1.1    .................... moves to amend H. F. No. 3976 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2006, section 256B.0621, subdivision 2, is amended to
1.6read:
1.7    Subd. 2. Targeted case management; definitions. For purposes of subdivisions 3
1.8to 10, the following terms have the meanings given them:
1.9    (1) "home care service recipients" means those individuals receiving the following
1.10services under sections 256B.0651 to 256B.0656: skilled nursing visits, home health aide
1.11visits, private duty nursing, personal care assistants, or therapies provided through a
1.12home health agency;
1.13    (2) "home care targeted case management" means the provision of targeted case
1.14management services for the purpose of assisting home care service recipients to gain
1.15access to needed services and supports so that they may remain in the community;
1.16    (3) "institutions" means hospitals, consistent with Code of Federal Regulations, title
1.1742, section 440.10; regional treatment center inpatient services, consistent with section
1.18245.474 ; nursing facilities; and intermediate care facilities for persons with developmental
1.19disabilities;
1.20    (4) "relocation targeted case management" includes the provision of both county
1.21targeted case management and public or private vendor service coordination services
1.22for the purpose of assisting recipients to gain access to needed services and supports if
1.23they choose to move from an institution to the community. Relocation targeted case
1.24management may be provided during the lesser of:
1.25    (i) the last 180 consecutive days of an eligible recipient's institutional stay; or
2.1    (ii) the limits and conditions which apply to federal Medicaid funding for this
2.2service; and
2.3    (5) "targeted case management" means case management services provided to help
2.4recipients gain access to needed medical, social, educational, and other services and
2.5supports.

2.6    Sec. 2. Minnesota Statutes 2006, section 256B.0621, subdivision 6, is amended to read:
2.7    Subd. 6. Eligible services. (a) Services eligible for medical assistance
2.8reimbursement as targeted case management include:
2.9    (1) assessment of the recipient's need for targeted case management services and
2.10for persons choosing to relocate, the county must provide service coordination provider
2.11options at the first contact and upon request;
2.12    (2) development, completion, and regular review of a written individual service
2.13plan, which is based upon the assessment of the recipient's needs and choices, and which
2.14will ensure access to medical, social, educational, and other related services and supports;
2.15    (3) routine contact or communication with the recipient, recipient's family, primary
2.16caregiver, legal representative, substitute care provider, service providers, or other relevant
2.17persons identified as necessary to the development or implementation of the goals of the
2.18individual service plan;
2.19    (4) coordinating referrals for, and the provision of, case management services for
2.20the recipient with appropriate service providers, consistent with section 1902(a)(23) of
2.21the Social Security Act;
2.22    (5) coordinating and monitoring the overall service delivery and engaging in
2.23advocacy as needed to ensure quality of services, appropriateness, and continued need;
2.24    (6) completing and maintaining necessary documentation that supports and verifies
2.25the activities in this subdivision;
2.26    (7) assisting individuals in order to access needed services, including travel to
2.27conduct a visit with the recipient or other relevant person necessary to develop or
2.28implement the goals of the individual service plan; and
2.29    (8) coordinating with the institution discharge planner in the 180-day period before
2.30the recipient's discharge.
2.31    (b) Relocation targeted county case management includes services under paragraph
2.32(a), clauses (1), (2), and (4). Relocation service coordination includes services under
2.33paragraph (a), clauses (3) and (5) to (8). Home care targeted case management includes
2.34services under paragraph (a), clauses (1) to (8).

3.1    Sec. 3. Minnesota Statutes 2006, section 256B.0621, subdivision 10, is amended to
3.2read:
3.3    Subd. 10. Payment rates. The commissioner shall set payment rates for targeted
3.4case management under this subdivision. Case managers may bill according to the
3.5following criteria:
3.6    (1) for relocation targeted case management, case managers may bill for direct case
3.7management activities, including face-to-face and telephone contacts, in the lesser of:
3.8    (i) 180 days preceding an eligible recipient's discharge from an institution; or
3.9    (ii) the limits and conditions which apply to federal Medicaid funding for this
3.10service;
3.11    (2) for home care targeted case management, case managers may bill for direct case
3.12management activities, including face-to-face and telephone contacts; and
3.13    (3) billings for targeted case management services under this subdivision shall not
3.14duplicate payments made under other program authorities for the same purpose.

3.15    Sec. 4. Minnesota Statutes 2007 Supplement, section 256B.0625, subdivision 20,
3.16is amended to read:
3.17    Subd. 20. Mental health case management. (a) To the extent authorized by rule
3.18of the state agency, medical assistance covers case management services to persons with
3.19serious and persistent mental illness and children with severe emotional disturbance.
3.20Services provided under this section must meet the relevant standards in sections 245.461
3.21to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota
3.22Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10.
3.23    (b) Entities meeting program standards set out in rules governing family community
3.24support services as defined in section 245.4871, subdivision 17, are eligible for medical
3.25assistance reimbursement for case management services for children with severe
3.26emotional disturbance when these services meet the program standards in Minnesota
3.27Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.
3.28    (c) Medical assistance and MinnesotaCare payment for mental health case
3.29management shall be made on a monthly basis. In order to receive payment for an eligible
3.30child, the provider must document at least a face-to-face contact with the child, the child's
3.31parents, or the child's legal representative. To receive payment for an eligible adult, the
3.32provider must document:
3.33    (1) at least a face-to-face contact with the adult or the adult's legal representative; or
4.1    (2) at least a telephone contact with the adult or the adult's legal representative and
4.2document a face-to-face contact with the adult or the adult's legal representative within
4.3the preceding two months.
4.4    (d) Payment for mental health case management provided by county or state staff
4.5shall be based on the monthly rate methodology under section 256B.094, subdivision 6,
4.6paragraph (b), with separate rates calculated for child welfare and mental health, and
4.7within mental health, separate rates for children and adults.
4.8    (e) Payment for mental health case management provided by Indian health services
4.9or by agencies operated by Indian tribes may be made according to this section or other
4.10relevant federally approved rate setting methodology.
4.11    (f) Payment for mental health case management provided by vendors who contract
4.12with a county or Indian tribe shall be based on a monthly rate negotiated by the host county
4.13or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same
4.14service to other payers. If the service is provided by a team of contracted vendors, the
4.15county or tribe may negotiate a team rate with a vendor who is a member of the team. The
4.16team shall determine how to distribute the rate among its members. No reimbursement
4.17received by contracted vendors shall be returned to the county or tribe, except to reimburse
4.18the county or tribe for advance funding provided by the county or tribe to the vendor.
4.19    (g) If the service is provided by a team which includes contracted vendors, tribal
4.20staff, and county or state staff, the costs for county or state staff participation in the team
4.21shall be included in the rate for county-provided services. In this case, the contracted
4.22vendor, the tribal agency, and the county may each receive separate payment for services
4.23provided by each entity in the same month. In order to prevent duplication of services,
4.24each entity must document, in the recipient's file, the need for team case management and
4.25a description of the roles of the team members.
4.26    (h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs
4.27for mental health case management shall be provided by the recipient's county of
4.28responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal
4.29funds or funds used to match other federal funds. If the service is provided by a tribal
4.30agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this
4.31service is paid by the state without a federal share through fee-for-service, 50 percent of
4.32the cost shall be provided by the recipient's county of responsibility.
4.33    (i) Notwithstanding any administrative rule to the contrary, prepaid medical
4.34assistance, general assistance medical care, and MinnesotaCare include mental health case
4.35management. When the service is provided through prepaid capitation, the nonfederal
4.36share is paid by the state and the county pays no share.
5.1    (j) The commissioner may suspend, reduce, or terminate the reimbursement to a
5.2provider that does not meet the reporting or other requirements of this section. The county
5.3of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal
5.4agency, is responsible for any federal disallowances. The county or tribe may share this
5.5responsibility with its contracted vendors.
5.6    (k) The commissioner shall set aside a portion of the federal funds earned for county
5.7expenditures under this section to repay the special revenue maximization account under
5.8section 256.01, subdivision 2, clause (15). The repayment is limited to:
5.9    (1) the costs of developing and implementing this section; and
5.10    (2) programming the information systems.
5.11    (l) Payments to counties and tribal agencies for case management expenditures
5.12under this section shall only be made from federal earnings from services provided
5.13under this section. When this service is paid by the state without a federal share through
5.14fee-for-service, 50 percent of the cost shall be provided by the state. Payments to
5.15county-contracted vendors shall include the federal earnings, the state share, and the
5.16county share.
5.17    (m) Case management services under this subdivision do not include therapy,
5.18treatment, legal, or outreach services.
5.19    (n) If the recipient is a resident of a nursing facility, intermediate care facility, or
5.20hospital, and the recipient's institutional care is paid by medical assistance, payment for
5.21case management services under this subdivision is limited to the lesser of:
5.22    (1) the last 180 days of the recipient's residency in that facility and may not exceed
5.23more than six months in a calendar year; or
5.24    (2) the limits and conditions which apply to federal Medicaid funding for this service.
5.25    (o) Payment for case management services under this subdivision shall not duplicate
5.26payments made under other program authorities for the same purpose.

5.27    Sec. 5. [256B.0658] HOUSING ACCESS GRANTS.
5.28    The commissioner of human services shall award through a competitive process
5.29contracts for grants to public and private agencies to support and assist individuals eligible
5.30for publicly funded home and community-based services, including state plan home care,
5.31to access housing. Grants may be awarded to agencies that may include, but are not
5.32limited to, the following supports: assess to assure suitability of housing, accompanying
5.33an individual to look at housing, filling out applications and rental agreements, meeting
5.34with landlords, helping with Section 8 or other program applications, helping to develop
5.35a budget, obtaining furniture and household goods, if necessary, and assisting with any
5.36problems that may arise with housing.

6.1    Sec. 6. Minnesota Statutes 2006, section 256B.0924, subdivision 4, is amended to read:
6.2    Subd. 4. Targeted case management service activities. (a) For persons with
6.3developmental disabilities, targeted case management services must meet the provisions
6.4of section 256B.092.
6.5    (b) For persons not eligible as a person with a developmental disability, targeted
6.6case management service activities include:
6.7    (1) an assessment of the person's need for targeted case management services;
6.8    (2) the development of a written personal service plan;
6.9    (3) a regular review and revision of the written personal service plan with the
6.10recipient and the recipient's legal representative, and others as identified by the recipient,
6.11to ensure access to necessary services and supports identified in the plan;
6.12    (4) effective communication with the recipient and the recipient's legal representative
6.13and others identified by the recipient;
6.14    (5) coordination of referrals for needed services with qualified providers;
6.15    (6) coordination and monitoring of the overall service delivery to ensure the quality
6.16and effectiveness of services;
6.17    (7) assistance to the recipient and the recipient's legal representative to help make
6.18an informed choice of services;
6.19    (8) advocating on behalf of the recipient when service barriers are encountered or
6.20referring the recipient and the recipient's legal representative to an independent advocate;
6.21    (9) monitoring and evaluating services identified in the personal service plan to
6.22ensure personal outcomes are met and to ensure satisfaction with services and service
6.23delivery;
6.24    (10) conducting face-to-face monitoring with the recipient at least twice a year;
6.25    (11) completing and maintaining necessary documentation that supports and verifies
6.26the activities in this section;
6.27    (12) coordinating with the medical assistance facility discharge planner in the
6.28180-day period prior to the recipient's discharge into the community; and
6.29    (13) a personal service plan developed and reviewed at least annually with the
6.30recipient and the recipient's legal representative. The personal service plan must be revised
6.31when there is a change in the recipient's status. The personal service plan must identify:
6.32    (i) the desired personal short and long-term outcomes;
6.33    (ii) the recipient's preferences for services and supports, including development of
6.34a person-centered plan if requested; and
6.35    (iii) formal and informal services and supports based on areas of assessment, such
6.36as: social, health, mental health, residence, family, educational and vocational, safety,
7.1legal, self-determination, financial, and chemical health as determined by the recipient and
7.2the recipient's legal representative and the recipient's support network.

