserved revenue under this
34.13subdivision may only be spent on program costs associated with the area learning center
34.14or alternative learning program.
34.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
34.16and later.

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

35.8    Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
35.9amended to read:
35.10    Subdivision 1. General education revenue. General education revenue must be
35.11paid to a charter school as though it were a district. The general education revenue for
35.12each adjusted pupil unit is the state average general education revenue per pupil unit, plus
35.13the referendum equalization aid allowance in the pupil's district of residence, minus an
35.14amount equal to the product of the formula allowance according to section 126C.10,
35.15subdivision 2 , times .0466, calculated without declining enrollment revenue, location
35.16equity revenue, basic skills revenue, extended time revenue, pension adjustment revenue,
35.17transition revenue, and transportation sparsity revenue, plus declining enrollment revenue,
35.18basic skills revenue, extended time revenue, pension adjustment revenue, and transition
35.19revenue as though the school were a school district. The general education revenue for
35.20each extended time pupil unit equals $4,794.
35.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
35.22and later.

35.23    Sec. 4. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, is
35.24amended to read:
35.25    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
35.26year program under section 124D.128, an area learning center or an alternative learning
35.27program approved by the commissioner under sections 123A.05 and 123A.06, or a
35.28contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
35.29subdivision 4, for more than 1,020 hours in a school year for a secondary student, more
35.30than 935 hours in a school year for an elementary student, more than 850 hours in a school
35.31year for a kindergarten student without a disability in an all-day kindergarten program,
35.32or more than 425 hours in a school year for a half-day kindergarten student without a
35.33disability, that pupil may be counted as more than one pupil in average daily membership
35.34for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
36.1be determined by the ratio of the number of hours of instruction provided to that pupil in
36.2excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
36.3secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
36.4or the number of hours required for a full-time elementary pupil in the district to 935 for
36.5an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the
36.6number of hours required for a full-time kindergarten student without a disability in the
36.7district to 425 850 for a kindergarten student without a disability; and (iv) the greater of
36.8425 hours or the number of hours required for a half-time kindergarten student without a
36.9disability in the district to 425 for a half-day kindergarten student without a disability.
36.10Hours that occur after the close of the instructional year in June shall be attributable to
36.11the following fiscal year. A student in kindergarten or grades 1 through 12 must not be
36.12counted as more than 1.2 pupils in average daily membership under this subdivision.
36.13(b)(i) To receive general education revenue for a pupil in an area learning center
36.14or alternative learning program that has an independent study component, a district
36.15must meet the requirements in this paragraph. The district must develop, for the pupil,
36.16a continual learning plan consistent with section 124D.128, subdivision 3. Each school
36.17district that has an area learning center or alternative learning program must reserve
36.18revenue in an amount equal to at least 90 percent of the district average general education
36.19revenue per pupil unit, minus an amount equal to the product of the formula allowance
36.20according to section 126C.10, subdivision 2, times .0466, calculated without basic skills
36.21and transportation sparsity revenue, times the number of pupil units generated by students
36.22attending an area learning center or alternative learning program. The amount of reserved
36.23revenue available under this subdivision may only be spent for program costs associated
36.24with the area learning center or alternative learning program. Basic skills revenue
36.25generated according to section 126C.10, subdivision 4, by pupils attending the eligible
36.26program must be allocated to the program.
36.27(ii) General education revenue for a pupil in a state-approved alternative program
36.28without an independent study component must be prorated for a pupil participating for less
36.29than a full year, or its equivalent. The district must develop a continual learning plan for the
36.30pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area
36.31learning center or alternative learning program must reserve revenue in an amount equal to
36.32at least 90 percent of the district average general education revenue per pupil unit, minus
36.33an amount equal to the product of the formula allowance according to section 126C.10,
36.34subdivision 2 , times .0466, calculated without basic skills and transportation sparsity
36.35revenue, times the number of pupil units generated by students attending an area learning
36.36center or alternative learning program. The amount of reserved revenue available under this
37.1subdivision may only be spent for program costs associated with the area learning center or
37.2alternative learning program. Basic skills revenue generated according to section 126C.10,
37.3subdivision 4 , by pupils attending the eligible program must be allocated to the program.
37.4(iii) General education revenue for a pupil in a state-approved alternative program
37.5that has an independent study component must be paid for each hour of teacher contact
37.6time and each hour of independent study time completed toward a credit or graduation
37.7standards necessary for graduation. Average daily membership for a pupil shall equal the
37.8number of hours of teacher contact time and independent study time divided by 1,020.
37.9(iv) For a state-approved alternative program having an independent study
37.10component, the commissioner shall require a description of the courses in the program, the
37.11kinds of independent study involved, the expected learning outcomes of the courses, and
37.12the means of measuring student performance against the expected outcomes.

37.13    Sec. 5. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a, is
37.14amended to read:
37.15    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for
37.16fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal
37.17cost pupil units of the district for each pupil in average daily membership in excess of 1.0
37.18and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended
37.19time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum
37.20of the adjusted pupil units of the district for each pupil in average daily membership in
37.21excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
37.22(b) A school district's extended time revenue may be used for extended day
37.23programs, extended week programs, summer school, and other programming authorized
37.24under the learning year program.
37.25EFFECTIVE DATE.This section is effective the day following final enactment
37.26and applies to revenue for fiscal year 2014 and later.

37.27    Sec. 6. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24, is
37.28amended to read:
37.29    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
37.30    (1) the school district's adjusted pupil unit amount of basic revenue, transition
37.31revenue, and referendum revenue is less than the value of the school district at or
37.32immediately above the 95th percentile of school districts in its equity region for those
37.33revenue categories; and
38.1    (2) the school district's administrative offices are not located in a city of the first
38.2class on July 1, 1999.
38.3    (b) Equity revenue for a qualifying district that receives referendum revenue under
38.4section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil
38.5units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's
38.6equity index computed under subdivision 27.
38.7    (c) Equity revenue for a qualifying district that does not receive referendum revenue
38.8under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil
38.9units for that year times $14.
38.10    (d) A school district's equity revenue is increased by the greater of zero or an amount
38.11equal to the district's resident adjusted pupil units times the difference between ten percent
38.12of the statewide average amount of referendum revenue per resident adjusted pupil unit for
38.13that year and the district's referendum revenue per resident adjusted pupil unit. A school
38.14district's revenue under this paragraph must not exceed $100,000 for that year.
38.15    (e) A school district's equity revenue for a school district located in the metro equity
38.16region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
38.17    (f) A school district's additional equity revenue equals $50 times its adjusted pupil
38.18units.
38.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
38.20and later.

38.21    Sec. 7. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
38.22    Subd. 25. Regional equity gap. The regional equity gap equals the difference
38.23between the value of the school district at or immediately above the fifth percentile of
38.24adjusted general revenue per adjusted marginal cost pupil unit and the value of the school
38.25district at or immediately above the 95th percentile of adjusted general revenue per
38.26adjusted marginal cost pupil unit.
38.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
38.28and later.

38.29    Sec. 8. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
38.30    Subd. 26. District equity gap. A district's equity gap equals the greater of zero
38.31or the difference between the district's adjusted general revenue and the value of the
38.32school district at or immediately above the regional 95th percentile of adjusted general
38.33revenue per adjusted marginal cost pupil unit.
39.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
39.2and later.

39.3    Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31, is
39.4amended to read:
39.5    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
39.6sum of the transition revenue the district would have received for fiscal year 2015 under
39.7Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater
39.8of zero or the difference between:
39.9    (1) the sum of:
39.10    (i) the general education revenue the district would have received for fiscal year
39.112015 according to Minnesota Statutes 2012, section 126C.10;
39.12(ii) the integration revenue the district received for fiscal year 2013 under Minnesota
39.13Statutes 2012, section 124D.86;
39.14(iii) the pension adjustment the district would have received for fiscal year 2015
39.15under Minnesota Statutes 2012, section 127A.50;
39.16(iv) the special education aid the district would have received for fiscal year 2015
39.17under Minnesota Statutes 2012, section 125A.76; and
39.18(v) the special education excess cost aid the district would have received for fiscal
39.19year 2015 under Minnesota Statutes 2012, section 125A.79; and
39.20(2) the sum of the district's:
39.21(i) general education revenue for fiscal year 2015 excluding transition revenue
39.22under this section;
39.23(ii) achievement and integration revenue for fiscal year 2015 under section
39.24124D.862 ; and
39.25(iii) special education aid for fiscal year 2015 under section 125A.76; and
39.26(iv) alternative teacher compensation revenue for fiscal year 2015 under section
39.27122A.415,
39.28divided by the number of adjusted pupil units for fiscal year 2015.
39.29    (b) A district's transition revenue for fiscal year 2015 and later equals the product of
39.30the district's transition allowance times the district's adjusted pupil units.
39.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
39.32and later.

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

40.16    Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b,
40.17is amended to read:
40.18    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum
40.19of a district's referendum equalization aid and location equity aid under section 126C.10,
40.20subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
40.21equalization aid the district would have received for fiscal year 2015 under Minnesota
40.22Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
40.23received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs
40.24(a), (b), and (c).
40.25(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and
40.26location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later,
40.27for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must
40.28not be less than the product of (1) the district's referendum equalization aid for fiscal year
40.292015, times (2) the lesser of one or the ratio of the district's referendum revenue for that
40.30school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser
40.31of one or the ratio of the district's referendum market value used for fiscal year 2015
40.32referendum equalization calculations to the district's referendum market value used for
40.33that year's referendum equalization calculations.
40.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
40.35and later.

41.1    Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is
41.2amended to read:
41.3    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
41.4subdivision 1 , may be increased in the amount approved by the voters of the district
41.5at a referendum called for the purpose. The referendum may be called by the board.
41.6The referendum must be conducted one or two calendar years before the increased levy
41.7authority, if approved, first becomes payable. Only one election to approve an increase
41.8may be held in a calendar year. Unless the referendum is conducted by mail under
41.9subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
41.10first Monday in November. The ballot must state the maximum amount of the increased
41.11revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board,
41.12of increased revenue per adjusted pupil unit that differs from year to year over the number
41.13of years for which the increased revenue is authorized or may state that the amount shall
41.14increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
41.15annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
41.16state that existing referendum levy authority is expiring. In this case, the ballot may also
41.17compare the proposed levy authority to the existing expiring levy authority, and express
41.18the proposed increase as the amount, if any, over the expiring referendum levy authority.
41.19The ballot must designate the specific number of years, not to exceed ten, for which the
41.20referendum authorization applies. The ballot, including a ballot on the question to revoke
41.21or reduce the increased revenue amount under paragraph (c), must abbreviate the term
41.22"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may
41.23be modified to read, in cases of renewing existing levies at the same amount per pupil
41.24as in the previous year:
41.25"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
41.26TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
41.27SCHEDULED TO EXPIRE."
41.28    The ballot may contain a textual portion with the information required in this
41.29subdivision and a question stating substantially the following:
41.30    "Shall the increase in the revenue proposed by (petition to) the board of .........,
41.31School District No. .., be approved?"
41.32    If approved, an amount equal to the approved revenue per adjusted pupil unit times
41.33the adjusted pupil units for the school year beginning in the year after the levy is certified
41.34shall be authorized for certification for the number of years approved, if applicable, or
41.35until revoked or reduced by the voters of the district at a subsequent referendum.
42.1    (b) The board must prepare and deliver by first class mail at least 15 days but no more
42.2than 30 days before the day of the referendum to each taxpayer a notice of the referendum
42.3and the proposed revenue increase. The board need not mail more than one notice to any
42.4taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
42.5those shown to be owners on the records of the county auditor or, in any county where
42.6tax statements are mailed by the county treasurer, on the records of the county treasurer.
42.7Every property owner whose name does not appear on the records of the county auditor
42.8or the county treasurer is deemed to have waived this mailed notice unless the owner
42.9has requested in writing that the county auditor or county treasurer, as the case may be,
42.10include the name on the records for this purpose. The notice must project the anticipated
42.11amount of tax increase in annual dollars for typical residential homesteads, agricultural
42.12homesteads, apartments, and commercial-industrial property within the school district.
42.13    The notice for a referendum may state that an existing referendum levy is expiring
42.14and project the anticipated amount of increase over the existing referendum levy in
42.15the first year, if any, in annual dollars for typical residential homesteads, agricultural
42.16homesteads, apartments, and commercial-industrial property within the district.
42.17    The notice must include the following statement: "Passage of this referendum will
42.18result in an increase in your property taxes." However, in cases of renewing existing levies,
42.19the notice may include the following statement: "Passage of this referendum extends an
42.20existing operating referendum at the same amount per pupil as in the previous year."
42.21    (c) A referendum on the question of revoking or reducing the increased revenue
42.22amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
42.23revoke or reduce the revenue amount must state the amount per resident marginal cost
42.24 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved
42.25by the voters of the district pursuant to paragraph (a) must be available to the school
42.26district at least once before it is subject to a referendum on its revocation or reduction for
42.27subsequent years. Only one revocation or reduction referendum may be held to revoke or
42.28reduce referendum revenue for any specific year and for years thereafter.
42.29    (d) The approval of 50 percent plus one of those voting on the question is required to
42.30pass a referendum authorized by this subdivision.
42.31    (e) At least 15 days before the day of the referendum, the district must submit a
42.32copy of the notice required under paragraph (b) to the commissioner and to the county
42.33auditor of each county in which the district is located. Within 15 days after the results
42.34of the referendum have been certified by the board, or in the case of a recount, the
42.35certification of the results of the recount by the canvassing board, the district must notify
42.36the commissioner of the results of the referendum.
43.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
43.2and later.

43.3    Sec. 13. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a,
43.4is amended to read:
43.5    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
43.69, a school district may convert up to $300 per adjusted pupil unit of referendum authority
43.7from voter approved to board approved by a board vote. A district with less than $300 per
43.8adjusted pupil unit of referendum authority after the location equity revenue subtraction
43.9under subdivision 1 may authorize new referendum authority up to the difference between
43.10$300 per adjusted pupil unit and the district's referendum authority. The board may
43.11authorize this levy for up to five years and may subsequently reauthorize that authority
43.12in increments of up to five years.
43.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
43.14and later.

43.15    Sec. 14. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
43.16126C.44 SAFE SCHOOLS LEVY.
43.17    (a) Each district may make a levy on all taxable property located within the district
43.18for the purposes specified in this section. The maximum amount which may be levied for
43.19all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil
43.20units for the school year. The proceeds of the levy must be reserved and used for directly
43.21funding the following purposes or for reimbursing the cities and counties who contract
43.22with the district for the following purposes:
43.23    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of
43.24peace officers and sheriffs for liaison in services in the district's schools;
43.25    (2) to pay the costs for a drug abuse prevention program as defined in section
43.26609.101, subdivision 3 , paragraph (e), in the elementary schools;
43.27    (3) to pay the costs for a gang resistance education training curriculum in the
43.28district's schools;
43.29    (4) to pay the costs for security in the district's schools and on school property;
43.30    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
43.31voluntary opt-in suicide prevention tools, and violence prevention measures taken by
43.32the school district;
44.1    (6) to pay costs for licensed school counselors, licensed school nurses, licensed
44.2school social workers, licensed school psychologists, and licensed alcohol and chemical
44.3dependency counselors to help provide early responses to problems;
44.4    (7) to pay for facility security enhancements including laminated glass, public
44.5announcement systems, emergency communications devices, and equipment and facility
44.6modifications related to violence prevention and facility security;
44.7    (8) to pay for costs associated with improving the school climate; or
44.8    (9) to pay costs for colocating and collaborating with mental health professionals
44.9who are not district employees or contractors.
44.10    (b) For expenditures under paragraph (a), clause (1), the district must initially
44.11attempt to contract for services to be provided by peace officers or sheriffs with the
44.12police department of each city or the sheriff's department of the county within the district
44.13containing the school receiving the services. If a local police department or a county
44.14sheriff's department does not wish to provide the necessary services, the district may
44.15contract for these services with any other police or sheriff's department located entirely or
44.16partially within the school district's boundaries.
44.17    (c) A school district that is a member of an intermediate school district may
44.18include in its authority under this section the costs associated with safe schools activities
44.19authorized under paragraph (a) for intermediate school district programs. This authority
44.20must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
44.21This authority is in addition to any other authority authorized under this section. Revenue
44.22raised under this paragraph must be transferred to the intermediate school district.

44.23    Sec. 15. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is
44.24amended to read:
44.25    Subd. 7. Alternative attendance programs. (a) The general education aid and
44.26special education aid for districts must be adjusted for each pupil attending a nonresident
44.27district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
44.28adjustments must be made according to this subdivision.
44.29    (b) For purposes of this subdivision, the "unreimbursed cost of providing special
44.30education and services" means the difference between: (1) the actual cost of providing
44.31special instruction and services, including special transportation and unreimbursed
44.32building lease and debt service costs for facilities used primarily for special education, for
44.33a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section
44.34125A.51 , who is enrolled in a program listed in this subdivision, minus (2) if the pupil
44.35receives special instruction and services outside the regular classroom for more than
45.160 percent of the school day, the amount of general education revenue and referendum
45.2equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable
45.3to that pupil for the portion of time the pupil receives special instruction and services
45.4outside of the regular classroom, excluding portions attributable to district and school
45.5administration, district support services, operations and maintenance, capital expenditures,
45.6and pupil transportation, minus (3) special education aid under section 125A.76
45.7attributable to that pupil, that is received by the district providing special instruction and
45.8services. For purposes of this paragraph, general education revenue and referendum
45.9equalization aid attributable to a pupil must be calculated using the serving district's
45.10average general education revenue and referendum equalization aid per adjusted pupil unit.
45.11(c) For fiscal year 2015 and later, special education aid paid to a resident district
45.12must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
45.13special education and services.
45.14(d) Notwithstanding paragraph (c), special education aid paid to a resident district
45.15must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
45.16education and services provided to students at an intermediate district, cooperative, or
45.17charter school where the percent of students eligible for special education services is at
45.18least 70 percent of the charter school's total enrollment.
45.19    (e) Special education aid paid to the district or cooperative providing special
45.20instruction and services for the pupil, or to the fiscal agent district for a cooperative,
45.21must be increased by the amount of the reduction in the aid paid to the resident district
45.22under paragraphs (c) and (d). If the resident district's special education aid is insufficient
45.23to make the full adjustment, the remaining adjustment shall be made to other state aids
45.24due to the district.
45.25    (f) An area learning center operated by a service cooperative, intermediate district,
45.26education district, or a joint powers cooperative may elect through the action of the
45.27constituent boards to charge the resident district tuition for pupils rather than to have the
45.28general education revenue paid to a fiscal agent school district. Except as provided in
45.29paragraph (e), the district of residence must pay tuition equal to at least between 90 and 100
45.30percent of the district average general education revenue per pupil unit minus an amount
45.31equal to the product of the formula allowance according to section 126C.10, subdivision
45.322 , times .0466, calculated without compensatory revenue and transportation sparsity
45.33revenue, times the number of pupil units for pupils attending the area learning center.
45.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
45.35and later.

46.1    Sec. 16. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
46.2    Subd. 2. General education aid. For general education aid under Minnesota
46.3Statutes, section 126C.13, subdivision 4:
46.4
46.5
 $
 6,051,766,000
6,851,972,000
 .....
 2014
46.6
46.7
 $
 6,370,640,000
6,435,898,000
 .....
 2015
46.8The 2014 appropriation includes $781,842,000 780,709,000 for 2013 and
46.9$5,269,924,000 $6,071,263,000 for 2014.
46.10The 2015 appropriation includes $823,040,000 $589,097,000 for 2014 and
46.11$5,547,600,000 $5,846,801,000 for 2015.

46.12ARTICLE 8
46.13EDUCATION EXCELLENCE

46.14    Section 1. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to
46.15read:
46.16    Subdivision 1. Revenue amount. (a) A school district, intermediate school district,
46.17school site, or charter school that meets the conditions of section 122A.414 and submits an
46.18application approved by the commissioner is eligible for alternative teacher compensation
46.19revenue.
46.20(b) For school district and intermediate school district applications, the commissioner
46.21must consider only those applications to participate that are submitted jointly by a
46.22district and the exclusive representative of the teachers. The application must contain an
46.23alternative teacher professional pay system agreement that:
46.24(1) implements an alternative teacher professional pay system consistent with
46.25section 122A.414; and
46.26(2) is negotiated and adopted according to the Public Employment Labor Relations
46.27Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
46.28district may enter into a contract for a term of two or four years.
46.29Alternative teacher compensation revenue for a qualifying school district or site in
46.30which the school board and the exclusive representative of the teachers agree to place
46.31teachers in the district or at the site on the alternative teacher professional pay system
46.32equals $260 times the number of pupils enrolled at the district or site on October 1 of
46.33the previous fiscal year. Alternative teacher compensation revenue for a qualifying
46.34intermediate school district must be calculated under section 126C.10, subdivision 34
46.35 subdivision 4, paragraphs (a) and (b).
47.1(c) For a newly combined or consolidated district, the revenue shall be computed
47.2using the sum of pupils enrolled on October 1 of the previous year in the districts entering
47.3into the combination or consolidation. The commissioner may adjust the revenue computed
47.4for a site using prior year data to reflect changes attributable to school closings, school
47.5openings, or grade level reconfigurations between the prior year and the current year.
47.6(d) The revenue is available only to school districts, intermediate school districts,
47.7school sites, and charter schools that fully implement an alternative teacher professional
47.8pay system by October 1 of the current school year.
47.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
47.10and later.

47.11    Sec. 2. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is
47.12amended to read:
47.13    Subdivision 1. Initial achievement and integration revenue. (a) An eligible
47.14district's initial achievement and integration revenue equals the lesser of 100.3 percent of
47.15the district's expenditures under the budget approved by the commissioner under section
47.16124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive
47.17revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil
47.18units for that year times the ratio of the district's enrollment of protected students for the
47.19previous school year to total enrollment for the previous school year and (2) the greater of
47.20zero or 66 percent of the difference between the district's integration revenue for fiscal
47.21year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
47.22(b) In each year, 0.3 percent of each district's initial achievement and integration
47.23revenue is transferred to the department for the oversight and accountability activities
47.24required under this section and section 124D.861.
47.25EFFECTIVE DATE.This section is effective the day following final enactment
47.26and applies to revenue for fiscal year 2014 and later.

47.27    Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is
47.28amended to read:
47.29    Subd. 2. Incentive revenue. An eligible school district's maximum incentive
47.30revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
47.31be A district's incentive revenue equals the lesser of the maximum incentive revenue
47.32or the district's expenditures for implementing a voluntary plan to reduce racial and
47.33economic enrollment disparities through intradistrict and interdistrict activities that have
48.1been approved as a part of the district's achievement and integration plan under the budget
48.2approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).
48.3EFFECTIVE DATE.This section is effective the day following final enactment
48.4and applies to revenue for fiscal year 2014 and later.

48.5ARTICLE 9
48.6SPECIAL EDUCATION

48.7    Section 1. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1,
48.8is amended to read:
48.9    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and
48.10later, when a school district provides special instruction and services for a pupil with
48.11a disability as defined in section 125A.02 outside the district of residence, excluding
48.12a pupil for whom an adjustment to special education aid is calculated according to
48.13section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the
48.14resident district must be reduced by an amount equal to (1) the actual cost of providing
48.15special instruction and services to the pupil, including a proportionate amount for special
48.16transportation and unreimbursed building lease and debt service costs for facilities used
48.17primarily for special education, plus (2) the amount of general education revenue and
48.18referendum equalization aid attributable to that pupil, calculated using the resident district's
48.19average general education revenue and referendum equalization aid per adjusted pupil
48.20unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity
48.21revenue, minus (3) the amount of special education aid for children with a disability
48.22under section 125A.76 received on behalf of that child, minus (4) if the pupil receives
48.23special instruction and services outside the regular classroom for more than 60 percent
48.24of the school day, the amount of general education revenue and referendum equalization
48.25aid, excluding portions attributable to district and school administration, district support
48.26services, operations and maintenance, capital expenditures, and pupil transportation,
48.27attributable to that pupil for the portion of time the pupil receives special instruction
48.28and services outside of the regular classroom, calculated using the resident district's
48.29average general education revenue and referendum equalization aid per adjusted pupil unit
48.30excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
48.31and the serving district's basic skills revenue, elementary sparsity revenue and secondary
48.32sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
48.33served by a cooperative unit without a fiscal agent school district, the general education
48.34revenue and referendum equalization aid attributable to a pupil must be calculated using
49.1the resident district's average general education revenue and referendum equalization aid
49.2excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
49.3revenue. Special education aid paid to the district or cooperative providing special
49.4instruction and services for the pupil must be increased by the amount of the reduction in
49.5the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
49.6and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
49.7expenditures on the resident school district's books of account under sections 123B.75
49.8and 123B.76. If the resident district's special education aid is insufficient to make the full
49.9adjustment, the remaining adjustment shall be made to other state aid due to the district.
49.10    (b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs
49.11(b) to (d), a charter school where more than 30 percent of enrolled students receive special
49.12education and related services, a site approved under section 125A.515, an intermediate
49.13district, a special education cooperative, or a school district that served as the applicant
49.14agency for a group of school districts for federal special education aids for fiscal year
49.152006 may apply to the commissioner for authority to charge the resident district an
49.16additional amount to recover any remaining unreimbursed costs of serving pupils with
49.17a disability. The application must include a description of the costs and the calculations
49.18used to determine the unreimbursed portion to be charged to the resident district. Amounts
49.19approved by the commissioner under this paragraph must be included in the tuition billings
49.20or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs
49.21(b) to (d), as applicable.
49.22    (c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
49.23(d) and (e) paragraph (b), "general education revenue and referendum equalization aid"
49.24means the sum of the general education revenue according to section 126C.10, subdivision
49.251, excluding the location equity levy according to section 126C.10, subdivision 2e,
49.26paragraph (c), plus the referendum equalization aid according to section 126C.17,
49.27subdivision 7.
49.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
49.29and later.

49.30    Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is
49.31amended to read:
49.32    Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79,
49.33the definitions in this subdivision apply.
50.1    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
50.2For the purposes of computing basic revenue pursuant to this section, each child with a
50.3disability shall be counted as prescribed in section 126C.05, subdivision 1.
50.4    (c) "Essential personnel" means teachers, cultural liaisons, related services, and
50.5support services staff providing services to students. Essential personnel may also include
50.6special education paraprofessionals or clericals providing support to teachers and students
50.7by preparing paperwork and making arrangements related to special education compliance
50.8requirements, including parent meetings and individualized education programs. Essential
50.9personnel does not include administrators and supervisors.
50.10    (d) "Average daily membership" has the meaning given it in section 126C.05.
50.11    (e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015,
50.121.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the
50.13program growth factor for the previous year for fiscal year 2018 and later.
50.14(f) "Nonfederal special education expenditure" means all direct expenditures that
50.15are necessary and essential to meet the district's obligation to provide special instruction
50.16and services to children with a disability according to sections 124D.454, 125A.03 to
50.17125A.24 , 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
50.18the department under section 125A.75, subdivision 4, excluding expenditures:
50.19(1) reimbursed with federal funds;
50.20(2) reimbursed with other state aids under this chapter;
50.21(3) for general education costs of serving students with a disability;
50.22(4) for facilities;
50.23(5) for pupil transportation; and
50.24(6) for postemployment benefits.
50.25(g) "Old formula special education expenditures" means expenditures eligible for
50.26revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
50.27    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
50.28for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and
50.29fringe benefits of one-to-one instructional and behavior management aides and one-to-one
50.30licensed, certified professionals assigned to a child attending the academy, if the aides or
50.31professionals are required by the child's individualized education program.
50.32(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year
50.332014 and 2.27 percent for fiscal year 2015.
50.34(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
50.35for fiscal year 2015.
51.1(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100
51.2for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education
51.3aid increase limit for the previous fiscal year and $40.

51.4    Sec. 3. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
51.5    Subd. 2. Special education initial aid. The special education initial aid equals the
51.6sum of the following amounts computed using current year data:
51.7    (1) 68 percent of the salary of each essential person employed in the district's program
51.8for children with a disability during the fiscal year, whether the person is employed by one
51.9or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
51.10    (2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
51.11for the Blind, 68 percent of the salary of each one to one one-to-one instructional and
51.12behavior management aide and one-to-one licensed, certified professional assigned to
51.13a child attending the academy, if the aides or professionals are required by the child's
51.14individualized education program;
51.15    (3) for special instruction and services provided to any pupil by contracting with
51.16public, private, or voluntary agencies other than school districts, in place of special
51.17instruction and services provided by the district, 52 percent of the difference between
51.18the amount of the contract and the general education revenue, excluding basic skills
51.19revenue and alternative teacher compensation revenue, and referendum equalization aid
51.20attributable to a pupil, calculated using the resident district's average general education
51.21revenue and referendum equalization aid per adjusted pupil unit for the fraction of the
51.22school day the pupil receives services under the contract. This includes children who
51.23are residents of the state, receive services under this subdivision and subdivision 1, and
51.24are placed in a care and treatment facility by court action in a state that does not have a
51.25reciprocity agreement with the commissioner under section 125A.155 as provided for in
51.26section 125A.79, subdivision 8;
51.27    (4) for special instruction and services provided to any pupil by contracting for
51.28services with public, private, or voluntary agencies other than school districts, that are
51.29supplementary to a full educational program provided by the school district, 52 percent of
51.30the amount of the contract for that pupil;
51.31    (5) for supplies and equipment purchased or rented for use in the instruction of
51.32children with a disability, an amount equal to 47 percent of the sum actually expended by
51.33the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
51.34not to exceed an average of $47 in any one school year for each child with a disability
51.35receiving instruction;
52.1    (6) for fiscal years 1997 and later, special education base revenue shall include
52.2amounts under clauses (1) to (5) for special education summer programs provided during
52.3the base year for that fiscal year;
52.4    (7) the cost of providing transportation services for children with disabilities under
52.5section 123B.92, subdivision 1, paragraph (b), clause (4); and
52.6    (8) the district's transition-disabled program initial aid according to section
52.7124D.454, subdivision 3 .
52.8    The department shall establish procedures through the uniform financial accounting
52.9and reporting system to identify and track all revenues generated from third-party billings
52.10as special education revenue at the school district level; include revenue generated from
52.11third-party billings as special education revenue in the annual cross-subsidy report; and
52.12exclude third-party revenue from calculation of excess cost aid to the districts.