7.3    Sec. 7. Minnesota Statutes 2006, section 256B.0924, subdivision 6, is amended to read:
7.4    Subd. 6. Payment for targeted case management. (a) Medical assistance and
7.5MinnesotaCare payment for targeted case management shall be made on a monthly basis.
7.6In order to receive payment for an eligible adult, the provider must document at least one
7.7contact per month and not more than two consecutive months without a face-to-face
7.8contact with the adult or the adult's legal representative, family, primary caregiver, or
7.9other relevant persons identified as necessary to the development or implementation
7.10of the goals of the personal service plan.
7.11    (b) Payment for targeted case management provided by county staff under this
7.12subdivision shall be based on the monthly rate methodology under section 256B.094,
7.13subdivision 6 , paragraph (b), calculated as one combined average rate together with
7.14adult mental health case management under section 256B.0625, subdivision 20, except
7.15for calendar year 2002. In calendar year 2002, the rate for case management under this
7.16section shall be the same as the rate for adult mental health case management in effect
7.17as of December 31, 2001. Billing and payment must identify the recipient's primary
7.18population group to allow tracking of revenues.
7.19    (c) Payment for targeted case management provided by county-contracted vendors
7.20shall be based on a monthly rate negotiated by the host county. The negotiated rate must
7.21not exceed the rate charged by the vendor for the same service to other payers. If the
7.22service is provided by a team of contracted vendors, the county may negotiate a team rate
7.23with a vendor who is a member of the team. The team shall determine how to distribute
7.24the rate among its members. No reimbursement received by contracted vendors shall be
7.25returned to the county, except to reimburse the county for advance funding provided by
7.26the county to the vendor.
7.27    (d) If the service is provided by a team that includes contracted vendors and county
7.28staff, the costs for county staff participation on the team shall be included in the rate for
7.29county-provided services. In this case, the contracted vendor and the county may each
7.30receive separate payment for services provided by each entity in the same month. In
7.31order to prevent duplication of services, the county must document, in the recipient's file,
7.32the need for team targeted case management and a description of the different roles of
7.33the team members.
7.34    (e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs
7.35for targeted case management shall be provided by the recipient's county of responsibility,
8.1as defined in sections 256G.01 to 256G.12, from sources other than federal funds or
8.2funds used to match other federal funds.
8.3    (f) The commissioner may suspend, reduce, or terminate reimbursement to a
8.4provider that does not meet the reporting or other requirements of this section. The county
8.5of responsibility, as defined in sections 256G.01 to 256G.12, is responsible for any federal
8.6disallowances. The county may share this responsibility with its contracted vendors.
8.7    (g) The commissioner shall set aside five percent of the federal funds received under
8.8this section for use in reimbursing the state for costs of developing and implementing
8.9this section.
8.10    (h) Payments to counties for targeted case management expenditures under this
8.11section shall only be made from federal earnings from services provided under this
8.12section. Payments to contracted vendors shall include both the federal earnings and the
8.13county share.
8.14    (i) Notwithstanding section 256B.041, county payments for the cost of case
8.15management services provided by county staff shall not be made to the commissioner of
8.16finance. For the purposes of targeted case management services provided by county staff
8.17under this section, the centralized disbursement of payments to counties under section
8.18256B.041 consists only of federal earnings from services provided under this section.
8.19    (j) If the recipient is a resident of a nursing facility, intermediate care facility, or
8.20hospital, and the recipient's institutional care is paid by medical assistance, payment for
8.21targeted case management services under this subdivision is limited to the lesser of:
8.22    (1) the last 180 days of the recipient's residency in that facility and may not exceed
8.23more than six months in a calendar year; or
8.24    (2) the limits and conditions which apply to federal Medicaid funding for this service.
8.25    (k) Payment for targeted case management services under this subdivision shall not
8.26duplicate payments made under other program authorities for the same purpose.
8.27    (l) Any growth in targeted case management services and cost increases under this
8.28section shall be the responsibility of the counties.

8.29    Sec. 8. Minnesota Statutes 2006, section 256B.19, subdivision 1d, is amended to read:
8.30    Subd. 1d. Portion of nonfederal share to be paid by certain counties. (a)
8.31In addition to the percentage contribution paid by a county under subdivision 1, the
8.32governmental units designated in this subdivision shall be responsible for an additional
8.33portion of the nonfederal share of medical assistance cost. For purposes of this
8.34subdivision, "designated governmental unit" means the counties of Becker, Beltrami,
9.1Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, Pennington, Pipestone, Ramsey, St.
9.2Louis, Steele, Todd, Traverse, and Wadena.
9.3    (b) Beginning in 1994, each of the governmental units designated in this subdivision
9.4shall transfer before noon on May 31 to the state Medicaid agency an amount equal to the
9.5number of licensed beds in any nursing home owned and operated by the county on that
9.6date, with the county named as licensee, multiplied by $5,723. If two or more counties own
9.7and operate a nursing home, the payment shall be prorated. These sums shall be part of the
9.8designated governmental unit's portion of the nonfederal share of medical assistance costs.
9.9    (c) Beginning in 2002, in addition to any transfer under paragraph (b), each of the
9.10governmental units designated in this subdivision shall transfer before noon on May 31
9.11to the state Medicaid agency an amount equal to the number of licensed beds in any
9.12nursing home owned and operated by the county on that date, with the county named as
9.13licensee, multiplied by $10,784. The provisions of paragraph (b) apply to transfers under
9.14this paragraph.
9.15    (d) Beginning in 2003, in addition to any transfer under paragraphs (b) and (c), each
9.16of the governmental units designated in this subdivision shall transfer before noon on May
9.1731 to the state Medicaid agency an amount equal to the number of licensed beds in any
9.18nursing home owned and operated by the county on that date, with the county named as
9.19licensee, multiplied by $2,230. The provisions of paragraph (b) apply to transfers under
9.20this paragraph.
9.21    (e) (d) The commissioner may reduce the intergovernmental transfers under
9.22paragraphs paragraph (c) and (d) based on the commissioner's determination of the
9.23payment rate in section 256B.431, subdivision 23, paragraphs (c), and (d), and (e). Any
9.24adjustments must be made on a per-bed basis and must result in an amount equivalent to
9.25the total amount resulting from the rate adjustment in section 256B.431, subdivision 23,
9.26paragraphs (c), and (d), and (e).

9.27    Sec. 9. Minnesota Statutes 2006, section 256B.431, subdivision 23, is amended to read:
9.28    Subd. 23. County nursing home payment adjustments. (a) Beginning in 1994,
9.29the commissioner shall pay a nursing home payment adjustment on May 31 after noon
9.30to a county in which is located a nursing home that, on that date, was county-owned and
9.31operated, with the county named as licensee by the commissioner of health, and had over
9.3240 beds and medical assistance occupancy in excess of 50 percent during the reporting
9.33year ending September 30, 1991. The adjustment shall be an amount equal to $16 per
9.34calendar day multiplied by the number of beds licensed in the facility on that date.
10.1    (b) Payments under paragraph (a) are excluded from medical assistance per diem
10.2rate calculations. These payments are required notwithstanding any rule prohibiting
10.3medical assistance payments from exceeding payments from private pay residents. A
10.4facility receiving a payment under paragraph (a) may not increase charges to private pay
10.5residents by an amount equivalent to the per diem amount payments under paragraph (a)
10.6would equal if converted to a per diem.
10.7    (c) Beginning in 2002, in addition to any payment under paragraph (a), the
10.8commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in
10.9an amount equal to $29.55 per calendar day multiplied by the number of beds licensed
10.10in the facility on that date. The provisions of paragraphs (a) and (b) apply to payments
10.11under this paragraph.
10.12    (d) Beginning in 2003, in addition to any payment under paragraphs (a) and (c), the
10.13commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in
10.14an amount equal to $6.11 per calendar day multiplied by the number of beds licensed in
10.15the facility on that date. The provisions of paragraphs (a) and (b) apply to payments
10.16under this paragraph.
10.17    (e) (d) The commissioner may reduce payments under paragraphs paragraph (c) and
10.18(d) based on the commissioner's determination of Medicare upper payment limits. Any
10.19adjustments must be proportional to adjustments made under section 256B.19, subdivision
10.201d , paragraph (e) (d).

10.21    Sec. 10. Minnesota Statutes 2006, section 256B.69, subdivision 6, is amended to read:
10.22    Subd. 6. Service delivery. (a) Each demonstration provider shall be responsible for
10.23the health care coordination for eligible individuals. Demonstration providers:
10.24    (1) shall authorize and arrange for the provision of all needed health services
10.25including but not limited to the full range of services listed in sections 256B.02,
10.26subdivision 8 , and 256B.0625 in order to ensure appropriate health care is delivered to
10.27enrollees. Notwithstanding section 256B.0621, demonstration providers that provide
10.28nursing home and community-based services under this section shall provide relocation
10.29service coordination to enrolled persons age 65 and over;
10.30    (2) shall accept the prospective, per capita payment from the commissioner in return
10.31for the provision of comprehensive and coordinated health care services for eligible
10.32individuals enrolled in the program;
10.33    (3) may contract with other health care and social service practitioners to provide
10.34services to enrollees; and
11.1    (4) shall institute recipient grievance procedures according to the method established
11.2by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved
11.3through this process shall be appealable to the commissioner as provided in subdivision 11.
11.4    (b) Demonstration providers must comply with the standards for claims settlement
11.5under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health
11.6care and social service practitioners to provide services to enrollees. A demonstration
11.7provider must pay a clean claim, as defined in Code of Federal Regulations, title 42,
11.8section 447.45(b), within 30 business days of the date of acceptance of the claim.

11.9    Sec. 11. Minnesota Statutes 2006, section 256D.44, subdivision 2, is amended to read:
11.10    Subd. 2. Standard of assistance for persons eligible for medical assistance
11.11waivers or at risk of placement in a group residential housing facility. The state
11.12standard of assistance for a person who: (1) is eligible for a medical assistance home and
11.13community-based services waiver or a person who; (2) has been determined by the local
11.14agency to meet the plan requirements for placement in a group residential housing facility
11.15under section 256I.04, subdivision 1a,; or (3) is eligible for a shelter needy payment
11.16under subdivision 5, paragraph (f); is the standard established in subdivision 3, paragraph
11.17(a) or (b).
11.18EFFECTIVE DATE.This section is effective January 1, 2009.

11.19    Sec. 12. Minnesota Statutes 2006, section 256D.44, subdivision 5, is amended to read:
11.20    Subd. 5. Special needs. In addition to the state standards of assistance established in
11.21subdivisions 1 to 4, payments are allowed for the following special needs of recipients of
11.22Minnesota supplemental aid who are not residents of a nursing home, a regional treatment
11.23center, or a group residential housing facility.
11.24    (a) The county agency shall pay a monthly allowance for medically prescribed
11.25diets if the cost of those additional dietary needs cannot be met through some other
11.26maintenance benefit. The need for special diets or dietary items must be prescribed by
11.27a licensed physician. Costs for special diets shall be determined as percentages of the
11.28allotment for a one-person household under the thrifty food plan as defined by the United
11.29States Department of Agriculture. The types of diets and the percentages of the thrifty
11.30food plan that are covered are as follows:
11.31    (1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
11.32    (2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent
11.33of thrifty food plan;
12.1    (3) controlled protein diet, less than 40 grams and requires special products, 125
12.2percent of thrifty food plan;
12.3    (4) low cholesterol diet, 25 percent of thrifty food plan;
12.4    (5) high residue diet, 20 percent of thrifty food plan;
12.5    (6) pregnancy and lactation diet, 35 percent of thrifty food plan;
12.6    (7) gluten-free diet, 25 percent of thrifty food plan;
12.7    (8) lactose-free diet, 25 percent of thrifty food plan;
12.8    (9) antidumping diet, 15 percent of thrifty food plan;
12.9    (10) hypoglycemic diet, 15 percent of thrifty food plan; or
12.10    (11) ketogenic diet, 25 percent of thrifty food plan.
12.11    (b) Payment for nonrecurring special needs must be allowed for necessary home
12.12repairs or necessary repairs or replacement of household furniture and appliances using
12.13the payment standard of the AFDC program in effect on July 16, 1996, for these expenses,
12.14as long as other funding sources are not available.
12.15    (c) A fee for guardian or conservator service is allowed at a reasonable rate
12.16negotiated by the county or approved by the court. This rate shall not exceed five percent
12.17of the assistance unit's gross monthly income up to a maximum of $100 per month. If the
12.18guardian or conservator is a member of the county agency staff, no fee is allowed.
12.19    (d) The county agency shall continue to pay a monthly allowance of $68 for
12.20restaurant meals for a person who was receiving a restaurant meal allowance on June 1,
12.211990, and who eats two or more meals in a restaurant daily. The allowance must continue
12.22until the person has not received Minnesota supplemental aid for one full calendar month
12.23or until the person's living arrangement changes and the person no longer meets the criteria
12.24for the restaurant meal allowance, whichever occurs first.
12.25    (e) A fee of ten percent of the recipient's gross income or $25, whichever is less,
12.26is allowed for representative payee services provided by an agency that meets the
12.27requirements under SSI regulations to charge a fee for representative payee services. This
12.28special need is available to all recipients of Minnesota supplemental aid regardless of
12.29their living arrangement.
12.30    (f) (1) Notwithstanding the language in this subdivision, an amount equal to the
12.31maximum allotment authorized by the federal Food Stamp Program for a single individual
12.32which is in effect on the first day of January July of the previous each year will be added
12.33to the standards of assistance established in subdivisions 1 to 4 for individuals adults
12.34under the age of 65 who qualify as shelter needy and are: (i) relocating from an institution,
12.35or an adult mental health residential treatment program under section 256B.0622, and
12.36who are shelter needy; (ii) self-directed supports option eligible as defined under section
13.1256B.0657, subdivision 2; or (iii) home and community-based waiver recipients living in
13.2their own home or rented or leased apartment which is not owned, operated, or controlled
13.3by a provider of service not related by blood or marriage.
13.4    (2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the
13.5shelter needy benefit under subdivision 5, paragraph (f), is considered a household of one.
13.6An eligible individual who receives this benefit prior to age 65 may continue to receive
13.7the benefit after the age of 65.
13.8    (3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that
13.9exceed 40 percent of the assistance unit's gross income before the application of this
13.10special needs standard. "Gross income" for the purposes of this section is the applicant's or
13.11recipient's income as defined in section 256D.35, subdivision 10, or the standard specified
13.12in subdivision 3, paragraph (a) or (b), whichever is greater. A recipient of a federal or
13.13state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be
13.14considered shelter needy for purposes of this paragraph.
13.15EFFECTIVE DATE.This section is effective January 1, 2009.