52.13    Sec. 4. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is
52.14amended to read:
52.15    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's
52.16special education initial aid equals the sum of:
52.17(1) the lesser least of 62 percent of the district's old formula special education
52.18expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50
52.19percent of the district's nonfederal special education expenditures for the prior year,
52.20excluding pupil transportation expenditures, or 56 percent of the product of the sum of the
52.21following amounts, computed using prior fiscal year data, and the program growth factor:
52.22(i) the product of the district's average daily membership served and the sum of:
52.23(A) $450; plus
52.24(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1
52.25who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
52.26who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
52.27(C) .008 times the district's average daily membership served; plus
52.28(ii) $10,400 times the December 1 child count for the primary disability areas of
52.29autism spectrum disorders, developmental delay, and severely multiply impaired; plus
52.30(iii) $18,000 times the December 1 child count for the primary disability areas of
52.31deaf and hard-of-hearing and emotional or behavioral disorders; plus
52.32(iv) $27,000 times the December 1 child count for the primary disability areas of
52.33developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
52.34physically impaired, visually impaired, and deafblind; plus
53.1(2) the cost of providing transportation services for children with disabilities under
53.2section 123B.92, subdivision 1, paragraph (b), clause (4).
53.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
53.4and later.

53.5    Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is
53.6amended to read:
53.7    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross
53.8subsidy reduction aid for a school district, not including a charter school, equals the
53.9lesser of (a) the product of the cross subsidy reduction aid limit and the district's average
53.10daily membership served or (b) the sum of the product of the cross subsidy reduction aid
53.11percentage, the district's average daily membership served, and the sum of:
53.12(1) $450; plus
53.13(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1
53.14who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
53.15who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
53.16(3) .008 times the district's average daily membership served; plus the product of the
53.17cross subsidy aid percentage and the sum of:
53.18(i) $10,100 times the December 1 child count for the primary disability areas of
53.19autism spectrum disorders, developmental delay, and severely multiply impaired; plus
53.20(ii) $17,500 times the December 1 child count for the primary disability areas of
53.21deaf and hard-of-hearing and emotional or behavioral disorders; plus
53.22(iii) $26,000 times the December 1 child count for the primary disability areas of
53.23developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
53.24physically impaired, visually impaired, and deafblind.
53.25EFFECTIVE DATE.This section is effective the day following final enactment
53.26and applies to revenue for fiscal year 2014 and later.

53.27    Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is
53.28amended to read:
53.29    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
53.30district's special education aid equals the sum of the district's special education initial aid
53.31under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and
53.32the district's excess cost aid under section 125A.79, subdivision 7.
54.1(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
54.2the district's special education initial aid under subdivision 2a and the district's excess cost
54.3aid under section 125A.79, subdivision 5.
54.4(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
54.5a school district must not exceed the sum of the special education aid the district would
54.6have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
54.7and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
54.8127A.47, subdivision 7 , and the product of the district's average daily membership served
54.9and the special education aid increase limit.
54.10(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
54.11aid for a school district must not exceed the sum of: (i) the product of the district's average
54.12daily membership served and the special education aid increase limit and (ii) the product
54.13of the sum of the special education aid the district would have received for fiscal year 2016
54.14under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
54.15to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
54.16the district's average daily membership served for the current fiscal year to the district's
54.17average daily membership served for fiscal year 2016, and the program growth factor.
54.18(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education
54.19aid for a school district, not including a charter school, must not be less than the lesser of
54.20(1) the district's nonfederal special education expenditures for that fiscal year or (2) the
54.21product of the sum of the special education aid the district would have received for fiscal
54.22year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted
54.23according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the
54.24ratio of the district's adjusted daily membership for the current fiscal year to the district's
54.25average daily membership for fiscal year 2016, and the program growth factor.
54.26EFFECTIVE DATE.This section is effective the day following final enactment
54.27and applies to revenue for fiscal year 2014 and later.

54.28    Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is
54.29amended to read:
54.30    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
54.31subdivision apply.
54.32    (a) "Unreimbursed old formula special education expenditures" means:
54.33    (1) old formula special education expenditures for the prior fiscal year; minus
54.34    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section
54.35125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under
55.1section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education
55.2initial aid under section 125A.76, subdivision 2a; minus
55.3(3) the amount of general education revenue, excluding location equity revenue, plus
55.4location equity aid and referendum equalization aid for the prior fiscal year attributable
55.5to pupils receiving special instruction and services outside the regular classroom for
55.6more than 60 percent of the school day for the portion of time the pupils receive special
55.7instruction and services outside the regular classroom, excluding portions attributable to
55.8district and school administration, district support services, operations and maintenance,
55.9capital expenditures, and pupil transportation.
55.10(b) "Unreimbursed nonfederal special education expenditures" means:
55.11(1) nonfederal special education expenditures for the prior fiscal year; minus
55.12(2) special education initial aid under section 125A.76, subdivision 2a; minus
55.13(3) the amount of general education revenue and referendum equalization aid for the
55.14prior fiscal year attributable to pupils receiving special instruction and services outside the
55.15regular classroom for more than 60 percent of the school day for the portion of time the
55.16pupils receive special instruction and services outside of the regular classroom, excluding
55.17portions attributable to district and school administration, district support services,
55.18operations and maintenance, capital expenditures, and pupil transportation.
55.19    (c) "General revenue" for a school district means the sum of the general education
55.20revenue according to section 126C.10, subdivision 1, excluding alternative teacher
55.21compensation revenue, minus transportation sparsity revenue minus, location equity
55.22revenue, and total operating capital revenue. "General revenue" for a charter school means
55.23the sum of the general education revenue according to section 124D.11, subdivision 1, and
55.24transportation revenue according to section 124D.11, subdivision 2, excluding alternative
55.25teacher compensation revenue, minus referendum equalization aid minus, transportation
55.26sparsity revenue minus, and operating capital revenue.
55.27EFFECTIVE DATE.This section is effective the day following final enactment
55.28and applies to revenue for fiscal year 2014 and later.

55.29    Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is
55.30amended to read:
55.31    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
55.32 excess cost aid equals the greater of:
55.33    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal
55.34special education expenditures and (ii) 7.0 percent of the district's general revenue;
56.1    (2) 62 percent of the difference between (i) the district's unreimbursed old formula
56.2special education expenditures and (ii) 2.5 percent of the district's general revenue; or
56.3    (3) zero.
56.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
56.5and later.

56.6    Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is
56.7amended to read:
56.8    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
56.9services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
56.10treatment facility by court action in a state that does not have a reciprocity agreement with
56.11the commissioner under section 125A.155, the resident school district shall submit the
56.12balance receive special education out-of-state tuition aid equal to the amount of the tuition
56.13bills, minus (1) the general education revenue, excluding basic skills revenue and the
56.14location equity levy attributable to the pupil, calculated using the resident district's average
56.15general education revenue per adjusted pupil unit, and (2) the referendum equalization aid
56.16attributable to the pupil, calculated using the resident district's average general education
56.17revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special
56.18education contracted services initial revenue aid attributable to the pupil.
56.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
56.20and later.

56.21    Sec. 10. Laws 2013, chapter 116, article 9, section 2, is amended to read:
56.22    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
56.23The sums indicated in this section are appropriated from the general fund to the
56.24Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
56.25
 $
 11,749,000
 .....
 2014
56.26
56.27
 $
 11,664,000
11,964,000
 .....
 2015
56.28$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading
56.29kitchen facilities. Any balance in the first year does not cancel but is available in the
56.30second year.

57.1ARTICLE 10
57.2NUTRITION

57.3    Section 1. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1,
57.4is amended to read:
57.5    Subdivision 1. School lunch aid computation. Each school year, the state must
57.6pay participants in the national school lunch program the amount of 12.5 cents for each
57.7full paid, reduced-price, and free student lunch and 52 cents for each reduced-price lunch
57.8served to students.
57.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
57.10and later.

57.11    Sec. 2. Minnesota Statutes 2012, section 124D.111, is amended by adding a
57.12subdivision to read:
57.13    Subd. 4. No fees. A participant that receives school lunch aid under this section
57.14must make lunch available without charge to all participating students who qualify for free
57.15or reduced-price meals.
57.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
57.17and later.

57.18    Sec. 3. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
57.19    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
57.20section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
57.21
57.22
 $
 13,032,000
12,417,000
 .....
 2014
57.23
57.24
 $
 13,293,000
16,185,000
 .....
 2015

57.25ARTICLE 11
57.26SELF-SUFFICIENCY AND LIFELONG LEARNING

57.27    Section 1. Minnesota Statutes 2012, section 124D.522, is amended to read:
57.28124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
57.29GRANTS.
57.30(a) The commissioner, in consultation with the policy review task force under
57.31section 124D.521, may make grants to nonprofit organizations to provide services that
58.1are not offered by a district adult basic education program or that are supplemental to
58.2either the statewide adult basic education program, or a district's adult basic education
58.3program. The commissioner may make grants for: staff development for adult basic
58.4education teachers and administrators; training for volunteer tutors; training, services, and
58.5materials for serving disabled students through adult basic education programs; statewide
58.6promotion of adult basic education services and programs; development and dissemination
58.7of instructional and administrative technology for adult basic education programs;
58.8programs which primarily serve communities of color; adult basic education distance
58.9learning projects, including television instruction programs; and other supplemental
58.10services to support the mission of adult basic education and innovative delivery of adult
58.11basic education services.
58.12(b) The commissioner must establish eligibility criteria and grant application
58.13procedures. Grants under this section must support services throughout the state, focus on
58.14educational results for adult learners, and promote outcome-based achievement through
58.15adult basic education programs. Beginning in fiscal year 2002, the commissioner may
58.16make grants under this section from the state total adult basic education aid set aside for
58.17supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
58.18for supplemental service grants must be used for grants for adult basic education programs
58.19to encourage and support innovations in adult basic education instruction and service
58.20delivery. A grant to a single organization cannot exceed 20 40 percent of the total
58.21supplemental services aid. Nothing in this section prevents an approved adult basic
58.22education program from using state or federal aid to purchase supplemental services.

58.23    Sec. 2. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, is
58.24amended to read:
58.25    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
58.26education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
58.27during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
58.28(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
58.29fiscal years equals:
58.30    (1) the state total adult basic education aid for the preceding fiscal year plus any
58.31amount that is not paid for during the previous fiscal year, as a result of adjustments under
58.32subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
58.33    (2) the lesser of:
58.34    (i) 1.025; or
58.35    (ii) the average growth in state total contact hours over the prior ten program years.
59.1    Beginning in fiscal year 2002, two Three percent of the state total adult basic
59.2education aid must be set aside for adult basic education supplemental service grants
59.3under section 124D.522.
59.4    (b) The state total adult basic education aid, excluding basic population aid, equals
59.5the difference between the amount computed in paragraph (a), and the state total basic
59.6population aid under subdivision 2.
59.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
59.8and later.

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

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

60.1    Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to
60.2read:
60.3    Subd. 3. Enrollment options transportation. For transportation of pupils attending
60.4postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
60.5of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
60.6
60.7
 $
 44,000
37,000
 .....
 2014
60.8
60.9
 $
 48,000
40,000
 .....
 2015

60.10    Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
60.11    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
60.12127A.49 :
60.13
60.14
 $
 2,747,000
2,876,000
 .....
 2014
60.15
60.16
 $
 3,136,000
3,103,000
 .....
 2015
60.17The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
60.18 for 2014.
60.19The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
60.20 $2,817,000 for 2015.

60.21    Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
60.22    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
60.23Statutes, section 123A.485:
60.24
60.25
 $
 472,000
585,000
 .....
 2014
60.26
60.27
 $
 480,000
254,000
 .....
 2015
60.28The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
60.29The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
60.30 for 2015.

60.31    Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
60.32    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
60.33Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
61.1
61.2
 $
 15,582,000
16,068,000
 .....
 2014
61.3
61.4
 $
 16,169,000
16,074,000
 .....
 2015
61.5The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000
61.6 for 2014.
61.7The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
61.8 $14,522,000 for 2015.

61.9    Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
61.10    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
61.11under Minnesota Statutes, section 123B.92, subdivision 9:
61.12
61.13
 $
 18,565,000
18,566,000
 .....
 2014
61.14
61.15
 $
 18,946,000
17,646,000
 .....
 2015
61.16The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000
61.17 for 2014.
61.18The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
61.19 $15,880,000 for 2015.

61.20    Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
61.21    Subd. 11. Career and technical aid. For career and technical aid under Minnesota
61.22Statutes, section 124D.4531, subdivision 1b:
61.23
61.24
 $
 4,320,000
3,959,000
 .....
 2014
61.25
61.26
 $
 5,680,000
5,172,000
 .....
 2015
61.27The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.
61.28The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
61.29 $4,733,000 for 2015.
61.30B. EDUCATION EXCELLENCE

61.31    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
61.32    Subd. 3. Achievement and integration aid. For achievement and integration aid
61.33under Minnesota Statutes, section 124D.862:
62.1
62.2
 $
 58,911,000
55,609,000
 .....
 2014
62.3
62.4
 $
 68,623,000
62,692,000
 .....
 2015
62.5The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
62.6The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
62.7 $56,514,000 for 2015.

62.8    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
62.9    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota
62.10Statutes, section 124D.98:
62.11
62.12
 $
 52,514,000
50,998,000
 .....
 2014
62.13
62.14
 $
 53,818,000
47,458,000
 .....
 2015
62.15The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
62.16 for 2014.
62.17The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
62.18 $42,526,000 for 2015.

62.19    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
62.20    Subd. 5. Interdistrict desegregation or integration transportation grants. For
62.21interdistrict desegregation or integration transportation grants under Minnesota Statutes,
62.22section 124D.87:
62.23
62.24
 $
 13,968,000
13,521,000
 .....
 2014
62.25
62.26
 $
 14,712,000
14,248,000
 .....
 2015

62.27    Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
62.28    Subd. 6. Success for the future. For American Indian success for the future grants
62.29under Minnesota Statutes, section 124D.81:
62.30
62.31
 $
 2,137,000
2,214,000
 .....
 2014
62.32
 $
 2,137,000
 .....
 2015
62.33The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
62.34 for 2014.
63.1The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
63.2 $1,924,000 for 2015.

63.3    Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
63.4    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota
63.5Statutes, section 124D.83:
63.6
63.7
 $
 2,080,000
2,144,000
 .....
 2014
63.8
63.9
 $
 2,230,000
2,152,000
 .....
 2015
63.10The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000
63.11 for 2014.
63.12The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
63.13 $1,944,000 for 2015.

63.14    Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to
63.15read:
63.16    Subd. 20. Alternative compensation. For alternative teacher compensation aid
63.17under Minnesota Statutes, section 122A.415, subdivision 4:
63.18
63.19
 $
 60,340,000
71,599,000
 .....
 2015
63.20The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.
63.21C. CHARTER SCHOOLS

63.22    Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
63.23    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
63.24Statutes, section 124D.11, subdivision 4:
63.25
63.26
 $
 54,484,000
54,763,000
 .....
 2014
63.27
63.28
 $
 59,533,000
58,294,000
 .....
 2015
63.29The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000
63.30 for 2014.
63.31The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
63.32 $52,967,000 for 2015.
63.33D. SPECIAL PROGRAMS

64.1    Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
64.2    Subd. 2. Special education; regular. For special education aid under Minnesota
64.3Statutes, section 125A.75:
64.4
64.5
 $
 997,725,000
1,038,514,000
 .....
 2014
64.6
64.7
 $
 1,108,211,000
1,111,641,000
 .....
 2015
64.8The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000
64.9 $920,282,000 for 2014.
64.10The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and
64.11$938,282,000 $982,092,000 for 2015.

64.12    Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
64.13    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
64.14section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
64.15within the district boundaries for whom no district of residence can be determined:
64.16
64.17
 $
 1,655,000
1,548,000
 .....
 2014
64.18
64.19
 $
 1,752,000
1,674,000
 .....
 2015
64.20If the appropriation for either year is insufficient, the appropriation for the other
64.21year is available.

64.22    Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
64.23    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
64.24services under Minnesota Statutes, section 125A.75, subdivision 1:
64.25
64.26
 $
 345,000
351,000
 .....
 2014
64.27
64.28
 $
 355,000
346,000
 .....
 2015
64.29The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
64.30The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
64.31 for 2015.
64.32E. FACILITIES AND TECHNOLOGY

64.33    Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
64.34    Subd. 2. Health and safety revenue. For health and safety aid according to
64.35Minnesota Statutes, section 123B.57, subdivision 5:
65.1
65.2
 $
 463,000
473,000
 .....
 2014
65.3
65.4
 $
 434,000
651,000
 .....
 2015
65.5The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.
65.6The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
65.7 for 2015.

65.8    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
65.9    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
65.10Statutes, section 123B.53, subdivision 6:
65.11
65.12
 $
 19,083,000
19,778,000
 .....
 2014
65.13
65.14
 $
 25,060,000
22,591,000
 .....
 2015
65.15The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
65.16 for 2014.
65.17The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
65.18 $20,660,000 for 2015.

65.19    Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
65.20    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
65.21according to Minnesota Statutes, section 123B.59, subdivision 1:
65.22
65.23
 $
 19,287,000
19,982,000
 .....
 2014
65.24
 $
 19,287,000
 .....
 2015
65.25The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
65.26 for 2014.
65.27The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
65.28 $17,359,000 for 2015.

65.29    Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
65.30    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
65.31Minnesota Statutes, section 123B.591, subdivision 4:
65.32
65.33
 $
 3,564,000
3,858,000
 .....
 2014
65.34
65.35
 $
 3,730,000
4,024,000
 .....
 2015
66.1The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000
66.2 for 2014.
66.3The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
66.4 $3,646,000 for 2015.
66.5F. NUTRITION AND LIBRARIES

66.6    Sec. 21. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
66.7    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
66.8Statutes, section 124D.1158:
66.9
66.10
 $
 5,711,000
5,308,000
 .....
 2014
66.11
66.12
 $
 6,022,000
5,607,000
 .....
 2015

66.13    Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
66.14    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
66.15section 124D.118:
66.16
66.17
 $
 1,039,000
992,000
 .....
 2014
66.18
66.19
 $
 1,049,000
1,002,000
 .....
 2015

66.20    Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
66.21    Subd. 6. Basic system support. For basic system support grants under Minnesota
66.22Statutes, section 134.355:
66.23
66.24
 $
 13,570,000
14,058,000
 .....
 2014
66.25
66.26
 $
 13,570,000
13,570,000
 .....
 2015
66.27The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
66.28 for 2014.
66.29The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
66.30 $12,213,000 for 2015.

66.31    Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
66.32    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
66.33Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
67.1
67.2
 $
 1,300,000
1,346,000
 .....
 2014
67.3
 $
 1,300,000
 .....
 2015
67.4The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
67.5 for 2014.
67.6The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
67.7 $1,170,000 for 2015.

67.8    Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
67.9    Subd. 9. Regional library telecommunications aid. For regional library
67.10telecommunications aid under Minnesota Statutes, section 134.355:
67.11
67.12
 $
 2,300,000
2,382,000
 .....
 2014
67.13
 $
 2,300,000
 .....
 2015
67.14The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
67.15 for 2014.
67.16The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
67.17 $2,070,000 for 2015.
67.18G. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY,
67.19AND LIFELONG LEARNING

67.20    Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
67.21    Subd. 2. School readiness. For revenue for school readiness programs under
67.22Minnesota Statutes, sections 124D.15 and 124D.16:
67.23
67.24
 $
 10,095,000
10,458,000
 .....
 2014
67.25
67.26
 $
 10,159,000
10,162,000
 .....
 2015
67.27The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
67.28 for 2014.
67.29The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
67.30 $9,153,000 for 2015.

67.31    Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
67.32    Subd. 3. Early childhood family education aid. For early childhood family
67.33education aid under Minnesota Statutes, section 124D.135:
68.1
68.2
 $
 22,078,000
22,797,000
 .....
 2014
68.3
68.4
 $
 22,425,000
22,001,000
 .....
 2015
68.5The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
68.6 for 2014.
68.7The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
68.8 $19,803,000 for 2015.

68.9    Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
68.10    Subd. 4. Health and developmental screening aid. For health and developmental
68.11screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
68.12
68.13
 $
 3,421,000
3,527,000
 .....
 2014
68.14
68.15
 $
 3,344,000
3,330,000
 .....
 2015
68.16The 2014 appropriation includes $474,000 for 2013 and $2,947,000 $3,053,000
68.17 for 2014.
68.18The 2015 appropriation includes $463,000 $339,000 for 2014 and $2,881,000
68.19 $2,991,000 for 2015.

68.20    Sec. 29. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
68.21    Subd. 10. Community education aid. For community education aid under
68.22Minnesota Statutes, section 124D.20:
68.23
68.24
 $
 935,000
955,000
 .....
 2014
68.25
68.26
 $
 1,056,000
1,060,000
 .....
 2015
68.27The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
68.28The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
68.29 for 2015.

68.30    Sec. 30. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
68.31    Subd. 11. Adults with disabilities program aid. For adults with disabilities
68.32programs under Minnesota Statutes, section 124D.56:
68.33
68.34
 $
 710,000
735,000
 .....
 2014
68.35
 $
 710,000
 .....
 2015
69.1The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.
69.2The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
69.3 for 2015.

69.4    Sec. 31. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
69.5    Subd. 14. Adult basic education aid. For adult basic education aid under
69.6Minnesota Statutes, section 124D.531:
69.7
69.8
 $
 47,005,000
48,782,000
 .....
 2014
69.9
69.10
 $
 48,145,000
48,202,000
 .....
 2015
69.11The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 $42,498,000
69.12 for 2014.
69.13The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
69.14 $43,480,000 for 2015.

69.15ARTICLE 13
69.16HEALTH AND HUMAN SERVICES APPROPRIATIONS

69.17
 Section 1. SUMMARY OF APPROPRIATIONS.
69.18The amounts shown in this section summarize direct appropriations, by fund, made
69.19in sections 3 and 4.
69.20
 2014
 2015
 Total
69.21
 General
 $
 3,960,000
 $
 81,041,000
 $
 85,001,000
69.22
69.23
 State Government Special
Revenue
 817,000
 708,000
 1,525,000
69.24
 Health Care Access
 (25,000)
 (1,000,000)
 (1,025,000)
69.25
 Total
 $
 4,752,000
 $
 80,749,000
 $
 85,501,000

69.26
 Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
69.27The sums shown in the columns marked "Appropriations" are added to or, if shown
69.28in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14
69.29and 15, to the agencies and for the purposes specified in this article. The appropriations
69.30are from the general fund and are available for the fiscal years indicated for each purpose.
69.31The figures "2014" and "2015" used in this article mean that the addition to or subtraction
69.32from the appropriation listed under them is available for the fiscal year ending June 30,
69.332014, or June 30, 2015, respectively. Supplemental appropriations and reductions to
70.1appropriations for the fiscal year ending June 30, 2014, are effective the day following
70.2final enactment unless a different effective date is explicit.
70.3
 APPROPRIATIONS
70.4
 Available for the Year
70.5
 Ending June 30
70.6
 2014
 2015

70.7
70.8
 Sec. 3. COMMISSIONER OF HUMAN
SERVICES
70.9
 Subdivision 1.Total Appropriation
 3,985,000
 81,016,000
70.10The appropriation modifications for
70.11each purpose are shown in the following
70.12subdivisions.
70.13
 Subd. 2.Central Office Operations
70.14
 (a) Operations
 -0-
 58,000
70.15Base adjustment. The general fund base is
70.16decreased by $6,000 in fiscal years 2016 and
70.172017.
70.18
 (b) Health Care
 -0-
 113,000
70.19Base adjustment. The general fund base is
70.20increased by $112,000 in fiscal years 2016
70.21and 2017.
70.22
 (c) Continuing Care
 -0-
 976,000
70.23Base adjustment. The general fund base is
70.24increased by $239,000 in fiscal year 2016
70.25and $127,000 in fiscal year 2017.
70.26
 Subd. 3.Forecasted Programs
70.27
 (a) Group Residential Housing
 -0-
 681,000
70.28
 (b) Medical Assistance
 -0-
 61,510,000
70.29
 (c) Alternative Care
 -0-
 772,000
70.30
 Subd. 4.Grant Programs
70.31
 (a) Children's Services Grants
 -0-
 (3,000)
71.1Base adjustment. The general fund base is
71.2increased by $9,000 in fiscal year 2017.
71.3
 (b) Aging and Adult Services Grants
 (15,000)
 755,000
71.4Base adjustment. The general fund base is
71.5increased by $196,000 in fiscal year 2016
71.6and $206,000 in fiscal year 2017.
71.7
 (c) Deaf and Hard-of-Hearing Grants
 -0-
 66,000
71.8Base adjustment. The general fund base is
71.9increased by $6,000 in fiscal years 2016 and
71.102017.
71.11
 (d) Disabilities Grants
 -0-
 1,015,000
71.12Base adjustment. The general fund base is
71.13increased by $224,000 in fiscal year 2016
71.14and $233,000 in fiscal year 2017.
71.15
 Subd. 5.State-Operated Services
71.16
 (a) SOS Mental Health
 -0-
 8,076,000
71.17Base adjustment. The general fund base is
71.18increased by $213,000 in fiscal years 2016
71.19and 2017.
71.20
 (b) SOS Enterprise Services
 1,000,000
 1,000,000
71.21Community Addiction Recovery
71.22Enterprise deficiency funding.
71.23(1) Notwithstanding Minnesota Statutes,
71.24section 254B.06, subdivision 1, $4,000,000
71.25is transferred in fiscal years 2014 and 2015
71.26from the consolidated chemical dependency
71.27treatment fund administrative account in the
71.28special revenue fund and deposited into the
71.29enterprise fund for the Community Addiction
71.30Recovery Enterprise.
71.31(2) The following general fund amounts are
71.32appropriated to the commissioner for the
71.33C.A.R.E. program:
72.1(i) fiscal year 2014: $1,000,000; and
72.2(ii) fiscal year 2015: $1,000,000.
72.3The commissioner must transfer these
72.4appropriations to the Community Addiction
72.5Recovery Enterprise enterprise fund. These
72.6appropriations are for fiscal years 2014 and
72.72015 only.
72.8(3) Clauses (1) and (2) are effective the day
72.9following final enactment.
72.10
 (c) SOS Minnesota Security Hospital
 -0-
 4,820,000
72.11
 Subd. 6.Sex Offender Program
 3,000,000
 1,117,000
72.12Court-ordered experts. $3,000,000 in
72.13fiscal year 2014 is for the commissioner to
72.14comply with the United States District Court
72.15order of February 20, 2014, in the matter of
72.16Karsjens et al. v. Jesson et al. For purposes
72.17of Minnesota Statutes, section 246B.10,
72.18activities funded by this appropriation are
72.19not considered part of the cost of care. This
72.20appropriation is onetime and is available until
72.21June 30, 2017. Notwithstanding any contrary
72.22provision in this article, this paragraph
72.23expires June 30, 2017.

72.24
 Sec. 4. COMMISSIONER OF HEALTH.
72.25
 Subdivision 1.Total Appropriation
 $
 767,000
 $
 (267,000)
72.26
 Appropriations by Fund
72.27
 2014
 2015
72.28
 General
 (25,000)
 25,000
72.29
72.30
 State Government
Special Revenue
 817,000
 708,000
72.31
 Health Care Access
 (25,000)
 (1,000,000)
72.32
 Subd. 2.Health Improvement
72.33
 Appropriations by Fund
72.34
 General
 (25,000)
 25,000
73.1Base Level Adjustment. The general fund
73.2base for fiscal year 2016 is $47,619,000.
73.3The general fund base for fiscal year 2017
73.4is $47,669,000.
73.5
 Subd. 3.Policy Quality and Compliance
73.6
 Appropriations by Fund
73.7
73.8
 State Government
Special Revenue
 -0-
 60,000
73.9
 Health Care Access
 (1,000,000)
 (1,000,000)
73.10Base level adjustment. The state
73.11government special revenue fund base
73.12for fiscal years 2016 and 2017 shall be
73.13$16,529,000.
73.14
 Subd. 4.Health Protection
73.15
 Appropriations by Fund
73.16
73.17
 State Government
Special Revenue
 817,000
 648,000
73.18
 Subd. 5.Administrative Support Services
 975,000
 -0-
73.19
 Appropriations by Fund
73.20
 Health Care Access
 975,000
 -0-
73.21Lawsuit settlement. Of the health care
73.22access fund appropriation in fiscal year 2014,
73.23$975,000 is a onetime appropriation for the
73.24cost of settling the lawsuit Bearder v. State
73.25of Minnesota.

73.26    Sec. 5. Laws 2013, chapter 108, article 14, section 3, subdivision 1, is amended to read:
73.27
73.28
 Subdivision 1.Total Appropriation
 $
 169,326,000
169,026,000
 $
 165,531,000
165,231,000
73.29
 Appropriations by Fund
73.30
 2014
 2015
73.31
 General
 79,476,000
 74,256,000
73.32
73.33
 State Government
Special Revenue
 48,094,000
 50,119,000
73.34
 Health Care Access
 29,743,000
 29,143,000
74.1
 Federal TANF
 11,713,000
 11,713,000
74.2
 Special Revenue
 300,000
 300,000
74.3The amounts that may be spent for each
74.4purpose are specified in the following
74.5subdivisions.