13.18    Section 1. Minnesota Statutes 2007 Supplement, section 256.01, subdivision 2, is
13.19amended to read:
13.20    Subd. 2. Specific powers. Subject to the provisions of section 241.021, subdivision
13.212 , the commissioner of human services shall carry out the specific duties in paragraphs (a)
13.22through (cc):
13.23    (a) Administer and supervise all forms of public assistance provided for by state law
13.24and other welfare activities or services as are vested in the commissioner. Administration
13.25and supervision of human services activities or services includes, but is not limited to,
13.26assuring timely and accurate distribution of benefits, completeness of service, and quality
13.27program management. In addition to administering and supervising human services
13.28activities vested by law in the department, the commissioner shall have the authority to:
13.29    (1) require county agency participation in training and technical assistance programs
13.30to promote compliance with statutes, rules, federal laws, regulations, and policies
13.31governing human services;
13.32    (2) monitor, on an ongoing basis, the performance of county agencies in the
13.33operation and administration of human services, enforce compliance with statutes, rules,
13.34federal laws, regulations, and policies governing welfare services and promote excellence
13.35of administration and program operation;
14.1    (3) develop a quality control program or other monitoring program to review county
14.2performance and accuracy of benefit determinations;
14.3    (4) require county agencies to make an adjustment to the public assistance benefits
14.4issued to any individual consistent with federal law and regulation and state law and rule
14.5and to issue or recover benefits as appropriate;
14.6    (5) delay or deny payment of all or part of the state and federal share of benefits and
14.7administrative reimbursement according to the procedures set forth in section 256.017;
14.8    (6) make contracts with and grants to public and private agencies and organizations,
14.9both profit and nonprofit, and individuals, using appropriated funds; and
14.10    (7) enter into contractual agreements with federally recognized Indian tribes with
14.11a reservation in Minnesota to the extent necessary for the tribe to operate a federally
14.12approved family assistance program or any other program under the supervision of the
14.13commissioner. The commissioner shall consult with the affected county or counties in
14.14the contractual agreement negotiations, if the county or counties wish to be included,
14.15in order to avoid the duplication of county and tribal assistance program services. The
14.16commissioner may establish necessary accounts for the purposes of receiving and
14.17disbursing funds as necessary for the operation of the programs.
14.18    (b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law,
14.19regulation, and policy necessary to county agency administration of the programs.
14.20    (c) Administer and supervise all child welfare activities; promote the enforcement of
14.21laws protecting disabled, dependent, neglected and delinquent children, and children born
14.22to mothers who were not married to the children's fathers at the times of the conception
14.23nor at the births of the children; license and supervise child-caring and child-placing
14.24agencies and institutions; supervise the care of children in boarding and foster homes or
14.25in private institutions; and generally perform all functions relating to the field of child
14.26welfare now vested in the State Board of Control.
14.27    (d) Administer and supervise all noninstitutional service to disabled persons,
14.28including those who are visually impaired, hearing impaired, or physically impaired
14.29or otherwise disabled. The commissioner may provide and contract for the care and
14.30treatment of qualified indigent children in facilities other than those located and available
14.31at state hospitals when it is not feasible to provide the service in state hospitals.
14.32    (e) Assist and actively cooperate with other departments, agencies and institutions,
14.33local, state, and federal, by performing services in conformity with the purposes of Laws
14.341939, chapter 431.
14.35    (f) Act as the agent of and cooperate with the federal government in matters of
14.36mutual concern relative to and in conformity with the provisions of Laws 1939, chapter
15.1431, including the administration of any federal funds granted to the state to aid in the
15.2performance of any functions of the commissioner as specified in Laws 1939, chapter 431,
15.3and including the promulgation of rules making uniformly available medical care benefits
15.4to all recipients of public assistance, at such times as the federal government increases its
15.5participation in assistance expenditures for medical care to recipients of public assistance,
15.6the cost thereof to be borne in the same proportion as are grants of aid to said recipients.
15.7    (g) Establish and maintain any administrative units reasonably necessary for the
15.8performance of administrative functions common to all divisions of the department.
15.9    (h) Act as designated guardian of both the estate and the person of all the wards of
15.10the state of Minnesota, whether by operation of law or by an order of court, without any
15.11further act or proceeding whatever, except as to persons committed as developmentally
15.12disabled. For children under the guardianship of the commissioner or a tribe in Minnesota
15.13recognized by the Secretary of the Interior whose interests would be best served by
15.14adoptive placement, the commissioner may contract with a licensed child-placing agency
15.15or a Minnesota tribal social services agency to provide adoption services. A contract
15.16with a licensed child-placing agency must be designed to supplement existing county
15.17efforts and may not replace existing county programs or tribal social services, unless the
15.18replacement is agreed to by the county board and the appropriate exclusive bargaining
15.19representative, tribal governing body, or the commissioner has evidence that child
15.20placements of the county continue to be substantially below that of other counties. Funds
15.21encumbered and obligated under an agreement for a specific child shall remain available
15.22until the terms of the agreement are fulfilled or the agreement is terminated.
15.23    (i) Act as coordinating referral and informational center on requests for service for
15.24newly arrived immigrants coming to Minnesota.
15.25    (j) The specific enumeration of powers and duties as hereinabove set forth shall in no
15.26way be construed to be a limitation upon the general transfer of powers herein contained.
15.27    (k) Establish county, regional, or statewide schedules of maximum fees and charges
15.28which may be paid by county agencies for medical, dental, surgical, hospital, nursing and
15.29nursing home care and medicine and medical supplies under all programs of medical
15.30care provided by the state and for congregate living care under the income maintenance
15.31programs.
15.32    (l) Have the authority to conduct and administer experimental projects to test
15.33methods and procedures of administering assistance and services to recipients or potential
15.34recipients of public welfare. To carry out such experimental projects, it is further provided
15.35that the commissioner of human services is authorized to waive the enforcement of
15.36existing specific statutory program requirements, rules, and standards in one or more
16.1counties. The order establishing the waiver shall provide alternative methods and
16.2procedures of administration, shall not be in conflict with the basic purposes, coverage, or
16.3benefits provided by law, and in no event shall the duration of a project exceed four years.
16.4It is further provided that no order establishing an experimental project as authorized by
16.5the provisions of this section shall become effective until the following conditions have
16.6been met:
16.7    (1) the secretary of health and human services of the United States has agreed, for
16.8the same project, to waive state plan requirements relative to statewide uniformity; and
16.9    (2) a comprehensive plan, including estimated project costs, shall be approved by
16.10the Legislative Advisory Commission and filed with the commissioner of administration.
16.11    (m) According to federal requirements, establish procedures to be followed by
16.12local welfare boards in creating citizen advisory committees, including procedures for
16.13selection of committee members.
16.14    (n) Allocate federal fiscal disallowances or sanctions which are based on quality
16.15control error rates for the aid to families with dependent children program formerly
16.16codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the
16.17following manner:
16.18    (1) one-half of the total amount of the disallowance shall be borne by the county
16.19boards responsible for administering the programs. For the medical assistance and the
16.20AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be
16.21shared by each county board in the same proportion as that county's expenditures for the
16.22sanctioned program are to the total of all counties' expenditures for the AFDC program
16.23formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the
16.24food stamp program, sanctions shall be shared by each county board, with 50 percent of
16.25the sanction being distributed to each county in the same proportion as that county's
16.26administrative costs for food stamps are to the total of all food stamp administrative costs
16.27for all counties, and 50 percent of the sanctions being distributed to each county in the
16.28same proportion as that county's value of food stamp benefits issued are to the total of
16.29all benefits issued for all counties. Each county shall pay its share of the disallowance
16.30to the state of Minnesota. When a county fails to pay the amount due hereunder, the
16.31commissioner may deduct the amount from reimbursement otherwise due the county, or
16.32the attorney general, upon the request of the commissioner, may institute civil action
16.33to recover the amount due; and
16.34    (2) notwithstanding the provisions of clause (1), if the disallowance results from
16.35knowing noncompliance by one or more counties with a specific program instruction, and
16.36that knowing noncompliance is a matter of official county board record, the commissioner
17.1may require payment or recover from the county or counties, in the manner prescribed in
17.2clause (1), an amount equal to the portion of the total disallowance which resulted from the
17.3noncompliance, and may distribute the balance of the disallowance according to clause (1).
17.4    (o) Develop and implement special projects that maximize reimbursements and
17.5result in the recovery of money to the state. For the purpose of recovering state money,
17.6the commissioner may enter into contracts with third parties. Any recoveries that result
17.7from projects or contracts entered into under this paragraph shall be deposited in the
17.8state treasury and credited to a special account until the balance in the account reaches
17.9$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be
17.10transferred and credited to the general fund. All money in the account is appropriated to
17.11the commissioner for the purposes of this paragraph.
17.12    (p) Have the authority to make direct payments to facilities providing shelter
17.13to women and their children according to section 256D.05, subdivision 3. Upon
17.14the written request of a shelter facility that has been denied payments under section
17.15256D.05, subdivision 3 , the commissioner shall review all relevant evidence and make
17.16a determination within 30 days of the request for review regarding issuance of direct
17.17payments to the shelter facility. Failure to act within 30 days shall be considered a
17.18determination not to issue direct payments.
17.19    (q) Have the authority to establish and enforce the following county reporting
17.20requirements:
17.21    (1) the commissioner shall establish fiscal and statistical reporting requirements
17.22necessary to account for the expenditure of funds allocated to counties for human
17.23services programs. When establishing financial and statistical reporting requirements, the
17.24commissioner shall evaluate all reports, in consultation with the counties, to determine if
17.25the reports can be simplified or the number of reports can be reduced;
17.26    (2) the county board shall submit monthly or quarterly reports to the department
17.27as required by the commissioner. Monthly reports are due no later than 15 working days
17.28after the end of the month. Quarterly reports are due no later than 30 calendar days after
17.29the end of the quarter, unless the commissioner determines that the deadline must be
17.30shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines
17.31or risking a loss of federal funding. Only reports that are complete, legible, and in the
17.32required format shall be accepted by the commissioner;
17.33    (3) if the required reports are not received by the deadlines established in clause (2),
17.34the commissioner may delay payments and withhold funds from the county board until
17.35the next reporting period. When the report is needed to account for the use of federal
17.36funds and the late report results in a reduction in federal funding, the commissioner shall
18.1withhold from the county boards with late reports an amount equal to the reduction in
18.2federal funding until full federal funding is received;
18.3    (4) a county board that submits reports that are late, illegible, incomplete, or not
18.4in the required format for two out of three consecutive reporting periods is considered
18.5noncompliant. When a county board is found to be noncompliant, the commissioner
18.6shall notify the county board of the reason the county board is considered noncompliant
18.7and request that the county board develop a corrective action plan stating how the
18.8county board plans to correct the problem. The corrective action plan must be submitted
18.9to the commissioner within 45 days after the date the county board received notice
18.10of noncompliance;
18.11    (5) the final deadline for fiscal reports or amendments to fiscal reports is one year
18.12after the date the report was originally due. If the commissioner does not receive a report
18.13by the final deadline, the county board forfeits the funding associated with the report for
18.14that reporting period and the county board must repay any funds associated with the
18.15report received for that reporting period;
18.16    (6) the commissioner may not delay payments, withhold funds, or require repayment
18.17under clause (3) or (5) if the county demonstrates that the commissioner failed to
18.18provide appropriate forms, guidelines, and technical assistance to enable the county to
18.19comply with the requirements. If the county board disagrees with an action taken by the
18.20commissioner under clause (3) or (5), the county board may appeal the action according
18.21to sections 14.57 to 14.69; and
18.22    (7) counties subject to withholding of funds under clause (3) or forfeiture or
18.23repayment of funds under clause (5) shall not reduce or withhold benefits or services to
18.24clients to cover costs incurred due to actions taken by the commissioner under clause
18.25(3) or (5).
18.26    (r) Allocate federal fiscal disallowances or sanctions for audit exceptions when
18.27federal fiscal disallowances or sanctions are based on a statewide random sample for
18.28the foster care program under title IV-E of the Social Security Act, United States Code,
18.29title 42, in direct proportion to each county's title IV-E foster care maintenance claim
18.30for that period.
18.31    (s) Be responsible for ensuring the detection, prevention, investigation, and
18.32resolution of fraudulent activities or behavior by applicants, recipients, and other
18.33participants in the human services programs administered by the department.
18.34    (t) Require county agencies to identify overpayments, establish claims, and utilize
18.35all available and cost-beneficial methodologies to collect and recover these overpayments
18.36in the human services programs administered by the department.
19.1    (u) Have the authority to administer a drug rebate program for drugs purchased
19.2pursuant to the prescription drug program established under section 256.955 after the
19.3beneficiary's satisfaction of any deductible established in the program. The commissioner
19.4shall require a rebate agreement from all manufacturers of covered drugs as defined in
19.5section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on
19.6or after July 1, 2002, must include rebates for individuals covered under the prescription
19.7drug program who are under 65 years of age. For each drug, the amount of the rebate shall
19.8be equal to the rebate as defined for purposes of the federal rebate program in United
19.9States Code, title 42, section 1396r-8. The manufacturers must provide full payment
19.10within 30 days of receipt of the state invoice for the rebate within the terms and conditions
19.11used for the federal rebate program established pursuant to section 1927 of title XIX of
19.12the Social Security Act. The manufacturers must provide the commissioner with any
19.13information necessary to verify the rebate determined per drug. The rebate program shall
19.14utilize the terms and conditions used for the federal rebate program established pursuant to
19.15section 1927 of title XIX of the Social Security Act.
19.16    (v) Have the authority to administer the federal drug rebate program for drugs
19.17purchased under the medical assistance program as allowed by section 1927 of title XIX
19.18of the Social Security Act and according to the terms and conditions of section 1927.
19.19Rebates shall be collected for all drugs that have been dispensed or administered in an
19.20outpatient setting and that are from manufacturers who have signed a rebate agreement
19.21with the United States Department of Health and Human Services.
19.22    (w) Have the authority to administer a supplemental drug rebate program for drugs
19.23purchased under the medical assistance program. The commissioner may enter into
19.24supplemental rebate contracts with pharmaceutical manufacturers and may require prior
19.25authorization for drugs that are from manufacturers that have not signed a supplemental
19.26rebate contract. Prior authorization of drugs shall be subject to the provisions of section
19.27256B.0625, subdivision 13 .
19.28    (x) Operate the department's communication systems account established in Laws
19.291993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared
19.30communication costs necessary for the operation of the programs the commissioner
19.31supervises. A communications account may also be established for each regional
19.32treatment center which operates communications systems. Each account must be used
19.33to manage shared communication costs necessary for the operations of the programs the
19.34commissioner supervises. The commissioner may distribute the costs of operating and
19.35maintaining communication systems to participants in a manner that reflects actual usage.
19.36Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and
20.1other costs as determined by the commissioner. Nonprofit organizations and state, county,
20.2and local government agencies involved in the operation of programs the commissioner
20.3supervises may participate in the use of the department's communications technology and
20.4share in the cost of operation. The commissioner may accept on behalf of the state any
20.5gift, bequest, devise or personal property of any kind, or money tendered to the state for
20.6any lawful purpose pertaining to the communication activities of the department. Any
20.7money received for this purpose must be deposited in the department's communication
20.8systems accounts. Money collected by the commissioner for the use of communication
20.9systems must be deposited in the state communication systems account and is appropriated
20.10to the commissioner for purposes of this section.
20.11    (y) Receive any federal matching money that is made available through the medical
20.12assistance program for the consumer satisfaction survey. Any federal money received for
20.13the survey is appropriated to the commissioner for this purpose. The commissioner may
20.14expend the federal money received for the consumer satisfaction survey in either year of
20.15the biennium.
20.16    (z) Designate community information and referral call centers and incorporate
20.17cost reimbursement claims from the designated community information and referral
20.18call centers into the federal cost reimbursement claiming processes of the department
20.19according to federal law, rule, and regulations. Existing information and referral centers
20.20provided by Greater Twin Cities United Way or existing call centers for which Greater
20.21Twin Cities United Way has legal authority to represent, shall be included in these
20.22designations upon review by the commissioner and assurance that these services are
20.23accredited and in compliance with national standards. Any reimbursement is appropriated
20.24to the commissioner and all designated information and referral centers shall receive
20.25payments according to normal department schedules established by the commissioner
20.26upon final approval of allocation methodologies from the United States Department of
20.27Health and Human Services Division of Cost Allocation or other appropriate authorities.
20.28    (aa) Develop recommended standards for foster care homes that address the
20.29components of specialized therapeutic services to be provided by foster care homes with
20.30those services.
20.31    (bb) Authorize the method of payment to or from the department as part of the
20.32human services programs administered by the department. This authorization includes the
20.33receipt or disbursement of funds held by the department in a fiduciary capacity as part of
20.34the human services programs administered by the department.
20.35    (cc) Have the authority to administer a drug rebate program for drugs purchased for
20.36persons eligible for general assistance medical care under section 256D.03, subdivision 3.
21.1For manufacturers that agree to participate in the general assistance medical care rebate
21.2program, the commissioner shall enter into a rebate agreement for covered drugs as
21.3defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the
21.4rebate shall be equal to the rebate as defined for purposes of the federal rebate program in
21.5United States Code, title 42, section 1396r-8. The manufacturers must provide payment
21.6within the terms and conditions used for the federal rebate program established under
21.7section 1927 of title XIX of the Social Security Act. The rebate program shall utilize
21.8the terms and conditions used for the federal rebate program established under section
21.91927 of title XIX of the Social Security Act.
21.10    Effective January 1, 2006, drug coverage under general assistance medical care shall
21.11be limited to those prescription drugs that:
21.12    (1) are covered under the medical assistance program as described in section
21.13256B.0625, subdivisions 13 and 13d ; and
21.14    (2) are provided by manufacturers that have fully executed general assistance
21.15medical care rebate agreements with the commissioner and comply with such agreements.
21.16Prescription drug coverage under general assistance medical care shall conform to
21.17coverage under the medical assistance program according to section 256B.0625,
21.18subdivisions 13 to 13g .
21.19    The rebate revenues collected under the drug rebate program are deposited in the
21.20general fund.