74.6    Sec. 6. Laws 2013, chapter 108, article 14, section 3, subdivision 4, is amended to read:
74.7
 Subd. 4.Health Protection
74.8
 Appropriations by Fund
74.9
 General
 9,201,000
 9,201,000
74.10
74.11
 State Government
Special Revenue
 32,633,000
 32,636,000
74.12
 Special Revenue
 300,000
 300,000
74.13Infectious Disease Laboratory. Of the
74.14general fund appropriation, $200,000 in
74.15fiscal year 2014 and $200,000 in fiscal year
74.162015 are to monitor infectious disease trends
74.17and investigate infectious disease outbreaks.
74.18Surveillance for Elevated Blood Lead
74.19Levels. Of the general fund appropriation,
74.20$100,000 in fiscal year 2014 and $100,000
74.21in fiscal year 2015 are for the blood lead
74.22surveillance system under Minnesota
74.23Statutes, section 144.9502.
74.24Base Level Adjustment. The state
74.25government special revenue base is increased
74.26by $6,000 in fiscal year 2016 and by $13,000
74.27in fiscal year 2017.

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

75.1ARTICLE 14
75.2HUMAN SERVICES FORECAST ADJUSTMENTS

75.3
 Section 1. HUMAN SERVICES APPROPRIATION.
75.4The sums shown in the columns marked "Appropriations" are added to or, if shown
75.5in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article
75.614, from the general fund or any fund named to the Department of Human Services for
75.7the purposes specified in this article, to be available for the fiscal year indicated for each
75.8purpose. The figures "2014" and "2015" used in this article mean that the appropriations
75.9listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015,
75.10respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
75.11"The biennium" is fiscal years 2014 and 2015.
75.12
 APPROPRIATIONS
75.13
 Available for the Year
75.14
 Ending June 30
75.15
 2014
 2015

75.16
75.17
 Sec. 2. COMMISSIONER OF HUMAN
SERVICES
75.18
 Subdivision 1.Total Appropriation
 $
 (196,927)
 $
 64,288
75.19
 Appropriations by Fund
75.20
 General Fund
 (153,497)
 (25,282)
75.21
75.22
 Health Care Access
Fund
 (36,533)
 91,294
75.23
 Federal TANF
 (6,897)
 (1,724)
75.24
 Subd. 2.Forecasted Programs
75.25
 (a) MFIP/DWP
75.26
 Appropriations by Fund
75.27
 General Fund
 3,571
 173
75.28
 Federal TANF
 (6,475)
 (1,298)
75.29
 (b) MFIP Child Care Assistance
 (684)
 11,114
75.30
 (c) General Assistance
 (2,569)
 (1,940)
75.31
 (d) Minnesota Supplemental Aid
 (690)
 (614)
75.32
 (e) Group Residential Housing
 250
 (1,740)
75.33
 (f) MinnesotaCare
 (34,838)
 96,340
76.1These appropriations are from the health care
76.2access fund.
76.3
 (g) Medical Assistance
76.4
 Appropriations by Fund
76.5
 General Fund
 (149,494)
 (27,075)
76.6
76.7
 Health Care Access
Fund
 (1,695)
 (5,046)
76.8
 (h) Alternative Care Program
 (6,936)
 (13,260)
76.9
 (i) CCDTF Entitlements
 3,055
 8,060
76.10
 Subd. 3.Technical Activities
 (422)
 (426)
76.11These appropriations are from the federal
76.12TANF fund.

76.13    Sec. 3. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108,
76.14article 6, section 32, is amended to read:
76.15    Sec. 6. TRANSFER.
76.16(a) The commissioner of management and budget shall transfer from the health care
76.17access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000
76.18in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal
76.19year 2017.
76.20(b) The commissioner of human services shall determine the difference between the
76.21actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds
76.22and parents and relative caretaker populations with income between 100 and 138 percent of
76.23the federal poverty guidelines and the cost of adding those populations that was estimated
76.24during the 2013 legislative session based on the data from the February 2013 forecast.
76.25(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall
76.26certify and report to the commissioner of management and budget the actual or forecasted
76.27 estimated cost difference of adding 19- and 20-year-olds and parents and relative caretaker
76.28populations with income between 100 and 138 percent of the federal poverty guidelines,
76.29as determined under paragraph (b), to the commissioner of management and budget at
76.30least four weeks prior to the release of a forecast under Minnesota Statutes, section
76.3116A.103 , of each fiscal year.
76.32(d) No later than three weeks before the release of the forecast For fiscal years 2014 to
76.332017, forecasts under Minnesota Statutes, section 16A.103, prepared by the commissioner
76.34of management and budget shall reduce the include actual or estimated adjustments to
77.1 health care access fund transfer transfers in paragraph (a), by the cumulative differences in
77.2costs reported by the commissioner of human services under according to paragraph (c)
77.3 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under
77.4paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year,
77.5the amount of the cumulative cost differences determined under paragraph (b) is less than
77.6the amount of the original appropriation, the appropriation for that year must be zero.
77.7(e) For each fiscal year from 2014 to 2017, the commissioner of management and
77.8budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in
77.9costs reported by the commissioner of human services under paragraph (c). If, for any
77.10fiscal year, the amount of the cumulative difference in costs reported under paragraph (c)
77.11is positive, no adjustment shall be made.

77.12    Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 5, is amended to read:
77.13
 Subd. 5.Forecasted Programs
77.14The amounts that may be spent from this
77.15appropriation for each purpose are as follows:
77.16
 (a) MFIP/DWP
77.17
 Appropriations by Fund
77.18
 General
 72,583,000
 76,927,000
77.19
 Federal TANF
 80,342,000
 76,851,000
77.20
 (b) MFIP Child Care Assistance
 61,701,000
 69,294,000
77.21
 (c) General Assistance
 54,787,000
 56,068,000
77.22General Assistance Standard. The
77.23commissioner shall set the monthly standard
77.24of assistance for general assistance units
77.25consisting of an adult recipient who is
77.26childless and unmarried or living apart
77.27from parents or a legal guardian at $203.
77.28The commissioner may reduce this amount
77.29according to Laws 1997, chapter 85, article
77.303, section 54.
77.31Emergency General Assistance. The
77.32amount appropriated for emergency general
77.33assistance funds is limited to no more
78.1than $6,729,812 in fiscal year 2014 and
78.2$6,729,812 in fiscal year 2015. Funds
78.3to counties shall be allocated by the
78.4commissioner using the allocation method in
78.5Minnesota Statutes, section 256D.06.
78.6
 (d) MN Supplemental Assistance
 38,646,000
 39,821,000
78.7
 (e) Group Residential Housing
 141,138,000
 150,988,000
78.8
 (f) MinnesotaCare
 297,707,000
 247,284,000
78.9This appropriation is from the health care
78.10access fund.
78.11
 (g) Medical Assistance
78.12
 Appropriations by Fund
78.13
 General
 4,443,768,000
 4,431,612,000
78.14
 Health Care Access
 179,550,000
 226,081,000
78.15Base Adjustment. The health care access
78.16fund base is $424,262,000 in fiscal year 2016
78.17and $425,775,000 in fiscal year 2017.
78.18Spending to be apportioned. The
78.19commissioner shall apportion expenditures
78.20under this paragraph consistent with the
78.21requirements of section 12.
78.22Support Services for Deaf and
78.23Hard-of-Hearing. $121,000 in fiscal
78.24year 2014 and $141,000 in fiscal year 2015;
78.25and $10,000 in fiscal year 2014 and $13,000
78.26in fiscal year 2015 are from the health care
78.27access fund for the hospital reimbursement
78.28increase in Minnesota Statutes, section
78.29256.969, subdivision 29 , paragraph (b).
78.30Disproportionate Share Payments.
78.31Effective for services provided on or after
78.32July 1, 2011, through June 30, 2015, the
78.33commissioner of human services shall
78.34deposit, in the health care access fund,
79.1additional federal matching funds received
79.2under Minnesota Statutes, section 256B.199,
79.3paragraph (e), as disproportionate share
79.4hospital payments for inpatient hospital
79.5services provided under MinnesotaCare to
79.6lawfully present noncitizens who are not
79.7eligible for MinnesotaCare with federal
79.8financial participation due to immigration
79.9status. The amount deposited shall not exceed
79.10$2,200,000 for the time period specified.
79.11Funding for Services Provided to EMA
79.12Recipients. $2,200,000 in fiscal year 2014 is
79.13from the health care access fund to provide
79.14services to emergency medical assistance
79.15recipients under Minnesota Statutes, section
79.16256B.06, subdivision 4 , paragraph (l). This
79.17is a onetime appropriation and is available in
79.18either year of the biennium.
79.19
 (h) Alternative Care
 50,776,000
 54,922,000
79.20Alternative Care Transfer. Any money
79.21allocated to the alternative care program that
79.22is not spent for the purposes indicated does
79.23not cancel but shall be transferred to the
79.24medical assistance account.
79.25
 (i) CD Treatment Fund
 81,440,000
 74,875,000
79.26Balance Transfer. The commissioner must
79.27transfer $18,188,000 from the consolidated
79.28chemical dependency treatment fund to the
79.29general fund by September 30, 2013.

79.30    Sec. 5. Laws 2013, chapter 108, article 14, section 12, is amended to read:
79.31    Sec. 12. APPROPRIATION ADJUSTMENTS.
79.32(a) The general fund appropriation in section 2, subdivision 5, paragraph (g),
79.33includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015;
80.1$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical
80.2assistance eligibility and administration changes related to:
80.3(1) eligibility for children age two to 18 with income up to 275 percent of the federal
80.4poverty guidelines;
80.5(2) eligibility for pregnant women with income up to 275 percent of the federal
80.6poverty guidelines;
80.7(3) Affordable Care Act enrollment and renewal processes, including elimination
80.8of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes
80.9in verification requirements, and other changes in the eligibility determination and
80.10enrollment and renewal process;
80.11(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;
80.12(5) eligibility related to spousal impoverishment provisions for waiver recipients; and
80.13(6) presumptive eligibility determinations by hospitals.
80.14(b) The commissioner of human services shall determine the difference between
80.15the actual or forecasted estimated costs to the medical assistance program attributable to
80.16the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a),
80.17clauses (1) to (6), that were estimated during the 2013 legislative session based on data
80.18from the 2013 February forecast. The costs in this paragraph must be calculated between
80.19January 1, 2014, and June 30, 2017.
80.20(c) For each fiscal year from 2014 to 2017, the commissioner of human services
80.21shall certify the actual or forecasted estimated cost differences to the medical assistance
80.22program determined under paragraph (b), and report the difference in costs to the
80.23commissioner of management and budget at least four weeks prior to a forecast under
80.24Minnesota Statutes, section 16A.103. No later than three weeks before the release of
80.25the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section
80.2616A.103 , prepared by the commissioner of management and budget shall reduce include
80.27actual or estimated adjustments to the health care access fund appropriation in section
80.282, subdivision 5, paragraph (g), by the cumulative difference in costs determined in
80.29 according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost
80.30differences determined under paragraph (b) is positive, no adjustment shall be made to the
80.31health care access fund appropriation. If for any fiscal year, the amount of the cumulative
80.32cost differences determined under paragraph (b) is less than the original appropriation, the
80.33appropriation for that fiscal year is zero.
80.34(d) For each fiscal year from 2014 to 2017, the commissioner of management and
80.35budget must adjust the health care access fund appropriation by the cumulative difference
80.36in costs reported by the commissioner of human services under paragraph (c). If, for any
81.1fiscal year, the amount of the cumulative difference in costs determined under paragraph
81.2(b) is positive, no adjustment shall be made to the health care access fund appropriation.
81.3(e) This section expires on January 1, 2018.

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

81.7ARTICLE 15
81.8HEALTH DEPARTMENT

81.9    Section 1. [144A.484] INTEGRATED LICENSURE; HOME AND
81.10COMMUNITY-BASED SERVICES DESIGNATION.
81.11    Subdivision 1. Integrated licensing established. (a) From January 1, 2014, to
81.12June 30, 2015, the commissioner of health shall enforce the home and community-based
81.13services standards under chapter 245D for those providers who also have a home care
81.14license pursuant to chapter 144A as required under Laws 2013, chapter 108, article 11,
81.15section 31, and article 8, section 60.
81.16(b) Beginning July 1, 2015, a home care provider applicant or license holder may
81.17apply to the commissioner of health for a home and community-based services designation
81.18for the provision of basic home and community-based services identified under section
81.19245D.03, subdivision 1, paragraph (b). The designation allows the license holder to
81.20provide basic home and community-based services that would otherwise require licensure
81.21under chapter 245D, under the license holder's home care license governed by sections
81.22144A.43 to 144A.481.
81.23    Subd. 2. Application for home and community-based services designation. An
81.24application for a home and community-based services designation must be made on the
81.25forms and in the manner prescribed by the commissioner. The commissioner shall provide
81.26the applicant with instruction for completing the application and provide information
81.27about the requirements of other state agencies that affect the applicant. Application for
81.28the home and community-based services designation is subject to the requirements under
81.29section 144A.473.
81.30    Subd. 3. Home and community-based services designation fees. A home care
81.31provider applicant or licensee applying for the home and community-based services
81.32designation or renewal of a home and community-based services designation must submit
81.33a fee in the amount specified in subdivision 8.
82.1    Subd. 4. Applicability of home and community-based services requirements. A
82.2home care provider with a home and community-based services designation must comply
82.3with the requirements for home care services governed by this chapter. For the provision
82.4of basic home and community-based services, the home care provider must also comply
82.5with the following home and community-based services licensing requirements:
82.6(1) person-centered planning requirements in section 245D.07;
82.7(2) protection standards in section 245D.06;
82.8(3) emergency use of manual restraints in section 245D.061; and
82.9(4) service recipient rights in section 245D.04, subdivision 3, paragraph (a), clauses
82.10(5), (7), (8), (12), and (13), and paragraph (b).
82.11A home care provider with the integrated license-HCBS designation may utilize a bill of
82.12rights which incorporates the service recipient rights in section 245D.04, subdivision 3,
82.13paragraph (a), clauses (5), (7), (8), (12), and (13), and paragraph (b) with the home care
82.14bill of rights in section 144A.44.
82.15    Subd. 5. Monitoring and enforcement. (a) The commissioner shall monitor for
82.16compliance with the home and community-based services requirements identified in
82.17subdivision 5, in accordance with this section and any agreements by the commissioners
82.18of health and human services.
82.19(b) The commissioner shall enforce compliance with applicable home and
82.20community-based services licensing requirements as follows:
82.21(1) the commissioner may deny a home and community-based services designation
82.22in accordance with section 144A.473 or 144A.475; and
82.23(2) if the commissioner finds that the applicant or license holder has failed to comply
82.24with the applicable home and community-based services designation requirements the
82.25commissioner may issue:
82.26(i) a correction order in accordance with section 144A.474;
82.27(ii) an order of conditional license in accordance with section 144A.475;
82.28(iii) a sanction in accordance with section 144A.475; or
82.29(iv) any combination of clauses (i) to (iii).
82.30    Subd. 6. Appeals. A home care provider applicant that has been denied a temporary
82.31license will also be denied their application for the home and community-based services
82.32designation. The applicant may request reconsideration in accordance with section
82.33144A.473, subdivision 3. A licensed home care provider whose application for a home
82.34and community-based services designation has been denied or whose designation has been
82.35suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a
82.36home and community-based services designation in accordance with section 144A.475.
83.1A license holder may request reconsideration of a correction order in accordance with
83.2section 144A.474, subdivision 12.
83.3    Subd. 7. Agreements. The commissioners of health and human services shall enter
83.4into any agreements necessary to implement this section.
83.5    Subd. 8. Fees; home and community-based services designation. (a) The initial
83.6fee for a basic home and community-based services designation is $155. A home care
83.7provider who is seeking to renew the provider's home and community-based services
83.8designation must pay an annual nonrefundable fee with the annual home care license
83.9fee according to the following schedule and based on revenues from the home and
83.10community-based services:
83.11
83.12
 Provider Annual Revenue from HCBS
 HCBS
Designation
83.13
 greater than $1,500,000
 $320
83.14
 greater than $1,275,000 and no more than $1,500,000
 $300
83.15
 greater than $1,100,000 and no more than $1,275,000
 $280
83.16
 greater than $950,000 and no more than $1,100,000
 $260
83.17
 greater than $850,000 and no more than $950,000
 $240
83.18
 greater than $750,000 and no more than $850,000
 $220
83.19
 greater than $650,000 and no more than $750,000
 $200
83.20
 greater than $550,000 and no more than $650,000
 $180
83.21
 greater than $450,000 and no more than $550,000
 $160
83.22
 greater than $350,000 and no more than $450,000
 $140
83.23
 greater than $250,000 and no more than $350,000
 $120
83.24
 greater than $100,000 and no more than $250,000
 $100
83.25
 greater than $50,000 and no more than $100,000
 $80
83.26
 greater than $25,000 and no more than $50,000
 $60
83.27
 no more than $25,000
 $40
83.28(b) Fees and penalties collected under this section shall be deposited in the state
83.29treasury and credited to the state government special revenue fund.
83.30EFFECTIVE DATE.Minnesota Statutes, section 144A.484, subdivisions 2 to 8,
83.31are effective July 1, 2015.

83.32    Sec. 2. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is
83.33amended to read:
83.34    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for
83.35Medicare and Medicaid Services determines that a provider is designated "high-risk," the
83.36commissioner may withhold payment from providers within that category upon initial
84.1enrollment for a 90-day period. The withholding for each provider must begin on the date
84.2of the first submission of a claim.
84.3(b) An enrolled provider that is also licensed by the commissioner under chapter
84.4245A or that is licensed by the Department of Health under chapter 144A and has a
84.5HCBS designation on the home care license must designate an individual as the entity's
84.6compliance officer. The compliance officer must:
84.7(1) develop policies and procedures to assure adherence to medical assistance laws
84.8and regulations and to prevent inappropriate claims submissions;
84.9(2) train the employees of the provider entity, and any agents or subcontractors of
84.10the provider entity including billers, on the policies and procedures under clause (1);
84.11(3) respond to allegations of improper conduct related to the provision or billing of
84.12medical assistance services, and implement action to remediate any resulting problems;
84.13(4) use evaluation techniques to monitor compliance with medical assistance laws
84.14and regulations;
84.15(5) promptly report to the commissioner any identified violations of medical
84.16assistance laws or regulations; and
84.17    (6) within 60 days of discovery by the provider of a medical assistance
84.18reimbursement overpayment, report the overpayment to the commissioner and make
84.19arrangements with the commissioner for the commissioner's recovery of the overpayment.
84.20The commissioner may require, as a condition of enrollment in medical assistance, that a
84.21provider within a particular industry sector or category establish a compliance program that
84.22contains the core elements established by the Centers for Medicare and Medicaid Services.
84.23(c) The commissioner may revoke the enrollment of an ordering or rendering
84.24provider for a period of not more than one year, if the provider fails to maintain and, upon
84.25request from the commissioner, provide access to documentation relating to written orders
84.26or requests for payment for durable medical equipment, certifications for home health
84.27services, or referrals for other items or services written or ordered by such provider, when
84.28the commissioner has identified a pattern of a lack of documentation. A pattern means a
84.29failure to maintain documentation or provide access to documentation on more than one
84.30occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a
84.31provider under the provisions of section 256B.064.
84.32(d) The commissioner shall terminate or deny the enrollment of any individual or
84.33entity if the individual or entity has been terminated from participation in Medicare or
84.34under the Medicaid program or Children's Health Insurance Program of any other state.
84.35(e) As a condition of enrollment in medical assistance, the commissioner shall
84.36require that a provider designated "moderate" or "high-risk" by the Centers for Medicare
85.1and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
85.2Services, its agents, or its designated contractors and the state agency, its agents, or its
85.3designated contractors to conduct unannounced on-site inspections of any provider location.
85.4The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
85.5list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
85.6and standards used to designate Medicare providers in Code of Federal Regulations, title
85.742, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
85.8The commissioner's designations are not subject to administrative appeal.
85.9(f) As a condition of enrollment in medical assistance, the commissioner shall
85.10require that a high-risk provider, or a person with a direct or indirect ownership interest in
85.11the provider of five percent or higher, consent to criminal background checks, including
85.12fingerprinting, when required to do so under state law or by a determination by the
85.13commissioner or the Centers for Medicare and Medicaid Services that a provider is
85.14designated high-risk for fraud, waste, or abuse.
85.15(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical
85.16equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in
85.17Minnesota and receiving Medicaid funds must purchase a surety bond that is annually
85.18renewed and designates the Minnesota Department of Human Services as the obligee, and
85.19must be submitted in a form approved by the commissioner.
85.20(2) At the time of initial enrollment or reenrollment, the provider agency must
85.21purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
85.22in the previous calendar year is up to and including $300,000, the provider agency must
85.23purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
85.24in the previous calendar year is over $300,000, the provider agency must purchase a
85.25performance bond of $100,000. The performance bond must allow for recovery of costs
85.26and fees in pursuing a claim on the bond.
85.27(h) The Department of Human Services may require a provider to purchase a
85.28performance surety bond as a condition of initial enrollment, reenrollment, reinstatement,
85.29or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the
85.30department determines there is significant evidence of or potential for fraud and abuse by
85.31the provider, or (3) the provider or category of providers is designated high-risk pursuant
85.32to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The
85.33performance bond must be in an amount of $100,000 or ten percent of the provider's
85.34payments from Medicaid during the immediately preceding 12 months, whichever is
85.35greater. The performance bond must name the Department of Human Services as an
85.36obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.

86.1ARTICLE 16
86.2HEALTH CARE

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

86.9    Sec. 2. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:
86.10    Subdivision 1. Authority. (a) The commissioner shall establish procedures for
86.11determining medical assistance and general assistance medical care payment rates under
86.12a prospective payment system for inpatient hospital services in hospitals that qualify as
86.13vendors of medical assistance. The commissioner shall establish, by rule, procedures for
86.14implementing this section and sections 256.9686, 256.969, and 256.9695. Services must
86.15meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7,
86.16paragraph (b), to be eligible for payment.
86.17(b) The commissioner may reduce the types of inpatient hospital admissions that
86.18are required to be certified as medically necessary after notice in the State Register and a
86.1930-day comment period.

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

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

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

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

88.14    Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:
88.15    Subd. 2b. Operating payment rates. In determining operating payment rates for
88.16admissions occurring on or after the rate year beginning January 1, 1991, and every two
88.17years after, or more frequently as determined by the commissioner, the commissioner shall
88.18obtain operating data from an updated base year and establish operating payment rates
88.19per admission for each hospital based on the cost-finding methods and allowable costs of
88.20the Medicare program in effect during the base year. Rates under the general assistance
88.21medical care, medical assistance, and MinnesotaCare programs shall not be rebased to
88.22more current data on January 1, 1997, January 1, 2005, for the first 24 months of the
88.23rebased period beginning January 1, 2009. For the rebased period beginning January 1,
88.242011, rates shall not be rebased, except that a Minnesota long-term hospital shall be
88.25rebased effective January 1, 2011, based on its most recent Medicare cost report ending on
88.26or before September 1, 2008, with the provisions under subdivisions 9 and 23, based on
88.27the rates in effect on December 31, 2010. For subsequent rate setting periods in which the
88.28base years are updated, a Minnesota long-term hospital's base year shall remain within
88.29the same period as other hospitals. Effective January 1, 2013, and after, rates shall not be
88.30rebased. The base year operating payment rate per admission is standardized by the case
88.31mix index and adjusted by the hospital cost index, relative values, and disproportionate
88.32population adjustment. The cost and charge data used to establish operating rates shall
88.33only reflect inpatient services covered by medical assistance and shall not include property
88.34cost information and costs recognized in outlier payments. In determining operating
88.35payment rates for admissions occurring on or after the rate year beginning January 1,
89.12011, through December 31, 2012, the operating payment rate per admission must be
89.2based on the cost-finding methods and allowable costs of the Medicare program in effect
89.3during the base year or years.

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

89.25    Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
89.26to read:
89.27    Subd. 2d. Budget neutrality factor. For the rebased period effective September 1,
89.282014, when rebasing rates under subdivisions 2b and 2c, the commissioner must apply a
89.29budget neutrality factor (BNF) to a hospital's conversion factor to ensure that total DRG
89.30payments to hospitals do not exceed total DRG payments that would have been made to
89.31hospitals if the relative rates and weights had not been recalibrated. For the purposes of
89.32this section, BNF equals the percentage change from total aggregate payments calculated
89.33under a new payment system to total aggregate payments calculated under the old system.

90.1    Sec. 10. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:
90.2    Subd. 3a. Payments. (a) Acute care hospital billings under the medical
90.3assistance program must not be submitted until the recipient is discharged. However,
90.4the commissioner shall establish monthly interim payments for inpatient hospitals that
90.5have individual patient lengths of stay over 30 days regardless of diagnostic category.
90.6Except as provided in section 256.9693, medical assistance reimbursement for treatment
90.7of mental illness shall be reimbursed based on diagnostic classifications. Individual
90.8hospital payments established under this section and sections 256.9685, 256.9686, and
90.9256.9695 , in addition to third-party and recipient liability, for discharges occurring during
90.10the rate year shall not exceed, in aggregate, the charges for the medical assistance covered
90.11inpatient services paid for the same period of time to the hospital. This payment limitation
90.12shall be calculated separately for medical assistance and general assistance medical
90.13care services. The limitation on general assistance medical care shall be effective for
90.14admissions occurring on or after July 1, 1991. Services that have rates established under
90.15subdivision 11 or 12, must be limited separately from other services. After consulting with
90.16the affected hospitals, the commissioner may consider related hospitals one entity and may
90.17merge the payment rates while maintaining separate provider numbers. The operating and
90.18property base rates per admission or per day shall be derived from the best Medicare and
90.19claims data available when rates are established. The commissioner shall determine the
90.20best Medicare and claims data, taking into consideration variables of recency of the data,
90.21audit disposition, settlement status, and the ability to set rates in a timely manner. The
90.22commissioner shall notify hospitals of payment rates by December 1 of the year preceding
90.23the rate year 30 days prior to implementation. The rate setting data must reflect the
90.24admissions data used to establish relative values. Base year changes from 1981 to the base
90.25year established for the rate year beginning January 1, 1991, and for subsequent rate years,
90.26shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase
90.27under subdivision 1. The commissioner may adjust base year cost, relative value, and case
90.28mix index data to exclude the costs of services that have been discontinued by the October
90.291 of the year preceding the rate year or that are paid separately from inpatient services.
90.30Inpatient stays that encompass portions of two or more rate years shall have payments
90.31established based on payment rates in effect at the time of admission unless the date of
90.32admission preceded the rate year in effect by six months or more. In this case, operating
90.33payment rates for services rendered during the rate year in effect and established based on
90.34the date of admission shall be adjusted to the rate year in effect by the hospital cost index.
91.1    (b) For fee-for-service admissions occurring on or after July 1, 2002, the total
91.2payment, before third-party liability and spenddown, made to hospitals for inpatient
91.3services is reduced by .5 percent from the current statutory rates.
91.4    (c) In addition to the reduction in paragraph (b), the total payment for fee-for-service
91.5admissions occurring on or after July 1, 2003, made to hospitals for inpatient services
91.6before third-party liability and spenddown, is reduced five percent from the current
91.7statutory rates. Mental health services within diagnosis related groups 424 to 432, and
91.8facilities defined under subdivision 16 are excluded from this paragraph.
91.9    (d) In addition to the reduction in paragraphs (b) and (c), the total payment for
91.10fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for
91.11inpatient services before third-party liability and spenddown, is reduced 6.0 percent
91.12from the current statutory rates. Mental health services within diagnosis related groups
91.13424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.
91.14Notwithstanding section 256.9686, subdivision 7, for purposes of this paragraph, medical
91.15assistance does not include general assistance medical care. Payments made to managed
91.16care plans shall be reduced for services provided on or after January 1, 2006, to reflect
91.17this reduction.
91.18    (e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
91.19fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made
91.20to hospitals for inpatient services before third-party liability and spenddown, is reduced
91.213.46 percent from the current statutory rates. Mental health services with diagnosis related
91.22groups 424 to 432 and facilities defined under subdivision 16 are excluded from this
91.23paragraph. Payments made to managed care plans shall be reduced for services provided
91.24on or after January 1, 2009, through June 30, 2009, to reflect this reduction.
91.25    (f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
91.26fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011, made
91.27to hospitals for inpatient services before third-party liability and spenddown, is reduced
91.281.9 percent from the current statutory rates. Mental health services with diagnosis related
91.29groups 424 to 432 and facilities defined under subdivision 16 are excluded from this
91.30paragraph. Payments made to managed care plans shall be reduced for services provided
91.31on or after July 1, 2009, through June 30, 2011, to reflect this reduction.
91.32    (g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
91.33for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for
91.34inpatient services before third-party liability and spenddown, is reduced 1.79 percent
91.35from the current statutory rates. Mental health services with diagnosis related groups
91.36424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.
92.1Payments made to managed care plans shall be reduced for services provided on or after
92.2July 1, 2011, to reflect this reduction.
92.3(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total
92.4payment for fee-for-service admissions occurring on or after July 1, 2009, made to
92.5hospitals for inpatient services before third-party liability and spenddown, is reduced
92.6one percent from the current statutory rates. Facilities defined under subdivision 16 are
92.7excluded from this paragraph. Payments made to managed care plans shall be reduced for
92.8services provided on or after October 1, 2009, to reflect this reduction.
92.9(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total
92.10payment for fee-for-service admissions occurring on or after July 1, 2011, made to
92.11hospitals for inpatient services before third-party liability and spenddown, is reduced
92.121.96 percent from the current statutory rates. Facilities defined under subdivision 16 are
92.13excluded from this paragraph. Payments made to managed care plans shall be reduced for
92.14services provided on or after January 1, 2011, to reflect this reduction.