21.21    Sec. 2. PUBLIC DENTAL COVERAGE PROGRAM STUDY.
21.22    (a) The commissioner of human services shall undertake a study to determine
21.23whether alternative approaches to offering dental coverage to public programs enrollees
21.24would result in:
21.25    (1) improved access to dental care;
21.26    (2) cost savings to providers and the department; and
21.27    (3) improved quality and outcomes of care.
21.28    Alternatives considered shall include moving to a single dental plan administrator,
21.29retaining the current model, and other innovative approaches. Issues relating to chronic
21.30disease management, medical and dental interface, plan payment approaches, and provider
21.31payment should also be addressed. The report must make a recommendation on whether
21.32to alter the current approach to contracting for dental services, and include a detailed
21.33plan on how to implement any changes. The commissioner shall consult with dentists,
21.34safety net dental providers, dental plans, health plans and county-based purchasing
21.35organizations, patients and advocates, and other interested parties in developing their
21.36findings and recommendations.
22.1    (b) By December 15, 2008, the commissioner of human services shall report findings
22.2and recommendations to the chairs of the house of representatives and senate committees
22.3having jurisdiction over health and human services policy and finance.
22.4EFFECTIVE DATE.This section is effective the day following final enactment.


22.7    Section 1. Minnesota Statutes 2007 Supplement, section 256.741, subdivision 1,
22.8is amended to read:
22.9    Subdivision 1. Public assistance Definitions. (a) The term "direct support" as used
22.10in this chapter and chapters 257, 518, 518A, and 518C refers to an assigned support
22.11payment from an obligor which is paid directly to a recipient of TANF or MFIP public
22.12assistance.
22.13    (b) The term "public assistance" as used in this chapter and chapters 257, 518, 518A,
22.14and 518C, includes any form of assistance provided under the AFDC program formerly
22.15codified in sections 256.72 to 256.87, MFIP and MFIP-R formerly codified under chapter
22.16256, MFIP under chapter 256J, work first program formerly codified under chapter 256K;
22.17child care assistance provided through the child care fund under chapter 119B; any form
22.18of medical assistance under chapter 256B; MinnesotaCare under chapter 256L; and foster
22.19care as provided under title IV-E of the Social Security Act.
22.20    (c) The term "child support agency" as used in this section refers to the public
22.21authority responsible for child support enforcement.
22.22    (d) The term "public assistance agency" as used in this section refers to a public
22.23authority providing public assistance to an individual.
22.24    (e) The terms "child support" and "arrears" as used in this section have the meanings
22.25provided in section 518A.26.
22.26    (f) The term "maintenance" as used in this section has the meaning provided in
22.27section 518.003.

22.28    Sec. 2. Minnesota Statutes 2006, section 256.741, subdivision 2, is amended to read:
22.29    Subd. 2. Assignment of support and maintenance rights. (a) An individual
22.30receiving public assistance in the form of assistance under any of the following programs:
22.31the AFDC program formerly codified in sections 256.72 to 256.87, MFIP under chapter
22.32256J, MFIP-R and MFIP formerly codified under chapter 256, or work first program
22.33formerly codified under chapter 256K is considered to have assigned to the state at the
22.34time of application all rights to child support and maintenance from any other person the
23.1applicant or recipient may have in the individual's own behalf or in the behalf of any other
23.2family member for whom application for public assistance is made. An assistance unit is
23.3ineligible for the Minnesota family investment program unless the caregiver assigns all
23.4rights to child support and spousal maintenance benefits according to this section.
23.5    (1) An The assignment made according to this section is effective as to:
23.6    (i) any current child support and current spousal maintenance; and.
23.7    (ii) any accrued child support and spousal maintenance arrears.
23.8    (2) An assignment made after September 30, 1997, is effective as to:
23.9    (i) any current child support and current spousal maintenance;
23.10    (ii) any accrued child support and spousal maintenance arrears collected before
23.11October 1, 2000, or the date the individual terminates assistance, whichever is later; and
23.12    (iii) any accrued child support and spousal maintenance arrears collected under
23.13federal tax intercept.
23.14    (2) Any child support or maintenance arrears that accrue while an individual is
23.15receiving public assistance in the form of assistance under any of the programs listed in
23.16this paragraph are permanently assigned to the state.
23.17    (3) The assignment of current child support and current maintenance ends on the
23.18date the individual ceases to receive or is no longer eligible to receive public assistance
23.19under any of the programs listed in this paragraph.
23.20    (b) An individual receiving public assistance in the form of medical assistance,
23.21including MinnesotaCare, is considered to have assigned to the state at the time of
23.22application all rights to medical support from any other person the individual may have
23.23in the individual's own behalf or in the behalf of any other family member for whom
23.24medical assistance is provided.
23.25    (1) An assignment made after September 30, 1997, is effective as to any medical
23.26support accruing after the date of medical assistance or MinnesotaCare eligibility.
23.27    (2) Any medical support arrears that accrue while an individual is receiving public
23.28assistance in the form of medical assistance, including MinnesotaCare, are permanently
23.29assigned to the state.
23.30    (3) The assignment of current medical support ends on the date the individual ceases
23.31to receive or is no longer eligible to receive public assistance in the form of medical
23.32assistance or MinnesotaCare.
23.33    (c) An individual receiving public assistance in the form of child care assistance
23.34under the child care fund pursuant to chapter 119B is considered to have assigned to the
23.35state at the time of application all rights to child care support from any other person the
24.1individual may have in the individual's own behalf or in the behalf of any other family
24.2member for whom child care assistance is provided.
24.3    An (1) The assignment made according to this paragraph is effective as to:
24.4    (1) any current child care support and any child care support arrears assigned and
24.5accruing after July 1, 1997, that are collected before October 1, 2000; and.
24.6    (2) any accrued child care support arrears collected under federal tax intercept. Any
24.7child support arrears that accrue while an individual is receiving public assistance in the
24.8form of child care assistance under the child care fund in chapter 119B are permanently
24.9assigned to the state.
24.10    (3) The assignment of current child care support ends on the date the individual
24.11ceases to receive or is no longer eligible to receive public assistance in the form of child
24.12care assistance under the child care fund under chapter 119B.

24.13    Sec. 3. Minnesota Statutes 2006, section 256.741, subdivision 2a, is amended to read:
24.14    Subd. 2a. Families-first Distribution of child support arrearages. (a) The
24.15state shall distribute current child support and maintenance received by the state to an
24.16individual who assigns the right to that support under subdivision 2, paragraph (a).
24.17    (b) When the public authority collects child support arrearages on behalf of an
24.18individual who is receiving public assistance provided under MFIP or MFIP-R under
24.19this chapter, MFIP under chapter 256J, or work first under chapter 256K, and the public
24.20authority has the option of applying the collection to arrears permanently assigned to the
24.21state or to arrears temporarily assigned to the state, the public authority shall first apply the
24.22collection to satisfy those arrears that are permanently assigned to the state.
24.23    (c) When the public authority collects child support arrearages on behalf of an
24.24individual who is not receiving public assistance, the public authority shall first apply the
24.25collection to satisfy those arrears that are not permanently assigned to the state.
24.26    (d) When the public authority collects child support arrearages certified under the
24.27federal tax offset, the public authority shall first apply the collection to satisfy those arrears
24.28that are permanently assigned to the state.

24.29    Sec. 4. Minnesota Statutes 2006, section 256.741, subdivision 3, is amended to read:
24.30    Subd. 3. Existing assignments. Assignments based on the receipt of public
24.31assistance in existence prior to July 1, 1997, are permanently assigned to the state. Arrears
24.32that accrued prior to the receipt of assistance that were assigned to the state between July
24.331, 1997, and October 1, 2009, will no longer be assigned as of October 1, 2009.
24.34EFFECTIVE DATE.This section is effective October 1, 2009.

25.1    Sec. 5. Minnesota Statutes 2007 Supplement, section 256J.621, is amended to read:
25.2256J.621 WORK PARTICIPATION BONUS FOOD BENEFITS.
25.3    (a) Effective March 1, 2010, upon exiting the diversionary work program (DWP) or
25.4upon terminating the Minnesota family investment program (MFIP) cash assistance with
25.5earnings, a participant who is employed may be eligible for transitional assistance work
25.6participation food benefits of $75 per month to assist in meeting the family's basic needs
25.7as the participant continues to move toward self-sufficiency.
25.8    (b) To be eligible for a transitional assistance payment work participation food
25.9benefits, the participant shall not receive MFIP cash assistance or diversionary work
25.10program assistance during the month and the participant or participants must meet the
25.11following work requirements:
25.12    (1) if the participant is a single caregiver and has a child under six years of age, the
25.13participant must be employed at least 87 hours per month;
25.14    (2) if the participant is a single caregiver and does not have a child under six years of
25.15age, the participant must be employed at least 130 hours per month; or
25.16    (3) if the household is a two-parent family, at least one of the parents must be
25.17employed an average of at least 130 hours per month.
25.18    Whenever a participant exits the diversionary work program or is terminated from
25.19MFIP cash assistance and meets the other criteria in this section, transitional assistance is
25.20work participation food benefits are available for up to 24 consecutive months.
25.21    (c) Expenditures on the program are maintenance of effort state funds for participants
25.22under paragraph (b), clauses (1) and (2). Expenditures for participants under paragraph
25.23(b), clause (3), are nonmaintenance of effort funds. Months in which a participant receives
25.24transitional assistance work participation food benefits under this section do not count
25.25toward the participant's MFIP 60-month time limit.

25.26    Sec. 6. Minnesota Statutes 2006, section 518A.50, is amended to read:
25.27518A.50 PAYMENT TO PUBLIC AGENCY.
25.28    (a) This section applies to all proceedings involving a support order, including, but
25.29not limited to, a support order establishing an order for past support or reimbursement
25.30of public assistance.
25.31    (b) The court shall direct that all payments ordered for maintenance or support
25.32be made to the public authority responsible for child support enforcement so long as
25.33the obligee is receiving or has applied for public assistance, or has applied for child
25.34support or maintenance collection services. Public authorities responsible for child
25.35support enforcement may act on behalf of other public authorities responsible for child
26.1support enforcement, including the authority to represent the legal interests of or execute
26.2documents on behalf of the other public authority in connection with the establishment,
26.3enforcement, and collection of child support, maintenance, or medical support, and
26.4collection on judgments.
26.5    (c) Payments made to the public authority other than payments under section
26.6518A.53 must be credited as of the date the payment is received by the central collections
26.7unit., except that payments made under section 518A.53 may be considered to have been
26.8paid as of the date the obligor received the remainder of the income.
26.9    (d) Monthly amounts received by the public agency responsible for child support
26.10enforcement from the obligor that are greater than the monthly amount of public assistance
26.11granted to the obligee must be remitted to the obligee.
26.12EFFECTIVE DATE.This section is effective October 1, 2009.

26.13    Sec. 7. Minnesota Statutes 2006, section 518A.53, subdivision 5, is amended to read:
26.14    Subd. 5. Payor of funds responsibilities. (a) An order for or notice of withholding
26.15is binding on a payor of funds upon receipt. Withholding must begin no later than the first
26.16pay period that occurs after 14 days following the date of receipt of the order for or notice
26.17of withholding. In the case of a financial institution, preauthorized transfers must occur in
26.18accordance with a court-ordered payment schedule.
26.19    (b) A payor of funds shall withhold from the income payable to the obligor the
26.20amount specified in the order or notice of withholding and amounts specified under
26.21subdivisions 6 and 9 and shall remit the amounts withheld to the public authority within
26.22seven business days of the date the obligor is paid the remainder of the income. The payor
26.23of funds shall include with the remittance the Social Security number of the obligor, the
26.24case type indicator as provided by the public authority and the date the obligor is paid
26.25the remainder of the income. The obligor is considered to have paid the amount withheld
26.26as of the date the obligor received the remainder of the income. A payor of funds may
26.27combine all amounts withheld from one pay period into one payment to each public
26.28authority, but shall separately identify each obligor making payment.
26.29    (c) A payor of funds shall not discharge, or refuse to hire, or otherwise discipline an
26.30employee as a result of wage or salary withholding authorized by this section. A payor of
26.31funds shall be liable to the obligee for any amounts required to be withheld. A payor of
26.32funds that fails to withhold or transfer funds in accordance with this section is also liable
26.33to the obligee for interest on the funds at the rate applicable to judgments under section
26.34549.09 , computed from the date the funds were required to be withheld or transferred.
26.35A payor of funds is liable for reasonable attorney fees of the obligee or public authority
27.1incurred in enforcing the liability under this paragraph. A payor of funds that has failed
27.2to comply with the requirements of this section is subject to contempt sanctions under
27.3section 518A.73. If the payor of funds is an employer or independent contractor and
27.4violates this subdivision, a court may award the obligor twice the wages lost as a result
27.5of this violation. If a court finds a payor of funds violated this subdivision, the court
27.6shall impose a civil fine of not less than $500. The liabilities in this paragraph apply to
27.7intentional noncompliance with this section.
27.8    (d) If a single employee is subject to multiple withholding orders or multiple notices
27.9of withholding for the support of more than one child, the payor of funds shall comply
27.10with all of the orders or notices to the extent that the total amount withheld from the
27.11obligor's income does not exceed the limits imposed under the Consumer Credit Protection
27.12Act, United States Code, title 15, section 1673(b), giving priority to amounts designated in
27.13each order or notice as current support as follows:
27.14    (1) if the total of the amounts designated in the orders for or notices of withholding
27.15as current support exceeds the amount available for income withholding, the payor of
27.16funds shall allocate to each order or notice an amount for current support equal to the
27.17amount designated in that order or notice as current support, divided by the total of the
27.18amounts designated in the orders or notices as current support, multiplied by the amount
27.19of the income available for income withholding; and
27.20    (2) if the total of the amounts designated in the orders for or notices of withholding
27.21as current support does not exceed the amount available for income withholding, the
27.22payor of funds shall pay the amounts designated as current support, and shall allocate to
27.23each order or notice an amount for past due support, equal to the amount designated in
27.24that order or notice as past due support, divided by the total of the amounts designated in
27.25the orders or notices as past due support, multiplied by the amount of income remaining
27.26available for income withholding after the payment of current support.
27.27    (e) When an order for or notice of withholding is in effect and the obligor's
27.28employment is terminated, the obligor and the payor of funds shall notify the public
27.29authority of the termination within ten days of the termination date. The termination
27.30notice shall include the obligor's home address and the name and address of the obligor's
27.31new payor of funds, if known.
27.32    (f) A payor of funds may deduct one dollar from the obligor's remaining salary for
27.33each payment made pursuant to an order for or notice of withholding under this section to
27.34cover the expenses of withholding.
27.35EFFECTIVE DATE.This section is effective October 1, 2009.

28.1    Sec. 8. Laws 2007, chapter 147, article 2, section 21, the effective date, is amended to
28.2read:
28.3EFFECTIVE DATE.Subdivision 1 is effective February 1, 2008, and subdivision
28.42 is effective May 1, 2008 March 1, 2009.

28.5    Sec. 9. Laws 2007, chapter 147, article 19, section 3, subdivision 1, is amended to read:

28.6

Subdivision 1. Total Appropriation

$

5,294,627,000

$

5,695,458,000

28.7	Appropriations by Fund
28.8		2008	2009
28.9	General	4,614,727,000	4,940,293,000
28.10 28.11	State Government Special Revenue	549,000	565,000
28.12	Health Care Access	426,628,000	492,759,000
28.13	Federal TANF	250,537,000	260,051,000
28.14	Lottery Prize Fund	2,185,000	1,790,000

28.15The amounts that may be spent for each
28.16purpose are specified in the following
28.17subdivisions.
28.18Receipts for Systems Projects.
28.19Appropriations and federal receipts for
28.20information system projects for MAXIS,
28.21PRISM, MMIS, and SSIS must be deposited
28.22in the state system account authorized in
28.23Minnesota Statutes, section 256.014. Money
28.24appropriated for computer projects approved
28.25by the Minnesota Office of Enterprise
28.26Technology, funded by the legislature, and
28.27approved by the commissioner of finance,
28.28may be transferred from one project to
28.29another and from development to operations
28.30as the commissioner of human services
28.31considers necessary. Any unexpended
28.32balance in the appropriation for these
28.33projects does not cancel but is available for
28.34ongoing development and operations.
29.1Pay for Performance. (a) Of the general
29.2fund appropriation, $272,000 each year
29.3is available to the commissioner of
29.4human services only under the following
29.5circumstances:
29.6(1) $272,000 shall be made available by the
29.7commissioner of finance on January 1, 2009,
29.8only after notification by the commissioner
29.9of human services to the commissioner of
29.10finance and to the chairs of the relevant house
29.11of representatives and senate finance and
29.12policy committees that the average number
29.13of days from the receipt of a MinnesotaCare
29.14application at the state processing unit until
29.15the initial eligibility determination of the
29.16application was 30 days or less during the
29.17period October 1, 2007, to September 30,
29.182008. Applications transferred from counties
29.19to the state processing unit are excluded from
29.20this calculation; and
29.21(2) $272,000 shall be made available by the
29.22commissioner of finance on January 1, 2009,
29.23only after notification by the commissioner
29.24of human services to the commissioner of
29.25finance and to the chairs of the relevant
29.26house of representatives and senate finance
29.27and policy committees that the commissioner
29.28initiated a separate treatment program for
29.29persons in the Minnesota sex offenders
29.30program who are between the ages of 18 and
29.3125 by January 1, 2008.
29.32(b) Regardless of whether these
29.33appropriations are made available to
29.34the commissioner of human services, they
30.1shall be part of base level funding for the
30.2biennium beginning July 1, 2009.
30.3Purchasing Alliance Fund Transfer.
30.4On September 1, 2007, any remaining
30.5balance in the purchasing alliance stop-loss
30.6fund account established under Minnesota
30.7Statutes, section 256.956, shall transfer to
30.8the general fund.
30.9Nonfederal Share Transfers. The
30.10nonfederal share of activities for which
30.11federal administrative reimbursement is
30.12appropriated to the commissioner may be
30.13transferred to the special revenue fund.
30.14TANF Maintenance of Effort. (a) In order
30.15to meet the basic MOE requirements of the
30.16TANF block grant specified under Code
30.17of Federal Regulations, title 45, section
30.18263.1, the commissioner may only report
30.19nonfederal money expended for allowable
30.20activities listed in the following clauses as
30.21TANF/MOE expenditures:
30.22(1) MFIP cash, diversionary work program,
30.23and food assistance benefits under Minnesota
30.24Statutes, chapter 256J;
30.25(2) the child care assistance programs
30.26under Minnesota Statutes, sections 119B.03
30.27and 119B.05, and county child care
30.28administrative costs under Minnesota
30.29Statutes, section 119B.15;
30.30(3) state and county MFIP administrative
30.31costs under Minnesota Statutes, chapters
30.32256J and 256K;
31.1(4) state, county, and tribal MFIP
31.2employment services under Minnesota
31.3Statutes, chapters 256J and 256K;
31.4(5) expenditures made on behalf of
31.5noncitizen MFIP recipients who qualify
31.6for the medical assistance without federal
31.7financial participation program under
31.8Minnesota Statutes, section 256B.06,
31.9subdivision 4 , paragraphs (d), (e), and (j);
31.10and
31.11(6) qualifying working family credit
31.12expenditures under Minnesota Statutes,
31.13section 290.0671.
31.14(b) The commissioner shall ensure that
31.15sufficient qualified nonfederal expenditures
31.16are made each year to meet the state's
31.17TANF/MOE requirements. For the activities
31.18listed in paragraph (a), clauses (2) to
31.19(6), the commissioner may only report
31.20expenditures that are excluded from the
31.21definition of assistance under Code of
31.22Federal Regulations, title 45, section 260.31.
31.23(c) The commissioner shall ensure that the
31.24MOE used by the commissioner of finance
31.25for the February and November forecasts
31.26required under Minnesota Statutes, section
31.2716A.103 , contains expenditures under
31.28paragraph (a), clause (1), equal to at least 16
31.29percent of the total required under Code of
31.30Federal Regulations, title 45, section 263.1.
31.31(d) For the federal fiscal year beginning
31.32October 1, 2007, the commissioner may not
31.33claim an amount of TANF/MOE in excess of
31.34the 75 percent standard in Code of Federal
32.1Regulations, title 45, section 263.1(a)(2),
32.2except:
32.3(1) to the extent necessary to meet the 80
32.4percent standard under Code of Federal
32.5Regulations, title 45, section 263.1(a)(1),
32.6if it is determined by the commissioner
32.7that the state will not meet the TANF work
32.8participation target rate for the current year;
32.9(2) to provide any additional amounts under
32.10Code of Federal Regulations, title 45, section
32.11264.5, that relate to replacement of TANF
32.12funds due to the operation of TANF penalties;
32.13(3) to provide any additional amounts that
32.14may contribute to avoiding or reducing
32.15TANF work participation penalties through
32.16the operation of the excess MOE provisions
32.17of Code of Federal Regulations, title 45,
32.18section 261.43(a)(2); and
32.19(4) for the purposes of clauses (1) to (3),
32.20the commissioner may supplement the
32.21MOE claim with working family credit
32.22expenditures to the extent such expenditures
32.23or other qualified expenditures are otherwise
32.24available after considering the expenditures
32.25allowed in this section.
32.26(e) If allowable by the federal Office of
32.27Family Assistance, the commissioner may
32.28claim excess MOE with respect to federal
32.29fiscal years 2006 and 2007 to the extent
32.30that working family credit expenditures are
32.31otherwise available to supplement the state's
32.32MOE claim for those years after considering
32.33the expenditures allowed in this subdivision.
33.1If other qualified expenditures are
33.2available, the commissioner may use those
33.3expenditures as excess MOE and shall
33.4report those expenditures to the chairs of
33.5the senate and house of representatives
33.6Finance Committees, the senate Health and
33.7Human Services Budget Division, and house
33.8of representatives Health Care and Human
33.9Services Finance Division by April 15, 2008.
33.10(d) (e) Minnesota Statutes, section 256.011,
33.11subdivision 3 , which requires that federal
33.12grants or aids secured or obtained under that
33.13subdivision be used to reduce any direct
33.14appropriations provided by law, does not
33.15apply if the grants or aids are federal TANF
33.16funds.
33.17(e) (f) Notwithstanding any contrary
33.18provision in this article, this rider expires
33.19June 30, 2011.
33.20Working Family Credit Expenditures as
33.21TANF/MOE. The commissioner may claim
33.22as TANF/MOE up to $6,707,000 per year
33.23for fiscal year 2008 through fiscal year 2011.
33.24Notwithstanding any contrary provision in
33.25this article, this rider expires June 30, 2011.
33.26Additional Working Family Credit
33.27Expenditures to be Claimed for
33.28TANF/MOE. In addition to the amounts
33.29provided in this section, the commissioner
33.30may count the following amounts of working
33.31family credit expenditure as TANF/MOE:
33.32(1) fiscal year 2008, $11,097,000
33.33$28,222,000;
34.1(2) fiscal year 2009, $25,401,000
34.2$42,526,000;
34.3(3) fiscal year 2010, $20,398,000; and
34.4(4) fiscal year 2011, $19,841,000.
34.5Notwithstanding any contrary provision in
34.6this article, this rider expires June 30, 2011.
34.7Capitation Rate Increase. Of the health care
34.8access fund appropriations to the University
34.9of Minnesota in the higher education
34.10omnibus appropriation bill, $2,157,000 in
34.11fiscal year 2008 and $2,157,000 in fiscal year
34.122009 are to be used to increase the capitation
34.13payments under Minnesota Statutes, section
34.14256B.69 .