92.15    Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:
92.16    Subd. 3b. Nonpayment for hospital-acquired conditions and for certain
92.17treatments. (a) The commissioner must not make medical assistance payments to a
92.18hospital for any costs of care that result from a condition listed in paragraph (c), if the
92.19condition was hospital acquired.
92.20    (b) For purposes of this subdivision, a condition is hospital acquired if it is not
92.21identified by the hospital as present on admission. For purposes of this subdivision,
92.22medical assistance includes general assistance medical care and MinnesotaCare.
92.23(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired
92.24condition listed in this paragraph that is represented by an ICD-9-CM ICD-10-CM
92.25 diagnosis code and is designated as a complicating condition or a major complicating
92.26condition:. The list of conditions is defined by the Centers for Medicare and Medicaid
92.27Services on an annual basis with the hospital-acquired conditions (HAC) list:
92.28(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);
92.29(2) air embolism (ICD-9-CM code 999.1);
92.30(3) blood incompatibility (ICD-9-CM code 999.6);
92.31(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);
92.32(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing
92.33injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating
92.34condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929;
92.35940-949; and 991-994);
93.1(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);
93.2(7) vascular catheter-associated infection (ICD-9-CM code 999.31);
93.3(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11;
93.4249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and
93.5251.0);
93.6(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain
93.7orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07;
93.881.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and
93.981.85);
93.10(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery
93.11(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity
93.12(ICD-9-CM code 278.01);
93.13(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary
93.14artery bypass graft (procedure codes 36.10 to 36.19); and
93.15(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary
93.16embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement
93.17(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51
93.18to 81.52).
93.19(d) The prohibition in paragraph (a) applies to any additional payments that result
93.20from a hospital-acquired condition listed in paragraph (c), including, but not limited to,
93.21additional treatment or procedures, readmission to the facility after discharge, increased
93.22length of stay, change to a higher diagnostic category, or transfer to another hospital. In
93.23the event of a transfer to another hospital, the hospital where the condition listed under
93.24paragraph (c) was acquired is responsible for any costs incurred at the hospital to which
93.25the patient is transferred.
93.26(e) A hospital shall not bill a recipient of services for any payment disallowed under
93.27this subdivision.

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

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

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

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

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

97.32    Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:
97.33    Subd. 14. Transfers. Except as provided in subdivisions 11 and 13, Operating
97.34and property payment rates for admissions that result in transfers and transfers shall be
98.1established on a per day payment system. The per day payment rate shall be the sum of
98.2the adjusted operating and property payment rates determined under this subdivision and
98.3subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 8 to 12, divided by the arithmetic mean length
98.4of stay for the diagnostic category. Each admission that results in a transfer and each
98.5transfer is considered a separate admission to each hospital, and the total of the admission
98.6and transfer payments to each hospital must not exceed the total per admission payment
98.7that would otherwise be made to each hospital under this subdivision and subdivisions
98.82, 2b, 2c, 3a, 4a, 5a, and 7 to 13 8 to 12.

98.9    Sec. 18. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:
98.10    Subd. 17. Out-of-state hospitals in local trade areas. Out-of-state hospitals that
98.11are located within a Minnesota local trade area and that have more than 20 admissions in
98.12the base year or years shall have rates established using the same procedures and methods
98.13that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area
98.14means a county contiguous to Minnesota and located in a metropolitan statistical area as
98.15determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals
98.16that are not required by law to file information in a format necessary to establish rates shall
98.17have rates established based on the commissioner's estimates of the information. Relative
98.18values of the diagnostic categories shall not be redetermined under this subdivision until
98.19required by rule statute. Hospitals affected by this subdivision shall then be included in
98.20determining relative values. However, hospitals that have rates established based upon
98.21the commissioner's estimates of information shall not be included in determining relative
98.22values. This subdivision is effective for hospital fiscal years beginning on or after July
98.231, 1988. A hospital shall provide the information necessary to establish rates under this
98.24subdivision at least 90 days before the start of the hospital's fiscal year.

98.25    Sec. 19. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:
98.26    Subd. 30. Payment rates for births. (a) For admissions occurring on or after
98.27October 1, 2009 September 1, 2014, the total operating and property payment rate,
98.28excluding disproportionate population adjustment, for the following diagnosis-related
98.29groups, as they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section
98.30without complicating diagnosis 5601, 5602, 5603, 5604 vaginal delivery; and (2) 372
98.31vaginal delivery with complicating diagnosis; and (3) 373 vaginal delivery without
98.32complicating diagnosis 5401, 5402, 5403, 5404 cesarean section, shall be no greater
98.33than $3,528.
98.34(b) The rates described in this subdivision do not include newborn care.
99.1(c) Payments to managed care and county-based purchasing plans under section
99.2256B.69 , 256B.692, or 256L.12 shall be reduced for services provided on or after October
99.31, 2009, to reflect the adjustments in paragraph (a).
99.4(d) Prior authorization shall not be required before reimbursement is paid for a
99.5cesarean section delivery.

99.6    Sec. 20. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to
99.7read:
99.8    Subd. 30. Other clinic services. (a) Medical assistance covers rural health clinic
99.9services, federally qualified health center services, nonprofit community health clinic
99.10services, and public health clinic services. Rural health clinic services and federally
99.11qualified health center services mean services defined in United States Code, title 42,
99.12section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified
99.13health center services shall be made according to applicable federal law and regulation.
99.14(b) A federally qualified health center that is beginning initial operation shall submit
99.15an estimate of budgeted costs and visits for the initial reporting period in the form and
99.16detail required by the commissioner. A federally qualified health center that is already in
99.17operation shall submit an initial report using actual costs and visits for the initial reporting
99.18period. Within 90 days of the end of its reporting period, a federally qualified health
99.19center shall submit, in the form and detail required by the commissioner, a report of
99.20its operations, including allowable costs actually incurred for the period and the actual
99.21number of visits for services furnished during the period, and other information required
99.22by the commissioner. Federally qualified health centers that file Medicare cost reports
99.23shall provide the commissioner with a copy of the most recent Medicare cost report filed
99.24with the Medicare program intermediary for the reporting year which support the costs
99.25claimed on their cost report to the state.
99.26(c) In order to continue cost-based payment under the medical assistance program
99.27according to paragraphs (a) and (b), a federally qualified health center or rural health clinic
99.28must apply for designation as an essential community provider within six months of final
99.29adoption of rules by the Department of Health according to section 62Q.19, subdivision
99.307 . For those federally qualified health centers and rural health clinics that have applied
99.31for essential community provider status within the six-month time prescribed, medical
99.32assistance payments will continue to be made according to paragraphs (a) and (b) for the
99.33first three years after application. For federally qualified health centers and rural health
99.34clinics that either do not apply within the time specified above or who have had essential
99.35community provider status for three years, medical assistance payments for health services
100.1provided by these entities shall be according to the same rates and conditions applicable
100.2to the same service provided by health care providers that are not federally qualified
100.3health centers or rural health clinics.
100.4(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally
100.5qualified health center or a rural health clinic to make application for an essential
100.6community provider designation in order to have cost-based payments made according
100.7to paragraphs (a) and (b) no longer apply.
100.8(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b)
100.9shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
100.10(f) Effective January 1, 2001, each federally qualified health center and rural health
100.11clinic may elect to be paid either under the prospective payment system established
100.12in United States Code, title 42, section 1396a(aa), or under an alternative payment
100.13methodology consistent with the requirements of United States Code, title 42, section
100.141396a(aa), and approved by the Centers for Medicare and Medicaid Services. The
100.15alternative payment methodology shall be 100 percent of cost as determined according to
100.16Medicare cost principles.
100.17(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
100.18(1) has nonprofit status as specified in chapter 317A;
100.19(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
100.20(3) is established to provide health services to low-income population groups,
100.21uninsured, high-risk and special needs populations, underserved and other special needs
100.22populations;
100.23(4) employs professional staff at least one-half of which are familiar with the
100.24cultural background of their clients;
100.25(5) charges for services on a sliding fee scale designed to provide assistance to
100.26low-income clients based on current poverty income guidelines and family size; and
100.27(6) does not restrict access or services because of a client's financial limitations or
100.28public assistance status and provides no-cost care as needed.
100.29(h) By July 1 of each year, the commissioner shall notify federally qualified health
100.30centers and rural health clinics enrolled in medical assistance of the commissioner's intent
100.31to close out payment rates and claims processing for services provided during the calendar
100.32year two years prior to the year in which notification is provided. If the commissioner
100.33and federally qualified health center or rural health clinic do not mutually agree to close
100.34out these rates and claims processing within 90 days following the commissioner's
100.35notification, the matter shall be submitted to an arbiter to determine whether to extend the
100.36closeout deadline.

101.1    Sec. 21. Minnesota Statutes 2012, section 256B.199, is amended to read:
101.2256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
101.3    (a) Effective July 1, 2007, The commissioner shall apply for federal matching
101.4funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the
101.5commissioner shall apply for matching funds for expenditures in paragraph (e).
101.6    (b) The commissioner shall apply for federal matching funds for certified public
101.7expenditures as follows:.
101.8    (1) Hennepin County, Hennepin County Medical Center, Ramsey County, Regions
101.9Hospital, the University of Minnesota, and Fairview-University Medical Center shall
101.10report quarterly to the commissioner beginning June 1, 2007, payments made during the
101.11second previous quarter that may qualify for reimbursement under federal law;
101.12     (2) based on these reports, the commissioner shall apply for federal matching
101.13funds. These funds are appropriated to the commissioner for the payments under section
101.14256.969, subdivision 27; and
101.15    (3) By May 1 of each year, beginning May 1, 2007, the commissioner shall inform
101.16the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share
101.17hospital payment money expected to be available in the current federal fiscal year.
101.18    (c) The commissioner shall apply for federal matching funds for general assistance
101.19medical care expenditures as follows:
101.20    (1) for hospital services occurring on or after July 1, 2007, general assistance medical
101.21care expenditures for fee-for-service inpatient and outpatient hospital payments made by
101.22the department shall be used to apply for federal matching funds, except as limited below:
101.23    (i) only those general assistance medical care expenditures made to an individual
101.24hospital that would not cause the hospital to exceed its individual hospital limits under
101.25section 1923 of the Social Security Act may be considered; and
101.26    (ii) general assistance medical care expenditures may be considered only to the extent
101.27of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
101.28    (2) all hospitals must provide any necessary expenditure, cost, and revenue
101.29information required by the commissioner as necessary for purposes of obtaining federal
101.30Medicaid matching funds for general assistance medical care expenditures.
101.31(d) For the period from April 1, 2009, to September 30, 2010, the commissioner shall
101.32apply for additional federal matching funds available as disproportionate share hospital
101.33payments under the American Recovery and Reinvestment Act of 2009. These funds shall
101.34be made available as the state share of payments under section 256.969, subdivision 28.
101.35The entities required to report certified public expenditures under paragraph (b), clause
101.36(1), shall report additional certified public expenditures as necessary under this paragraph.
102.1(e) (c) For services provided on or after September 1, 2011, the commissioner shall
102.2apply for additional federal matching funds available as disproportionate share hospital
102.3payments under the MinnesotaCare program according to the requirements and conditions
102.4of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate
102.5share hospital for purposes of this paragraph, if the hospital does not qualify for a payment
102.6under section 256.969, subdivision 9, paragraph (b).

102.7    Sec. 22. REPEALER.
102.8Minnesota Statutes 2012, sections 256.969, subdivisions 8b, 9a, 9b, 11, 13, 20, 21,
102.922, 25, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed.

102.10ARTICLE 17
102.11NORTHSTAR CARE FOR CHILDREN

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

102.31    Sec. 2. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is
102.32amended to read:
103.1    Subdivision 1. Background studies conducted by Department of Human
103.2Services. (a) For a background study conducted by the Department of Human Services,
103.3the commissioner shall review:
103.4    (1) information related to names of substantiated perpetrators of maltreatment of
103.5vulnerable adults that has been received by the commissioner as required under section
103.6626.557, subdivision 9c , paragraph (j);
103.7    (2) the commissioner's records relating to the maltreatment of minors in licensed
103.8programs, and from findings of maltreatment of minors as indicated through the social
103.9service information system;
103.10    (3) information from juvenile courts as required in subdivision 4 for individuals
103.11listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
103.12    (4) information from the Bureau of Criminal Apprehension, including information
103.13regarding a background study subject's registration in Minnesota as a predatory offender
103.14under section 243.166;
103.15    (5) except as provided in clause (6), information from the national crime information
103.16system when the commissioner has reasonable cause as defined under section 245C.05,
103.17subdivision 5; and
103.18    (6) for a background study related to a child foster care application for licensure, a
103.19transfer of permanent legal and physical custody of a child under sections 260C.503 to
103.20260C.515, or adoptions, the commissioner shall also review:
103.21    (i) information from the child abuse and neglect registry for any state in which the
103.22background study subject has resided for the past five years; and
103.23    (ii) information from national crime information databases, when the background
103.24study subject is 18 years of age or older.
103.25    (b) Notwithstanding expungement by a court, the commissioner may consider
103.26information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
103.27received notice of the petition for expungement and the court order for expungement is
103.28directed specifically to the commissioner.
103.29    (c) The commissioner shall also review criminal case information received according
103.30to section 245C.04, subdivision 4a, from the Minnesota court information system that
103.31relates to individuals who have already been studied under this chapter and who remain
103.32affiliated with the agency that initiated the background study.

103.33    Sec. 3. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:
103.34    Subdivision 1. Background studies conducted by commissioner. (a) Before
103.35placement of a child for purposes of adoption, the commissioner shall conduct a
104.1background study on individuals listed in section sections 259.41, subdivision 3, and
104.2260C.611, for county agencies and private agencies licensed to place children for adoption.
104.3 When a prospective adoptive parent is seeking to adopt a child who is currently placed in
104.4the prospective adoptive parent's home and is under the guardianship of the commissioner
104.5according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive
104.6parent holds a child foster care license, a new background study is not required when:
104.7(1) a background study was completed on persons required to be studied under section
104.8245C.03 in connection with the application for child foster care licensure after July 1, 2007;
104.9(2) the background study included a review of the information in section 245C.08,
104.10subdivisions 1, 3, and 4; and
104.11(3) as a result of the background study, the individual was either not disqualified
104.12or, if disqualified, the disqualification was set aside under section 245C.22, or a variance
104.13was issued under section 245C.30.
104.14(b) Before placement of a child for purposes of transferring permanent legal and
104.15physical custody to a relative under sections 260C.503 to 260C.515, the commissioner
104.16shall conduct a background study on each person age 13 or older living in the home.
104.17When a prospective relative custodian has a child foster care license, a new background
104.18study is not required when:
104.19(1) a background study was completed on persons required to be studied under section
104.20245C.03 in connection with the application for child foster care licensure after July 1, 2007;
104.21(2) the background study included a review of the information in section 245C.08,
104.22subdivisions 1, 3, and 4; and
104.23(3) as a result of the background study, the individual was either not disqualified
104.24or, if disqualified, the disqualification was set aside under section 245C.22, or a variance
104.25was issued under section 245C.30.

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

105.10    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.055, subdivision 1, is
105.11amended to read:
105.12    Subdivision 1. Children eligible for subsidized adoption assistance. Medical
105.13assistance may be paid for a child eligible for or receiving adoption assistance payments
105.14under title IV-E of the Social Security Act, United States Code, title 42, sections 670 to
105.15676, and to any child who is not title IV-E eligible but who was determined eligible for
105.16adoption assistance under chapter 256N or section 259A.10, subdivision 2, and has a
105.17special need for medical or rehabilitative care.

105.18    Sec. 6. Minnesota Statutes 2013 Supplement, section 256N.02, is amended by adding a
105.19subdivision to read:
105.20    Subd. 14a. Licensed child foster parent. "Licensed child foster parent" means a
105.21person who is licensed for child foster care under Minnesota Rules, parts 2960.3000 to
105.222960.3340, or licensed by a Minnesota tribe in accordance with tribal standards.

105.23    Sec. 7. Minnesota Statutes 2013 Supplement, section 256N.21, subdivision 2, is
105.24amended to read:
105.25    Subd. 2. Placement in foster care. To be eligible for foster care benefits under this
105.26section, the child must be in placement away from the child's legal parent or, guardian, or
105.27Indian custodian as defined in section 260.755, subdivision 10, and all of the following
105.28criteria must be met must meet one of the criteria in clause (1) and either clause (2) or (3):
105.29(1) the legally responsible agency must have placement authority and care
105.30responsibility, including for a child 18 years old or older and under age 21, who maintains
105.31eligibility for foster care consistent with section 260C.451;
105.32(2) (1) the legally responsible agency must have placement authority to place the
105.33child with: (i) a voluntary placement agreement or a court order, consistent with sections
106.1260B.198 , 260C.001, and 260D.01, or continued eligibility consistent with section
106.2260C.451 for a child 18 years old or older and under age 21 who maintains eligibility for
106.3foster care; or (ii) a voluntary placement agreement or court order by a Minnesota tribe
106.4that is consistent with United States Code, title 42, section 672(a)(2); and
106.5(3) (2) the child must be is placed in an emergency relative placement under section
106.6245A.035, with a licensed foster family setting, foster residence setting, or treatment
106.7foster care setting licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, a
106.8family foster home licensed or approved by a tribal agency or, for a child 18 years old or
106.9older and under age 21, child foster parent; or
106.10(3) the child is placed in one of the following unlicensed child foster care settings:
106.11(i) an emergency relative placement under tribal licensing regulations or section
106.12245A.035, with the legally responsible agency ensuring the relative completes the required
106.13child foster care application process;
106.14(ii) a licensed adult foster home with an approved age variance under section
106.15245A.16 for no more than six months;
106.16(iii) for a child 18 years old or older and under age 21 who is eligible for extended
106.17foster care under section 260C.451, an unlicensed supervised independent living setting
106.18approved by the agency responsible for the youth's child's care.; or
106.19(iv) a preadoptive placement in a home specified in section 245A.03, subdivision
106.202, paragraph (a), clause (9), with an approved adoption home study and signed adoption
106.21placement agreement.

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

106.31    Sec. 9. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is
106.32amended to read:
106.33    Subdivision 1. General eligibility requirements. (a) To be eligible for guardianship
106.34assistance under this section, there must be a judicial determination under section
107.1260C.515, subdivision 4 , that a transfer of permanent legal and physical custody to a
107.2relative is in the child's best interest. For a child under jurisdiction of a tribal court, a
107.3judicial determination under a similar provision in tribal code indicating that a relative
107.4will assume the duty and authority to provide care, control, and protection of a child who
107.5is residing in foster care, and to make decisions regarding the child's education, health
107.6care, and general welfare until adulthood, and that this is in the child's best interest is
107.7considered equivalent. Additionally, a child must:
107.8(1) have been removed from the child's home pursuant to a voluntary placement
107.9agreement or court order;
107.10(2)(i) have resided in with the prospective relative custodian who has been a
107.11licensed child foster care parent for at least six consecutive months in the home of the
107.12prospective relative custodian; or
107.13(ii) have received from the commissioner an exemption from the requirement in item
107.14(i) from the court that the prospective relative custodian has been a licensed child foster
107.15parent for at least six consecutive months, based on a determination that:
107.16(A) an expedited move to permanency is in the child's best interest;
107.17(B) expedited permanency cannot be completed without provision of guardianship
107.18assistance; and
107.19(C) the prospective relative custodian is uniquely qualified to meet the child's needs,
107.20as defined in section 260C.212, subdivision 2, on a permanent basis;
107.21(D) the child and prospective relative custodian meet the eligibility requirements
107.22of this section; and
107.23(E) efforts were made by the legally responsible agency to place the child with the
107.24prospective relative custodian as a licensed child foster parent for six consecutive months
107.25before permanency, or an explanation why these efforts were not in the child's best interests;
107.26(3) meet the agency determinations regarding permanency requirements in
107.27subdivision 2;
107.28(4) meet the applicable citizenship and immigration requirements in subdivision 3;
107.29(5) have been consulted regarding the proposed transfer of permanent legal and
107.30physical custody to a relative, if the child is at least 14 years of age or is expected to attain
107.3114 years of age prior to the transfer of permanent legal and physical custody; and
107.32(6) have a written, binding agreement under section 256N.25 among the caregiver or
107.33caregivers, the financially responsible agency, and the commissioner established prior to
107.34transfer of permanent legal and physical custody.
108.1(b) In addition to the requirements in paragraph (a), the child's prospective relative
108.2custodian or custodians must meet the applicable background study requirements in
108.3subdivision 4.
108.4(c) To be eligible for title IV-E guardianship assistance, a child must also meet any
108.5additional criteria in section 473(d) of the Social Security Act. The sibling of a child
108.6who meets the criteria for title IV-E guardianship assistance in section 473(d) of the
108.7Social Security Act is eligible for title IV-E guardianship assistance if the child and
108.8sibling are placed with the same prospective relative custodian or custodians, and the
108.9legally responsible agency, relatives, and commissioner agree on the appropriateness of
108.10the arrangement for the sibling. A child who meets all eligibility criteria except those
108.11specific to title IV-E guardianship assistance is entitled to guardianship assistance paid
108.12through funds other than title IV-E.

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

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

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

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

110.27    Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is
110.28amended to read:
110.29    Subd. 4. Background study. (a) A background study under section 259.41 must be
110.30completed on each prospective adoptive parent. and all other adults residing in the home.
110.31A background study must meet the requirements of United States Code, title 42, section
110.32671(a)(20). A study completed under section 245C.33 meets this requirement. If the
110.33prospective adoptive parent is a licensed child foster parent licensed under chapter 245A
110.34or by a Minnesota tribe, the background study previously completed for the purposes of
111.1child foster care licensure shall be used for the purpose of this section, provided that the
111.2background study meets all other requirements of this subdivision and the prospective
111.3adoptive parent is a licensed child foster parent at the time of the application for adoption
111.4assistance.
111.5(b) If the background study reveals:
111.6(1) a felony conviction at any time for:
111.7(i) child abuse or neglect;
111.8(ii) spousal abuse;
111.9(iii) a crime against a child, including child pornography; or
111.10(iv) a crime involving violence, including rape, sexual assault, or homicide, but not
111.11including other physical assault or battery; or
111.12(2) a felony conviction within the past five years for:
111.13(i) physical assault;
111.14(ii) battery; or
111.15(iii) a drug-related offense;
111.16the adoptive parent is prohibited from receiving adoption assistance on behalf of an
111.17otherwise eligible child.

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

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

112.21    Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is
112.22amended to read:
112.23    Subd. 2. Negotiation of agreement. (a) When a child is determined to be eligible
112.24for guardianship assistance or adoption assistance, the financially responsible agency, or,
112.25if there is no financially responsible agency, the agency designated by the commissioner,
112.26must negotiate with the caregiver to develop an agreement under subdivision 1. If and when
112.27the caregiver and agency reach concurrence as to the terms of the agreement, both parties
112.28shall sign the agreement. The agency must submit the agreement, along with the eligibility
112.29determination outlined in sections 256N.22, subdivision 7, and 256N.23, subdivision 7, to
112.30the commissioner for final review, approval, and signature according to subdivision 1.
112.31(b) A monthly payment is provided as part of the adoption assistance or guardianship
112.32assistance agreement to support the care of children unless the child is eligible for adoption
112.33assistance and determined to be an at-risk child, in which case the special at-risk monthly
112.34payment under section 256N.26, subdivision 7, must no payment will be made unless and
113.1until the caregiver obtains written documentation from a qualified expert that the potential
113.2disability upon which eligibility for the agreement was based has manifested itself.
113.3(1) The amount of the payment made on behalf of a child eligible for guardianship
113.4assistance or adoption assistance is determined through agreement between the prospective
113.5relative custodian or the adoptive parent and the financially responsible agency, or, if there
113.6is no financially responsible agency, the agency designated by the commissioner, using
113.7the assessment tool established by the commissioner in section 256N.24, subdivision 2,
113.8and the associated benefit and payments outlined in section 256N.26. Except as provided
113.9under section 256N.24, subdivision 1, paragraph (c), the assessment tool establishes
113.10the monthly benefit level for a child under foster care. The monthly payment under a
113.11guardianship assistance agreement or adoption assistance agreement may be negotiated up
113.12to the monthly benefit level under foster care. In no case may the amount of the payment
113.13under a guardianship assistance agreement or adoption assistance agreement exceed the
113.14foster care maintenance payment which would have been paid during the month if the
113.15child with respect to whom the guardianship assistance or adoption assistance payment is
113.16made had been in a foster family home in the state.
113.17(2) The rate schedule for the agreement is determined based on the age of the
113.18child on the date that the prospective adoptive parent or parents or relative custodian or
113.19custodians sign the agreement.
113.20(3) The income of the relative custodian or custodians or adoptive parent or parents
113.21must not be taken into consideration when determining eligibility for guardianship
113.22assistance or adoption assistance or the amount of the payments under section 256N.26.
113.23(4) With the concurrence of the relative custodian or adoptive parent, the amount of
113.24the payment may be adjusted periodically using the assessment tool established by the
113.25commissioner in section 256N.24, subdivision 2, and the agreement renegotiated under
113.26subdivision 3 when there is a change in the child's needs or the family's circumstances.
113.27(5) The guardianship assistance or adoption assistance agreement of a child who is
113.28identified as at-risk receives the special at-risk monthly payment under section 256N.26,
113.29subdivision 7, unless and until the potential disability manifests itself, as documented by
113.30an appropriate professional, and the commissioner authorizes commencement of payment
113.31by modifying the agreement accordingly. A relative custodian or An adoptive parent
113.32of an at-risk child with a guardianship assistance or an adoption assistance agreement
113.33may request a reassessment of the child under section 256N.24, subdivision 9 10, and
113.34renegotiation of the guardianship assistance or adoption assistance agreement under
113.35subdivision 3 to include a monthly payment, if the caregiver has written documentation
113.36from a qualified expert that the potential disability upon which eligibility for the agreement
114.1was based has manifested itself. Documentation of the disability must be limited to
114.2evidence deemed appropriate by the commissioner.
114.3(c) For guardianship assistance agreements:
114.4(1) the initial amount of the monthly guardianship assistance payment must be
114.5equivalent to the foster care rate in effect at the time that the agreement is signed less any
114.6offsets under section 256N.26, subdivision 11, or a lesser negotiated amount if agreed to
114.7by the prospective relative custodian and specified in that agreement, unless the child is
114.8identified as at-risk or the guardianship assistance agreement is entered into when a child
114.9is under the age of six; and
114.10(2) an at-risk child must be assigned level A as outlined in section 256N.26 and
114.11receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless
114.12and until the potential disability manifests itself, as documented by a qualified expert, and
114.13the commissioner authorizes commencement of payment by modifying the agreement
114.14accordingly; and
114.15(3) (2) the amount of the monthly payment for a guardianship assistance agreement
114.16for a child, other than an at-risk child, who is under the age of six must be as specified in
114.17section 256N.26, subdivision 5.
114.18(d) For adoption assistance agreements:
114.19(1) for a child in foster care with the prospective adoptive parent immediately prior
114.20to adoptive placement, the initial amount of the monthly adoption assistance payment
114.21must be equivalent to the foster care rate in effect at the time that the agreement is signed
114.22less any offsets in section 256N.26, subdivision 11, or a lesser negotiated amount if agreed
114.23to by the prospective adoptive parents and specified in that agreement, unless the child is
114.24identified as at-risk or the adoption assistance agreement is entered into when a child is
114.25under the age of six;
114.26(2) for an at-risk child who must be assigned level A as outlined in section
114.27256N.26 and receive the special at-risk monthly payment under section 256N.26,
114.28subdivision 7, no payment will be made unless and until the potential disability manifests
114.29itself, as documented by an appropriate professional, and the commissioner authorizes
114.30commencement of payment by modifying the agreement accordingly;
114.31(3) the amount of the monthly payment for an adoption assistance agreement for
114.32a child under the age of six, other than an at-risk child, must be as specified in section
114.33256N.26, subdivision 5 ;
114.34(4) for a child who is in the guardianship assistance program immediately prior
114.35to adoptive placement, the initial amount of the adoption assistance payment must be
114.36equivalent to the guardianship assistance payment in effect at the time that the adoption
115.1assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive
115.2parent and specified in that agreement, unless the child is identified as an at-risk child; and
115.3(5) for a child who is not in foster care placement or the guardianship assistance
115.4program immediately prior to adoptive placement or negotiation of the adoption assistance
115.5agreement, the initial amount of the adoption assistance agreement must be determined
115.6using the assessment tool and process in this section and the corresponding payment
115.7amount outlined in section 256N.26.