34.15    Sec. 10. REPEALER.
34.16Minnesota Statutes 2006, sections 256.741, subdivision 15; and 256J.24, subdivision
34.176, are repealed.


34.20    Section 1. Minnesota Statutes 2006, section 256.969, subdivision 2b, is amended to
34.21read:
34.22    Subd. 2b. Operating payment rates. In determining operating payment rates for
34.23admissions occurring on or after the rate year beginning January 1, 1991, and every two
34.24years after, or more frequently as determined by the commissioner, the commissioner
34.25shall obtain operating data from an updated base year and establish operating payment
34.26rates per admission for each hospital based on the cost-finding methods and allowable
34.27costs of the Medicare program in effect during the base year. Rates under the general
34.28assistance medical care, medical assistance, and MinnesotaCare programs shall not be
34.29rebased to more current data on January 1, 1997, and January 1, 2005, and for the first
34.30year of the rebased period beginning January 1, 2009. The base year operating payment
34.31rate per admission is standardized by the case mix index and adjusted by the hospital
34.32cost index, relative values, and disproportionate population adjustment. The cost and
34.33charge data used to establish operating rates shall only reflect inpatient services covered
35.1by medical assistance and shall not include property cost information and costs recognized
35.2in outlier payments.

35.3    Sec. 2. Minnesota Statutes 2006, section 256.969, subdivision 20, is amended to read:
35.4    Subd. 20. Increases in medical assistance inpatient payments; conditions. (a)
35.5Medical assistance inpatient payments shall increase 20 percent for inpatient hospital
35.6originally paid admissions, excluding Medicare crossovers, that occurred between July 1,
35.71988 and December 31, 1990, if: (i) the hospital had 100 or fewer Minnesota medical
35.8assistance annualized paid admissions, excluding Medicare crossovers, that were paid by
35.9March 1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the hospital had 100
35.10or fewer licensed beds on March 1, 1988; (iii) the hospital is located in Minnesota; and
35.11(iv) the hospital is not located in a city of the first class as defined in section 410.01.
35.12For purposes of this paragraph, medical assistance does not include general assistance
35.13medical care.
35.14    (b) Medical assistance inpatient payments shall increase 15 percent for inpatient
35.15hospital originally paid admissions, excluding Medicare crossovers, that occurred between
35.16July 1, 1988 and December 31, 1990, if: (i) the hospital had more than 100 but fewer
35.17than 250 Minnesota medical assistance annualized paid admissions, excluding Medicare
35.18crossovers, that were paid by March 1, 1988, for the period January 1, 1987 to June 30,
35.191987; (ii) the hospital had 100 or fewer licensed beds on March 1, 1988; (iii) the hospital
35.20is located in Minnesota; and (iv) the hospital is not located in a city of the first class as
35.21defined in section 410.01. For purposes of this paragraph, medical assistance does not
35.22include general assistance medical care.
35.23    (c) Medical assistance inpatient payment rates shall increase 20 percent for inpatient
35.24hospital originally paid admissions, excluding Medicare crossovers, that occur on or
35.25after October 1, 1992, if: (i) the hospital had 100 or fewer Minnesota medical assistance
35.26annualized paid admissions, excluding Medicare crossovers, that were paid by March
35.271, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the hospital had 100 or
35.28fewer licensed beds on March 1, 1988; (iii) the hospital is located in Minnesota; and (iv)
35.29the hospital is not located in a city of the first class as defined in section 410.01. For a
35.30hospital that qualifies for an adjustment under this paragraph and under subdivision 9 or
35.3123, the hospital must be paid the adjustment under subdivisions 9 and 23, as applicable,
35.32plus any amount by which the adjustment under this paragraph exceeds the adjustment
35.33under those subdivisions. For this paragraph, medical assistance does not include general
35.34assistance medical care.
36.1    (d) Medical assistance inpatient payment rates shall increase 15 percent for inpatient
36.2hospital originally paid admissions, excluding Medicare crossovers, that occur after
36.3September 30, 1992, if: (i) the hospital had more than 100 but fewer than 250 Minnesota
36.4medical assistance annualized paid admissions, excluding Medicare crossovers, that
36.5were paid by March 1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the
36.6hospital had 100 or fewer licensed beds on March 1, 1988; (iii) the hospital is located in
36.7Minnesota; and (iv) the hospital is not located in a city of the first class as defined in
36.8section 410.01. For a hospital that qualifies for an adjustment under this paragraph and
36.9under subdivision 9 or 23, the hospital must be paid the adjustment under subdivisions
36.109 and 23, as applicable, plus any amount by which the adjustment under this paragraph
36.11exceeds the adjustment under those subdivisions. For purposes of this paragraph, medical
36.12assistance does not include general assistance medical care.
36.13    (e) For admissions occurring on or after July 1, 2008, fee-for-service inpatient
36.14payments must increase eight percent for a hospital with a medical assistance inpatient
36.15utilization rate of 17.95 percent of total patient days as of the base year in effect on July 1,
36.162005, and nine percent for a hospital with a medical assistance inpatient utilization rate of
36.1759.60 percent of total patient days as of the base year in effect on July 1, 2005. Payments
36.18made to managed care plans must not be increased to reflect this increase. For purposes of
36.19this paragraph, medical assistance does not include general assistance medical care.

36.20    Sec. 3. Minnesota Statutes 2006, section 256B.0571, subdivision 8, is amended to read:
36.21    Subd. 8. Program established. (a) The commissioner, in cooperation with the
36.22commissioner of commerce, shall establish the Minnesota partnership for long-term care
36.23program to provide for the financing of long-term care through a combination of private
36.24insurance and medical assistance.
36.25    (b) An individual who meets the requirements in this paragraph is eligible to
36.26participate in the partnership program. The individual must:
36.27    (1) be a Minnesota resident at the time coverage first became effective under the
36.28partnership policy; and
36.29    (2) be a beneficiary of a partnership policy that (i) is issued on or after the effective
36.30date of the state plan amendment implementing the partnership program in Minnesota, or
36.31(ii) qualifies as a partnership policy under the provisions of subdivision 8a; and.
36.32    (3) have exhausted all of the benefits under the partnership policy as described in this
36.33section. Benefits received under a long-term care insurance policy before July 1, 2006, do
36.34not count toward the exhaustion of benefits required in this subdivision.

36.35    Sec. 4. Minnesota Statutes 2006, section 256B.0571, subdivision 9, is amended to read:
37.1    Subd. 9. Medical assistance eligibility. (a) Upon application for medical assistance
37.2program payment of long-term care services by an individual who meets the requirements
37.3described in subdivision 8, the commissioner shall determine the individual's eligibility
37.4for medical assistance according to paragraphs (b) to (i).
37.5    (b) After determining assets subject to the asset limit under section 256B.056,
37.6subdivision 3 or 3c, or 256B.057, subdivision 9 or 10, the commissioner shall allow the
37.7individual to designate assets to be protected from recovery under subdivisions 13 and
37.815 up to the dollar amount of the benefits utilized under the partnership policy as of the
37.9effective date of eligibility for medical assistance program payment of long-term care
37.10services. Benefits utilized under a long-term care insurance policy before July 1, 2006,
37.11do not count for the purpose of determining the amount of assets that can be designated.
37.12Designated assets shall be disregarded for purposes of determining eligibility for payment
37.13of long-term care services. The dollar amount of benefits utilized must be equal to the
37.14amount of claims paid by the issuer under the policy as verified by the issuer.
37.15    (c) The individual shall identify the designated assets and the full fair market value
37.16of those assets and designate them as assets to be protected at the time of initial application
37.17for medical assistance payment of long-term care services. The full fair market value of
37.18real property or interests in real property shall be based on the most recent full assessed
37.19value for property tax purposes for the real property, unless the individual provides a
37.20complete professional appraisal by a licensed appraiser to establish the full fair market
37.21value. The extent of a life estate in real property shall be determined using the life estate
37.22table in the health care program's manual. Ownership of any asset in joint tenancy shall be
37.23treated as ownership as tenants in common for purposes of its designation as a disregarded
37.24asset. The unprotected value of any protected asset is subject to estate recovery according
37.25to subdivisions 13 and 15.
37.26    (d) The right to designate assets to be protected is personal to the individual and
37.27ends when the individual dies, except as otherwise provided in subdivisions 13 and
37.2815. It does not include the increase in the value of the protected asset and the income,
37.29dividends, or profits from the asset. It may be exercised by the individual or by anyone
37.30with the legal authority to do so on the individual's behalf. It shall not be sold, assigned,
37.31transferred, or given away.
37.32    (e) If the dollar amount of the benefits utilized under a partnership policy is greater
37.33than the full fair market value of all assets protected at the time of the application for
37.34medical assistance long-term care services, As the individual continues to utilize benefits
37.35under a partnership policy after eligibility for medical assistance payment of long-term
37.36care services begins, the individual may designate, for additional protection, an increase
38.1in the value of protected assets and additional assets that become available during the
38.2individual's lifetime for protection under this section up to the amount of additional
38.3benefits utilized. The individual must make the designation in writing to the county agency
38.4no later than the last date on which the individual must report a change in circumstances to
38.5the county agency, as provided for under the medical assistance program. Any excess used
38.6for this purpose shall not be available to the individual's estate to protect assets in the estate
38.7from recovery under section 256B.15 or 524.3-1202, or otherwise. The amount used for
38.8this purpose must reduce the unused amount of asset protection available to protect assets
38.9in the individual's estate from recovery under section 256B.15 or 524.3-1202, or otherwise.
38.10    (f) This section applies only to estate recovery under United States Code, title 42,
38.11section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other
38.12provisions of federal law, including, but not limited to, recovery from trusts under United
38.13States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from
38.14annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of
38.15the Deficit Reduction Act of 2005, Public Law 109-171.
38.16    (g) An individual's protected assets owned by the individual's spouse who applies
38.17for payment of medical assistance long-term care services shall not be protected assets or
38.18disregarded for purposes of eligibility of the individual's spouse solely because they were
38.19protected assets of the individual.
38.20    (h) Assets designated under this subdivision shall not be subject to penalty under
38.21section 256B.0595.
38.22    (i) The commissioner shall otherwise determine the individual's eligibility
38.23for payment of long-term care services according to medical assistance eligibility
38.24requirements.