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

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

116.21    Sec. 20. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is
116.22amended to read:
116.23    Subd. 4. Nonfederal share. (a) The commissioner shall establish a percentage share
116.24of the maintenance payments, reduced by federal reimbursements under title IV-E of the
116.25Social Security Act, to be paid by the state and to be paid by the financially responsible
116.26agency.
116.27(b) These state and local shares must initially be calculated based on the ratio of the
116.28average appropriate expenditures made by the state and all financially responsible agencies
116.29during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation,
116.30appropriate expenditures for the financially responsible agencies must include basic and
116.31difficulty of care payments for foster care reduced by federal reimbursements, but not
116.32including any initial clothing allowance, administrative payments to child care agencies
116.33specified in section 317A.907, child care, or other support or ancillary expenditures. For
117.1purposes of this calculation, appropriate expenditures for the state shall include adoption
117.2assistance and relative custody assistance, reduced by federal reimbursements.
117.3(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017,
117.42018, and 2019, the commissioner shall adjust this initial percentage of state and local
117.5shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and
117.62014, taking into account appropriations for Northstar Care for Children and the turnover
117.7rates of the components. In making these adjustments, the commissioner's goal shall be to
117.8make these state and local expenditures other than the appropriations for Northstar Care
117.9for Children to be the same as they would have been had Northstar Care for Children not
117.10been implemented, or if that is not possible, proportionally higher or lower, as appropriate.
117.11Except for adjustments so that the costs of the phase-in are borne by the state, the state and
117.12local share percentages for fiscal year 2019 must be used for all subsequent years.

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

117.33    Sec. 22. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:
118.1    Subdivision 1. Out-of-home placement; plan. (a) An out-of-home placement plan
118.2shall be prepared within 30 days after any child is placed in foster care by court order or a
118.3voluntary placement agreement between the responsible social services agency and the
118.4child's parent pursuant to section 260C.227 or chapter 260D.
118.5    (b) An out-of-home placement plan means a written document which is prepared
118.6by the responsible social services agency jointly with the parent or parents or guardian
118.7of the child and in consultation with the child's guardian ad litem, the child's tribe, if the
118.8child is an Indian child, the child's foster parent or representative of the foster care facility,
118.9and, where appropriate, the child. For a child in voluntary foster care for treatment under
118.10chapter 260D, preparation of the out-of-home placement plan shall additionally include
118.11the child's mental health treatment provider. As appropriate, the plan shall be:
118.12    (1) submitted to the court for approval under section 260C.178, subdivision 7;
118.13    (2) ordered by the court, either as presented or modified after hearing, under section
118.14260C.178 , subdivision 7, or 260C.201, subdivision 6; and
118.15    (3) signed by the parent or parents or guardian of the child, the child's guardian ad
118.16litem, a representative of the child's tribe, the responsible social services agency, and, if
118.17possible, the child.
118.18    (c) The out-of-home placement plan shall be explained to all persons involved in its
118.19implementation, including the child who has signed the plan, and shall set forth:
118.20    (1) a description of the foster care home or facility selected, including how the
118.21out-of-home placement plan is designed to achieve a safe placement for the child in the
118.22least restrictive, most family-like, setting available which is in close proximity to the home
118.23of the parent or parents or guardian of the child when the case plan goal is reunification,
118.24and how the placement is consistent with the best interests and special needs of the child
118.25according to the factors under subdivision 2, paragraph (b);
118.26    (2) the specific reasons for the placement of the child in foster care, and when
118.27reunification is the plan, a description of the problems or conditions in the home of the
118.28parent or parents which necessitated removal of the child from home and the changes the
118.29parent or parents must make in order for the child to safely return home;
118.30    (3) a description of the services offered and provided to prevent removal of the child
118.31from the home and to reunify the family including:
118.32    (i) the specific actions to be taken by the parent or parents of the child to eliminate
118.33or correct the problems or conditions identified in clause (2), and the time period during
118.34which the actions are to be taken; and
118.35    (ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made
118.36to achieve a safe and stable home for the child including social and other supportive
119.1services to be provided or offered to the parent or parents or guardian of the child, the
119.2child, and the residential facility during the period the child is in the residential facility;
119.3    (4) a description of any services or resources that were requested by the child or the
119.4child's parent, guardian, foster parent, or custodian since the date of the child's placement
119.5in the residential facility, and whether those services or resources were provided and if
119.6not, the basis for the denial of the services or resources;
119.7    (5) the visitation plan for the parent or parents or guardian, other relatives as defined
119.8in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed
119.9together in foster care, and whether visitation is consistent with the best interest of the
119.10child, during the period the child is in foster care;
119.11    (6) when a child cannot return to or be in the care of either parent, documentation of
119.12steps to finalize the permanency plan for the child, including:
119.13    (i) reasonable efforts to place the child for adoption or legal guardianship of the child
119.14if the court has issued an order terminating the rights of both parents of the child or of the
119.15only known, living parent of the child. At a minimum, the documentation must include
119.16consideration of whether adoption is in the best interests of the child, child-specific
119.17recruitment efforts such as relative search and the use of state, regional, and national
119.18adoption exchanges to facilitate orderly and timely placements in and outside of the state.
119.19A copy of this documentation shall be provided to the court in the review required under
119.20section 260C.317, subdivision 3, paragraph (b); and
119.21    (ii) documentation necessary to support the requirements of the kinship placement
119.22agreement under section 256N.22 when adoption is determined not to be in the child's
119.23best interest;
119.24    (7) efforts to ensure the child's educational stability while in foster care, including:
119.25(i) efforts to ensure that the child remains in the same school in which the child was
119.26enrolled prior to placement or upon the child's move from one placement to another,
119.27including efforts to work with the local education authorities to ensure the child's
119.28educational stability; or
119.29(ii) if it is not in the child's best interest to remain in the same school that the child
119.30was enrolled in prior to placement or move from one placement to another, efforts to
119.31ensure immediate and appropriate enrollment for the child in a new school;
119.32(8) the educational records of the child including the most recent information
119.33available regarding:
119.34    (i) the names and addresses of the child's educational providers;
119.35    (ii) the child's grade level performance;
119.36    (iii) the child's school record;
120.1    (iv) a statement about how the child's placement in foster care takes into account
120.2proximity to the school in which the child is enrolled at the time of placement; and
120.3(v) any other relevant educational information;
120.4    (9) the efforts by the local agency to ensure the oversight and continuity of health
120.5care services for the foster child, including:
120.6(i) the plan to schedule the child's initial health screens;
120.7(ii) how the child's known medical problems and identified needs from the screens,
120.8including any known communicable diseases, as defined in section 144.4172, subdivision
120.92, will be monitored and treated while the child is in foster care;
120.10(iii) how the child's medical information will be updated and shared, including
120.11the child's immunizations;
120.12(iv) who is responsible to coordinate and respond to the child's health care needs,
120.13including the role of the parent, the agency, and the foster parent;
120.14(v) who is responsible for oversight of the child's prescription medications;
120.15(vi) how physicians or other appropriate medical and nonmedical professionals
120.16will be consulted and involved in assessing the health and well-being of the child and
120.17determine the appropriate medical treatment for the child; and
120.18(vii) the responsibility to ensure that the child has access to medical care through
120.19either medical insurance or medical assistance;
120.20(10) the health records of the child including information available regarding:
120.21(i) the names and addresses of the child's health care and dental care providers;
120.22(ii) a record of the child's immunizations;
120.23(iii) the child's known medical problems, including any known communicable
120.24diseases as defined in section 144.4172, subdivision 2;
120.25(iv) the child's medications; and
120.26(v) any other relevant health care information such as the child's eligibility for
120.27medical insurance or medical assistance;
120.28(11) an independent living plan for a child age 16 or older. The plan should include,
120.29but not be limited to, the following objectives:
120.30    (i) educational, vocational, or employment planning;
120.31    (ii) health care planning and medical coverage;
120.32    (iii) transportation including, where appropriate, assisting the child in obtaining a
120.33driver's license;
120.34    (iv) money management, including the responsibility of the agency to ensure that
120.35the youth annually receives, at no cost to the youth, a consumer report as defined under
120.36section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;
121.1    (v) planning for housing;
121.2    (vi) social and recreational skills; and
121.3    (vii) establishing and maintaining connections with the child's family and
121.4community; and
121.5    (12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic
121.6and assessment information, specific services relating to meeting the mental health care
121.7needs of the child, and treatment outcomes.
121.8    (d) The parent or parents or guardian and the child each shall have the right to legal
121.9counsel in the preparation of the case plan and shall be informed of the right at the time
121.10of placement of the child. The child shall also have the right to a guardian ad litem.
121.11If unable to employ counsel from their own resources, the court shall appoint counsel
121.12upon the request of the parent or parents or the child or the child's legal guardian. The
121.13parent or parents may also receive assistance from any person or social services agency
121.14in preparation of the case plan.
121.15    After the plan has been agreed upon by the parties involved or approved or ordered
121.16by the court, the foster parents shall be fully informed of the provisions of the case plan
121.17and shall be provided a copy of the plan.
121.18    Upon discharge from foster care, the parent, adoptive parent, or permanent legal and
121.19physical custodian, as appropriate, and the child, if appropriate, must be provided with
121.20a current copy of the child's health and education record.

121.21    Sec. 23. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:
121.22    Subd. 4. Custody to relative. The court may order permanent legal and physical
121.23custody to a fit and willing relative in the best interests of the child according to the
121.24following conditions requirements:
121.25(1) an order for transfer of permanent legal and physical custody to a relative shall
121.26only be made after the court has reviewed the suitability of the prospective legal and
121.27physical custodian, including a review of the background study required under sections
121.28245C.33 and 256N.22, subdivision 4;
121.29(2) in transferring permanent legal and physical custody to a relative, the juvenile
121.30court shall follow the standards applicable under this chapter and chapter 260, and the
121.31procedures in the Minnesota Rules of Juvenile Protection Procedure;
121.32(3) a transfer of legal and physical custody includes responsibility for the protection,
121.33education, care, and control of the child and decision making on behalf of the child;
122.1(4) a permanent legal and physical custodian may not return a child to the permanent
122.2care of a parent from whom the court removed custody without the court's approval and
122.3without notice to the responsible social services agency;
122.4(5) the social services agency may file a petition naming a fit and willing relative as
122.5a proposed permanent legal and physical custodian. A petition for transfer of permanent
122.6legal and physical custody to a relative who is not a parent shall be accompanied by a
122.7kinship placement agreement under section 256N.22, subdivision 2, between the agency
122.8and proposed permanent legal and physical custodian;
122.9(6) another party to the permanency proceeding regarding the child may file a
122.10petition to transfer permanent legal and physical custody to a relative, but the. The petition
122.11must include facts upon which the court can make the determination required under clause
122.12(7) and must be filed not later than the date for the required admit-deny hearing under
122.13section 260C.507; or if the agency's petition is filed under section 260C.503, subdivision
122.142 , the petition must be filed not later than 30 days prior to the trial required under section
122.15260C.509 ; and
122.16(7) where a petition is for transfer of permanent legal and physical custody to a
122.17relative who is not a parent, the court must find that:
122.18(i) transfer of permanent legal and physical custody and receipt of Northstar kinship
122.19assistance under chapter 256N, when requested and the child is eligible, is in the child's
122.20best interests;
122.21(ii) adoption is not in the child's best interests based on the determinations in the
122.22kinship placement agreement required under section 256N.22, subdivision 2;
122.23(iii) the agency made efforts to discuss adoption with the child's parent or parents,
122.24or the agency did not make efforts to discuss adoption and the reasons why efforts were
122.25not made; and
122.26(iv) there are reasons to separate siblings during placement, if applicable;
122.27(8) the court may defer finalization of an order transferring permanent legal and
122.28physical custody to a relative when deferring finalization is necessary to determine
122.29eligibility for Northstar kinship assistance under chapter 256N; and
122.30(7) (9) the juvenile court may maintain jurisdiction over the responsible social
122.31services agency, the parents or guardian of the child, the child, and the permanent legal
122.32and physical custodian for purposes of ensuring appropriate services are delivered to the
122.33child and permanent legal custodian for the purpose of ensuring conditions ordered by the
122.34court related to the care and custody of the child are met.

123.1    Sec. 24. Minnesota Statutes 2012, section 260C.611, is amended to read:
123.2260C.611 ADOPTION STUDY REQUIRED.
123.3(a) An adoption study under section 259.41 approving placement of the child in the
123.4home of the prospective adoptive parent shall be completed before placing any child under
123.5the guardianship of the commissioner in a home for adoption. If a prospective adoptive
123.6parent has a current child foster care license under chapter 245A and is seeking to adopt
123.7a foster child who is placed in the prospective adoptive parent's home and is under the
123.8guardianship of the commissioner according to section 260C.325, subdivision 1, the child
123.9foster care home study meets the requirements of this section for an approved adoption
123.10home study if:
123.11(1) the written home study on which the foster care license was based is completed
123.12in the commissioner's designated format, consistent with the requirements in sections
123.13260C.215, subdivision 4, clause (5); and 259.41, subdivision 2; and Minnesota Rules,
123.14part 2960.3060, subpart 4;
123.15(2) the background studies on each prospective adoptive parent and all required
123.16household members were completed according to section 245C.33;
123.17(3) the commissioner has not issued, within the last three years, a sanction on the
123.18license under section 245A.07 or an order of a conditional license under section 245A.06;
123.19and
123.20(4) the legally responsible agency determines that the individual needs of the child
123.21are being met by the prospective adoptive parent through an assessment under section
123.22256N.24, subdivision 2, or a documented placement decision consistent with section
123.23260C.212, subdivision 2.
123.24(b) If a prospective adoptive parent has previously held a foster care license or
123.25adoptive home study, any update necessary to the foster care license, or updated or new
123.26adoptive home study, if not completed by the licensing authority responsible for the
123.27previous license or home study, shall include collateral information from the previous
123.28licensing or approving agency, if available.

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

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

124.2ARTICLE 18
124.3COMMUNITY FIRST SERVICES AND SUPPORTS

124.4    Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a
124.5subdivision to read:
124.6    Subd. 8. Community first services and supports organizations. The
124.7commissioner shall conduct background studies on any individual required under section
124.8256B.85 to have a background study completed under this chapter.

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

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

124.31    Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is
124.32amended to read:
125.1    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
125.2this subdivision have the meanings given.
125.3(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming,
125.4dressing, bathing, mobility, positioning, and transferring.
125.5(c) "Agency-provider model" means a method of CFSS under which a qualified
125.6agency provides services and supports through the agency's own employees and policies.
125.7The agency must allow the participant to have a significant role in the selection and
125.8dismissal of support workers of their choice for the delivery of their specific services
125.9and supports.
125.10(d) "Behavior" means a description of a need for services and supports used to
125.11determine the home care rating and additional service units. The presence of Level I
125.12behavior is used to determine the home care rating. "Level I behavior" means physical
125.13aggression towards self or others or destruction of property that requires the immediate
125.14response of another person. If qualified for a home care rating as described in subdivision
125.158, additional service units can be added as described in subdivision 8, paragraph (f), for
125.16the following behaviors:
125.17(1) Level I behavior;
125.18(2) increased vulnerability due to cognitive deficits or socially inappropriate
125.19behavior; or
125.20(3) increased need for assistance for recipients participants who are verbally
125.21aggressive or resistive to care so that time needed to perform activities of daily living is
125.22increased.
125.23(e) "Budget model" means a service delivery method of CFSS that allows the
125.24use of a service budget and assistance from a vendor fiscal/employer agent financial
125.25management services (FMS) contractor for a participant to directly employ support
125.26workers and purchase supports and goods.
125.27(e) (f) "Complex health-related needs" means an intervention listed in clauses (1)
125.28to (8) that has been ordered by a physician, and is specified in a community support
125.29plan, including:
125.30(1) tube feedings requiring:
125.31(i) a gastrojejunostomy tube; or
125.32(ii) continuous tube feeding lasting longer than 12 hours per day;
125.33(2) wounds described as:
125.34(i) stage III or stage IV;
125.35(ii) multiple wounds;
125.36(iii) requiring sterile or clean dressing changes or a wound vac; or
126.1(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require
126.2specialized care;
126.3(3) parenteral therapy described as:
126.4(i) IV therapy more than two times per week lasting longer than four hours for
126.5each treatment; or
126.6(ii) total parenteral nutrition (TPN) daily;
126.7(4) respiratory interventions, including:
126.8(i) oxygen required more than eight hours per day;
126.9(ii) respiratory vest more than one time per day;
126.10(iii) bronchial drainage treatments more than two times per day;
126.11(iv) sterile or clean suctioning more than six times per day;
126.12(v) dependence on another to apply respiratory ventilation augmentation devices
126.13such as BiPAP and CPAP; and
126.14(vi) ventilator dependence under section 256B.0652;
126.15(5) insertion and maintenance of catheter, including:
126.16(i) sterile catheter changes more than one time per month;
126.17(ii) clean intermittent catheterization, and including self-catheterization more than
126.18six times per day; or
126.19(iii) bladder irrigations;
126.20(6) bowel program more than two times per week requiring more than 30 minutes to
126.21perform each time;
126.22(7) neurological intervention, including:
126.23(i) seizures more than two times per week and requiring significant physical
126.24assistance to maintain safety; or
126.25(ii) swallowing disorders diagnosed by a physician and requiring specialized
126.26assistance from another on a daily basis; and
126.27(8) other congenital or acquired diseases creating a need for significantly increased
126.28direct hands-on assistance and interventions in six to eight activities of daily living.
126.29(f) (g) "Community first services and supports" or "CFSS" means the assistance and
126.30supports program under this section needed for accomplishing activities of daily living,
126.31instrumental activities of daily living, and health-related tasks through hands-on assistance
126.32to accomplish the task or constant supervision and cueing to accomplish the task, or the
126.33purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace
126.34the need for human assistance.
126.35(g) (h) "Community first services and supports service delivery plan" or "service
126.36delivery plan" means a written summary of document detailing the services and supports
127.1chosen by the participant to meet assessed needs that is are within the approved CFSS
127.2service authorization amount. Services and supports are based on the community support
127.3plan identified in section 256B.0911 and coordinated services and support plan and budget
127.4identified in section 256B.0915, subdivision 6, if applicable, that is determined by the
127.5participant to meet the assessed needs, using a person-centered planning process.
127.6(i) "Consultation services" means a Minnesota health care program enrolled provider
127.7organization that is under contract with the department and has the knowledge, skills,
127.8and ability to assist CFSS participants in using either the agency-provider model under
127.9subdivision 11 or the budget model under subdivision 13.
127.10(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and
127.11toileting.
127.12(i) (k) "Dependency" in activities of daily living means a person requires hands-on
127.13assistance or constant supervision and cueing to accomplish one or more of the activities
127.14of daily living every day or on the days during the week that the activity is performed;
127.15however, a child may not be found to be dependent in an activity of daily living if,
127.16because of the child's age, an adult would either perform the activity for the child or assist
127.17the child with the activity and the assistance needed is the assistance appropriate for
127.18a typical child of the same age.
127.19(j) (l) "Extended CFSS" means CFSS services and supports under the
127.20agency-provider model included in a service plan through one of the home and
127.21community-based services waivers and approved and authorized under sections
127.22256B.0915 ; 256B.092, subdivision 5; and 256B.49, which exceed the amount, duration,
127.23and frequency of the state plan CFSS services for participants.
127.24(k) (m) "Financial management services contractor or vendor" or "FMS contractor"
127.25 means a qualified organization having necessary to use the budget model under subdivision
127.2613 that has a written contract with the department to provide vendor fiscal/employer agent
127.27financial management services necessary to use the budget model under subdivision 13
127.28that (FMS). Services include but are not limited to: participant education and technical
127.29assistance; CFSS service delivery planning and budgeting; filing and payment of federal
127.30and state payroll taxes on behalf of the participant; initiating criminal background
127.31checks; billing, making payments, and for approved CFSS funds; monitoring of
127.32spending expenditures; accounting and disbursing CFSS funds; providing assistance in
127.33obtaining liability, workers' compensation, and unemployment coverage and filings; and
127.34assisting participant instruction and technical assistance to the participant in fulfilling
127.35employer-related requirements in accordance with Section 3504 of the Internal Revenue
128.1Code and the Internal Revenue Service Revenue Procedure 70-6 related regulations and
128.2interpretations, including Code of Federal Regulations, title 26, section 31.3504-1.
128.3(l) "Budget model" means a service delivery method of CFSS that allows the use of
128.4an individualized CFSS service delivery plan and service budget and provides assistance
128.5from the financial management services contractor to facilitate participant employment of
128.6support workers and the acquisition of supports and goods.
128.7(m) (n) "Health-related procedures and tasks" means procedures and tasks related
128.8to the specific needs of an individual that can be delegated taught or assigned by a
128.9state-licensed healthcare or mental health professional and performed by a support worker.
128.10(n) (o) "Instrumental activities of daily living" means activities related to
128.11living independently in the community, including but not limited to: meal planning,
128.12preparation, and cooking; shopping for food, clothing, or other essential items; laundry;
128.13housecleaning; assistance with medications; managing finances; communicating needs
128.14and preferences during activities; arranging supports; and assistance with traveling around
128.15and participating in the community.
128.16(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian,
128.17or another representative with legal authority to make decisions about services and
128.18supports for the participant. Other representatives with legal authority to make decisions
128.19include but are not limited to a health care agent or an attorney-in-fact authorized through
128.20a health care directive or power of attorney.
128.21(p) (q) "Medication assistance" means providing verbal or visual reminders to take
128.22regularly scheduled medication, and includes any of the following supports listed in clauses
128.23(1) to (3) and other types of assistance, except that a support worker may not determine
128.24medication dose or time for medication or inject medications into veins, muscles, or skin:
128.25(1) under the direction of the participant or the participant's representative, bringing
128.26medications to the participant including medications given through a nebulizer, opening a
128.27container of previously set-up medications, emptying the container into the participant's
128.28hand, opening and giving the medication in the original container to the participant, or
128.29bringing to the participant liquids or food to accompany the medication;
128.30(2) organizing medications as directed by the participant or the participant's
128.31representative; and
128.32(3) providing verbal or visual reminders to perform regularly scheduled medications.
128.33(q) (r) "Participant's representative" means a parent, family member, advocate,
128.34or other adult authorized by the participant to serve as a representative in connection
128.35with the provision of CFSS. This authorization must be in writing or by another method
128.36that clearly indicates the participant's free choice. The participant's representative must
129.1have no financial interest in the provision of any services included in the participant's
129.2service delivery plan and must be capable of providing the support necessary to assist
129.3the participant in the use of CFSS. If through the assessment process described in
129.4subdivision 5 a participant is determined to be in need of a participant's representative, one
129.5must be selected. If the participant is unable to assist in the selection of a participant's
129.6representative, the legal representative shall appoint one. Two persons may be designated
129.7as a participant's representative for reasons such as divided households and court-ordered
129.8custodies. Duties of a participant's representatives may include:
129.9(1) being available while care is services are provided in a method agreed upon by
129.10the participant or the participant's legal representative and documented in the participant's
129.11CFSS service delivery plan;
129.12(2) monitoring CFSS services to ensure the participant's CFSS service delivery
129.13plan is being followed; and
129.14(3) reviewing and signing CFSS time sheets after services are provided to provide
129.15verification of the CFSS services.
129.16(r) (s) "Person-centered planning process" means a process that is directed by the
129.17participant to plan for services and supports. The person-centered planning process must:
129.18(1) include people chosen by the participant;
129.19(2) provide necessary information and support to ensure that the participant directs
129.20the process to the maximum extent possible, and is enabled to make informed choices
129.21and decisions;
129.22(3) be timely and occur at time and locations of convenience to the participant;
129.23(4) reflect cultural considerations of the participant;
129.24(5) include strategies for solving conflict or disagreement within the process,
129.25including clear conflict-of-interest guidelines for all planning;
129.26(6) provide the participant choices of the services and supports they receive and the
129.27staff providing those services and supports;
129.28(7) include a method for the participant to request updates to the plan; and
129.29(8) record the alternative home and community-based settings that were considered
129.30by the participant.
129.31(s) (t) "Shared services" means the provision of CFSS services by the same CFSS
129.32support worker to two or three participants who voluntarily enter into an agreement
129.33to receive services at the same time and in the same setting by the same provider
129.34 agency-provider.
129.35(t) "Support specialist" means a professional with the skills and ability to assist the
129.36participant using either the agency-provider model under subdivision 11 or the flexible
130.1spending model under subdivision 13, in services including but not limited to assistance
130.2regarding:
130.3(1) the development, implementation, and evaluation of the CFSS service delivery
130.4plan under subdivision 6;
130.5(2) recruitment, training, or supervision, including supervision of health-related tasks
130.6or behavioral supports appropriately delegated or assigned by a health care professional,
130.7and evaluation of support workers; and
130.8(3) facilitating the use of informal and community supports, goods, or resources.
130.9(u) "Support worker" means an a qualified and trained employee of the agency
130.10provider agency-provider or of the participant employer under the budget model who
130.11has direct contact with the participant and provides services as specified within the
130.12participant's service delivery plan.
130.13(v) "Wages and benefits" means the hourly wages and salaries, the employer's
130.14share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers'
130.15compensation, mileage reimbursement, health and dental insurance, life insurance,
130.16disability insurance, long-term care insurance, uniform allowance, contributions to
130.17employee retirement accounts, or other forms of employee compensation and benefits.
130.18(w) "Worker training and development" means services for developing workers'
130.19skills as required by the participant's individual CFSS delivery plan that are arranged for
130.20or provided by the agency-provider or purchased by the participant employer. These
130.21services include training, education, direct observation and supervision, and evaluation
130.22and coaching of job skills and tasks, including supervision of health-related tasks or
130.23behavioral supports.

130.24    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is
130.25amended to read:
130.26    Subd. 3. Eligibility. (a) CFSS is available to a person who meets one of the
130.27following:
130.28(1) is a recipient an enrollee of medical assistance as determined under section
130.29256B.055 , 256B.056, or 256B.057, subdivisions 5 and 9;
130.30(2) is a recipient of participant in the alternative care program under section
130.31256B.0913 ;
130.32(3) is a waiver recipient participant as defined under section 256B.0915, 256B.092,
130.33256B.093 , or 256B.49; or
130.34(4) has medical services identified in a participant's individualized education
130.35program and is eligible for services as determined in section 256B.0625, subdivision 26.
131.1(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also
131.2meet all of the following:
131.3(1) require assistance and be determined dependent in one activity of daily living or
131.4Level I behavior based on assessment under section 256B.0911; and
131.5(2) is not a recipient of participant under a family support grant under section 252.32;.
131.6(3) lives in the person's own apartment or home including a family foster care setting
131.7licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a
131.8noncertified boarding care home or a boarding and lodging establishment under chapter
131.9157.

131.10    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is
131.11amended to read:
131.12    Subd. 5. Assessment requirements. (a) The assessment of functional need must:
131.13(1) be conducted by a certified assessor according to the criteria established in
131.14section 256B.0911, subdivision 3a;
131.15(2) be conducted face-to-face, initially and at least annually thereafter, or when there
131.16is a significant change in the participant's condition or a change in the need for services
131.17and supports, or at the request of the participant; and
131.18(3) be completed using the format established by the commissioner.
131.19(b) A participant who is residing in a facility may be assessed and choose CFSS for
131.20the purpose of using CFSS to return to the community as described in subdivisions 3
131.21and 7, paragraph (a), clause (5).
131.22(c) (b) The results of the assessment and any recommendations and authorizations
131.23for CFSS must be determined and communicated in writing by the lead agency's certified
131.24assessor as defined in section 256B.0911 to the participant and the agency-provider or
131.25financial management services provider FMS contractor chosen by the participant within
131.2640 calendar days and must include the participant's right to appeal under section 256.045,
131.27subdivision 3 .
131.28(d) (c) The lead agency assessor may request authorize a temporary authorization
131.29for CFSS services to be provided under the agency-provider model. Authorization for
131.30a temporary level of CFSS services under the agency-provider model is limited to the
131.31time specified by the commissioner, but shall not exceed 45 days. The level of services
131.32authorized under this provision paragraph shall have no bearing on a future authorization.

131.33    Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is
131.34amended to read:
132.1    Subd. 6. Community first services and support service delivery plan. (a) The
132.2CFSS service delivery plan must be developed, implemented, and evaluated through a
132.3person-centered planning process by the participant, or the participant's representative
132.4or legal representative who may be assisted by a support specialist consultation services
132.5provider. The CFSS service delivery plan must reflect the services and supports that
132.6are important to the participant and for the participant to meet the needs assessed
132.7by the certified assessor and identified in the community support plan under section
132.8256B.0911, subdivision 3 , or the coordinated services and support plan identified in
132.9section 256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be
132.10reviewed by the participant, the consultation services provider, and the agency-provider
132.11or financial management services FMS contractor prior to starting services and at least
132.12annually upon reassessment, or when there is a significant change in the participant's
132.13condition, or a change in the need for services and supports.
132.14(b) The commissioner shall establish the format and criteria for the CFSS service
132.15delivery plan.
132.16(c) The CFSS service delivery plan must be person-centered and:
132.17(1) specify the consultation services provider, agency-provider, or financial
132.18management services FMS contractor selected by the participant;
132.19(2) reflect the setting in which the participant resides that is chosen by the participant;
132.20(3) reflect the participant's strengths and preferences;
132.21(4) include the means to address the clinical and support needs as identified through
132.22an assessment of functional needs;
132.23(5) include individually identified goals and desired outcomes;
132.24(6) reflect the services and supports, paid and unpaid, that will assist the participant
132.25to achieve identified goals, including the costs of the services and supports, and the
132.26providers of those services and supports, including natural supports;
132.27(7) identify the amount and frequency of face-to-face supports and amount and
132.28frequency of remote supports and technology that will be used;
132.29(8) identify risk factors and measures in place to minimize them, including
132.30individualized backup plans;
132.31(9) be understandable to the participant and the individuals providing support;
132.32(10) identify the individual or entity responsible for monitoring the plan;
132.33(11) be finalized and agreed to in writing by the participant and signed by all
132.34individuals and providers responsible for its implementation;
132.35(12) be distributed to the participant and other people involved in the plan; and
132.36(13) prevent the provision of unnecessary or inappropriate care.;
133.1(14) include a detailed budget for expenditures for budget model participants or
133.2participants under the agency-provider model if purchasing goods; and
133.3(15) include a plan for worker training and development detailing what service
133.4components will be used, when the service components will be used, how they will be
133.5provided, and how these service components relate to the participant's individual needs
133.6and CFSS support worker services.
133.7(d) The total units of agency-provider services or the service budget allocation
133.8 amount for the budget model include both annual totals and a monthly average amount
133.9that cover the number of months of the service authorization. The amount used each
133.10month may vary, but additional funds must not be provided above the annual service
133.11authorization amount unless a change in condition is assessed and authorized by the
133.12certified assessor and documented in the community support plan, coordinated services
133.13and supports plan, and CFSS service delivery plan.
133.14(e) In assisting with the development or modification of the plan during the
133.15authorization time period, the consultation services provider shall:
133.16(1) consult with the FMS contractor on the spending budget when applicable; and
133.17(2) consult with the participant or participant's representative, agency-provider, and
133.18case manager/care coordinator.
133.19(f) The service plan must be approved by the consultation services provider for
133.20participants without a case manager/care coordinator. A case manager/care coordinator
133.21must approve the plan for a waiver or alternative care program participant.

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

135.6    Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is
135.7amended to read:
135.8    Subd. 8. Determination of CFSS service methodology. (a) All community first
135.9services and supports must be authorized by the commissioner or the commissioner's
135.10designee before services begin, except for the assessments established in section
135.11256B.0911 . The authorization for CFSS must be completed as soon as possible following
135.12an assessment but no later than 40 calendar days from the date of the assessment.
135.13(b) The amount of CFSS authorized must be based on the recipient's participant's
135.14 home care rating described in paragraphs (d) and (e) and any additional service units for
135.15which the person participant qualifies as described in paragraph (f).
135.16(c) The home care rating shall be determined by the commissioner or the
135.17commissioner's designee based on information submitted to the commissioner identifying
135.18the following for a recipient participant:
135.19(1) the total number of dependencies of activities of daily living as defined in
135.20subdivision 2, paragraph (b);
135.21(2) the presence of complex health-related needs as defined in subdivision 2,
135.22paragraph (e); and
135.23(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d),
135.24clause (1).
135.25(d) The methodology to determine the total service units for CFSS for each home
135.26care rating is based on the median paid units per day for each home care rating from
135.27fiscal year 2007 data for the PCA program.
135.28(e) Each home care rating is designated by the letters P through Z and EN and has
135.29the following base number of service units assigned:
135.30(1) P home care rating requires Level I behavior or one to three dependencies in
135.31ADLs and qualifies one for five service units;
135.32(2) Q home care rating requires Level I behavior and one to three dependencies in
135.33ADLs and qualifies one for six service units;
135.34(3) R home care rating requires a complex health-related need and one to three
135.35dependencies in ADLs and qualifies one for seven service units;
136.1(4) S home care rating requires four to six dependencies in ADLs and qualifies
136.2one for ten service units;
136.3(5) T home care rating requires four to six dependencies in ADLs and Level I
136.4behavior and qualifies one for 11 service units;
136.5(6) U home care rating requires four to six dependencies in ADLs and a complex
136.6health-related need and qualifies one for 14 service units;
136.7(7) V home care rating requires seven to eight dependencies in ADLs and qualifies
136.8one for 17 service units;
136.9(8) W home care rating requires seven to eight dependencies in ADLs and Level I
136.10behavior and qualifies one for 20 service units;
136.11(9) Z home care rating requires seven to eight dependencies in ADLs and a complex
136.12health-related need and qualifies one for 30 service units; and
136.13(10) EN home care rating includes ventilator dependency as defined in section
136.14256B.0651, subdivision 1 , paragraph (g). Recipients Participants who meet the definition
136.15of ventilator-dependent and the EN home care rating and utilize a combination of
136.16CFSS and other home care services are limited to a total of 96 service units per day for
136.17those services in combination. Additional units may be authorized when a recipient's
136.18 participant's assessment indicates a need for two staff to perform activities. Additional
136.19time is limited to 16 service units per day.
136.20(f) Additional service units are provided through the assessment and identification of
136.21the following:
136.22(1) 30 additional minutes per day for a dependency in each critical activity of daily
136.23living as defined in subdivision 2, paragraph (h) (j);
136.24(2) 30 additional minutes per day for each complex health-related function as
136.25defined in subdivision 2, paragraph (e) (f); and
136.26(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2,
136.27paragraph (d).
136.28(g) The service budget for budget model participants shall be based on:
136.29(1) assessed units as determined by the home care rating; and
136.30(2) a multiplier established by the commissioner for administrative expenses.

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

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

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

141.7    Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12,
141.8is amended to read:
141.9    Subd. 12. Requirements for enrollment of CFSS provider agency-provider
141.10 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of
141.11enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in
141.12a format determined by the commissioner, information and documentation that includes,
141.13but is not limited to, the following:
141.14(1) the CFSS provider agency's agency-provider's current contact information
141.15including address, telephone number, and e-mail address;
141.16(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's
141.17 agency-provider's Medicaid revenue in the previous calendar year is less than or equal
141.18to $300,000, the provider agency agency-provider must purchase a performance bond of
141.19$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous
141.20calendar year is greater than $300,000, the provider agency agency-provider must
141.21purchase a performance bond of $100,000. The performance bond must be in a form
141.22approved by the commissioner, must be renewed annually, and must allow for recovery of
141.23costs and fees in pursuing a claim on the bond;
141.24(3) proof of fidelity bond coverage in the amount of $20,000;
141.25(4) proof of workers' compensation insurance coverage;
141.26(5) proof of liability insurance;
141.27(6) a description of the CFSS provider agency's agency-provider's organization
141.28identifying the names of all owners, managing employees, staff, board of directors, and
141.29the affiliations of the directors, and owners, or staff to other service providers;
141.30(7) a copy of the CFSS provider agency's agency-provider's written policies and
141.31procedures including: hiring of employees; training requirements; service delivery;
141.32and employee and consumer safety including process for notification and resolution
141.33of consumer grievances, identification and prevention of communicable diseases, and
141.34employee misconduct;
142.1(8) copies of all other forms the CFSS provider agency agency-provider uses in the
142.2course of daily business including, but not limited to:
142.3(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time
142.4sheet varies from the standard time sheet for CFSS services approved by the commissioner,
142.5and a letter requesting approval of the CFSS provider agency's agency-provider's
142.6 nonstandard time sheet; and
142.7(ii) the a copy of the participant's individual CFSS provider agency's template for the
142.8CFSS care service delivery plan;
142.9(9) a list of all training and classes that the CFSS provider agency agency-provider
142.10 requires of its staff providing CFSS services;
142.11(10) documentation that the CFSS provider agency agency-provider and staff have
142.12successfully completed all the training required by this section;
142.13(11) documentation of the agency's agency-provider's marketing practices;
142.14(12) disclosure of ownership, leasing, or management of all residential properties
142.15that are used or could be used for providing home care services;
142.16(13) documentation that the agency agency-provider will use at least the following
142.17percentages of revenue generated from the medical assistance rate paid for CFSS services
142.18for employee personal care assistant CFSS support worker wages and benefits: 72.5
142.19percent of revenue from CFSS providers. The revenue generated by the support specialist
142.20 worker training and development services and the reasonable costs associated with the
142.21support specialist worker training and development services shall not be used in making
142.22this calculation; and
142.23(14) documentation that the agency agency-provider does not burden recipients'
142.24 participants' free exercise of their right to choose service providers by requiring personal
142.25care assistants CFSS support workers to sign an agreement not to work with any particular
142.26CFSS recipient participant or for another CFSS provider agency agency-provider after
142.27leaving the agency and that the agency is not taking action on any such agreements or
142.28requirements regardless of the date signed.
142.29(b) CFSS provider agencies agency-providers shall provide to the commissioner
142.30the information specified in paragraph (a).
142.31(c) All CFSS provider agencies agency-providers shall require all employees in
142.32management and supervisory positions and owners of the agency who are active in the
142.33day-to-day management and operations of the agency to complete mandatory training as
142.34determined by the commissioner. Employees in management and supervisory positions
142.35and owners who are active in the day-to-day operations of an agency who have completed
142.36the required training as an employee with a CFSS provider agency agency-provider do
143.1not need to repeat the required training if they are hired by another agency, if they have
143.2completed the training within the past three years. CFSS provider agency agency-provider
143.3 billing staff shall complete training about CFSS program financial management. Any new
143.4owners or employees in management and supervisory positions involved in the day-to-day
143.5operations are required to complete mandatory training as a requisite of working for the
143.6agency. CFSS provider agencies certified for participation in Medicare as home health
143.7agencies are exempt from the training required in this subdivision.
143.8(d) The commissioner shall send annual review notifications to agency-providers 30
143.9days prior to renewal. The notification must:
143.10(1) list the materials and information the agency-provider is required to submit;
143.11(2) provide instructions on submitting information to the commissioner; and
143.12(3) provide a due date by which the commissioner must receive the requested
143.13information.
143.14Agency-providers shall submit the required documentation for annual review within
143.1530 days of notification from the commissioner. If no documentation is submitted, the
143.16agency-provider enrollment number must be terminated or suspended.

143.17    Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13,
143.18is amended to read:
143.19    Subd. 13. Budget model. (a) Under the budget model participants can may exercise
143.20more responsibility and control over the services and supports described and budgeted
143.21within the CFSS service delivery plan. Participants must use services provided by an FMS
143.22contractor as defined in subdivision 2, paragraph (m). Under this model, participants may
143.23use their approved service budget allocation to:
143.24(1) directly employ support workers, and pay wages, federal and state payroll taxes,
143.25and premiums for workers' compensation, liability, and health insurance coverage; and
143.26(2) obtain supports and goods as defined in subdivision 7; and.
143.27(3) choose a range of support assistance services from the financial management
143.28services (FMS) contractor related to:
143.29(i) assistance in managing the budget to meet the service delivery plan needs,
143.30consistent with federal and state laws and regulations;
143.31(ii) the employment, training, supervision, and evaluation of workers by the
143.32participant;
143.33(iii) acquisition and payment for supports and goods; and
143.34(iv) evaluation of individual service outcomes as needed for the scope of the
143.35participant's degree of control and responsibility.
144.1(b) Participants who are unable to fulfill any of the functions listed in paragraph (a)
144.2may authorize a legal representative or participant's representative to do so on their behalf.
144.3(c) The commissioner shall disenroll or exclude participants from the budget model
144.4and transfer them to the agency-provider model under the following circumstances that
144.5include but are not limited to:
144.6(1) when a participant has been restricted by the Minnesota restricted recipient
144.7program, in which case the participant may be excluded for a specified time period under
144.8Minnesota Rules, parts 9505.2160 to 9505.2245;
144.9(2) when a participant exits the budget model during the participant's service plan
144.10year. Upon transfer, the participant shall not access the budget model for the remainder of
144.11that service plan year; or
144.12(3) when the department determines that the participant or participant's representative
144.13or legal representative cannot manage participant responsibilities under the budget model.
144.14The commissioner must develop policies for determining if a participant is unable to
144.15manage responsibilities under the budget model.
144.16(d) A participant may appeal in writing to the department under section 256.045,
144.17subdivision 3, to contest the department's decision under paragraph (c), clause (3), to
144.18disenroll or exclude the participant from the budget model.
144.19(c) (e) The FMS contractor shall not provide CFSS services and supports under the
144.20agency-provider service model.
144.21(f) The FMS contractor shall provide service functions as determined by the
144.22commissioner for budget model participants that include but are not limited to:
144.23(1) information and consultation about CFSS;
144.24(2) (1) assistance with the development of the detailed budget for expenditures
144.25portion of the service delivery plan and budget model as requested by the consultation
144.26services provider or participant;
144.27(3) (2) billing and making payments for budget model expenditures;
144.28(4) (3) assisting participants in fulfilling employer-related requirements according to
144.29Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax
144.30Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related
144.31regulations and interpretations, including Code of Federal Regulations, title 26, section
144.3231.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining
144.33worker compensation coverage;
144.34(5) (4) data recording and reporting of participant spending; and
144.35(6) (5) other duties established in the contract with the department, including with
144.36respect to providing assistance to the participant, participant's representative, or legal
145.1representative in performing their employer responsibilities regarding support workers.
145.2The support worker shall not be considered the employee of the financial management
145.3services FMS contractor.; and
145.4(6) billing, payment, and accounting of approved expenditures for goods for
145.5agency-provider participants.
145.6(d) A participant who requests to purchase goods and supports along with support
145.7worker services under the agency-provider model must use the budget model with
145.8a service delivery plan that specifies the amount of services to be authorized to the
145.9agency-provider and the expenditures to be paid by the FMS contractor.
145.10(e) (g) The FMS contractor shall:
145.11(1) not limit or restrict the participant's choice of service or support providers or
145.12service delivery models consistent with any applicable state and federal requirements;
145.13(2) provide the participant, consultation services provider, and the targeted case
145.14manager, if applicable, with a monthly written summary of the spending for services and
145.15supports that were billed against the spending budget;
145.16(3) be knowledgeable of state and federal employment regulations, including those
145.17under the Fair Labor Standards Act of 1938, and comply with the requirements under the
145.18Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the
145.19Internal Revenue Code and related regulations and interpretations, including Code of
145.20Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability
145.21for vendor or fiscal employer agent, and any requirements necessary to process employer
145.22and employee deductions, provide appropriate and timely submission of employer tax
145.23liabilities, and maintain documentation to support medical assistance claims;
145.24(4) have current and adequate liability insurance and bonding and sufficient cash
145.25flow as determined by the commissioner and have on staff or under contract a certified
145.26public accountant or an individual with a baccalaureate degree in accounting;
145.27(5) assume fiscal accountability for state funds designated for the program and be
145.28held liable for any overpayments or violations of applicable statutes or rules, including
145.29but not limited to the Minnesota False Claims Act; and
145.30(6) maintain documentation of receipts, invoices, and bills to track all services and
145.31supports expenditures for any goods purchased and maintain time records of support
145.32workers. The documentation and time records must be maintained for a minimum of
145.33five years from the claim date and be available for audit or review upon request by the
145.34commissioner. Claims submitted by the FMS contractor to the commissioner for payment
145.35must correspond with services, amounts, and time periods as authorized in the participant's
146.1spending service budget and service plan and must contain specific identifying information
146.2as determined by the commissioner.
146.3(f) (h) The commissioner of human services shall:
146.4(1) establish rates and payment methodology for the FMS contractor;
146.5(2) identify a process to ensure quality and performance standards for the FMS
146.6contractor and ensure statewide access to FMS contractors; and
146.7(3) establish a uniform protocol for delivering and administering CFSS services
146.8to be used by eligible FMS contractors.
146.9(g) The commissioner of human services shall disenroll or exclude participants from
146.10the budget model and transfer them to the agency-provider model under the following
146.11circumstances that include but are not limited to:
146.12(1) when a participant has been restricted by the Minnesota restricted recipient
146.13program, the participant may be excluded for a specified time period under Minnesota
146.14Rules, parts 9505.2160 to 9505.2245;
146.15(2) when a participant exits the budget model during the participant's service plan
146.16year. Upon transfer, the participant shall not access the budget model for the remainder of
146.17that service plan year; or
146.18(3) when the department determines that the participant or participant's representative
146.19or legal representative cannot manage participant responsibilities under the budget model.
146.20The commissioner must develop policies for determining if a participant is unable to
146.21manage responsibilities under a budget model.
146.22(h) A participant may appeal under section 256.045, subdivision 3, in writing to the
146.23department to contest the department's decision under paragraph (c), clause (3), to remove
146.24or exclude the participant from the budget model.

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

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

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

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

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

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

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

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

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

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

153.28    Sec. 25. Laws 2013, chapter 108, article 7, section 49, the effective date, is amended to
153.29read:
153.30EFFECTIVE DATE.This section is effective upon federal approval but no earlier
153.31than April 1, 2014. The service will begin 90 days after federal approval or April 1,
153.322014, whichever is later. The commissioner of human services shall notify the revisor of
153.33statutes when this occurs.

154.1ARTICLE 19
154.2CONTINUING CARE

154.3    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
154.4    Subd. 4. Licensing data. (a) As used in this subdivision:
154.5    (1) "licensing data" are all data collected, maintained, used, or disseminated by the
154.6welfare system pertaining to persons licensed or registered or who apply for licensure
154.7or registration or who formerly were licensed or registered under the authority of the
154.8commissioner of human services;
154.9    (2) "client" means a person who is receiving services from a licensee or from an
154.10applicant for licensure; and
154.11    (3) "personal and personal financial data" are Social Security numbers, identity
154.12of and letters of reference, insurance information, reports from the Bureau of Criminal
154.13Apprehension, health examination reports, and social/home studies.
154.14    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants,
154.15license holders, and former licensees are public: name, address, telephone number of
154.16licensees, date of receipt of a completed application, dates of licensure, licensed capacity,
154.17type of client preferred, variances granted, record of training and education in child care
154.18and child development, type of dwelling, name and relationship of other family members,
154.19previous license history, class of license, the existence and status of complaints, and the
154.20number of serious injuries to or deaths of individuals in the licensed program as reported
154.21to the commissioner of human services, the local social services agency, or any other
154.22county welfare agency. For purposes of this clause, a serious injury is one that is treated
154.23by a physician.
154.24(ii) When a correction order, an order to forfeit a fine, an order of license suspension,
154.25an order of temporary immediate suspension, an order of license revocation, an order
154.26of license denial, or an order of conditional license has been issued, or a complaint is
154.27resolved, the following data on current and former licensees and applicants are public: the
154.28substance and investigative findings of the licensing or maltreatment complaint, licensing
154.29violation, or substantiated maltreatment; the record of informal resolution of a licensing
154.30violation; orders of hearing; findings of fact; conclusions of law; specifications of the final
154.31correction order, fine, suspension, temporary immediate suspension, revocation, denial, or
154.32conditional license contained in the record of licensing action; whether a fine has been
154.33paid; and the status of any appeal of these actions.
154.34(iii) When a license denial under section 245A.05 or a sanction under section
154.35245A.07 is based on a determination that the license holder or applicant is responsible for
155.1maltreatment under section 626.556 or 626.557, the identity of the applicant or license
155.2holder as the individual responsible for maltreatment is public data at the time of the
155.3issuance of the license denial or sanction.
155.4(iv) When a license denial under section 245A.05 or a sanction under section
155.5245A.07 is based on a determination that the license holder or applicant is disqualified
155.6under chapter 245C, the identity of the license holder or applicant as the disqualified
155.7individual and the reason for the disqualification are public data at the time of the
155.8issuance of the licensing sanction or denial. If the applicant or license holder requests
155.9reconsideration of the disqualification and the disqualification is affirmed, the reason for
155.10the disqualification and the reason to not set aside the disqualification are public data.
155.11    (2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b,
155.12when any person subject to disqualification under section 245C.14 in connection with a
155.13license to provide family day care for children, child care center services, foster care for
155.14children in the provider's home, or foster care or day care services for adults in the provider's
155.15home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is
155.16a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment
155.17is public data. For purposes of this clause, a person is a substantiated perpetrator if the
155.18maltreatment determination has been upheld under section 256.045; 626.556, subdivision
155.1910i ; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely
155.20exercised appeal rights under these sections, except as provided under clause (1).
155.21    (3) For applicants who withdraw their application prior to licensure or denial of a
155.22license, the following data are public: the name of the applicant, the city and county in
155.23which the applicant was seeking licensure, the dates of the commissioner's receipt of the
155.24initial application and completed application, the type of license sought, and the date
155.25of withdrawal of the application.
155.26    (4) For applicants who are denied a license, the following data are public: the name
155.27and address of the applicant, the city and county in which the applicant was seeking
155.28licensure, the dates of the commissioner's receipt of the initial application and completed
155.29application, the type of license sought, the date of denial of the application, the nature of
155.30the basis for the denial, the record of informal resolution of a denial, orders of hearings,
155.31findings of fact, conclusions of law, specifications of the final order of denial, and the
155.32status of any appeal of the denial.
155.33    (5) The following data on persons subject to disqualification under section 245C.14 in
155.34connection with a license to provide family day care for children, child care center services,
155.35foster care for children in the provider's home, or foster care or day care services for adults
155.36in the provider's home, are public: the nature of any disqualification set aside under section
156.1245C.22 , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the
156.2nature of any disqualification for which a variance was granted under sections 245A.04,
156.3subdivision 9 ; and 245C.30, and the reasons for granting any variance under section
156.4245A.04, subdivision 9 ; and, if applicable, the disclosure that any person subject to
156.5a background study under section 245C.03, subdivision 1, has successfully passed a
156.6background study. If a licensing sanction under section 245A.07, or a license denial under
156.7section 245A.05, is based on a determination that an individual subject to disqualification
156.8under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction
156.9or denial is public data. As specified in clause (1), item (iv), if the disqualified individual
156.10is the license holder or applicant, the identity of the license holder or applicant and the
156.11reason for the disqualification are public data; and, if the license holder or applicant
156.12requested reconsideration of the disqualification and the disqualification is affirmed, the
156.13reason for the disqualification and the reason to not set aside the disqualification are
156.14public data. If the disqualified individual is an individual other than the license holder or
156.15applicant, the identity of the disqualified individual shall remain private data.
156.16    (6) When maltreatment is substantiated under section 626.556 or 626.557 and the
156.17victim and the substantiated perpetrator are affiliated with a program licensed under
156.18chapter 245A, the commissioner of human services, local social services agency, or
156.19county welfare agency may inform the license holder where the maltreatment occurred of
156.20the identity of the substantiated perpetrator and the victim.
156.21    (7) Notwithstanding clause (1), for child foster care, only the name of the license
156.22holder and the status of the license are public if the county attorney has requested that data
156.23otherwise classified as public data under clause (1) be considered private data based on the
156.24best interests of a child in placement in a licensed program.
156.25    (c) The following are private data on individuals under section 13.02, subdivision
156.2612 , or nonpublic data under section 13.02, subdivision 9: personal and personal financial
156.27data on family day care program and family foster care program applicants and licensees
156.28and their family members who provide services under the license.
156.29    (d) The following are private data on individuals: the identity of persons who have
156.30made reports concerning licensees or applicants that appear in inactive investigative data,
156.31and the records of clients or employees of the licensee or applicant for licensure whose
156.32records are received by the licensing agency for purposes of review or in anticipation of a
156.33contested matter. The names of reporters of complaints or alleged violations of licensing
156.34standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged
156.35maltreatment under sections 626.556 and 626.557, are confidential data and may be
156.36disclosed only as provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
157.1    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under
157.2this subdivision become public data if submitted to a court or administrative law judge as
157.3part of a disciplinary proceeding in which there is a public hearing concerning a license
157.4which has been suspended, immediately suspended, revoked, or denied.
157.5    (f) Data generated in the course of licensing investigations that relate to an alleged
157.6violation of law are investigative data under subdivision 3.
157.7    (g) Data that are not public data collected, maintained, used, or disseminated under
157.8this subdivision that relate to or are derived from a report as defined in section 626.556,
157.9subdivision 2 , or 626.5572, subdivision 18, are subject to the destruction provisions of
157.10sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
157.11    (h) Upon request, not public data collected, maintained, used, or disseminated under
157.12this subdivision that relate to or are derived from a report of substantiated maltreatment as
157.13defined in section 626.556 or 626.557 may be exchanged with the Department of Health
157.14for purposes of completing background studies pursuant to section 144.057 and with
157.15the Department of Corrections for purposes of completing background studies pursuant
157.16to section 241.021.
157.17    (i) Data on individuals collected according to licensing activities under chapters
157.18245A and 245C, data on individuals collected by the commissioner of human services
157.19according to investigations under chapters 245A, 245B, and 245C, and 245D, and
157.20sections 626.556 and 626.557 may be shared with the Department of Human Rights, the
157.21Department of Health, the Department of Corrections, the ombudsman for mental health
157.22and developmental disabilities, and the individual's professional regulatory board when
157.23there is reason to believe that laws or standards under the jurisdiction of those agencies may
157.24have been violated or the information may otherwise be relevant to the board's regulatory
157.25jurisdiction. Background study data on an individual who is the subject of a background
157.26study under chapter 245C for a licensed service for which the commissioner of human
157.27services is the license holder may be shared with the commissioner and the commissioner's
157.28delegate by the licensing division. Unless otherwise specified in this chapter, the identity
157.29of a reporter of alleged maltreatment or licensing violations may not be disclosed.
157.30    (j) In addition to the notice of determinations required under section 626.556,
157.31subdivision 10f , if the commissioner or the local social services agency has determined
157.32that an individual is a substantiated perpetrator of maltreatment of a child based on sexual
157.33abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social
157.34services agency knows that the individual is a person responsible for a child's care in
157.35another facility, the commissioner or local social services agency shall notify the head
157.36of that facility of this determination. The notification must include an explanation of the
158.1individual's available appeal rights and the status of any appeal. If a notice is given under
158.2this paragraph, the government entity making the notification shall provide a copy of the
158.3notice to the individual who is the subject of the notice.
158.4    (k) All not public data collected, maintained, used, or disseminated under this
158.5subdivision and subdivision 3 may be exchanged between the Department of Human
158.6Services, Licensing Division, and the Department of Corrections for purposes of
158.7regulating services for which the Department of Human Services and the Department
158.8of Corrections have regulatory authority.

158.9    Sec. 2. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:
158.10245.8251 POSITIVE SUPPORT STRATEGIES AND EMERGENCY
158.11MANUAL RESTRAINT; LICENSED FACILITIES AND PROGRAMS.
158.12    Subdivision 1. Rules governing the use of positive support strategies and
158.13restricting or prohibiting aversive and deprivation procedures. The commissioner
158.14of human services shall, within 24 months of May 23, 2013 by August 31, 2015, adopt
158.15rules governing the use of positive support strategies, safety interventions, and emergency
158.16use of manual restraint, and restricting or prohibiting the use of aversive and deprivation
158.17procedures, in all facilities and services licensed under chapter 245D. and in all licensed
158.18facilities and licensed services serving persons with a developmental disability or related
158.19condition. For the purposes of this section, "developmental disability or related condition"
158.20has the meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.
158.21    Subd. 2. Data collection. (a) The commissioner shall, with stakeholder input,
158.22develop identify data collection elements specific to incidents of emergency use of
158.23manual restraint and positive support transition plans for persons receiving services from
158.24providers governed licensed facilities and licensed services under chapter 245D and in
158.25licensed facilities and licensed services serving persons with a developmental disability
158.26or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective
158.27January 1, 2014. Providers Licensed facilities and licensed services shall report the data in
158.28a format and at a frequency determined by the commissioner of human services. Providers
158.29shall submit the data to the commissioner and the Office of the Ombudsman for Mental
158.30Health and Developmental Disabilities.
158.31(b) Beginning July 1, 2013, providers licensed facilities and licensed services
158.32 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data
158.33regarding the use of all controlled procedures identified in Minnesota Rules, part
158.349525.2740, in a format and at a frequency determined by the commissioner. Providers
159.1shall submit the data to the commissioner and the Office of the Ombudsman for Mental
159.2Health and Developmental Disabilities.
159.3    Subd. 3. External program review committee. Rules adopted according to this
159.4section shall establish requirements for an external program review committee appointed
159.5by the commissioner to monitor the rules after adoption of the rules.
159.6    Subd. 4. Interim review panel. (a) The commissioner shall establish an interim
159.7review panel by August 15, 2014, for the purpose of reviewing requests for emergency
159.8use of procedures that have been part of an approved positive support transition plan
159.9when necessary to protect a person from imminent risk of serious injury as defined in
159.10section 245.91, subdivision 6, due to self-injurious behavior. The panel must make
159.11recommendations to the commissioner to approve or deny these requests based on criteria
159.12to be established by the interim review panel. The interim review panel shall operate until
159.13the external program review committee is established as required under subdivision 3.
159.14(b) Members of the interim review panel shall be selected based on their expertise
159.15and knowledge related to the use of positive support strategies as alternatives to
159.16the use of aversive or deprivation procedures. The commissioner shall seek input
159.17and recommendations from the Office of the Ombudsman for Mental Health and
159.18Developmental Disabilities and the Minnesota Governor's Council on Developmental
159.19Disabilities in establishing the interim review panel. Members of the interim review panel
159.20shall include the following representatives:
159.21(1) an expert in positive supports;
159.22(2) a mental health professional, as defined in section 245.462;
159.23(3) a licensed health professional as defined in section 245D.02, subdivision 14;
159.24(4) a representative of the Department of Health;
159.25(5) a representative of the Office of the Ombudsman for Mental Health and
159.26Developmental Disabilities; and
159.27(6) a representative of the Minnesota Disability Law Center.