38.25    Sec. 5. Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 1,
38.26is amended to read:
38.27    Subdivision 1. Co-payments. (a) Except as provided in subdivision 2, the medical
38.28assistance benefit plan shall include the following co-payments for all recipients, effective
38.29for services provided on or after October 1, 2003, and before January 1, 2009:
38.30    (1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an
38.31episode of service which is required because of a recipient's symptoms, diagnosis, or
38.32established illness, and which is delivered in an ambulatory setting by a physician or
38.33physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
38.34audiologist, optician, or optometrist;
38.35    (2) $3 for eyeglasses;
39.1    (3) $6 for nonemergency visits to a hospital-based emergency room; and
39.2    (4) $3 per brand-name drug prescription and $1 per generic drug prescription,
39.3subject to a $12 per month maximum for prescription drug co-payments. No co-payments
39.4shall apply to antipsychotic drugs when used for the treatment of mental illness.
39.5    (b) Except as provided in subdivision 2, the medical assistance benefit plan shall
39.6include the following co-payments for all recipients, effective for services provided on
39.7or after January 1, 2009:
39.8    (1) $6 for nonemergency visits to a hospital-based emergency room; and
39.9    (2) $3 per brand-name drug prescription and $1 per generic drug prescription,
39.10subject to a $7 per month maximum for prescription drug co-payments. No co-payments
39.11shall apply to antipsychotic drugs when used for the treatment of mental illness.
39.12    (3) For individuals with income at or below 100 percent of the federal poverty
39.13guidelines, total monthly co-payments must not exceed five percent of family income.
39.14For purposes of this paragraph, family income is the total earned and unearned income of
39.15the individual and the individual's spouse, if the spouse is enrolled in medical assistance
39.16and also subject to the five percent limit on co-payments.
39.17    (c) Recipients of medical assistance are responsible for all co-payments in this
39.18subdivision.

39.19    Sec. 6. Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 3,
39.20is amended to read:
39.21    Subd. 3. Collection. (a) The medical assistance reimbursement to the provider shall
39.22be reduced by the amount of the co-payment, except that reimbursement for prescription
39.23drugs reimbursements shall not be reduced:
39.24    (1) once a recipient has reached the $12 per month maximum or the $7 per month
39.25maximum effective January 1, 2009, for prescription drug co-payments; or
39.26    (2) for a recipient under 100 percent of the federal poverty guidelines who has met
39.27their monthly five percent co-payment limit.
39.28    (b) The provider collects the co-payment from the recipient. Providers may not deny
39.29services to recipients who are unable to pay the co-payment.
39.30    (c) Medical assistance reimbursement to fee-for-service providers and payments to
39.31managed care plans shall not be increased as a result of the removal of the co-payments
39.32effective January 1, 2009.

39.33    Sec. 7. [256B.194] FEDERAL PAYMENTS.
39.34    Subdivision 1. Payments at actual cost. Notwithstanding any other statute or rule
39.35to the contrary, for providers that are units of government, the commissioner may limit
40.1medical assistance and MinnesotaCare payments to a provider's actual cost of providing
40.2services, according to the Centers for Medicare and Medicaid Services (CMS) final rule
40.3referenced in this subdivision. The commissioner may also require medical assistance
40.4and MinnesotaCare providers to provide any information necessary to determine
40.5Medicaid-related costs, and require the cooperation of providers in any audit or review
40.6necessary to ensure payments are limited to cost. This section does not apply to providers
40.7who are exempt from the provisions of the CMS final rule. This subdivision becomes
40.8effective when the CMS final rule, published May 29, 2007, at Federal Register, Vol. 72,
40.9No. 100, governing payments to providers that are units of government goes into effect at
40.10the end of the moratorium imposed by Congress.
40.11    Subd. 2. Loss of federal financial participation. For all transfers, certified
40.12expenditures, and medical assistance payments listed in this subdivision, if the
40.13commissioner determines that federal financial participation is no longer available for the
40.14medical assistance payments listed, then related obligations for the nonfederal share of
40.15payments and the medical assistance payments must terminate. The commissioner shall
40.16notify all affected parties of the loss of federal financial participation, and the resulting
40.17payments and obligations that are terminated. If the commissioner determines that federal
40.18financial participation is no longer available for any medical assistance payments or
40.19contributions to the nonfederal share of medical assistance payments that have already
40.20been made, the commissioner may collect the medical assistance payments from providers
40.21and return contributions of the nonfederal share to its source. The transfers, certified
40.22expenditures, and medical assistance payments subject to this section are those specified in
40.23section 62J.692, subdivision 7, paragraphs (b) and (c); 256B.19, subdivisions 1c and 1d;
40.24256B.195; 256B.431, subdivision 23; and 256B.69, subdivision 5c, paragraph (a), clauses
40.25(2) to (4); Laws 2002, chapter 220, article 17, section 2, subdivision 3; and Laws 2005,
40.26First Special Session chapter 4, article 9, section 2, subdivision 1.

40.27    Sec. 8. Minnesota Statutes 2007 Supplement, section 256B.199, is amended to read:
40.28256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
40.29    (a) Effective July 1, 2007, the commissioner shall apply for federal matching funds
40.30for the expenditures in paragraphs (b) and (c).
40.31    (b) The commissioner shall apply for federal matching funds for certified public
40.32expenditures as follows:
40.33    (1) Hennepin County, and Hennepin County Medical Center, Ramsey County,
40.34Regions Hospital, the University of Minnesota, and Fairview-University Medical Center
41.1shall report quarterly to the commissioner beginning June 1, 2007, payments made during
41.2the second previous quarter that may qualify for reimbursement under federal law;
41.3    (2) based on these reports, the commissioner shall apply for federal matching funds.
41.4These funds are appropriated to the commissioner for the payments under section 256.969,
41.5subdivision 27 to offset medical assistance expenditures; and
41.6    (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform
41.7the nonstate entities listed in this paragraph (a) of the amount of federal disproportionate
41.8share hospital payment money expected to be available in the current federal fiscal year.
41.9    (c) The commissioner shall apply for federal matching funds for general assistance
41.10medical care expenditures as follows:
41.11    (1) for hospital services occurring on or after July 1, 2007, general assistance medical
41.12care expenditures for fee-for-service inpatient and outpatient hospital payments made by
41.13the department shall be used to apply for federal matching funds, except as limited below:
41.14    (i) only those general assistance medical care expenditures made to an individual
41.15hospital that would not cause the hospital to exceed its individual hospital limits under
41.16section 1923 of the Social Security Act may be considered; and
41.17    (ii) general assistance medical care expenditures may be considered only to the extent
41.18of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
41.19    (2) all hospitals must provide any necessary expenditure, cost, and revenue
41.20information required by the commissioner as necessary for purposes of obtaining federal
41.21Medicaid matching funds for general assistance medical care expenditures.
41.22EFFECTIVE DATE.This section is effective retroactively from July 1, 2007.

41.23    Sec. 9. Minnesota Statutes 2006, section 256B.69, subdivision 5a, is amended to read:
41.24    Subd. 5a. Managed care contracts. (a) Managed care contracts under this section
41.25and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year
41.26basis beginning January 1, 1996. Managed care contracts which were in effect on June
41.2730, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995
41.28through December 31, 1995 at the same terms that were in effect on June 30, 1995. The
41.29commissioner may issue separate contracts with requirements specific to services to
41.30medical assistance recipients age 65 and older.
41.31    (b) A prepaid health plan providing covered health services for eligible persons
41.32pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms
41.33of its contract with the commissioner. Requirements applicable to managed care programs
41.34under chapters 256B, 256D, and 256L, established after the effective date of a contract
41.35with the commissioner take effect when the contract is next issued or renewed.
42.1    (c) Effective for services rendered on or after January 1, 2003, the commissioner
42.2shall withhold five percent of managed care plan payments under this section for the
42.3prepaid medical assistance and general assistance medical care programs pending
42.4completion of performance targets. Each performance target must be quantifiable,
42.5objective, measurable, and reasonably attainable, except in the case of a performance
42.6target based on a federal or state law or rule. Criteria for assessment of each performance
42.7target must be outlined in writing prior to the contract effective date. The withheld funds
42.8must be returned no sooner than July of the following year if performance targets in the
42.9contract are achieved. The commissioner may exclude special demonstration projects
42.10under subdivision 23. A managed care plan or a county-based purchasing plan under
42.11section 256B.692 may include as admitted assets under section 62D.044 any amount
42.12withheld under this paragraph that is reasonably expected to be returned.
42.13    (d)(1) Effective for services rendered on or after January 1, 2009, the commissioner
42.14shall withhold an additional two percent of managed care plan payments under this section
42.15for the prepaid medical assistance and general assistance medical care programs. The
42.16withheld funds must be returned no sooner than July 1 and no later than July 31 of the
42.17following year. The commissioner may exclude special demonstration projects under
42.18subdivision 23.
42.19    (2) A managed care plan or a county-based purchasing plan under section 256B.692
42.20may include as admitted assets under section 62D.044 any amount withheld under this
42.21paragraph that is reasonably expected to be returned.

42.22    Sec. 10. Minnesota Statutes 2006, section 256L.12, subdivision 9, is amended to read:
42.23    Subd. 9. Rate setting; performance withholds. (a) Rates will be prospective,
42.24per capita, where possible. The commissioner may allow health plans to arrange for
42.25inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with
42.26an independent actuary to determine appropriate rates.
42.27    (b) For services rendered on or after January 1, 2003, to December 31, 2003, the
42.28commissioner shall withhold .5 percent of managed care plan payments under this section
42.29pending completion of performance targets. The withheld funds must be returned no
42.30sooner than July 1 and no later than July 31 of the following year if performance targets
42.31in the contract are achieved. A managed care plan may include as admitted assets under
42.32section 62D.044 any amount withheld under this paragraph that is reasonably expected
42.33to be returned.
42.34    (c) For services rendered on or after January 1, 2004, the commissioner shall
42.35withhold five percent of managed care plan payments under this section pending
43.1completion of performance targets. Each performance target must be quantifiable,
43.2objective, measurable, and reasonably attainable, except in the case of a performance
43.3target based on a federal or state law or rule. Criteria for assessment of each performance
43.4target must be outlined in writing prior to the contract effective date. The withheld
43.5funds must be returned no sooner than July 1 and no later than July 31 of the following
43.6calendar year if performance targets in the contract are achieved. A managed care plan or
43.7a county-based purchasing plan under section 256B.692 may include as admitted assets
43.8under section 62D.044 any amount withheld under this paragraph that is reasonably
43.9expected to be returned.
43.10    (d) For services rendered on or after January 1, 2009, the commissioner shall
43.11withhold an additional two percent of managed care plan payments under this section. The
43.12withheld funds must be returned no sooner than July 1 and no later than July 31 of the
43.13following calendar year. A managed care plan or a county-based purchasing plan under
43.14section 256B.692 may include as admitted assets under section 62D.044 any amount
43.15withheld under this paragraph that is reasonably expected to be returned.

43.16    Sec. 11. REPEALER.
43.17 Minnesota Statutes 2007 Supplement, section 256.969, subdivision 27, is repealed
43.18retroactively from July 1, 2007.

43.21

Section 1. HEALTH AND HUMAN SERVICES APPROPRIATION.

43.22    The sums shown in the columns marked "Appropriations" are added to or, if shown
43.23in parentheses, subtracted from the appropriations in Laws 2007, chapter 147, or other
43.24law to the agencies and for the purposes specified in this article. The appropriations
43.25are from the general fund, or another named fund, and are available for the fiscal years
43.26indicated for each purpose. The figures "2008" and "2009" used in this article mean
43.27that the addition or subtraction from appropriations listed under them are available for
43.28the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The first year" is
43.29fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years
43.302008 and 2009. Supplemental appropriations and reductions for the fiscal year ending
43.31June 30, 2008, are effective the day following final enactment.

43.32				APPROPRIATIONS
43.33				Available for the Year
43.34				Ending June 30
43.35					2008		2009

44.1

Sec. 2. HUMAN SERVICES

44.2

Subdivision 1.Total Appropriation

$

(34,855,000)

$

(56,265,000)

44.3	Appropriations by Fund
44.4		2008	2009
44.5	General	(51,980,000)	(80,296,000)
44.6	Health Care Access	0	(3,292,000)
44.7	Federal TANF	17,125,000	27,323,000

44.8

Subd. 2.Agency Management

44.9

Financial Operations

0

(5,867,000)

44.10The amounts that may be spent from the
44.11appropriation for each purpose are as follows:
44.12Base Adjustment. The general fund base
44.13is increased $23,000 in fiscal year 2010 and
44.14$26,000 in fiscal year 2011.

44.15 44.16

Subd. 3.Revenue and Pass-Through Revenue Expenditures

44.17

Federal TANF

25,000,000

27,039,000

44.18Additional TANF Transfer to Social
44.19Services Block Grant. In addition
44.20to transfers allowed under prior law,
44.21$21,000,000 in fiscal year 2009 is
44.22appropriated to the commissioner for the
44.23purposes of providing services for families
44.24with children whose incomes are at or below
44.25200 percent of the federal poverty guidelines.
44.26The commissioner shall authorize a sufficient
44.27transfer of funds from the state's federal
44.28TANF block grant to the state's federal
44.29social services block grant to meet this
44.30appropriation. The funds must be distributed
44.31to counties for the children and community
44.32services grant according to the formula for
44.33state appropriations in Minnesota Statutes,
44.34chapter 256M.
45.1Additional TANF Transfer to Child
45.2Care and Development Fund. In
45.3addition to transfers allowed under prior
45.4law, $25,000,000 in fiscal year 2008
45.5and $6,039,000 in fiscal year 2009 are
45.6appropriated to the commissioner for the
45.7purposes of MFIP transition year child care
45.8under Minnesota Statutes, section 119B.05.
45.9The commissioner shall authorize transfer
45.10of sufficient TANF funds to the federal
45.11child care and development fund to meet
45.12this appropriation and shall ensure that all
45.13transferred funds are expended according to
45.14the federal child care and development fund
45.15regulations.