159.28    Sec. 3. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is
159.29amended to read:
159.30    Subd. 3. Implementation. (a) The commissioner shall implement the
159.31responsibilities of this chapter according to the timelines in paragraphs (b) and (c)
159.32only within the limits of available appropriations or other administrative cost recovery
159.33methodology.
159.34(b) The licensure of home and community-based services according to this section
159.35shall be implemented January 1, 2014. License applications shall be received and
160.1processed on a phased-in schedule as determined by the commissioner beginning July
160.21, 2013. Licenses will be issued thereafter upon the commissioner's determination that
160.3the application is complete according to section 245A.04.
160.4(c) Within the limits of available appropriations or other administrative cost recovery
160.5methodology, implementation of compliance monitoring must be phased in after January
160.61, 2014.
160.7(1) Applicants who do not currently hold a license issued under chapter 245B must
160.8receive an initial compliance monitoring visit after 12 months of the effective date of the
160.9initial license for the purpose of providing technical assistance on how to achieve and
160.10maintain compliance with the applicable law or rules governing the provision of home and
160.11community-based services under chapter 245D. If during the review the commissioner
160.12finds that the license holder has failed to achieve compliance with an applicable law or
160.13rule and this failure does not imminently endanger the health, safety, or rights of the
160.14persons served by the program, the commissioner may issue a licensing review report with
160.15recommendations for achieving and maintaining compliance.
160.16(2) Applicants who do currently hold a license issued under this chapter must receive
160.17a compliance monitoring visit after 24 months of the effective date of the initial license.
160.18(d) Nothing in this subdivision shall be construed to limit the commissioner's
160.19authority to suspend or revoke a license or issue a fine at any time under section 245A.07,
160.20or issue correction orders and make a license conditional for failure to comply with
160.21applicable laws or rules under section 245A.06, based on the nature, chronicity, or severity
160.22of the violation of law or rule and the effect of the violation on the health, safety, or
160.23rights of persons served by the program.
160.24(e) License holders governed under chapter 245D must ensure compliance with the
160.25following requirements within the stated timelines:
160.26(1) service initiation and service planning requirements must be met at the next
160.27annual meeting of the person's support team or by January 1, 2015, whichever is later,
160.28for the following:
160.29    (i) provision of a written notice that identifies the service recipient rights and an
160.30explanation of those rights as required under section 245D.04, subdivision 1;
160.31(ii) service planning for basic support services as required under section 245D.07,
160.32subdivision 2; and
160.33(iii) service planning for intensive support services under section 245D.071,
160.34subdivisions 3 and 4;
160.35(2) staff orientation to program requirements as required under section 245D.09,
160.36subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015.
161.1The license holder may otherwise provide documentation verifying these requirements
161.2were met before January 1, 2014;
161.3(3) development of policy and procedures as required under section 245D.11, must
161.4be completed no later than August 31, 2014;
161.5(4) written notice and copies of policies and procedures must be provided to
161.6all persons or their legal representatives and case managers as required under section
161.7245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within 30 days
161.8of development of the required policies and procedures, whichever is earlier; and
161.9(5) all employees must be informed of the revisions and training must be provided on
161.10implementation of the revised policies and procedures as required under section 245D.10,
161.11subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of
161.12the required policies and procedures, whichever is earlier.

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

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

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

162.3    Sec. 7. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11, is
162.4amended to read:
162.5    Subd. 11. Incident. "Incident" means an occurrence which involves a person and
162.6requires the program to make a response that is not a part of the program's ordinary
162.7provision of services to that person, and includes:
162.8(1) serious injury of a person as determined by section 245.91, subdivision 6;
162.9(2) a person's death;
162.10(3) any medical emergency, unexpected serious illness, or significant unexpected
162.11change in an illness or medical condition of a person that requires the program to call
162.12911, physician treatment, or hospitalization;
162.13(4) any mental health crisis that requires the program to call 911 or, a mental
162.14health crisis intervention team, or a similar mental health response team or service when
162.15available and appropriate;
162.16(5) an act or situation involving a person that requires the program to call 911,
162.17law enforcement, or the fire department;
162.18(6) a person's unauthorized or unexplained absence from a program;
162.19(7) conduct by a person receiving services against another person receiving services
162.20that:
162.21(i) is so severe, pervasive, or objectively offensive that it substantially interferes with
162.22a person's opportunities to participate in or receive service or support;
162.23(ii) places the person in actual and reasonable fear of harm;
162.24(iii) places the person in actual and reasonable fear of damage to property of the
162.25person; or
162.26(iv) substantially disrupts the orderly operation of the program;
162.27(8) any sexual activity between persons receiving services involving force or
162.28coercion as defined under section 609.341, subdivisions 3 and 14;
162.29(9) any emergency use of manual restraint as identified in section 245D.061; or
162.30(10) a report of alleged or suspected child or vulnerable adult maltreatment under
162.31section 626.556 or 626.557.

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

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

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

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

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

164.20    Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is
164.21amended to read:
164.22    Subdivision 1. Applicability. (a) The commissioner shall regulate the provision of
164.23home and community-based services to persons with disabilities and persons age 65 and
164.24older pursuant to this chapter. The licensing standards in this chapter govern the provision
164.25of basic support services and intensive support services.
164.26(b) Basic support services provide the level of assistance, supervision, and care that
164.27is necessary to ensure the health and safety of the person and do not include services that
164.28are specifically directed toward the training, treatment, habilitation, or rehabilitation of
164.29the person. Basic support services include:
164.30(1) in-home and out-of-home respite care services as defined in section 245A.02,
164.31subdivision 15, and under the brain injury, community alternative care, community
164.32alternatives for disabled individuals, developmental disability, and elderly waiver plans;
164.33(2) adult companion services as defined under the brain injury, community
164.34alternatives for disabled individuals, and elderly waiver plans, excluding adult companion
165.1services provided under the Corporation for National and Community Services Senior
165.2Companion Program established under the Domestic Volunteer Service Act of 1973,
165.3Public Law 98-288;
165.4(3) personal support as defined under the developmental disability waiver plan;
165.5(4) 24-hour emergency assistance, personal emergency response as defined under the
165.6community alternatives for disabled individuals and developmental disability waiver plans;
165.7(5) night supervision services as defined under the brain injury waiver plan; and
165.8(6) homemaker services as defined under the community alternatives for disabled
165.9individuals, brain injury, community alternative care, developmental disability, and elderly
165.10waiver plans, excluding providers licensed by the Department of Health under chapter
165.11144A and those providers providing cleaning services only.
165.12(c) Intensive support services provide assistance, supervision, and care that is
165.13necessary to ensure the health and safety of the person and services specifically directed
165.14toward the training, habilitation, or rehabilitation of the person. Intensive support services
165.15include:
165.16(1) intervention services, including:
165.17(i) behavioral support services as defined under the brain injury and community
165.18alternatives for disabled individuals waiver plans;
165.19(ii) in-home or out-of-home crisis respite services as defined under the developmental
165.20disability waiver plan; and
165.21(iii) specialist services as defined under the current developmental disability waiver
165.22plan;
165.23(2) in-home support services, including:
165.24(i) in-home family support and supported living services as defined under the
165.25developmental disability waiver plan;
165.26(ii) independent living services training as defined under the brain injury and
165.27community alternatives for disabled individuals waiver plans; and
165.28(iii) semi-independent living services;
165.29(3) residential supports and services, including:
165.30(i) supported living services as defined under the developmental disability waiver
165.31plan provided in a family or corporate child foster care residence, a family adult foster
165.32care residence, a community residential setting, or a supervised living facility;
165.33(ii) foster care services as defined in the brain injury, community alternative care,
165.34and community alternatives for disabled individuals waiver plans provided in a family or
165.35corporate child foster care residence, a family adult foster care residence, or a community
165.36residential setting; and
166.1(iii) residential services provided to more than four persons with developmental
166.2disabilities in a supervised living facility that is certified by the Department of Health as
166.3an ICF/DD, including ICFs/DD;
166.4(4) day services, including:
166.5(i) structured day services as defined under the brain injury waiver plan;
166.6(ii) day training and habilitation services under sections 252.40 to 252.46, and as
166.7defined under the developmental disability waiver plan; and
166.8(iii) prevocational services as defined under the brain injury and community
166.9alternatives for disabled individuals waiver plans; and
166.10(5) supported employment as defined under the brain injury, developmental
166.11disability, and community alternatives for disabled individuals waiver plans.

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

166.20    Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is
166.21amended to read:
166.22    Subd. 2. Relationship to other standards governing home and community-based
166.23services. (a) A license holder governed by this chapter is also subject to the licensure
166.24requirements under chapter 245A.
166.25(b) A corporate or family child foster care site controlled by a license holder and
166.26providing services governed by this chapter is exempt from compliance with section
166.27245D.04. This exemption applies to foster care homes where at least one resident is
166.28receiving residential supports and services licensed according to this chapter. This chapter
166.29does not apply to corporate or family child foster care homes that do not provide services
166.30licensed under this chapter.
166.31(c) A family adult foster care site controlled by a license holder and providing
166.32services governed by this chapter is exempt from compliance with Minnesota Rules,
166.33parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These
166.34exemptions apply to family adult foster care homes where at least one resident is receiving
167.1residential supports and services licensed according to this chapter. This chapter does
167.2not apply to family adult foster care homes that do not provide services licensed under
167.3this chapter.
167.4(d) A license holder providing services licensed according to this chapter in a
167.5supervised living facility is exempt from compliance with sections section 245D.04;
167.6245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).
167.7(e) A license holder providing residential services to persons in an ICF/DD is exempt
167.8from compliance with sections 245D.04; 245D.05, subdivision 1b; 245D.06, subdivision
167.92 , clauses (4) and (5); 245D.071, subdivisions 4 and 5; 245D.081, subdivision 2; 245D.09,
167.10subdivision 7; 245D.095, subdivision 2; and 245D.11, subdivision 3.
167.11(f) A license holder providing homemaker services licensed according to this chapter
167.12and registered according to chapter 144A is exempt from compliance with section 245D.04.
167.13(g) Nothing in this chapter prohibits a license holder from concurrently serving
167.14persons without disabilities or people who are or are not age 65 and older, provided this
167.15chapter's standards are met as well as other relevant standards.
167.16(h) The documentation required under sections 245D.07 and 245D.071 must meet
167.17the individual program plan requirements identified in section 256B.092 or successor
167.18provisions.

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

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

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

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

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

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

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

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

174.11    Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:
174.12245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.
174.13    Subdivision 1. Conditions for psychotropic medication administration. (a)
174.14When a person is prescribed a psychotropic medication and the license holder is assigned
174.15responsibility for administration of the medication in the person's coordinated service
174.16and support plan or the coordinated service and support plan addendum, the license
174.17holder must ensure that the requirements in paragraphs (b) to (d) and section 245D.05,
174.18subdivision 2, are met.
174.19(b) Use of the medication must be included in the person's coordinated service and
174.20support plan or in the coordinated service and support plan addendum and based on a
174.21prescriber's current written or electronically recorded prescription.
174.22(c) (b) The license holder must develop, implement, and maintain the following
174.23documentation in the person's coordinated service and support plan addendum according
174.24to the requirements in sections 245D.07 and 245D.071:
174.25(1) a description of the target symptoms that the psychotropic medication is to
174.26alleviate; and
174.27(2) documentation methods the license holder will use to monitor and measure
174.28changes in the target symptoms that are to be alleviated by the psychotropic medication if
174.29required by the prescriber. The license holder must collect and report on medication and
174.30symptom-related data as instructed by the prescriber. The license holder must provide
174.31the monitoring data to the expanded support team for review every three months, or as
174.32otherwise requested by the person or the person's legal representative.
174.33For the purposes of this section, "target symptom" refers to any perceptible
174.34diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic
175.1and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or
175.2successive editions, that has been identified for alleviation.
175.3    Subd. 2. Refusal to authorize psychotropic medication. If the person or the
175.4person's legal representative refuses to authorize the administration of a psychotropic
175.5medication as ordered by the prescriber, the license holder must follow the requirement in
175.6section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication.
175.7The refusal to authorize medication administration must be reported to the prescriber as
175.8expediently as possible. After reporting the refusal to the prescriber, the license holder
175.9must follow any directives or orders given by the prescriber. A court order must be
175.10obtained to override the refusal. A refusal may not be overridden without a court order.
175.11Refusal to authorize administration of a specific psychotropic medication is not grounds
175.12for service termination and does not constitute an emergency. A decision to terminate
175.13services must be reached in compliance with section 245D.10, subdivision 3.

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

176.16    Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is
176.17amended to read:
176.18    Subd. 4. Funds and property. (a) Whenever the license holder assists a person
176.19with the safekeeping of funds or other property according to section 245A.04, subdivision
176.2013 , the license holder must obtain written authorization to do so from the person or the
176.21person's legal representative and the case manager. Authorization must be obtained within
176.22five working days of service initiation and renewed annually thereafter. At the time initial
176.23authorization is obtained, the license holder must survey, document, and implement the
176.24preferences of the person or the person's legal representative and the case manager for
176.25frequency of receiving a statement that itemizes receipts and disbursements of funds or
176.26other property. The license holder must document changes to these preferences when
176.27they are requested.
176.28(b) A license holder or staff person may not accept powers-of-attorney from a person
176.29receiving services from the license holder for any purpose. This does not apply to license
176.30holders that are Minnesota counties or other units of government or to staff persons
176.31employed by license holders who were acting as attorney-in-fact for specific individuals
176.32prior to implementation of this chapter. The license holder must maintain documentation
176.33of the power-of-attorney in the service recipient record.
176.34(c) A license holder or staff person is restricted from accepting an appointment
176.35as a guardian as follows:
177.1(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency
177.2that provides residence, custodial care, medical care, employment training, or other care
177.3or services for which the individual or agency receives a fee may not be appointed as
177.4guardian unless related to the respondent by blood, marriage, or adoption; and
177.5(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related
177.6individual as defined under section 245A.02, subdivision 13, is excluded from licensure.
177.7Services provided by a license holder to a person under the license holder's guardianship
177.8are not licensed services.
177.9(c) (d) Upon the transfer or death of a person, any funds or other property of the
177.10person must be surrendered to the person or the person's legal representative, or given to
177.11the executor or administrator of the estate in exchange for an itemized receipt.

177.12    Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is
177.13amended to read:
177.14    Subd. 6. Restricted procedures. (a) The following procedures are allowed when
177.15the procedures are implemented in compliance with the standards governing their use as
177.16identified in clauses (1) to (3). Allowed but restricted procedures include:
177.17(1) permitted actions and procedures subject to the requirements in subdivision 7;
177.18(2) procedures identified in a positive support transition plan subject to the
177.19requirements in subdivision 8; or
177.20(3) emergency use of manual restraint subject to the requirements in section
177.21245D.061 .
177.22For purposes of this chapter, this section supersedes the requirements identified in
177.23Minnesota Rules, part 9525.2740.
177.24    (b) A restricted procedure identified in paragraph (a) must not:
177.25    (1) be implemented with a child in a manner that constitutes sexual abuse, neglect,
177.26physical abuse, or mental injury, as defined in section 626.556, subdivision 2;
177.27(2) be implemented with an adult in a manner that constitutes abuse or neglect as
177.28defined in section 626.5572, subdivision 2 or 17;
177.29(3) be implemented in a manner that violates a person's rights identified in section
177.30245D.04;
177.31(4) restrict a person's normal access to a nutritious diet, drinking water, adequate
177.32ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping
177.33conditions, necessary clothing, or any protection required by state licensing standards or
177.34federal regulations governing the program;
178.1(5) deny the person visitation or ordinary contact with legal counsel, a legal
178.2representative, or next of kin;
178.3(6) be used for the convenience of staff, as punishment, as a substitute for adequate
178.4staffing, or as a consequence if the person refuses to participate in the treatment or services
178.5provided by the program;
178.6(7) use prone restraint. For purposes of this section, "prone restraint" means use
178.7of manual restraint that places a person in a face-down position. Prone restraint does
178.8not include brief physical holding of a person who, during an emergency use of manual
178.9restraint, rolls into a prone position, if the person is restored to a standing, sitting, or
178.10side-lying position as quickly as possible;
178.11(8) apply back or chest pressure while a person is in a prone position as identified in
178.12clause (7), supine position, or side-lying position; or
178.13(9) be implemented in a manner that is contraindicated for any of the person's known
178.14medical or psychological limitations.

178.15    Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is
178.16amended to read:
178.17    Subd. 7. Permitted actions and procedures. (a) Use of the instructional techniques
178.18and intervention procedures as identified in paragraphs (b) and (c) is permitted when used
178.19on an intermittent or continuous basis. When used on a continuous basis, it must be
178.20addressed in a person's coordinated service and support plan addendum as identified in
178.21sections 245D.07 and 245D.071. For purposes of this chapter, the requirements of this
178.22subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.
178.23(b) Physical contact or instructional techniques must use the least restrictive
178.24alternative possible to meet the needs of the person and may be used:
178.25(1) to calm or comfort a person by holding that person with no resistance from
178.26that person;
178.27(2) to protect a person known to be at risk or of injury due to frequent falls as a result
178.28of a medical condition;
178.29(3) to facilitate the person's completion of a task or response when the person does
178.30not resist or the person's resistance is minimal in intensity and duration; or
178.31(4) to briefly block or redirect a person's limbs or body without holding the person or
178.32limiting the person's movement to interrupt the person's behavior that may result in injury
178.33to self or others. with less than 60 seconds of physical contact by staff; or
179.1(5) to redirect a person's behavior when the behavior does not pose a serious threat
179.2to the person or others and the behavior is effectively redirected with less than 60 seconds
179.3of physical contact by staff.
179.4(c) Restraint may be used as an intervention procedure to:
179.5(1) allow a licensed health care professional to safely conduct a medical examination
179.6or to provide medical treatment ordered by a licensed health care professional to a person
179.7necessary to promote healing or recovery from an acute, meaning short-term, medical
179.8condition;
179.9(2) assist in the safe evacuation or redirection of a person in the event of an
179.10emergency and the person is at imminent risk of harm.; or
179.11Any use of manual restraint as allowed in this paragraph must comply with the restrictions
179.12identified in section 245D.061, subdivision 3; or
179.13(3) position a person with physical disabilities in a manner specified in the person's
179.14coordinated service and support plan addendum.
179.15Any use of manual restraint as allowed in this paragraph must comply with the restrictions
179.16identified in subdivision 6, paragraph (b).
179.17(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment
179.18ordered by a licensed health professional to treat a diagnosed medical condition do not in
179.19and of themselves constitute the use of mechanical restraint.
179.20(e) Use of an auxiliary device to ensure a person does not unfasten a seat belt when
179.21being transported in a vehicle in accordance with seat belt use requirements in section
179.22169.686 does not constitute the use of mechanical restraint.

179.23    Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is
179.24amended to read:
179.25    Subd. 8. Positive support transition plan. (a) License holders must develop
179.26a positive support transition plan on the forms and in the manner prescribed by the
179.27commissioner for a person who requires intervention in order to maintain safety when
179.28it is known that the person's behavior poses an immediate risk of physical harm to self
179.29or others. The positive support transition plan forms and instructions will supersede the
179.30requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The
179.31positive support transition plan must phase out any existing plans for the emergency or
179.32programmatic use of aversive or deprivation procedures prohibited under this chapter
179.33within the following timelines:
180.1(1) for persons receiving services from the license holder before January 1, 2014,
180.2the plan must be developed and implemented by February 1, 2014, and phased out no
180.3later than December 31, 2014; and
180.4(2) for persons admitted to the program on or after January 1, 2014, the plan must be
180.5developed and implemented within 30 calendar days of service initiation and phased out
180.6no later than 11 months from the date of plan implementation.
180.7(b) The commissioner has limited authority to grant approval for the emergency use
180.8of procedures identified in subdivision 6 that had been part of an approved positive support
180.9transition plan when a person is at imminent risk of serious injury as defined in section
180.10245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:
180.11(1) the person's expanded support team approves the emergency use of the
180.12procedures; and
180.13(2) the interim review panel established in section 245.8251, subdivision 4,
180.14recommends commissioner approval of the emergency use of the procedures.
180.15(c) Written requests for the emergency use of the procedures must be developed
180.16and submitted to the commissioner by the designated coordinator with input from the
180.17person's expanded support team in accordance with the requirements set by the interim
180.18review panel, in addition to the following:
180.19(1) a copy of the person's current positive support transition plan and copies of
180.20each positive support transition plan review containing data on the progress of the plan
180.21from the previous year;
180.22(2) documentation of a good faith effort to eliminate the use of the procedures that
180.23had been part of an approved positive support transition plan;
180.24(3) justification for the continued use of the procedures that identifies the imminent
180.25risk of serious injury due to the person's self-injurious behavior if the procedures were
180.26eliminated;
180.27(4) documentation of the clinicians consulted in creating and maintaining the
180.28positive support transition plan; and
180.29(5) documentation of the expanded support team's approval and the recommendation
180.30from the interim panel required under paragraph (b).
180.31(d) A copy of the written request, supporting documentation, and the commissioner's
180.32final determination on the request must be maintained in the person's service recipient
180.33record.

180.34    Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3,
180.35is amended to read:
181.1    Subd. 3. Assessment and initial service planning. (a) Within 15 days of service
181.2initiation the license holder must complete a preliminary coordinated service and support
181.3plan addendum based on the coordinated service and support plan.
181.4(b) Within 45 days of service initiation the license holder must meet with the person,
181.5the person's legal representative, the case manager, and other members of the support team
181.6or expanded support team to assess and determine the following based on the person's
181.7coordinated service and support plan and the requirements in subdivision 4 and section
181.8245D.07, subdivision 1a:
181.9(1) the scope of the services to be provided to support the person's daily needs
181.10and activities;
181.11(2) the person's desired outcomes and the supports necessary to accomplish the
181.12person's desired outcomes;
181.13(3) the person's preferences for how services and supports are provided;
181.14(4) whether the current service setting is the most integrated setting available and
181.15appropriate for the person; and
181.16(5) how services must be coordinated across other providers licensed under this
181.17chapter serving the same person to ensure continuity of care for the person.
181.18(c) Within the scope of services, the license holder must, at a minimum, assess
181.19the following areas:
181.20(1) the person's ability to self-manage health and medical needs to maintain or
181.21improve physical, mental, and emotional well-being, including, when applicable, allergies,
181.22seizures, choking, special dietary needs, chronic medical conditions, self-administration
181.23of medication or treatment orders, preventative screening, and medical and dental
181.24appointments;
181.25(2) the person's ability to self-manage personal safety to avoid injury or accident in
181.26the service setting, including, when applicable, risk of falling, mobility, regulating water
181.27temperature, community survival skills, water safety skills, and sensory disabilities; and
181.28(3) the person's ability to self-manage symptoms or behavior that may otherwise
181.29result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to
181.30(7), suspension or termination of services by the license holder, or other symptoms
181.31or behaviors that may jeopardize the health and safety of the person or others. The
181.32assessments must produce information about the person that is descriptive of the person's
181.33overall strengths, functional skills and abilities, and behaviors or symptoms.
181.34(b) Within the scope of services, the license holder must, at a minimum, complete
181.35assessments in the following areas before the 45-day planning meeting:
182.1(1) the person's ability to self-manage health and medical needs to maintain or
182.2improve physical, mental, and emotional well-being, including, when applicable, allergies,
182.3seizures, choking, special dietary needs, chronic medical conditions, self-administration
182.4of medication or treatment orders, preventative screening, and medical and dental
182.5appointments;
182.6(2) the person's ability to self-manage personal safety to avoid injury or accident in
182.7the service setting, including, when applicable, risk of falling, mobility, regulating water
182.8temperature, community survival skills, water safety skills, and sensory disabilities; and
182.9(3) the person's ability to self-manage symptoms or behavior that may otherwise
182.10result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7),
182.11suspension or termination of services by the license holder, or other symptoms or
182.12behaviors that may jeopardize the health and safety of the person or others.
182.13Assessments must produce information about the person that describes the person's overall
182.14strengths, functional skills and abilities, and behaviors or symptoms. Assessments must
182.15be based on the person's status within the last 12 months at the time of service initiation.
182.16Assessments based on older information must be documented and justified. Assessments
182.17must be conducted annually at a minimum or within 30 days of a written request from the
182.18person or the person's legal representative or case manager. The results must be reviewed
182.19by the support team or expanded support team as part of a service plan review.
182.20(c) Within 45 days of service initiation, the license holder must meet with the
182.21person, the person's legal representative, the case manager, and other members of the
182.22support team or expanded support team to determine the following based on information
182.23obtained from the assessments identified in paragraph (b), the person's identified needs
182.24in the coordinated service and support plan, and the requirements in subdivision 4 and
182.25section 245D.07, subdivision 1a:
182.26(1) the scope of the services to be provided to support the person's daily needs
182.27and activities;
182.28(2) the person's desired outcomes and the supports necessary to accomplish the
182.29person's desired outcomes;
182.30(3) the person's preferences for how services and supports are provided;
182.31(4) whether the current service setting is the most integrated setting available and
182.32appropriate for the person; and
182.33(5) how services must be coordinated across other providers licensed under this
182.34chapter serving the person and members of the support team or expanded support team to
182.35ensure continuity of care and coordination of services for the person.

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

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

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

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

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

188.11    Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2,
188.12is amended to read:
188.13    Subd. 2. Behavior professional qualifications. A behavior professional providing
188.14behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c),
188.15clause (1), item (i), as defined in the brain injury and community alternatives for disabled
188.16individuals waiver plans or successor plans, must have competencies in the following
188.17areas related to as required under the brain injury and community alternatives for disabled
188.18individuals waiver plans or successor plans:
188.19(1) ethical considerations;
188.20(2) functional assessment;
188.21(3) functional analysis;
188.22(4) measurement of behavior and interpretation of data;
188.23(5) selecting intervention outcomes and strategies;
188.24(6) behavior reduction and elimination strategies that promote least restrictive
188.25approved alternatives;
188.26(7) data collection;
188.27(8) staff and caregiver training;
188.28(9) support plan monitoring;
188.29(10) co-occurring mental disorders or neurocognitive disorder;
188.30(11) demonstrated expertise with populations being served; and
188.31(12) must be a:
188.32(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the
188.33Board of Psychology competencies in the above identified areas;
188.34(ii) clinical social worker licensed as an independent clinical social worker under
188.35chapter 148D, or a person with a master's degree in social work from an accredited college
189.1or university, with at least 4,000 hours of post-master's supervised experience in the
189.2delivery of clinical services in the areas identified in clauses (1) to (11);
189.3(iii) physician licensed under chapter 147 and certified by the American Board
189.4of Psychiatry and Neurology or eligible for board certification in psychiatry with
189.5competencies in the areas identified in clauses (1) to (11);
189.6(iv) licensed professional clinical counselor licensed under sections 148B.29 to
189.7148B.39 with at least 4,000 hours of post-master's supervised experience in the delivery
189.8of clinical services who has demonstrated competencies in the areas identified in clauses
189.9(1) to (11);
189.10(v) person with a master's degree from an accredited college or university in one
189.11of the behavioral sciences or related fields, with at least 4,000 hours of post-master's
189.12supervised experience in the delivery of clinical services with demonstrated competencies
189.13in the areas identified in clauses (1) to (11); or
189.14(vi) registered nurse who is licensed under sections 148.171 to 148.285, and who is
189.15certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and
189.16mental health nursing by a national nurse certification organization, or who has a master's
189.17degree in nursing or one of the behavioral sciences or related fields from an accredited
189.18college or university or its equivalent, with at least 4,000 hours of post-master's supervised
189.19experience in the delivery of clinical services.

189.20    Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3,
189.21is amended to read:
189.22    Subd. 3. Behavior analyst qualifications. (a) A behavior analyst providing
189.23behavioral support services as identified in section 245D.03, subdivision 1, paragraph
189.24(c), clause (1), item (i), as defined in the brain injury and community alternatives for
189.25disabled individuals waiver plans or successor plans, must have competencies in the
189.26following areas as required under the brain injury and community alternatives for disabled
189.27individuals waiver plans or successor plans:
189.28(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services
189.29discipline; or
189.30(2) meet the qualifications of a mental health practitioner as defined in section
189.31245.462, subdivision 17 .
189.32(b) In addition, a behavior analyst must:
189.33(1) have four years of supervised experience working with individuals who exhibit
189.34challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;
190.1(2) have received ten hours of instruction in functional assessment and functional
190.2analysis;
190.3(3) have received 20 hours of instruction in the understanding of the function of
190.4behavior;
190.5(4) have received ten hours of instruction on design of positive practices behavior
190.6support strategies;
190.7(5) have received 20 hours of instruction on the use of behavior reduction approved
190.8strategies used only in combination with behavior positive practices strategies;
190.9(6) be determined by a behavior professional to have the training and prerequisite
190.10skills required to provide positive practice strategies as well as behavior reduction
190.11approved and permitted intervention to the person who receives behavioral support; and
190.12(7) be under the direct supervision of a behavior professional.

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

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

191.33    Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is
191.34amended to read:
192.1    Subd. 2. Health and safety. The license holder must establish policies and
192.2procedures that promote health and safety by ensuring:
192.3(1) use of universal precautions and sanitary practices in compliance with section
192.4245D.06, subdivision 2 , clause (5);
192.5(2) if the license holder operates a residential program, health service coordination
192.6and care according to the requirements in section 245D.05, subdivision 1;
192.7(3) safe medication assistance and administration according to the requirements
192.8in sections 245D.05, subdivisions 1a, 2, and 5, and 245D.051, that are established in
192.9consultation with a registered nurse, nurse practitioner, physician's assistant, or medical
192.10doctor and require completion of medication administration training according to the
192.11requirements in section 245D.09, subdivision 4a, paragraph (d). Medication assistance
192.12and administration includes, but is not limited to:
192.13(i) providing medication-related services for a person;
192.14(ii) medication setup;
192.15(iii) medication administration;
192.16(iv) medication storage and security;
192.17(v) medication documentation and charting;
192.18(vi) verification and monitoring of effectiveness of systems to ensure safe medication
192.19handling and administration;
192.20(vii) coordination of medication refills;
192.21(viii) handling changes to prescriptions and implementation of those changes;
192.22(ix) communicating with the pharmacy; and
192.23(x) coordination and communication with prescriber;
192.24(4) safe transportation, when the license holder is responsible for transportation of
192.25persons, with provisions for handling emergency situations according to the requirements
192.26in section 245D.06, subdivision 2, clauses (2) to (4);
192.27(5) a plan for ensuring the safety of persons served by the program in emergencies as
192.28defined in section 245D.02, subdivision 8, and procedures for staff to report emergencies
192.29to the license holder. A license holder with a community residential setting or a day service
192.30facility license must ensure the policy and procedures comply with the requirements in
192.31section 245D.22, subdivision 4;
192.32(6) a plan for responding to all incidents as defined in section 245D.02, subdivision
192.3311; and reporting all incidents required to be reported according to section 245D.06,
192.34subdivision 1. The plan must:
192.35(i) provide the contact information of a source of emergency medical care and
192.36transportation; and
193.1(ii) require staff to first call 911 when the staff believes a medical emergency may
193.2be life threatening, or to call the mental health crisis intervention team or similar mental
193.3health response team or service when such a team is available and appropriate when the
193.4person is experiencing a mental health crisis; and
193.5(7) a procedure for the review of incidents and emergencies to identify trends or
193.6patterns, and corrective action if needed. The license holder must establish and maintain
193.7a record-keeping system for the incident and emergency reports. Each incident and
193.8emergency report file must contain a written summary of the incident. The license holder
193.9must conduct a review of incident reports for identification of incident patterns, and
193.10implementation of corrective action as necessary to reduce occurrences. Each incident
193.11report must include:
193.12(i) the name of the person or persons involved in the incident. It is not necessary
193.13to identify all persons affected by or involved in an emergency unless the emergency
193.14resulted in an incident;
193.15(ii) the date, time, and location of the incident or emergency;
193.16(iii) a description of the incident or emergency;
193.17(iv) a description of the response to the incident or emergency and whether a person's
193.18coordinated service and support plan addendum or program policies and procedures were
193.19implemented as applicable;
193.20(v) the name of the staff person or persons who responded to the incident or
193.21emergency; and
193.22(vi) the determination of whether corrective action is necessary based on the results
193.23of the review.

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

193.30    Sec. 42. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1,
193.31is amended to read:
193.32    Subdivision 1. Development and implementation of quality profiles. (a) The
193.33commissioner of human services, in cooperation with the commissioner of health, shall
193.34develop and implement quality profiles for nursing facilities and, beginning not later than
194.1July 1, 2014, for home and community-based services providers, except when the quality
194.2profile system would duplicate requirements under section 256B.5011, 256B.5012, or
194.3256B.5013 . For purposes of this section, home and community-based services providers
194.4are defined as providers of home and community-based services under sections 256B.0625,
194.5subdivisions 6a, 7, and 19a; 256B.0913 ,; 256B.0915,; 256B.092, and; 256B.49,; and
194.6256B.85, and intermediate care facilities for persons with developmental disabilities
194.7providers under section 256B.5013. To the extent possible, quality profiles must be
194.8developed for providers of services to older adults and people with disabilities, regardless
194.9of payor source, for the purposes of providing information to consumers. The quality
194.10profiles must be developed using existing data sets maintained by the commissioners of
194.11health and human services to the extent possible. The profiles must incorporate or be
194.12coordinated with information on quality maintained by area agencies on aging, long-term
194.13care trade associations, the ombudsman offices, counties, tribes, health plans, and other
194.14entities and the long-term care database maintained under section 256.975, subdivision 7.
194.15The profiles must be designed to provide information on quality to:
194.16(1) consumers and their families to facilitate informed choices of service providers;
194.17(2) providers to enable them to measure the results of their quality improvement
194.18efforts and compare quality achievements with other service providers; and
194.19(3) public and private purchasers of long-term care services to enable them to
194.20purchase high-quality care.
194.21(b) The profiles must be developed in consultation with the long-term care task
194.22force, area agencies on aging, and representatives of consumers, providers, and labor
194.23unions. Within the limits of available appropriations, the commissioners may employ
194.24consultants to assist with this project.
194.25EFFECTIVE DATE.This section is effective retroactively from February 1, 2014.

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

195.9    Sec. 44. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1,
195.10is amended to read:
195.11    Subdivision 1. Provider qualifications. (a) For the home and community-based
195.12waivers providing services to seniors and individuals with disabilities under sections
195.13256B.0913 , 256B.0915, 256B.092, and 256B.49, the commissioner shall establish:
195.14(1) agreements with enrolled waiver service providers to ensure providers meet
195.15Minnesota health care program requirements;
195.16(2) regular reviews of provider qualifications, and including requests of proof of
195.17documentation; and
195.18(3) processes to gather the necessary information to determine provider qualifications.
195.19    (b) Beginning July 1, 2012, staff that provide direct contact, as defined in section
195.20245C.02, subdivision 11 , for services specified in the federally approved waiver plans
195.21must meet the requirements of chapter 245C prior to providing waiver services and as
195.22part of ongoing enrollment. Upon federal approval, this requirement must also apply to
195.23consumer-directed community supports.
195.24    (c) Beginning January 1, 2014, service owners and managerial officials overseeing
195.25the management or policies of services that provide direct contact as specified in the
195.26federally approved waiver plans must meet the requirements of chapter 245C prior to
195.27reenrollment or revalidation or, for new providers, prior to initial enrollment if they have
195.28not already done so as a part of service licensure requirements.

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

197.16    Sec. 46. Laws 2013, chapter 108, article 14, section 2, subdivision 6, is amended to read:
197.17
 Subd. 6.Grant Programs
197.18The amounts that may be spent from this
197.19appropriation for each purpose are as follows:
197.20
 (a) Support Services Grants
197.21
 Appropriations by Fund
197.22
 General
 8,915,000
 13,333,000
197.23
 Federal TANF
 94,611,000
 94,611,000
197.24Paid Work Experience. $2,168,000
197.25each year in fiscal years 2015 and 2016
197.26is from the general fund for paid work
197.27experience for long-term MFIP recipients.
197.28Paid work includes full and partial wage
197.29subsidies and other related services such as
197.30job development, marketing, preworksite
197.31training, job coaching, and postplacement
197.32services. These are onetime appropriations.
197.33Unexpended funds for fiscal year 2015 do not
198.1cancel, but are available to the commissioner
198.2for this purpose in fiscal year 2016.
198.3Work Study Funding for MFIP
198.4Participants. $250,000 each year in fiscal
198.5years 2015 and 2016 is from the general fund
198.6to pilot work study jobs for MFIP recipients
198.7in approved postsecondary education
198.8programs. This is a onetime appropriation.
198.9Unexpended funds for fiscal year 2015 do
198.10not cancel, but are available for this purpose
198.11in fiscal year 2016.
198.12Local Strategies to Reduce Disparities.
198.13$2,000,000 each year in fiscal years 2015
198.14and 2016 is from the general fund for
198.15local projects that focus on services for
198.16subgroups within the MFIP caseload
198.17who are experiencing poor employment
198.18outcomes. These are onetime appropriations.
198.19Unexpended funds for fiscal year 2015 do not
198.20cancel, but are available to the commissioner
198.21for this purpose in fiscal year 2016.
198.22Home Visiting Collaborations for MFIP
198.23Teen Parents. $200,000 per year in fiscal
198.24years 2014 and 2015 is from the general fund
198.25and $200,000 in fiscal year 2016 is from the
198.26federal TANF fund for technical assistance
198.27and training to support local collaborations
198.28that provide home visiting services for
198.29MFIP teen parents. The general fund
198.30appropriation is onetime. The federal TANF
198.31fund appropriation is added to the base.
198.32Performance Bonus Funds for Counties.
198.33The TANF fund base is increased by
198.34$1,500,000 each year in fiscal years 2016
198.35and 2017. The commissioner must allocate
199.1this amount each year to counties that exceed
199.2their expected range of performance on the
199.3annualized three-year self-support index
199.4as defined in Minnesota Statutes, section
199.5256J.751, subdivision 2 , clause (6). This is a
199.6permanent base adjustment. Notwithstanding
199.7any contrary provisions in this article, this
199.8provision expires June 30, 2016.
199.9Base Adjustment. The general fund base is
199.10decreased by $200,000 in fiscal year 2016
199.11and $4,618,000 in fiscal year 2017. The
199.12TANF fund base is increased by $1,700,000
199.13in fiscal years 2016 and 2017.
199.14
199.15
 (b) Basic Sliding Fee Child Care Assistance
Grants
 36,836,000
 42,318,000
199.16Base Adjustment. The general fund base is
199.17increased by $3,778,000 in fiscal year 2016
199.18and by $3,849,000 in fiscal year 2017.
199.19
 (c) Child Care Development Grants
 1,612,000
 1,737,000
199.20
 (d) Child Support Enforcement Grants
 50,000
 50,000
199.21Federal Child Support Demonstration
199.22Grants. Federal administrative
199.23reimbursement resulting from the federal
199.24child support grant expenditures authorized
199.25under United States Code, title 42, section
199.261315, is appropriated to the commissioner
199.27for this activity.
199.28
 (e) Children's Services Grants
199.29
 Appropriations by Fund
199.30
 General
 49,760,000
 52,961,000
199.31
 Federal TANF
 140,000
 140,000
199.32Adoption Assistance and Relative Custody
199.33Assistance. $37,453,000 in fiscal year 2014
199.34and $37,453,000 in fiscal year 2015 is for
200.1the adoption assistance and relative custody
200.2assistance programs. The commissioner
200.3shall determine with the commissioner of
200.4Minnesota Management and Budget the
200.5appropriation for Northstar Care for Children
200.6effective January 1, 2015. The commissioner
200.7may transfer appropriations for adoption
200.8assistance, relative custody assistance, and
200.9Northstar Care for Children between fiscal
200.10years and among programs to adjust for
200.11transfers across the programs.
200.12Title IV-E Adoption Assistance. Additional
200.13federal reimbursements to the state as a result
200.14of the Fostering Connections to Success
200.15and Increasing Adoptions Act's expanded
200.16eligibility for Title IV-E adoption assistance
200.17are appropriated for postadoption services,
200.18including a parent-to-parent support network.
200.19Privatized Adoption Grants. Federal
200.20reimbursement for privatized adoption grant
200.21and foster care recruitment grant expenditures
200.22is appropriated to the commissioner for
200.23adoption grants and foster care and adoption
200.24administrative purposes.
200.25Adoption Assistance Incentive Grants.
200.26Federal funds available during fiscal years
200.272014 and 2015 for adoption incentive grants
200.28are appropriated for postadoption services,
200.29including a parent-to-parent support network.
200.30Base Adjustment. The general fund base is
200.31increased by $5,913,000 in fiscal year 2016
200.32and by $10,297,000 in fiscal year 2017.
200.33
 (f) Child and Community Service Grants
 53,301,000
 53,301,000
200.34
 (g) Child and Economic Support Grants
 21,047,000
 20,848,000
201.1Minnesota Food Assistance Program.
201.2Unexpended funds for the Minnesota food
201.3assistance program for fiscal year 2014 do
201.4not cancel but are available for this purpose
201.5in fiscal year 2015.
201.6Transitional Housing. $250,000 each year
201.7is for the transitional housing programs under
201.8Minnesota Statutes, section 256E.33.
201.9Emergency Services. $250,000 each year
201.10is for emergency services grants under
201.11Minnesota Statutes, section 256E.36.
201.12Family Assets for Independence. $250,000
201.13each year is for the Family Assets for
201.14Independence Minnesota program. This
201.15appropriation is available in either year of the
201.16biennium and may be transferred between
201.17fiscal years.
201.18Food Shelf Programs. $375,000 in fiscal
201.19year 2014 and $375,000 in fiscal year
201.202015 are for food shelf programs under
201.21Minnesota Statutes, section 256E.34. If the
201.22appropriation for either year is insufficient,
201.23the appropriation for the other year is
201.24available for it. Notwithstanding Minnesota
201.25Statutes, section 256E.34, subdivision 4, no
201.26portion of this appropriation may be used
201.27by Hunger Solutions for its administrative
201.28expenses, including but not limited to rent
201.29and salaries.
201.30Homeless Youth Act. $2,000,000 in fiscal
201.31year 2014 and $2,000,000 in fiscal year 2015
201.32is for purposes of Minnesota Statutes, section
201.33256K.45 .
201.34Safe Harbor Shelter and Housing.
201.35$500,000 in fiscal year 2014 and $500,000 in
202.1fiscal year 2015 is for a safe harbor shelter
202.2and housing fund for housing and supportive
202.3services for youth who are sexually exploited.
202.4
 (h) Health Care Grants
202.5
 Appropriations by Fund
202.6
 General
 190,000
 190,000
202.7
 Health Care Access
 190,000
 190,000
202.8Emergency Medical Assistance Referral
202.9and Assistance Grants. (a) The
202.10commissioner of human services shall
202.11award grants to nonprofit programs that
202.12provide immigration legal services based
202.13on indigency to provide legal services for
202.14immigration assistance to individuals with
202.15emergency medical conditions or complex
202.16and chronic health conditions who are not
202.17currently eligible for medical assistance
202.18or other public health care programs, but
202.19who may meet eligibility requirements with
202.20immigration assistance.
202.21(b) The grantees, in collaboration with
202.22hospitals and safety net providers, shall
202.23provide referral assistance to connect
202.24individuals identified in paragraph (a) with
202.25alternative resources and services to assist in
202.26meeting their health care needs. $100,000
202.27is appropriated in fiscal year 2014 and
202.28$100,000 in fiscal year 2015. This is a
202.29onetime appropriation.
202.30Base Adjustment. The general fund is
202.31decreased by $100,000 in fiscal year 2016
202.32and $100,000 in fiscal year 2017.
202.33
202.34
 (i) Aging and Adult Services Grants
 14,827,000
14,812,000
 15,010,000
14,936,000
203.1Base Adjustment. The general fund base
203.2is increased by $1,150,000 $1,077,000 in
203.3fiscal year 2016 and $1,151,000 $1,077,000
203.4 in fiscal year 2017.
203.5Community Service Development
203.6Grants and Community Services Grants.
203.7Community service development grants and
203.8community services grants are reduced by
203.9$1,150,000 each year. This is a onetime
203.10reduction.
203.11
 (j) Deaf and Hard-of-Hearing Grants
 1,771,000
 1,785,000
203.12
 (k) Disabilities Grants
 18,605,000
 18,823,000
203.13Advocating Change Together. $310,000 in
203.14fiscal year 2014 is for a grant to Advocating
203.15Change Together (ACT) to maintain and
203.16promote services for persons with intellectual
203.17and developmental disabilities throughout
203.18the state. This appropriation is onetime. Of
203.19this appropriation:
203.20(1) $120,000 is for direct costs associated
203.21with the delivery and evaluation of
203.22peer-to-peer training programs administered
203.23throughout the state, focusing on education,
203.24employment, housing, transportation, and
203.25voting;
203.26(2) $100,000 is for delivery of statewide
203.27conferences focusing on leadership and
203.28skill development within the disability
203.29community; and
203.30(3) $90,000 is for administrative and general
203.31operating costs associated with managing
203.32or maintaining facilities, program delivery,
203.33staff, and technology.
204.1Base Adjustment. The general fund base
204.2is increased by $535,000 in fiscal year 2016
204.3and by $709,000 in fiscal year 2017.
204.4
 (l) Adult Mental Health Grants
204.5
 Appropriations by Fund
204.6
 General
 71,199,000
 69,530,000
204.7
 Health Care Access
 750,000
 750,000
204.8
 Lottery Prize
 1,733,000
 1,733,000
204.9Problem Gambling. $225,000 in fiscal year
204.102014 and $225,000 in fiscal year 2015 is
204.11appropriated from the lottery prize fund for a
204.12grant to the state affiliate recognized by the
204.13National Council on Problem Gambling. The
204.14affiliate must provide services to increase
204.15public awareness of problem gambling,
204.16education and training for individuals and
204.17organizations providing effective treatment
204.18services to problem gamblers and their
204.19families, and research relating to problem
204.20gambling.
204.21Funding Usage. Up to 75 percent of a fiscal
204.22year's appropriations for adult mental health
204.23grants may be used to fund allocations in that
204.24portion of the fiscal year ending December
204.2531.
204.26Base Adjustment. The general fund base is
204.27decreased by $4,427,000 in fiscal years 2016
204.28and 2017.
204.29Mental Health Pilot Project. $230,000
204.30each year is for a grant to the Zumbro
204.31Valley Mental Health Center. The grant
204.32shall be used to implement a pilot project
204.33to test an integrated behavioral health care
204.34coordination model. The grant recipient must
204.35report measurable outcomes and savings
205.1to the commissioner of human services
205.2by January 15, 2016. This is a onetime
205.3appropriation.
205.4High-risk adults. $200,000 in fiscal
205.5year 2014 is for a grant to the nonprofit
205.6organization selected to administer the
205.7demonstration project for high-risk adults
205.8under Laws 2007, chapter 54, article 1,
205.9section 19, in order to complete the project.
205.10This is a onetime appropriation.
205.11
 (m) Child Mental Health Grants
 18,246,000
 20,636,000
205.12Text Message Suicide Prevention
205.13Program. $625,000 in fiscal year 2014 and
205.14$625,000 in fiscal year 2015 is for a grant
205.15to a nonprofit organization to establish and
205.16implement a statewide text message suicide
205.17prevention program. The program shall
205.18implement a suicide prevention counseling
205.19text line designed to use text messaging to
205.20connect with crisis counselors and to obtain
205.21emergency information and referrals to
205.22local resources in the local community. The
205.23program shall include training within schools
205.24and communities to encourage the use of the
205.25program.
205.26Mental Health First Aid Training. $22,000
205.27in fiscal year 2014 and $23,000 in fiscal
205.28year 2015 is to train teachers, social service
205.29personnel, law enforcement, and others who
205.30come into contact with children with mental
205.31illnesses, in children and adolescents mental
205.32health first aid training.
205.33Funding Usage. Up to 75 percent of a fiscal
205.34year's appropriation for child mental health
205.35grants may be used to fund allocations in that
206.1portion of the fiscal year ending December
206.231.
206.3
 (n) CD Treatment Support Grants
 1,816,000
 1,816,000
206.4SBIRT Training. (1) $300,000 each year is
206.5for grants to train primary care clinicians to
206.6provide substance abuse brief intervention
206.7and referral to treatment (SBIRT). This is a
206.8onetime appropriation. The commissioner of
206.9human services shall apply to SAMHSA for
206.10an SBIRT professional training grant.
206.11(2) If the commissioner of human services
206.12receives a grant under clause (1) funds
206.13appropriated under this clause, equal to
206.14the grant amount, up to the available
206.15appropriation, shall be transferred to the
206.16Minnesota Organization on Fetal Alcohol
206.17Syndrome (MOFAS). MOFAS must use
206.18the funds for grants. Grant recipients must
206.19be selected from communities that are
206.20not currently served by federal Substance
206.21Abuse Prevention and Treatment Block
206.22Grant funds. Grant money must be used to
206.23reduce the rates of fetal alcohol syndrome
206.24and fetal alcohol effects, and the number of
206.25drug-exposed infants. Grant money may be
206.26used for prevention and intervention services
206.27and programs, including, but not limited to,
206.28community grants, professional eduction,
206.29public awareness, and diagnosis.
206.30Fetal Alcohol Syndrome Grant. $180,000
206.31each year from the general fund is for a
206.32grant to the Minnesota Organization on Fetal
206.33Alcohol Syndrome (MOFAS) to support
206.34nonprofit Fetal Alcohol Spectrum Disorders
206.35(FASD) outreach prevention programs
207.1in Olmsted County. This is a onetime
207.2appropriation.
207.3Base Adjustment. The general fund base is
207.4decreased by $480,000 in fiscal year 2016
207.5and $480,000 in fiscal year 2017.

207.6    Sec. 47. PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY
207.71, 2014.
207.8(a) The commissioner of human services shall increase reimbursement rates, grants,
207.9allocations, individual limits, and rate limits, as applicable, by four percent for the rate
207.10period beginning July 1, 2014, for services rendered on or after that date. County or tribal
207.11contracts for services specified in this section must be amended to pass through these rate
207.12increases within 60 days of the effective date.
207.13(b) The rate changes described in this section must be provided to:
207.14(1) home and community-based waiver services for persons with developmental
207.15disabilities, including consumer-directed community supports, under Minnesota Statutes,
207.16section 256B.092;
207.17(2) waiver services under community alternatives for disabled individuals, including
207.18consumer-directed community supports, under Minnesota Statutes, section 256B.49;
207.19(3) community alternative care waiver services, including consumer-directed
207.20community supports, under Minnesota Statutes, section 256B.49;
207.21(4) brain injury waiver services, including consumer-directed community supports,
207.22under Minnesota Statutes, section 256B.49;
207.23(5) home and community-based waiver services for the elderly under Minnesota
207.24Statutes, section 256B.0915;
207.25(6) nursing services and home health services under Minnesota Statutes, section
207.26256B.0625, subdivision 6a;
207.27(7) personal care services and qualified professional supervision of personal care
207.28services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
207.29(8) private duty nursing services under Minnesota Statutes, section 256B.0625,
207.30subdivision 7;
207.31(9) community first services and supports under Minnesota Statutes, section 256B.85;
207.32(10) essential community supports under Minnesota Statutes, section 256B.0922;
207.33(11) day training and habilitation services for adults with developmental disabilities
207.34or related conditions under Minnesota Statutes, sections 252.41 to 252.46, including the
208.1additional cost to counties for rate adjustments to day training and habilitation services
208.2provided as a social service;
208.3(12) alternative care services under Minnesota Statutes, section 256B.0913;
208.4(13) living skills training programs for persons with intractable epilepsy who need
208.5assistance in the transition to independent living under Laws 1988, chapter 689;
208.6(14) consumer support grants under Minnesota Statutes, section 256.476;
208.7(15) semi-independent living services under Minnesota Statutes, section 252.275;
208.8(16) family support grants under Minnesota Statutes, section 252.32;
208.9(17) housing access grants under Minnesota Statutes, section 256B.0658;
208.10(18) self-advocacy grants under Laws 2009, chapter 101;
208.11(19) technology grants under Laws 2009, chapter 79;
208.12(20) aging grants under Minnesota Statutes, sections 256.975 to 256.977 and
208.13256B.0917;
208.14(21) deaf and hard-of-hearing grants, including community support services for deaf
208.15and hard-of-hearing adults with mental illness who use or wish to use sign language as their
208.16primary means of communication under Minnesota Statutes, section 256.01, subdivision 2;
208.17(22) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233,
208.18256C.25, and 256C.261;
208.19(23) Disability Linkage Line grants under Minnesota Statutes, section 256.01,
208.20subdivision 24;
208.21(24) transition initiative grants under Minnesota Statutes, section 256.478;
208.22(25) employment support grants under Minnesota Statutes, section 256B.021,
208.23subdivision 6; and
208.24(26) grants provided to people who are eligible for the Housing Opportunities for
208.25Persons with AIDS program under Minnesota Statutes, section 256B.492.
208.26(c) A managed care plan receiving state payments for the services in paragraph (b)
208.27must include the increases in paragraph (a) in payments to providers. To implement the
208.28rate increase in this section, capitation rates paid by the commissioner to managed care
208.29organizations under Minnesota Statutes, section 256B.69, shall reflect a four percent
208.30increase for the specified services for the period beginning July 1, 2014.
208.31(d) Counties shall increase the budget for each recipient of consumer-directed
208.32community supports by the amounts in paragraph (a) on the effective dates in paragraph (a).
208.33(e) To implement this section, the commissioner shall increase service rates in the
208.34disability waiver payment system authorized in Minnesota Statutes, sections 256B.4913
208.35and 256B.4914.
209.1(f) To receive the rate increase described in this section, providers under paragraphs
209.2(a) and (b) must submit to the commissioner documentation that identifies a quality
209.3improvement project that the provider will implement by June 30, 2015. Documentation
209.4must be provided in a format specified by the commissioner. Projects must:
209.5(1) improve the quality of life of home and community-based services recipients in
209.6a meaningful way;
209.7(2) improve the quality of services in a measurable way; or
209.8(3) deliver good quality service more efficiently.
209.9Providers listed in paragraph (b), clauses (7), (9), (10), and (13) to (26), are not subject
209.10to this requirement.
209.11(g) For a provider that fails to submit documentation described in paragraph (f) by
209.12a date or in a format specified by the commissioner, the commissioner shall reduce the
209.13provider's rate by one percent effective January 1, 2015.
209.14(h) Providers that receive a rate increase under this subdivision shall use 75 percent
209.15of the rate increase to increase compensation-related costs for employees directly
209.16employed by the facility on or after the effective date of the rate adjustments, except:
209.17(1) persons employed in the central office of a corporation or entity that has an
209.18ownership interest in the facility or exercises control over the facility; and
209.19(2) persons paid by the facility under a management contract.
209.20This requirement is subject to audit by the commissioner.
209.21(i) Compensation-related costs include:
209.22(1) wages and salaries;
209.23(2) the employer's share of FICA taxes, Medicare taxes, state and federal
209.24unemployment taxes, workers' compensation, and mileage reimbursement;
209.25(3) the employer's share of health and dental insurance, life insurance, disability
209.26insurance, long-term care insurance, uniform allowance, pensions, and contributions to
209.27employee retirement accounts; and
209.28(4) other benefits provided and workforce needs, including the recruiting and
209.29training of employees as specified in the distribution plan required under paragraph (k).
209.30(j) For public employees, the increase for wages and benefits for certain staff is
209.31available and pay rates must be increased only to the extent that the increases comply with
209.32laws governing public employees' collective bargaining. Money received by a provider
209.33for pay increases for public employees under this section may be used only for increases
209.34implemented within one month of the effective date of the rate increase and must not be
209.35used for increases implemented prior to that date.
210.1(k) A provider that receives a rate adjustment under paragraph (b) that is subject to
210.2paragraphs (h) and (i) shall prepare and produce for the commissioner, upon request, a
210.3plan that specifies the amount of money the provider expects to receive that is subject to
210.4the requirements of paragraphs (h) and (i), as well as how that money will be distributed
210.5to increase compensation for employees. The commissioner may recover funds from a
210.6facility that fails to comply with this requirement.
210.7(l) Within six months after the effective date of the rate adjustment, the provider
210.8shall post the distribution plan required under paragraph (k) for a period of at least six
210.9weeks in an area of the provider's operation to which all eligible employees have access,
210.10and shall provide instructions for employees who believe they have not received the
210.11wage and other compensation-related increases specified in the distribution plan. These
210.12instructions must include a mailing address, e-mail address, and telephone number that
210.13an employee may use to contact the commissioner or the commissioner's representative.
210.14Providers shall make assurances to the commissioner of compliance with this section
210.15using forms prescribed by the commissioner.

210.16    Sec. 48. REVISOR'S INSTRUCTION.
210.17In each section of Minnesota Statutes or part of Minnesota Rules referred to in
210.18column A, the revisor of statutes shall delete the word or phrase in column B and insert
210.19the phrase in column C. The revisor shall also make related grammatical changes and
210.20changes in headnotes.
210.21
 Column A
 Column B
 Column C
210.22
210.23
 section 158.13
 defective persons
 persons with intellectual
disabilities
210.24
210.25
 section 158.14
 defective persons
 persons with intellectual
disabilities
210.26
210.27
 section 158.17
 defective persons
 persons with intellectual
disabilities
210.28
210.29
 section 158.18
 persons not defective
 persons without intellectual
disabilities
210.30
210.31
 defective person
 person with intellectual
disabilities
210.32
210.33
 defective persons
 persons with intellectual
disabilities
210.34
210.35
 section 158.19
 defective
 person with intellectual
disabilities
210.36
210.37
 section 256.94
 defective
 children with intellectual
disabilities and
210.38
210.39
 section 257.175
 defective
 children with intellectual
disabilities and
210.40
 part 2911.1350
 retardation
 developmental disability

211.1    Sec. 49. REPEALER.
211.2(a) Minnesota Statutes 2013 Supplement, section 245D.061, subdivision 3, is
211.3repealed.
211.4(b) Minnesota Statutes 2012, section 245.825, subdivisions 1 and 1b, are repealed
211.5upon the effective date of rules adopted according to Minnesota Statutes, section 245.8251.
211.6The commissioner of human services shall notify the revisor of statutes when this occurs.
211.7(c) Minnesota Statutes 2013 Supplement, sections 245D.02, subdivisions 2b, 2c,
211.83b, 5a, 8a, 15a, 15b, 23b, 28, 29, and 34a; 245D.06, subdivisions 5, 6, 7, and 8; and
211.9245D.061, subdivisions 1, 2, 4, 5, 6, 7, 8, and 9, are repealed upon the effective date of
211.10rules adopted according to Minnesota Statutes, section 245.8251. The commissioner of
211.11human services shall notify the revisor of statutes when this occurs.
211.12(d) Minnesota Rules, parts 9525.2700; and 9525.2810, are repealed upon the
211.13effective date of rules adopted according to Minnesota Statutes, section 245.8251. The
211.14commissioner of human services shall notify the revisor of statutes when this occurs.

211.15ARTICLE 20
211.16MISCELLANEOUS

211.17    Section 1. Minnesota Statutes 2012, section 254B.12, is amended to read:
211.18254B.12 RATE METHODOLOGY.
211.19    Subdivision 1. CCDTF rate methodology established. The commissioner shall
211.20establish a new rate methodology for the consolidated chemical dependency treatment
211.21fund. The new methodology must replace county-negotiated rates with a uniform
211.22statewide methodology that must include a graduated reimbursement scale based on the
211.23patients' level of acuity and complexity. At least biennially, the commissioner shall review
211.24the financial information provided by vendors to determine the need for rate adjustments.
211.25    Subd. 2. Payment methodology for state-operated vendors. (a) Notwithstanding
211.26subdivision 1, the commissioner shall seek federal authority to develop a separate
211.27payment methodology for chemical dependency treatment services provided under the
211.28consolidated chemical dependency treatment fund by a state-operated vendor. This
211.29payment methodology is effective for services provided on or after October 1, 2015, or on
211.30or after the receipt of federal approval, whichever is later.
211.31(b) Before implementing an approved payment methodology under paragraph
211.32(a), the commissioner must also receive any necessary legislative approval of required
211.33changes to state law or funding.

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