45.16 45.17

Subd. 4.Children and Economic Assistance Grants

45.18The amounts that may be spent from this
45.19appropriation for each purpose are as follows:

45.20

(a) MFIP/DWP Grants

45.21	Appropriations by Fund
45.22	General	(17,125,000)	(25,959,000)
45.23	Federal TANF	17,125,000	27,323,000

45.24

(b) MFIP Child Care Assistance Grants

0

0

45.25

(c) Children's Services Grants

(311,000)

(1,663,000)

45.26Base Adjustment. The general fund base
45.27is increased $1,726,000 in fiscal year 2010
45.28and $1,742,000 in fiscal year 2011 due to
45.29the onetime increase in adoption assistance
45.30grants and the onetime decreases in relative
45.31custody assistance grants, and the delayed
45.32rate increase and county shift for children's
45.33mental health grants.
45.34Funding Usage. Up to 75 percent of the
45.35fiscal year 2010 appropriation for children's
46.1mental health screening grants may be used
46.2to fund calendar year 2009 allocations for
46.3these programs, with the resulting calendar
46.4year funding pattern continuing into the
46.5future.

46.6

Subd. 5.Basic Health Care Grants

46.7The amounts that may be spent from this
46.8appropriation for each purpose are as follows:

46.9

(a) MinnesotaCare Grants

46.10

Health Care Access

0

(3,292,000)

46.11 46.12

(b) MA Basic Health Care Grants - Families and Children

(17,985,000)

(24,848,000)

46.13Hospital Payment Delay. Notwithstanding
46.14Laws 2005, First Special Session chapter 4,
46.15article 9, section 2, subdivision 6, payments
46.16from the Medicaid Management Information
46.17System that would otherwise have been made
46.18for inpatient hospital services for medical
46.19assistance enrollees are delayed as follows:
46.20(1) for fiscal year 2008, the last payments for
46.21the month of June must be included in the
46.22first payments in fiscal year 2009; and (2)
46.23for fiscal year 2009, the last payments in the
46.24month of June must be included in the first
46.25payment of fiscal year 2010. The provisions
46.26of Minnesota Statutes, section 16A.124, shall
46.27not apply to these delayed payments.

46.28 46.29

(c) MA Basic Health Care Grants - Elderly and Disabled

(14,028,000)

(2,254,000)

46.30Minnesota Disabilities Options Service
46.31Limits. Enrollment of new members into the
46.32Minnesota disability health options program
46.33under Minnesota Statutes, section 256B.69,
46.34subdivision 23, must be limited to provision
46.35of state plan basic care services as defined
47.1under Minnesota Statutes, section 256B.69,
47.2subdivision 28, after July 1, 2008, except that
47.3nursing home services will remain capitated
47.4at 180 days. Notwithstanding any contrary
47.5section in this article, this provision expires
47.6June 30, 2011.
47.7Critical Access Dental Reimbursement.
47.8Effective for fiscal years beginning on or after
47.9July 1, 2009, funding for medical assistance
47.10critical access dental reimbursement rates
47.11shall be paid from the health care access
47.12fund.

47.13

(d) General Assistance Medical Care Grants

47.14	Appropriations by Fund
47.15	General	0	(3,729,000)

47.16

(e) Other Health Care Grants

0

(212,000)

47.17MinnesotaCare Outreach Grants Special
47.18Revenue Account. The balance in the
47.19MinnesotaCare outreach grants special
47.20revenue account at the close of fiscal year
47.212008 must be transferred to the general fund.

47.22

Subd. 6.Health Care Management

47.23The amounts that may be spent from the
47.24appropriation for each purpose are as follows:

47.25

Health Care Administration

47.26	Appropriations by Fund
47.27	General	0	100,000

47.28

Subd. 7.Continuing Care Grants

47.29The amounts that may be spent from the
47.30appropriation for each purpose are as follows:

47.31

(a) MA Long-Term Care Facilities Grants

(2,306,000)

(2,291,000)

47.32 47.33

(b) MA Long-Term Care Waivers and Home Care Grants

0

(5,397,000)

48.1Manage Growth in TBI and CADI Waiver.
48.2During the fiscal years beginning on July
48.31, 2008, July 1, 2009, and July 1, 2010,
48.4the commissioner shall allocate money
48.5for home and community-based programs
48.6covered under Minnesota Statutes, section
48.7256B.49, to ensure a reduction in state
48.8spending that is equivalent to limiting the
48.9caseload growth of the traumatic brain injury
48.10(TBI) waiver to 200 diversions in each
48.11year of the biennium and the community
48.12alternatives for disabled individuals (CADI)
48.13waiver to 1,500 diversions each year of the
48.14biennium. Priorities for the allocation of
48.15funds must be for individuals anticipated to
48.16be discharged from institutional settings or
48.17who are at imminent risk of a placement in
48.18an institutional setting. Notwithstanding any
48.19contrary section in this article, this provision
48.20expires June 30, 2011.

48.21

(c) Mental Health Grants

0

(4,555,000)

48.22Base Adjustment. The general fund base
48.23is increased $5,270,000 in fiscal year 2010
48.24and $5,450,000 in fiscal year 2011 due to the
48.25county payment shift for adult mental health
48.26grants.

48.27

(d) Chemical Dependency Entitlement Grants

0

(1,503,000)

48.28Payments for Substance Abuse Treatment.
48.29For services provided in fiscal year 2009,
48.30county-negotiated rates and provider claims
48.31to the consolidated chemical dependency
48.32fund must not exceed rates charged for
48.33services in excess of those in effect on
48.34May 31, 2008. If statutes authorize a
48.35cost-of-living adjustment during fiscal year
49.12009, then notwithstanding any law to the
49.2contrary, fiscal year 2009 rates may not
49.3exceed those in effect on May 31, 2008, plus
49.4any authorized cost-of-living adjustments.
49.5Chemical Dependency Treatment Fund
49.6Special Revenue Account.
49.7The lesser of the balance of the consolidated
49.8chemical dependency treatment fund at the
49.9close of fiscal year 2008 or $2,500,000 must
49.10be transferred and deposited into the general
49.11fund.

49.12 49.13

(e) Chemical Dependency Nonentitlement Grants

0

2,150,000

49.14Base Level Adjustment. The general
49.15fund base for chemical dependency
49.16nonentitlement treatment grants shall be
49.17increased by $150,000 for fiscal years
49.182010 and 2011 for increased grants for
49.19methamphetamine treatment.
49.20American Indian Youth Program. Of
49.21the health care access fund appropriation,
49.22$2,000,000 in fiscal year 2009 is for grants
49.23to be awarded competitively to American
49.24Indian tribes to purchase or develop one or
49.25more culturally specific treatment programs
49.26designed to serve youth from native cultures.
49.27This appropriation is onetime and available
49.28until spent.

49.29

(f) Other Continuing Care Grants

0

(4,381,000)

49.30Base Level Adjustment. The general fund
49.31base is increased $7,633,000 in fiscal year
49.322010 and $5,332,000 in fiscal year 2011, due
49.33to the onetime reduction of HIV grants in
49.34fiscal year 2009, an increase each year for
50.1housing grants under Minnesota Statutes,
50.2section 256B.0658, and the adjustment
50.3for the county grant payment shift for
50.4developmental disability semi-independent
50.5services grants and developmental disability
50.6family support grants.
50.7Housing Access Grants. Of the general
50.8fund appropriation, $250,000 is appropriated
50.9in fiscal year 2009 for housing access
50.10grants under Minnesota Statutes, section
50.11256B.0658.
50.12Funding Usage. Up to 75 percent of
50.13the fiscal year 2010 appropriation for
50.14developmental disability semi-independent
50.15living services grants and developmental
50.16disability family support grants may be used
50.17to fund calendar year 2009 allocations for
50.18these programs, with the resulting calendar
50.19year funding pattern continuing into the
50.20future.

50.21

Subd. 8.State-Operated Services

50.22County Past Due Receivables. The
50.23commissioner is authorized to withhold
50.24county federal administrative reimbursement
50.25when the county of financial responsibility
50.26for cost-of-care payments due to the state
50.27under Minnesota Statutes, section 246.54
50.28or 253B.045, is 180 days past due. The
50.29commissioner shall deposit the federal
50.30administrative withholding into the general
50.31fund to settle the claims with the county of
50.32financial responsibility.

50.33

Mental Health Services

(225,000)

(300,000)

50.34

Sec. 3.Health Department

51.1Federally Qualified Health Centers.
51.2Effective for fiscal years beginning on
51.3or after July 1, 2009, the general fund
51.4appropriation of $1,500,000 each fiscal year
51.5for federally qualified health centers under
51.6Minnesota Statutes, section 145.9269, is
51.7eliminated and is replaced by a $1,500,000
51.8appropriation each fiscal year from the health
51.9care access fund.
51.10MERC Federal Compliance. Effective
51.11for fiscal years beginning on or after July
51.121, 2009, the general fund appropriation of
51.13$2,000,000 each fiscal year to the Mayo
51.14Clinic for the purpose of providing transition
51.15funding while federal compliance changes
51.16are made to the medical education and
51.17research cost funding distribution formula is
51.18eliminated and is replaced by a $2,000,000
51.19appropriation each fiscal year from the health
51.20care access fund.

51.23 51.24

Section 1. SUMMARY OF APPROPRIATIONS; DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.

51.25    The dollar amounts shown are added to or, if shown in parentheses, are subtracted
51.26from the appropriations in Laws 2007, chapter 147, from the general fund, or any other
51.27fund named, to the Department of Human Services for the purposes specified in this
51.28article, to be available for the fiscal year indicated for each purpose. The figure "2008"
51.29used in this article means that the appropriation or appropriations listed are available for
51.30the fiscal year ending June 30, 2008. The figure "2009" used in this article means that the
51.31appropriation or appropriations listed are available for the fiscal year ending June 30, 2009.

51.32					2008		2009
51.33	General			$	6,739,000	$	52,350,000
51.34	Health Care Access				(84,156,000)		(96,019,000)
51.35	TANF				(28,427,000)		(7,441,000)
51.36	Total			$	(105,844,000)	$	(51,110,000)

52.1 52.2

Sec. 2. COMMISSIONER OF HUMAN SERVICES

52.3

Subdivision 1.Total Appropriation

$

(105,844,000)

$

(51,110,000)

52.4	Appropriations by Fund
52.5		2008	2009
52.6	General	6,739,000	52,350,000
52.7	Health Care Access	(84,156,000)	(96,019,000)
52.8	TANF	(28,427,000)	(7,441,000)

52.9

Subd. 2.Revenue and Pass Through

52.10

TANF

1,187,000

1,507,000

52.11 52.12

Subd. 3.Children and Economic Assistance Grants

52.13	General	(4,960,000)	5,925,000
52.14	TANF	(29,614,000)	(8,948,000)

52.15The amounts that may be spent from this
52.16appropriation for each purpose are as follows:

52.17	(a) MFIP/DWP Grants
52.18	General	25,139,000	11,665,000
52.19	TANF	(29,614,000)	(8,948,000)
52.20	(b) MFIP Child Care Assistance Grants
52.21	General	(26,141,000)	(10,710,000)
52.22	(c) General Assistance Grants
52.23	General	2,529,000	6,033,000
52.24	(d) Minnesota Supplemental Aid Grants
52.25	General	299,000	500,000
52.26	(e) Group Residential Housing Grants
52.27	General	(6,786,000)	(1,563,000)

52.28

Subd. 4.Basic Health Care Grants

52.29	General	30,075,000	48,389,000
52.30	Health Care Access	(84,156,000)	(96,019,000)

52.31The amounts that may be spent from this
52.32appropriation for each purpose are as follows:

52.33	(a) MinnesotaCare
52.34	Health Care Access	(84,156,000)	(96,019,000)
53.1	(b) MA Basic Health Care - Families and Children
53.2	General	13,525,000	7,005,000
53.3	(c) MA Basic Health Care - Elderly and Disabled
53.4	General	(2,292,000)	5,479,000
53.5	(d) General Assistance Medical Care
53.6	General	18,842,000	35,905,000

53.7

Subd. 5.Continuing Care Grants

53.8

General

(18,376,000)

(1,964,000)

53.9The amounts that may be spent from this
53.10appropriation for each purpose are as follows:

53.11	(a) MA Long-Term Care Facilities
53.12	General	(10,986,000)	(2,148,000)
53.13	(b) MA Long-Term Care Waivers
53.14	General	(18,484,000)	(13,598,000)
53.15	(c) Chemical Dependency Entitlement Grants
53.16	General	11,094,000	13,782,000"

53.17Amend the title accordingly